Yates ch14 - test bank PDF

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Business Law in Canada, 11e (Yates) Chapter 14 Real and Personal Property and Protection of the Environment1) Zack, Virgil, and Craig have been friends for several years and are all worried about the alarming rise in land prices. They want to go in together and buy a four-acre parcel of land in the ...

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Business Law in Canada, 11e (Yates) Chapter 14 Real and Personal Property and Protection of the Environment 1) Zack, Virgil, and Craig have been friends for several years and are all worried about the alarming rise in land prices. They want to go in together and buy a four-acre parcel of land in the country. There is a small cabin on it. They hope that the land value will appreciate, and they want to sell it in a few years to help finance a house of their own. Read each of the following separately and indicate which is true with regard to their ownership of this property. A) If they do not indicate on the transfer documents the nature of the co-ownership, the law presumes they will be joint tenants. B) In Canada, in strict legal terms, the only owner of land is the Crown, and if they buy land free and clear, they are only getting a life estate. C) Ownership of the fee simple does not guarantee their right to everything below the surface of their property. D) If they buy the land and do not take possession, in some provinces they could lose their right to claim possession and their rights become a fee simple estate. E) Ownership of the property entitles them not only to the surface of the earth between the boundaries, but also to the infinite airspace above and everything below the surface of their property. Answer: C Diff: 2 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 1. Distinguish real and personal property. Bloom's Taxonomy: Knowledge 2) Which of the following is not considered personal property in legal terms? A) Intangible property or chose in action B) A claim against someone that has value C) Intellectual property (ideas and creative work) D) Chattels E) A good affixed to real property Answer: E Diff: 1 Type: MC Page Ref: 486 Topic: Ch. 14 - Personal Property Skill: Recall Objective: Chapter 14: 1. Distinguish real and personal property. Bloom's Taxonomy: Knowledge

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3) Which of the following is the correct definition of a chattel? A) A chattel is a name used to describe the land registration system in place in the Western provinces. B) Chattel is an intangible form of personal property, such as a debt or claim. C) Chattel refers to intellectual property such as patents and copyrights. D) Chattel is the term used to describe tangible personal property or movables. E) The term chattel is the broad term used to describe any kind of property interest. Answer: D Diff: 1 Type: MC Page Ref: 486 Topic: Ch. 14 - Personal Property Skill: Recall Objective: Chapter 14: 1. Distinguish real and personal property. Bloom's Taxonomy: Knowledge 4) Which of the following is considered real property in legal terms? A) Intangible property or chose in action B) A claim against someone that has value C) Intellectual property (ideas and creative work) D) Chattels E) Land Answer: E Diff: 2 Type: MC Page Ref: 467 Topic: Ch. 14 - Real Versus Personal Property Skill: Recall Objective: Chapter 14: 1. Distinguish real and personal property. Bloom's Taxonomy: Knowledge 5) An option agreement is A) a contract transferring the fee simple to a new owner. B) a contract by which the offeror of property promises to hold his offer open for a period of time during which the offeree can accept the offer and the property can't be sold to another. C) a contract by which an offeree promises to buy the property offered at a later date set in the contract. D) a contract that provides that a seller will retain the title in the property until the buyer has made all of the required payments. E) a contract that provides that a debtor will transfer title in the property to a creditor as security for repayment of the debt. Answer: B Diff: 1 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Recall Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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6) Which of the following is false with regard to condominiums and cooperatives? A) The owner of a condominium has a fee simple interest in his unit within the condominium structure. B) The owner of a condominium owns a share in the common areas. C) The owner of a condominium can be forced to pay a fee levied by the condominium association governing the condominium. D) The owner of a condominium can mortgage his interest. E) An owner of a cooperative, like the owner of a condominium, has a real property interest in the suite. Answer: E Diff: 1 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Recall Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge 7) If a person habitually crosses property over a number of years with permission of the owner, he can, in some provinces, acquire a right to cross that property even though there has been no actual documented grant of such a right. Acquiring such a right is this manner is called A) adverse possession. B) profit a prendre. C) an easement by prescription. D) a dominant tenement. E) an estate in land. Answer: C Diff: 1 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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8) Jack and Joan got married. It was the second marriage for both of them, and each brought one teenaged child into the marriage. They bought a house in Regina as joint tenants. They worked very hard to create a loving home, but when the children had disputes, it always affected the relationship between Jack and Joan because of the loyalty to their own child. Joan now thinks that it was a mistake to buy the house as joint tenants and wants her share in the house to go to her child in the event of her death. Which of the following will bring about such a change? A) Jack and Joan cannot sever the joint tenancy. B) Joan could have a will drawn up by which her share in the house would be left to her child. C) Joan could purchase an option agreement to lease her interest in the house to herself. D) Joan could lease her interest in the house. E) Joan could sell her interest in her house to her uncle and have him sell it back to