Graded Homework

1.
Jeff owns a house. There is a
throw rug in the house on a tile floor.
Which of the following is most likely to meet the definition of a fixture?

a.	the house.
b.	the throw rug.
c.	the tile floor.
d.	None of the above

2.
Floyd tells his daughter Glenda
that she can have his Harley Davidson when he dies, but he does not modify his
will to specify this. His will provides that all of his tangible personal
property be distributed to his son, Tom.
Whatis the legal effect of Floyd telling his daughter that she can have
his Harley Davidson when he dies?

a.	It constitutes an effective intestate disposition.
b.	It constitutes a valid inter vivos gift.
c.	It constitutes a valid specific testamentary devise.
d.	It is not a valid gift.

3.
Delacroix discovers a boat
adrift, and he retrieves and anchors it. The boat has a number on its side and
other evidence pointing to its owner, Elvira.
This is

a.	an involuntary bailment when Delacroix retrieves and anchors it.
b.	a bailment once Delacroix gets in touch with Elvira provided Elvira tells Delacroix to hold the boat until she can retrieve it.
c.	an express bailment because of the information regarding the owner of the boat.
d.	not a bailment.

4.
Jack and Jill, who are brother
and sister, own 10,000 shares of stock in ABC Corporation. Because of the manner in which title is set
up, on the death of either owner, that owner’s interest in the stock will pass
by operation of law to the surviving owner who will own all of the shares, outright.
What type of ownership interest is this?

a.	a tenancy in common.
b.	a life estate.
c.	a joint tenancy.
d.	a tenancy by the entireties.

5.
Donna signs a one-year lease with
Landlord to occupy an apartment in College Town, near the University ofCollege
Town. Donna needs the apartment only for two semesters and may have to sublet
it for the rest of the term. Donna’s
tenancy is

a.	a periodic tenancy.
b.	a tenancy at will.
c.	a tenancy by the entirety.
d.	a tenancy for years.

6. Grey
had two children, Ham and Ivy, but both children predeceased Grey. Ham was
survived by a daughter, Jess, who survived Grey, and Ivy was survived by two
sons, Kato and Lars, who survived Grey. Grey’s will provides for a per stirpes distribution of the residue of
the estate which means that

a.	each grandchild will receive one-third of the residue of the estate.
b.	Jess will receive one-half of the residue of the estate, and Kato and Lars will each receive one-fourth of the residue of the estate.
c.	Jess will receive the entire estate.
d.	the grandchildren will not receive anything, and the estates of Ham and Ivy will each receive one-half of the residue of the estate.

7.
Orin creates a living trust to
pass his assets, including stock in Petro Oil Company and other business
investments, to his heirs. One advantage of this arrangement is that

a.	income taxes do not have to be paid on trust earnings.
b.	the assets are not subject to estate taxes.
c.	the assets can be transferred without going through probate.
d.	the trust does not come into existence until the grantor’s death.

8.
Fay is a newly admitted partner
in Global Associates, an existing partnership. Shortly after she becomes a
partner, a partnership debt that was incurred by the partnership before the
date of her admission comes due. Fay is

a.	not liable for the debt.
b.	only liable for the debt up to the amount of her capital contribution.
c.	personally liable only to the extent the other partners do not pay.
d.	personally liable to the full extent of the debt.

9. Jack
purchases a $100,000 face amount whole life policy on his life. He names his
wife as beneficiary. The next year Jack sells his policy to his very good
friend, Jill. Jill changes the policy beneficiary designation to herself. When
Jack dies

a. Jill will not be able to collect the
$100,000 because she did not have an insurable interest in Jack’s life.

b. Jack’s wife will collect the $100,000
because the beneficiary designation change was ineffective.,

c. Jill can collect the $100,000 policy
proceeds.

d. Jack’s wife can successfully sue the
life insurance company to collect the $100,000 already paid to Jill.

10. Tom dies owning stock as tenant in
common with his son, having bank accounts in his name in trust for his
daughter, and owning real estate as tenants by the entirety with his wife. The trustee of Tom’s revocable trust holds
title the rest of his assets. Under the
terms of the revocable trust, all assets of the trust will be distributed to
Tom’s son and daughter on Tom’s death. Tom’s wife, son and daughter survive
him. Under the terms of Tom’s will, Tom leaves all of his property to his
mother, who also survived him. Tom mother will receive

a.	nothing, as Tom died intestate.
b.	nothing, as there were no probate assets.
c.	whateverremains in the probate estate after the administration of the probate estate.
d.	None of the above.

11. Bernie wants to go into the business of
construction contracting. Among the reasons that would probably convince Bernie
to set up his business as a sole proprietorship would be

a.	its greater flexibility.
b.	its limited liability.
c.	its perpetual existence.
d.	the ease of transferring the business to other family members.

