The Legal Environment Of Business: A Critical Thinking Approach
13-1
Chapter 13
Law of Property—Real and Personal
Introduction
Chapter Thirteen addresses these questions:
• What is real property?
• What are the various interests in real property, and what is the significance of each?
• How can one voluntarily transfer real property?
• How is real property transferred involuntarily?
• What is personal property?
• What are the global dimensions of property law?
Achieving Teaching Excellence
Encouraging Students to Ask Better Questions
The past few chapters of this Instructor’s Manual have encouraged instructors to ask higher-
order thinking questions, encourage class discussion, and get students to interact with one
another. This chapter reminds instructors to encourage students to ask specific kinds of
questions. Just as instructors should ask students certain kinds of questions if they want to
achieve teaching excellence, they should also encourage their students to ask interesting,
important questions. Here are some questions instructors might want to ask:
• What is an uninteresting question? Have you heard any of these?
Most instructors want students to ask questions that are consistent with their goals for them.
Instructors want them to engage in higher-order thinking, and they should insist that not only
their comments, but also their questions, move them toward higher-order thinking.
To get started in encouraging students to ask better questions, instructors should notice for a
few days the kinds of questions students are asking. Instructors should write down the questions,
The Legal Environment Of Business: A Critical Thinking Approach
13-2
or ask someone else to observe a class and write down the questions. Second, instructors should
Beers explained her exercise. During each week of the term, she asked students to write
three questions that related to class discussion, readings, or independent thinking. Copies of the
questions were made available to each student. Beers returned the questions with a handout that
Next, each student was assigned two questions to classify according to the taxonomy. Beers
discussed in class the utility of the taxonomy and the function of different kinds of questions.
Beers noted that students seemed to appreciate that higher-order thinking questions were more
interesting. She encouraged students to write higher-order thinking questions.
Students categorized questions four times during the term. Beers stated that students wrote
more questions that called for evaluation as the term progressed. By the end of the term, Beers
Beers concluded her description by presenting this quote by M.T. Moore: “The productive
question is more important and often a greater achievement than the solution.”
Why not try Beers’ exercise when instructors and students work on Chapter Thirteen?
References
The Legal Environment Of Business: A Critical Thinking Approach
13-3
(1985).
Chapter Overview, Topic Outline, and Discussion Questions
Chapter Overview
When people hear the word property, they generally think of physical objects—land, houses,
cars. Property, however, is a bundle of rights and interests in relation to other persons with
Topic Outline
I. Real Property
A. Definition of Real Property
1. Fixtures
B. Extent of Ownership
II. Interests in Real Property
A. Fee Simple Absolute
B. Conditional Estate
H. Co-Ownership
I. Condominiums and Cooperatives
1. Condominiums
2. Cooperatives
III. Voluntary Transfer of Real Property
A. Execution
The Legal Environment Of Business: A Critical Thinking Approach
13-4
2. Quitclaim Deed
B. Delivery
IV. Involuntary Transfer of Real Property
1. Susette Kelo et al., Petitioners, v. City of New London, Connecticut, et al.
1. Emine Bayram V. City of Binghamton and City of Binghamton Zoning Board of Appeals
C. Other Statutory Restrictions on Land Use
VI. Personal Property
A. Voluntary Transfer of Personal Property
VII. Global Dimensions of Property Law
VIII. Summary
Discussion Questions for Chapter Thirteen
1. Explain relationships between real and personal property.
Real property is land and everything permanently attached to it. All property that is not real
2. Explain relationships between a fee simple absolute and life estate.
The fee simple absolute and the life estates are two different interests in real property. The
4. Explain relationships between easements and licenses.
The Legal Environment Of Business: A Critical Thinking Approach
13-5
5. Explain relationships between a quitclaim deed and adverse possession.
A quitclaim deed is one way to voluntarily transfer property, whereas adverse possession is
6. Explain relationships between restrictive covenants and zoning.
Restrictive covenants and zoning are both restrictions on land use. Restrictive covenants are
promises people voluntarily enter into that restrict the ways they will use the land. For