her. Answer: E Diff: 3 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge 9) Which of the following is true with regard to real property law? A) The essential characteristic of an estate in land is that the owner of the estate, whether it is a fee simple, life estate, or leasehold, has exclusive possession. B) A true interest less than estate, whether properly registered or not, runs with the land and therefore is an exception to the privity of contract rule. C) A profit a prendre is a type of restrictive covenant attaching to all the properties within a particular development plan. D) An easement acquired by prescription must be restrictive in nature to be binding on subsequent purchasers of land. E) A contract for land in which a person sells the property with a restriction that the new owner not sell to any person of a certain race cannot be challenged by the courts because it is a restrictive covenant that runs with the land. Answer: A Diff: 2 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Recall Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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10) With regard to interests in land, which one of the following statements is true? A) An easement in land is characterized by giving the owner of the estate exclusive possession of that property for some time. B) The interest in land referred to as the "life estate" is not outright ownership but is the greatest "bundle" of rights in relation to that land that the owner can have. C) If the fee simple is conveyed to "Mr. Bill and Mr. Phaster" without indicating the nature of their co-ownership, they take the land as joint tenants. D) If a joint tenant severs the joint tenancy, he can then will his interest in the land to whomever he chooses, and on his death the person named will take his interest. E) A joint tenant can sever the joint tenancy by bequeathing in his will his interest in the property to a third person. Answer: D Diff: 2 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge 11) For advertising purposes, Mr. Storage, the owner of a restaurant in the middle of the city, attached an enormous balloon to the roof of the building. The wind caused the balloon to rest right above a small adjacent grocery store most of the time. The balloon caused no damage, but its presence annoyed the owner of the grocery store, Mr. Greens, who was thinking of putting his own sign above his store. What action, if any, does Mr. Greens have against Mr. Storage? A) Negligence B) Trespass C) Public nuisance D) Breach of the Aeronautics Act E) None Answer: B Diff: 1 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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12) The will read, "To my beloved wife, I leave our matrimonial home for life, remainder to our son, Ivan." Ivan, the adult son, no longer lived in Manitoba. Upon the husband's death, his wife remarried and moved out of the matrimonial home, but she allowed her friend Tilly to live there. Upon learning that his mother had moved out, Ivan considered moving back to the home. Which one of the following is true? A) Ivan has the legal right to return to the home because, as a blood relative, he has a better right to live there than Tilly does. B) Ivan has the legal right to return to the home because, as the remainderman, he has a better right to live there than Tilly does. C) Ivan's legal right to return to the home does not arise until the death of his mother. D) If the wife willed the home to her new husband, upon her death the new husband would inherit the home. E) If the wife sold her interest to Tilly, Tilly could stay in the home until she (Tilly) dies regardless of when the wife dies. Answer: C Diff: 3 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge 13) With respect to the land titles system of registering interests in land, which one of the following is true? A) This registration system is the same throughout Canada because the procedure has been set by the federal government to ensure a uniform method of registration. B) All the documents concerning an interest in land must be kept in the land title office, and to ensure the state of the title, a potential purchaser is advised to examine the various documents that have accumulated over the years. C) When documents concerning an interest in land are filed in the land title office, each document is examined, and if it is in order, the state of title certificate is amended to show the change. D) Mortgages, restrictive covenants, building schemes, easements, and even entries under the Builders' Lien Act need not be registered to protect those interests against third-party claims. Registration of such interests is voluntary and won't affect one's interest. E) The system is to safeguard the documents; the government is not guaranteeing title. Answer: C Diff: 2 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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14) About ten years after their marriage, Eric and Bev had saved enough money to buy an investment property. First they bought a duplex, which they held as joint tenants, and later they bought a building lot in Lethbridge, which they held as tenants in common. Eric's will provided that his interest in the duplex would go to their daughter, Lisa, and that his interest in the Lethbridge lot would go to their son, Max. Indicate the statement that accurately describes who will take what upon Eric's death. A) Lisa will get his interest in the duplex and Max will get the interest in the Lethbridge lot, just as the will said. B) Bev will get both properties because she and Eric co-owned them both. C) Bev will get Eric's interest in the duplex but Max will take Eric's interest in the Lethbridge lot. D) Bev will get Eric's interest in the Lethbridge lot but Lisa will get his interest in the duplex. E) Max will get Eric's interest in both properties as the oldest son. Answer: C Diff: 3 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge 15) Mr. Bucks owned a 10-hectare property in Langley. He subdivided the land into two 5hectare lots. He decided to keep lot A for himself and to sell lot B. His friend and neighbour, Ms. Goode, wanted lot B, so they made the following deal: for lot B, Ms. Goode would give Bucks $100,000, her car, a right-of-way of 3 meters along the east side of lot B to provide access to the highway, her promise not to remove any of the cedar trees (a row of which benefits lot A by blocking the view of a factory) and her promise to plant a 5-metre-long laurel hedge to block his view of her driveway. All promises were registered. Which one of the following is true? A) This kind of deal for land is not possible because it is too complicated. B) Ms. Goode would have to comply with all the terms of this contract except for the part about the laurel hedge, because that is a positive covenant. C) With regard to the right of way, lot B is the dominant tenement and lot A is the servient tenement. D) If the right-of-way is properly registered in the land title office, it would bind subsequent purchasers of either lot A or lot B even though they were not privy to the original contract. E) If Ms. Goode sells lot B to Mr. Ho, Mr. Ho could cut down the cedar trees because the promise was part of the contract between Mr. Bucks and Ms. Goode, to which Mr. Ho was not privy and which therefore does not affect him. Answer: D Diff: 3 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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16) With regard to real property law, which one of the following is true? A) If the fee simple is conveyed to Mr. and Mrs. So and there is no indication of the nature of their co-ownership, they take the land as joint tenants. B) A life estate is an interest in land that necessarily ends when the life of the grantor ends. C) An interest in land less than an estate (e.g., an easement) gives its owner exclusive possession of that property for some period of time. D) If one co-owner wants to sell but the other won't consent to the sale, the first one may be able to get a court order to sell the property. E) If a father cuts his family out of his will and leaves the property to someone else, there is no legal recourse for the family; i.e., the property is his to dispose of entirely as he wishes. Answer: D Diff: 2 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge 17) A husband and wife own Lot A as joint tenants and Lot B as tenants in common. The husband's will reads: "I leave Lot A to my son John and Lot B to my daughter Mary." Who takes what when the husband dies? A) The son, John, gets Lot A and daughter Mary gets Lot B, just as their father wished and designated in his will. B) John will get Lot A but Mary will not get Lot B because it was co-owned with the mother as tenants in common, so the mother takes Lot B as the other tenant-in-common. C) Mary will get all of Lot B but John will not get Lot A because it was co-owned with the mother in joint-tenancy, so the mother takes Lot A as the surviving joint tenant. D) Mary will get her father's interest in Lot B, but John will only get a life tenancy in Lot A. E) Mary will get her father's interest in Lot B, but John will get no interest in Lot A. Answer: E Diff: 3 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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18) Mr. and Mrs. Dunn divorced and Mr. Dunn applied for a division of the matrimonial home in which they were joint tenants. Mr. Dunn died before the matter was settled. In Dunn Estate v. Dunn, the issue was whether the home was part of Mr. Dunn's estate, or whether it passed by survivorship to Mrs. Dunn. What did the court find? A) The home passed to the wife. A joint tenancy, if properly created, cannot be severed. B) The home was part of the estate. The divorce was enough to sever the tenancy. C) The home was part of the estate. The commencement of a matrimonial property action was enough to sever the tenancy. D) The home passed to the wife. Neither divorce or commencement of a matrimonial property action was enough to sever the tenancy. E) The home was part of the estate. A joint tenancy is instantly severed by the death of either joint tenant. Answer: D Diff: 2 Type: MC Page Ref: 500 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge 19) If a person wanted to build a log cabin in a new subdivision, what might prevent him from doing so? A) Prescription B) Easement C) Restrictive covenant D) Strata regulations E) Federal statute Answer: C Diff: 2 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Recall Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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20) In 2005, Jonah sold a building to his two married sons: Bert and Charles. In 2015, Charles was thinking of severing the joint tenancy, but before anything was said or done, Charles and Bert both drowned in a boating accident. Charles died immediately, but Bert died two months later, never having regained consciousness. Charles had willed his interest in the property to his wife and Bert had willed his to his son. On these facts, which of the following is false? A) As soon as they made the wills, the parties became tenants in common. B) Charles' wife and Bert's son are now tenants in common. C) Charles' wife and Bert's son are now joint tenants. D) Bert's son is entitled to the whole property. E) Charles' wife is entitled to the whole property. Answer: D Diff: 3 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Applied Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge 21) After saving his money for years, Taylor was finally able to buy property with a small house and a lake. Which of the following is false? A) His ownership extends to include fixtures. B) Taylor owns all of the area above his land and all of the land below. C) Despite the extent of his interest, the Crown can grant the mineral rights to someone else. D) Taylor's interest is referred to as a fee simple. E) He can sell part of his interest and create a joint tenancy. Answer: B Diff: 2 Type: MC Page Ref: 468 Topic: Ch. 14 - Real Property Skill: Recall Objective: Chapter 14: 2. Describe the various estates in land. Bloom's Taxonomy: Knowledge

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22) Mario bought a small house in Nelson and was puzzled when he saw the conveyancing documents, which referred to a transfer of a "fee simple." The following statements were made to him to explain the term. Which is incorrect? A) Technically, only the Crown owns the land, but the fee simple interest is the greatest bundle of rights, other than the Crown's, a person can own. B) The owner of the fee simple has the right to exclusive possession of the land and can sell it in his lifetime or dispose of it by his will. C) If the owner of the fee simple dies without a will, hi...