12. Euro Autos & Trucks,
Inc., licenses Downtown Motors, an automobile dealership, to sell its products.
This is

a.	a chain-style franchise.
b.	a distributorship franchise.
c.	a manufacturing franchise.
d.	no franchise.

13. Gelato
Company is a franchisor. Sue operates a Gelato Company franchise. Ralph is one
of Sue’s employees. As a franchisor, if GelatoCompany controls the day-to-day
operations of the business to a significant degree, it may be liable for
tortious acts by

a.	no one.
b.	Gelato Company only.
c.	GelatoCompany and Sue, but not Ralph.
d.	Gelato Company, Sue, and Ralph.

14. With Meg’s
permission, Nell cuts the trees growing on Meg’s land. Nell sells the timber to
Olin, who converts it to a variety of wood products. Of the items mentioned in
the last sentence, what is personal property?

a.	The timber but only after the trees are cut, and the wood products.
b.	Only the wood products.
c.	Only, after the trees are cut, the timber.
d.	The trees, the timber after the trees are cut, and the wood products.

15. Mom leases
a commercial building to operate Mom’s Diner. During the term of the lease, Momhas
a new roof installed, installs a walk-in cooler, and repaves the parking lot,
all at her own expense. Of the items mentioned the last sentence, what is most likely to meet the definition of a trade
fixture?

a.	the cooler.
b.	the parking lot.
c.	the roof.
d.	none of these choices.

16. Debbie delivers her dress to Daytime Cleaners
for dry cleaning. Daytime Cleaner’s clerk promises that the dress will be ready
within five business days. Debbie agrees to pay the charge for the cleaning
when she picks up the dress. This constitutes

a.	an implied bailment.
b.	an involuntary bailment.
c.	an express bailment.
d.	no bailment.

17. Tommy gives
his spouse, Bobbi, her own golf cart that Bobbi can use while playing golf in
the golf community in which they live, as well as to do errands locally. Tommy
tells Bobbi that the cart is at the clubhouse.
Bobbi goes to the clubhouse, and Durwood, the attendant, gives Bobbi key
number “12” and points to the cart lot behind the clubhouse. This is

a.	constructive delivery.
b.	physical delivery.
c.	not a delivery until Bobbi turns the key and starts the cart.
d.	no delivery.

18. Joy leaves her shoes Service for Shoes for repair. This is a bailment for

a.	neither party’s benefit.
b.	the parties’ mutual benefit.
c.	the sole benefit of the bailee.
d.	the sole benefit of the bailor.

19. City Transportation
Company (CTC) agrees to pick up two containers for Unlimited Sales, Inc., and to
unpack and store the contents of the container until Unlimited Sales, Inc.
picks up the contents in a month. While
CTC is unloading one of the containers, the other container disappears from CTC’s
loading dock.These facts give rise to

a.	a presumption of negligence by CTC.
b.	a presumption of theft by a third party.
c.	a presumption of theft by CTC.
d.	No presumption, and Unlimited Sales Inc.’s liability for the container’s loss.

20. City
Transportation Company (CTC) agrees to pick up two containers for Unlimited
Sales, Inc., and to the unpack and store the contents of the container until
Unlimited Sales, Inc. picks up the contents
in a month. While CTC is unloading one of the containers, the other
container disappears from CTC’s loading dock. CTC

a.	Can avoid liability by proof that CTC was not negligent.
b.	Can avoid liability by proof that CTC’s warehouse is located in a high-crime area.
c.	Can avoid liability by proof that Unlimited Sales, Inc. was negligent in hiring CTC.

21. Jay dies
without a will. Therefore, the
distribution of Jay’s probate property is prescribed by

a.	a court-appointed executor.
b.	federal probate statutes.
c.	state intestacy laws.
d.	Jay’s relatives.

22. Jenny’s will
provides that her condominium in Hollywood, Florida be distributed to her
sister Janet. This is

a.	a general legacy.
b.	a residuary.
c.	a specific devise.
d.	none of the above.

23. Jeffrey’s
will provides that the sum of $20,000 be distributed to his friend, Susie. This
is

a.	a general bequest.
b.	a general devise.
c.	a specific bequest.
d.	a specific devise.

24. Eve executes a will. In order for her will to
be valid, she must be mentally competent at the time of

a.	herdeath.
b.	the acquisition of the property to be distributed under the will.
c.	her execution of the will.
d.	Her execution of the will and at her death.

25. Dan executeda
will that provided that a specific sum of money be distributed to each ten surviving
relatives. However, the assets of Dan’s probate estate are not sufficient to pay
all of thebequest in full. This situation requires

a.	an abatement.
b.	a publication.
c.	a residuary.
d.	a revocation.

