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1. Landlord-tenant relationships are governed by a mixture of property law, contract law, and
negligence law.
Answer: True
2. Tom rented an apartment from Margaret on a month-to-month basis, with rent due on the
first of the month. This type of tenancy is known as a "tenancy at will."
Answer: False
3. If the court awards a partition to co-tenants, the court will normally attempt a partition by
kind. If partition by kind is impossible, because there is no fair way to divide the property, the
court will order the real estate sold, and the proceeds equally divided.
Answer: True
4. The landlord's duty to provide quiet enjoyment of the premises and the landlord's duty to
deliver and maintain the premises in a habitable condition are one and the same.
Answer: False
5. Landlords have the right, and may have a duty, to evict tenants who seriously disturb
Answer: True
6. If you grant a nonpossessory interest to Eagle Logging to enter your land and remove
timber from ten acres, you have granted Eagle a profit.
Answer: True
7. Carlos conveys his property "to Noah for life, then to Maxie." Noah has a life estate and
Maxie has a remainder interest.
Answer: True
8. Tim is buying a farm. A general warranty deed is the best type of deed for Tim.
Answer: True

9. Nancy is a life tenant on a 78-acre farm. The person who owns the future interest in the
farm is entitled to enter upon the farm to make sure Nancy is not damaging the property.
Answer: True
10. Darlene conveys her beachfront property to Dan as a life estate, and upon Dan's death, the
property will revert to Darlene or her heirs. Darlene's future interest in the beachfront
property is called a remainder.
Answer: False
11. Wearever Builders constructs new houses in the Oak Grove subdivision. Unless it
expressly gives a warranty to buyers, Wearever does not guarantee the adequacy of materials
and good workmanship in its new houses.
Answer: False
12. Owners in a joint tenancy with the right of survivorship cannot transfer their interest
during their lifetime.
Answer: False
13. In many states today a landlord must use reasonable care to maintain safe premises and is
liable for foreseeable harm.
Answer: True
14. The Moore’s lease contains a clause allowing their landlord to raise their rent during the
course of their lease if the landlord’s property taxes increase on the leased premises. This
clause is unenforceable, since tenants deserve to know their rent amount is fixed during their
agreed rental time.
Answer: False
15. Juan has the right to walk (or drive) across his neighbor's property to reach the highway.
Juan's right is referred to an easement appurtenant which runs with the land.
Answer: True
1. A landlord's substantial interference with a tenant's use of the property is considered:

a. a constructive eviction.
b. a tort.
c. a violation of federal housing law.
d. permissible in a periodic tenancy.
Answer: A
2. Grandpa owns a farm. In a signed writing, Grandpa gave Sue the irrevocable right to use a
road on his farm so that Sue could more easily reach her own property. What kind of interest
in land did Grandpa give to Sue?
a. Grant easement.
b. Easement by implication.
c. Reserved easement.
d. Easement by prescription.
Answer: A
3. Ollie leased a building in Old Town. Ollie installed a washer and dryer unit and a new
furnace in the basement of the building with new duct work throughout the building. Upon
expiration of the lease, Ollie intends to remove the washer and dryer, but not the furnace. The
washer and dryer can easily be removed without harming anything. Removal of the furnace,
however, will damage the building. Are the washer, dryer, and furnace fixtures?
a. The washer, dryer, and furnace are all fixtures.
b. The furnace is a fixture, but the washer and dryer are not.
c. The washer and dryer are fixtures, but the furnace is not.
d. The furnace and the washer are fixtures, but the dryer is not.
Answer: B
4. The purpose of recording a deed or other real estate transaction is to:
a. establish the rights between the grantor and the grantee.
b. assure the grantee that a transfer of real property is now complete.