7. Explain relationships between gifts and bailments.
One way people voluntarily transfer property is through a gift. Gifts are distinguished from
Answers to Critical Thinking about the Law Questions, Case Summaries,
Answers to Review Questions, Review Problems, and Case Problems
Suggested Answers to Critical Thinking about the Law Questions
The Legal Environment Of Business: A Critical Thinking Approach
13-6
2. The ethical norm that would lead to redistribution of property rights is justice. Justice is
3. Instead of stating, “this property is mine,” nations or individuals in different nations could
explain what rights they have over property. What are they allowed to do with the property
they are referring to? Can they use it as a security? Do they have the right to sell? Or can
they donate it? And what restrictions do they have on their rights to the property? Simply
Case Summary—Plum Creek C.A. v. Oleg Borman
A tenant in the Plum Creek Condominium community wanted laminate floors in his
condominium. The request was granted in 2001, with the caveat that should noise complaints
arise the flooring would be carpeted at the tenant’s expense. Eight years later complaints of
excessive noise arose, which led to an assessed fine of $500; the fine would be suspended,
Suggested Answers to Critical Thinking about the Law Questions
1. The court noted that the stated purpose of the restrictive covenant, to soundproof the
The Legal Environment Of Business: A Critical Thinking Approach
13-7
2. The portion of the agreement that led to the court’s decision against Borman was the
Case Summary—Susette Kelo et al., Petitioners, v. City of New London, Connecticut, et al.
This case deals with condemnation. The city wanted to build a new waterfront area to
revitalize the city and create new jobs. This involved taking some pieces of private property.
Case Summary—Emine Bayram v. City Of Binghamton and City of Binghamton Zoning
Board of Appeals
This case deals with zoning. A single-family residence was leased to seven Binghamton
University students by Bayram, for two years. The City of Binghamton received a complaint that
Answers to Review Questions
13-1. The reason why each of the following is or is not real property is explained below:
a. A fence is real property because it is attached to the land, and its removal would
cause damage to the property.
The Legal Environment Of Business: A Critical Thinking Approach
13-8
13-3. The circumstances under which each of the following types of ownership would be most
desirable are as follows:
a. Joint tenancy—a person who wants equal shares, does not mind that creditors can
13-4. To transfer property, the owner must follow the proper procedures. These are execution,
13-5. A general warranty deed is preferred over a quitclaim deed. A general warranty deed
transfers ownership of property and contains certain promises by the grantor, such as the
13-6. Condemnation and adverse possession are both involuntary transfers of real property.
Adverse possession provides that when a person openly treats realty as his or her own,
without protest or permission from the real owner, for a statutorily established period of
Answers to Review Problems
13-7. The court would most likely grant the injunction because Carlos only owns the land as
The Legal Environment Of Business: A Critical Thinking Approach
13-9
13-8. No, as long as the set of CC&Rs does not contradict a federal or state law, they are
binding on the owners. In this case, there is no law demanding the use of artificial grass
13-9. It would be difficult to win this case as the defense would argue that rezoning was carried
13-10. No, building a sports arena would not qualify as condemnation because the city can only
declare eminent domain to use the land for a public good. In County of Wayne v.
13-11. Judy should win, unless there is evidence that she abandoned the Pepsi. If Judy discarded
or abandoned the Pepsi, Cindy would become its owner when she possessed it. From
13-12. Bailment benefits both the bailor and bailee, so the bailee, the New Colonial Hotel, is
Answers to Case Problems
13-13. The Supreme Court of South Carolina found in favor of the defendant landfill company,
13-14. At the trial court level, the only causes of action to survive summary judgment were the
Baruks’ claims against the Nwankwos alleging common law trespass and nuisance.
The Legal Environment Of Business: A Critical Thinking Approach
13–10
13-15. The rent control ordinance does constitute a taking since the city does have the authority
to take up ordinances related to mobilehome rent. These matters are based on legislative
13-16. In this case, the court recognized the emotional distress and the loss of companionship
13-17. The appellant court reversed the trial court’s ruling to award the plaintiff money for his
Thinking Critically about Relevant Legal Issues
1. It would be useful to know what the eminent domain is being used for, how much the
community would benefit from a new structure built using eminent domain, which
2. One would need to know what properties and how many properties are being seized through
3. If the issue is worded to focus only on the benefits that are brought to society and
businesses, it is likely the public with agree with the government’s use of eminent domain.
The Legal Environment Of Business: A Critical Thinking Approach
13–11