26. Murray asks
Linda to serve as a witness to the execution of Murray’s will. To qualify as a
witness, Linda must be

a.	a collateral heir.
b.	a lineal descendant.
c.	eighteen years of age or older.
d.	mentally competent.

27. Susan types what
she entitles “My Will,” prints it out, signs it, and places it in her
safe. Susan has the requisite capacity to make a will. “My Will” is

a.	valid, since Susan signed the document.
b.	invalid, even though Susan signed the document.
c.	valid, if Susan signedthe document and gave a copy to the person named as Executor.
d.	valid, if Susan signed the document and filed a copy with the probate court.

28. Deidre
executes her will which provides that she leaves “to my nephew Esau my
stock in Cargo, Inc.” Later, Deidre writes on a separate writing, with the
same formalities required for a will, a document in which she leaves the stock in
Cargo, Inc. to her niece Josephina and cash, to Esau, in an amount equal to the
value of the Cargo, Inc. as of the date of her death. The later writing

a.	does not affect the will’s bequest of the stock to Esau.
b.	requires a distribution of the stock in equal shares to Esau and Josephina.
c.	revokes the whole will, which must be redrafted.
d.	revokes the will bequest of the stock to Esau.

29. Benny dies
without a will, with no surviving spouse or child. Benny’s survivors include
his granddaughter Callie, his nephew Doug, and his cousin Earl. In most states,
his estate would pass to

a.	Callie.
b.	Doug.
c.	Earl.
d.	the state.

30. Cliff dies without a will, owning only
probate assets.Cliff’s survivors include his children, Alex and Fay, and his
girlfriend of 30 years, Susan. Under law of most states, Susan will probably
receive

a.	everything.
b.	nothing.
c.	an elective share.
d.	an intestate share.

31. Gus dies
without a will. Under state law, the debts of his estate are paid by Gus’s

a.	estate, after the assets are distributed.
b.	estate, before the assets are distributed.
c.	heirs, after the estate’s assets are distributed.
d.	heirs, before the estate’s assets are distributed.

32. Gwyn dies
without a will, survived by her nephew, Halsey, and her aunt, Ilene. Halsey and
Ilene are Gwyn’s

a.	collateral heirs.
b.	grantors.
c.	testators.
d.	lineal descendants.

33. Phil wants
to put some money in trust for his son Gregor, but Phil does not want to lose
full control over the funds in case Phil needsthe funds in the future. One method
of achieving Phil’s purpose is by using

a.	a charitable trust.
b.	a constructive trust.
c.	a resulting trust.
d.	a Totten trust.

34. Bren leases an apartment from Cris for
one year. After two months, she sublets the premises for the next six months to
Dee, without obtaining Cris’s con­sent. Dee pays the rent for only four months.
For the last two months of Dee’s six-month term, Bren is

a. liable for the rent, because Dee
defaulted.

b. liable for the rent, because the
sublease lacked Cris’s consent.

c. not liable for the rent, because Bren
does not own the apartment.

d. not liable for the rent, because Bren
sublet the premises to Dee.

35. Limited
liability partnerships and limited liability limited partnerships

a. are subject to substantially different
federal income tax rules.

b. will
always be inferior to limited liability companies as business entities.

c. limit the liability of general
partners.

d. are not required to have written
partnership agreements.

36. Billy and Larry
form a partnership for the purpose of building three roadside barbecue
restaurants. Their partnership can best be described as

a. a syndicate.

b. joint venture.

c. private equity enterprise.

d. cooperative.

37. Sid rents
an apartment from Tower Properties, Inc. The lease, which ends on May 31, does
not include an option for re­newal, and Sid and Tower Properties, Inc. do not
discuss whether Sid can stay on at the end of the term. On June 1, Sid has

a. an implied option to renew the term.

b.a right to remain
contingent on notice from Town.

c.a right to remain
subject to notice to Town.

d.no right to remain.

38. Trina pays a premium to
United Insurance Corporation for fire insurance to insure against the loss of
her Viewpoint Office Building. After the sale of the building to Wade has
closed, the building burns down. Under the policy, United must pay

a. neither Trina nor Wade.

b. Trina and Wade.

c. Trina only.

d. Wade only.

39. Which of
the following statements, if any, is true?

a. A fixture is not included in a sale of
land unless the contract provides for it.

b. The most common way to acquire personal
property is to “capture” it.

c. Production is a means of acquiring
ownership of personal property.

d. A gift is effective whether or not it
is accepted.

e. None of
the above.

40. In order to be enforceable, a
residential lease must

a. require that the tenant maintain
liability insurance.

b. state the due date for rental
payments.

c. be in writing.

d. entitle the tenant to exclusive
possession of the leased property.