c. establish the type of deed granted (i.e. warranty deed, special warranty deed, or quitclaim
d. put the rest of the world on notice that the transaction occurred between the grantor and the
Answer: D
5. Real property consists of:
a. buildings.
b. air rights.
c. plant life.
d. All of the above.
Answer: D
6. You go to a theater to see a play one Saturday evening. You have:
a. purchased an interest called a “profit.”
b. an easement by reservation.
c. a license to enter the theater.
d. no property right in the theater just by purchasing the ticket for the play.
Answer: C
7. Which of the following is a possessory interest in land?
a. Fee simple absolute.
b. Easement.
c. Profit.
d. License.
Answer: A
8. Mark signs a periodic year-to-year lease at the River's Edge Warehouse. After the year
expires, Mark stays in the warehouse and the landlord acquiesces. Mark:

a. has a month-to-month periodic lease, which can be terminated by either party's giving a 30day notice.
b. has a tenancy at sufferance which is not a true tenancy at all.
c. has another one-year lease. Periodic tenancies automatically renew unless either party
gives proper notice to the other that the tenancy will terminate upon the expiration of the time
d. None of the above.
Answer: C
9. Which of the following types of concurrent ownership does not provide for rights of
a. Joint tenancy.
b. Tenancy in common.
c. Tenancy by the entirety.
d. All of the above provide for rights of survivorship.
Answer: B
10. Louie has the right to drive across Bernie's land, which is adjacent to Louie's property, to
reach the ocean front. Louie's right to drive across Bernie's land is called:
a. an easement appurtenant.
b. a profit appurtenant.
c. an easement in gross.
d. a profit in gross.
Answer: A
11. Ted and Janet were married and owned a piece of jungle property in a tenancy by the
entirety. When Janet died, her will left of all her real property to T.J., their adult son. T.J.
claims he is the sole owner of the jungle property. Ted objects and files a lawsuit for sole
ownership of the jungle property.

a. Ted will win because property owned in a tenancy by the entirety includes rights of
survivorship for the surviving spouse. Ted will get the title to the entire property.
b. Ted will win only a one-half interest in the jungle property. T.J. will own the other one-half
interest because Janet had the right to will her half of the property to anyone she chose.
c. Ted will lose and forfeit his entire interest in the whole property because a tenancy by the
entirety means that one party owns the entire property.
d. None of the above.
Answer: A
12. Angelina owned a lot near a lake. Although she never had permission from the owner of
the adjoining land, each weekend when she camped on her lot she crossed his land to take her
boat to the boat ramp at the lake. If Angelina continued this use of her neighbor’s land for the
number of years required by local statute, she would have:
a. created a “profit.”
b. an easement by prescription.
c. a grant easement.
d. a license to use her neighbor’s land.
Answer: B
13. Yi conveyed a piece of land by general warranty deed. The deed included a covenant of
seisin. With this covenant, Yi promised that:
a. she has the power to make the conveyance.
b. the land is free from any easement, profit, mortgage, etc.
c. no other person can lawfully claim the land.
d. she owns whatever estate she is conveying.
Answer: D
14. A tenancy with no fixed duration is a:
a. tenancy from month to month.

b. tenancy at will.
c. periodic tenancy.
d. tenancy for years.
Answer: B
15. The bank who lends money in exchange for a mortgage on the borrower's house is
considered to be the:
a. mortgagee.
b. mortgagor.
c. profitor.
d. profitee.
Answer: A
16. Future interests in land:
a. are presently existing nonpossessory rights that may or may not develop later.
b. are possessory interests because they permit the holder to take possession at some point.
c. must create a right to, not merely the possibility of, possession at some time in the future or
they would be merely illusory.
d. cannot be bought and sold.
Answer: A
17. The Solomans own a cabin on the south side of Mount Henry. One day, the Solomans told
Bennie and Claudia they could live in the cabin and use it as they wished until the Solomans
wanted to use it again. Twelve years later, the Solomans informed Bennie and Claudia that
they were going to spend the summer at the cabin and that Bennie and Claudia would have to
make other arrangements for the summer. Bennie and Claudia claimed that they had acquired
title by adverse possession, because they had occupied the property for the period of time
required for adverse possession under state law (10 years in that state). Are Bennie and
Claudia correct?