41. MNO Company maintained two standard
fire insurance policies on one of its warehouses. Both policies included an 80% coinsurance
clause and a typical “other insurance clause” for multiple policies. One policy was with Fire Insurance, Inc.
(Fire) for $24,000, and the other was with Casualty Co (Casualty), for
$16,000. When the warehouse was worth
$100,000, a fire in the warehouse caused a $40,000 loss. What amount can MNO recover from Fire and
Casualty, respectively?

a. $24,000 and $16,000.

b. $12,000 and $8,000.

c. None from either.

d. $10,000 and $10,000.

42. Sue, Nancy, and Tom were deeded a piece
of land as tenants in common. The deed
provided that Sue owned an undivided one-third of the land, Nancy owned an
undivided one-third of the land, and Tom owned one-third of the land, as
tenants in common.Tom died, with Sue and Nancy surviving him. How is the property owned after Tom’s death
if Tom died intestate?

a. Sueowns one-third, Nancy owns
one-third, and Tom owns one-third.

b. Sue owns one-half, Nancy owns
one-quarter, and Tom’s heirs own one-quarter.

c. Sue owns one-half and Nancy owns
one-half.

d. Sue owns one-third, Nancy owns
one-third, and Tom’s heirs own a third.

43. HIJ Corporation leased 50,000 square
feet in an office building from Tom under a written twenty-year lease. Which of the following statements is true?

a. Tom’s sale of the office building will
terminate the lease unless both HIJ Corporation and the buyer consented to the
assumption of the lease by the buyer.

b. If Tom’s dies during the term of the
lease, Tom’s death will terminate the lease, and HIJ Corporation will be able
to recover any resulting damages from Tom’s estate.

c. In the absence of a provision in the
lease to the contrary, HIJ Corporation would need Tom’s consent to enter into a
sublease with another party.

d. In the absence of a provision in the
lease to the contrary, HIJ Corporation does not need Tom’s consent to assign
the lease to another party.

44. Jamie is a residential tenant with a
10-year written lease. In the absence of
specific provisions in the lease to the contrary, which of the following
statements is false?

a. The premises may be sublet for
less than the full remaining lease term.

b. Jamie may assign the lease.

c. Jamie’s purchase of the property
will not terminate the lease.

d. The landlord’s death not will
automatically terminate the lease.

45. Which of the following deeds give the
grantee the greatest amount of protection?

a. Grantee’s deed.

b. Bargain and sale deed.

c. Quitclaim deed.

d. Warranty deed.

46. Yost contracted with Egan for Yost to
buy certain real property. If the
contract is otherwise silent, Yost’s rights under the contract are

a. Assignable only with Egan’s
consent.

b. Nonassignable because they are
personal to Yost.

c. Generally assignable.

d. Nonassignable as a matter of law.

47. Lauren creates an
irrevocable trust and appoints a bank as trustee. Lauren will receive the
income of the trust for her life, but this is the only power or right she will
retain in the trust. Upon her death, the assets then remaining in the trust
will pass to her two children, per stirpes. One disadvantage of this arrangement
is that

a.	If one of Lauren’s children predeceases her, the assets of the trust will all go to the child who survives her.
b.	If one of Lauren’s children precedeases her, the assets of the trust that would have gone to the child who predeceased Lauren will go to Lauren’s probate estate.
c.	the assets can be transferred without going through probate.
d.	Lauren will not have control over the assets transferred to the trust.

48. Holly holds
herself out as the managing partner of Interstate Investments (Interstate), a
partnership, even though she has no connection to the firm, and obtains a loan
based on this misrepresentation. Holly’s default on the loan results in

a. Holly and Interstate’s joint liability
for the amount of the loan.

b. Holly’s sole liability for the amount
of the loan.

c. Interstate’s sole liability for the
amount of the loan.

d. neither Holly’s nor Interstate’s
liability for the amount of the loan.

49. Ed borrows a
ladder from a neighbor, Floyd, who is not aware that one of the rungs is loose.
Ed falls from the ladder because of the loose rung and is injured. Liability
for the injury most likely rests with

a. Ed and Floyd.

b. Ed only.

c. Floyd only.

d. neither Ed nor Floyd.

50. Sue, Nancy, and Tom were deeded a piece
of land as joint tenants with right of survivorship. How is the property owned after Tom’s death
if Tom died intestate?

a. Sue owns one-third, Nancy owns
one-third, and Tom estate owns one-third, as tenants in common.

b. Sue owns one-quarter, Nancy owns
one-quarter, and Tom’s heirs own half.

c. Sue owns one-half and Nancy owns
one-half, as joint tenants with right of survivorship.

d. None of the above.