a. Yes, Bennie and Claudia were living on the property with exclusive, open possession for a
continuous period of time for the required 10 years.
b. Yes, Bennie and Claudia had the Solomans' permission, therefore the possession was not
c. No, Bennie's and Claudia's possession was with the Solomans' permission and therefore the
claim was not adverse to the Solomans.
d. No, there was no warranty deed transferred to Bennie and Claudia.
Answer: C
18. Whether or not the zoning board will grant a request for a variance depends upon:
a. the type of the proposed building.
b. the reaction of the neighbors.
c. the reason the owner claims she is harmed by the zoning ordinance.
d. All of the above.
Answer: D
19. Bill and Kim moved onto some deserted land. After living on the land for ten years (as is
required by that state's law), Bill and Kim claimed to be the titled owners by adverse
possession. The state court awarded title to Bill and Kim. Their real property consisted of:
a. the land.
b. the buildings they constructed on the land.
c. the plants and vegetation on the land, including the growing trees and plants that produced
fruit and other edible items.
d. All of the above.
Answer: D
20. Liz and Jeff live in California, a state that recognizes community property. Jeff is a
machinist who makes $30,000 a year. Liz is the owner of a franchise where her take-home
profit is approximately $75,000 a year. Jeff and Liz purchased a house during their marriage

wherein Liz paid three-fourths of the purchase price and Jeff paid one-fourth. Which of the
following statements is correct with regard to Jeff and Liz?
a. Each owns one-half of the real property and other assets they acquire during the marriage.
b. The community property rules allow Jeff and Liz to maintain separate ownership of assets
they each bring to the marriage or inherit.
c. Community property cannot be sold by Jeff or Liz without consent by the other.
d. All of the above are correct.
Answer: D
21. A general warranty deed is different from a quitclaim deed because:
a. a general warranty deed is more limited in the number of warranties made by the seller to
the buyer than the warranties made in a quitclaim deed.
b. a general warranty deed makes five warranties or promises, whereas a quitclaim deed does
not contain any promises.
c. a quitclaim deed does not require the seller's signature, but a general warranty deed does
require the seller's signature.
d. None of the above are correct.
Answer: B
22. Laverne knew that her house was infested with termites. Nevertheless, Laverne listed her
house for sale by owner. Shirley had been looking for the perfect house for months now. She
was about to give up the search when she decided to stop at Laverne's open house one
Sunday afternoon. Shirley fell in love with the house, the yard, and the neighborhood. Shirley
was so excited about buying this house that she did not bother to hire an attorney, hire a
company to conduct a termite inspection, or talk to the neighbors about the condition of the
house. Within six months after buying the house, the front porch started to crumble, exposing
the rotten wood destroyed by termites. The neighbors confirmed that Laverne had mentioned
that the house was infested with termites. Shirley wants out of the deal or money to repair the
termite damage. Shirley's claim against Laverne would most likely be based on:
a. a duty to disclose defects.

b. the implied warranty of habitability.
c. a partition action.
d. profit.
Answer: A
23. Unlike a tenant, a licensee:
a. is not entitled to the exclusive possession of the property.
b. is entitled to the exclusive possession of the property.
c. has control of the property.
d. has only a month-to-month right to use the property.
Answer: A
24. The right of the tenant to the undisturbed possession of the leased property is known as:
a. quiet enjoyment.
b. habitability.
c. lawful possession.
d. peaceful possession.
Answer: A
25. Wayne is renting an efficiency upstairs from Fields. Wayne decides to go to Europe for
four months and lets his friend, Charlie, live in his apartment while he is away, with the
understanding that Charlie will pay the rent. Wayne has:
a. assigned the apartment, but Wayne is still liable for the rent.
b. sublet the apartment, but Wayne is still liable for the rent.
c. assigned the apartment, but is not liable for any unpaid rent during Charlie's occupancy.
d. sublet the apartment, but is not liable for any unpaid rent during Charlie's occupancy.
Answer: B

1. Discuss the tenant's and the landlord's basic duties under a landlord-tenant relationship.
Answer: The tenant's basic duties under a landlord-tenant relationship are the following: pay
the rent and any other covenants under the terms of the lease agreement (i.e. security deposit,
utilities, insurance, repairs, taxes), use the premises for a proper purpose, don't damage the
premises, do not disturb the other tenants; basic tort duties of care for the rented premises.
The landlord's basic duties under a landlord-tenant relationship include: the duty to deliver
possession of the premises at the beginning of the tenancy, duty to provide quiet enjoyment of
the premises; duty to maintain the premises according the lease terms, according to the
building codes, and to maintain the premises in a habitable condition; duty to timely return
the security deposit or provide the tenant with an accounting of the security deposit; and basic
tort duties of care.
2. Sandra and Joe own a hobby farm as tenants in common. They also own a vacation home
as joint tenants. What is the difference between the tenancy in common and joint tenancy?
Answer: The primary difference between these two types of concurrent estates is that joint
tenancy has rights of survivorship which means that upon the death of one of the co-owners,
the deceased's interest passes to the surviving joint tenant. Under an ownership by tenancy in
common, the deceased co-tenant's interest passes to her beneficiaries named in her will. Also,
a tenant in common can convey his interest at any time during ownership. Under a joint
tenancy, a conveyance by one of the joint tenants will destroy the rights of survivorship and
create a tenancy in common.
3. The Rameys are selling their home. They did not set forth in the sales agreement whether
the washer and dryer, the draperies, and a cherry corner cabinet which was in the dining room
were to be included in the sale or whether they were planning to take these items with them.
The buyers are claiming these items are fixtures and should stay with the house. The Rameys
are claiming they are movable goods and they should not be part of the real estate which was
sold. Define “fixtures,” identify the tests used to determine whether an item is a fixture, and
explain whether you think each of the contested items is a fixture and why or why not.
Answer: Fixtures are goods that have become so attached to real property that they have
become a part of it. When an owner sells real property, the buyer normally obtains the
fixtures, unless the parties specify otherwise. The general rule is that an object is a fixture if a
reasonable person would consider the item to be a permanent part of the property. Tests used

to determine whether an item is a fixture are: attachment, adaptation, and other objective
manifestations of permanence which indicate intent of the owner for the item to remain with
the realty. The washer and dryer are probably not fixtures because they are not ordinarily
attached to the realty in such a way that removing them would damage the property. The
draperies could be fixtures if they were custom-made to fit the particular windows in that
house and would be unlikely to fit other windows. Unless the cabinet was so attached to the
house that removing it would damage the house or cabinet, or it was made or adapted
especially for attachment to that particular house, or there was some other manifestation
indicating that the property owners clearly intended the cabinet to remain permanently, it is
probably not a fixture and the sellers could take it with them.
4. Discuss the factors a court will consider when deciding the issue of whether a landlord is
liable for a criminal attack against a tenant.
Answer: A. Nature of the crime: The court considers how the crime occurred and whether the
landlord could have prevented it.
B. Reasonable person standard: Here the courts consider what a reasonable landlord would
have done to prevent this type of crime. What did the landlord actually do or fail to do?
C. Foreseeability: Was it reasonably foreseeable that such a crime might occur? Were there
earlier incidents or warnings?
D. Prevalence of crime in the area: If the general area, or the particular premises, has a high
crime rate, courts are more likely to hold that the crime was foreseeable and the landlord
5. Lauren and Hayden own residential houses side by side. Between the houses, is one
driveway which provides mutual access to both back yards. Lauren actually owns the
property where the driveway sits. However, Hayden has the right to use the driveway to
access his back yard. What type of easement does this situation describe, an easement
appurtenant or an easement in gross? What are the differences between the two types of
Answer: Hayden's easement is an easement appurtenant. The use of the driveway benefits
Hayden's use of his own property. Hayden would not have reasonable access to his back yard
without this easement right. We say this easement runs with the land, because, the easement
stays with the land regardless of who has title to the real property and cannot be sold apart

from Hayden's land. Hayden's land is the dominant tenement. Lauren's land is considered to
be the servient tenement. The second type of easement, an easement in gross, benefits the
easement owner, but not in the use of other land. Most easements in gross can be sold.
6. The city of Richmond needs land owned by the Neelans to expand a middle school. The
Neelans do not want to sell. Discuss what course of action the city can take and the basis for
this action.
Answer: The city has the power of eminent domain, which is the power of a government to
take private property for public use. The Fifth Amendment to the U.S. Constitution states, “. .
. nor shall private property be taken for public use, without just compensation.” The Supreme
Court has held that this applies to state and local, as well as the federal, government.
Richmond must pay the Neelans a fair price for their real property. This generally means the
reasonable market value. If the Neelans refuse Richmond’s offer, Richmond will file suit
seeking condemnation of the land. The court will specify what compensation is just and
award title to Richmond.

Test Bank For Introduction to Business Law
Jeffrey F. Beatty, Susan S. Samuelson

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