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Legal Business 1 > Ch 7 not on test > Flashcards

Ch 7 not on test Flashcards

0
Q

Absolute

A

We can legally seek police or courts to protect some

resource or you can’t

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1
Q

Property AKA Ownership

A

Legal right to exclude others from resources that are

possessed or acquired without force, theft or fraud

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2
Q

Property is not infinite

A

Can’t use resources to harm another’s resources

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3
Q

Examples of resources that aren’t protected by our legal system?

A

Marijuana, sale of proscription drugs, sale of bald eagle

feathers

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4
Q

Property is the necessary foundation for…

A

Private enterprise and market in the modern nation

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5
Q

Communism

A

State requires citizens produce according to their abilities

And share according to needs of everyone else

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6
Q

Private property laws

A

Recognizes and enforces an individual’s rights to acquire,

Possess, use and transfer scarce resources

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7
Q

3 types of property

A

Private, public and common

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8
Q

Private property

A

Protects private persons and allows them to exclude others
Including in most instances the state from interfering with
Resources

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9
Q

Public property

A

The states right to exclude people from state monuments,

Buildings, equipment, land and other public resources

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10
Q

2 meanings of common property?

A

1 right to common resources: air, rivers, oceans

2 private ownership by 2 or more people

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11
Q

Rule of law

A

All members of society must have equal guarantee

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12
Q

Property promotes incentive

A

Allowing people to keep and benefit from what they produce,
Property motivates effort in way natural to human beings

People expend more effort when they have protected
Property

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13
Q

How does property generate prosperity? 3.

A

1 promotes incentive
2 capital formation
3 divisibility of resources

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14
Q

Capital formation

A

Quality of resources that produces new and different
resources

Allows for borrowing money and investing

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15
Q

Mortgage

A

Agreement to put up house to secure loans

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16
Q

Lenders are willing to loan money at affordable rates because property law guarantees 3 things?

A

1 borrower’s house is identifiable piece of land recognized
By the state
2 state recognizes borrower’s claim to house
3 state permits lenders to enforce mortgage agreement
Through courts and sell borrower’s house to satisfy loan
Borrower fails to repay

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17
Q

Securities markets are vital for…

A

Capital formation and prosperity in modern nations

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18
Q

Divisibility

A

Relates to capital formation

Refers to how property permits resources to be broken into
parts and used in many ways while owner retains property
Interest in each part

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19
Q

Examples of divisibility of property 6

A

1 sell land for cash
2 sell another part of it on credit
3 hold mortgage to ensure payment
4 have tenants pay rent
5 incorporate part of it and sell shares to investors
6 secure loan against property and start business

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20
Q

2 basic legal divisions of property

A

1 real property

2 personal property

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21
Q

Real property law

2 Personal property law

A

Applies ownership to land and interests in land such as
Meaning rights or leases

2 all other resources are protected under personal
Property law

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22
Q

Real estate AKA Realty

A

Land ownership

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23
Q

Fixture

A

Object of personal property that has become object of

Real property

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24
Q

2 ways objects become fixtures

A

1 physical annexation (attachment) to land or it’s building

2 use has become closely associated with the use land
Is put (fixtures go to land with buyers unless written agreement)
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25
Q

2 examples of fixtures

A

Carpet is fixture when nailed to the floor

Manufacturing equipment is fixture when sold along with
Manufacturing plant

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26
Q

Rules of contract

A

Rules under which people exchange resources in property
System

Make exchange of resources between owners legally
Binding

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27
Q

What do contracts allow 3 things?

A

1 allow owners to commit to future exchange of resources

2 make it possible for 1 owner to sue another if exchange
Of resources are broken by 1 of the owners

3 allow lawsuits against those not adequately performing
their agreements

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28
Q

Single most important factor to see if country’s economy is ready for international trade?

A

Observing legally enforceable contracts

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29
Q

Ownership: rule of first possession

A

1 first person to reduce previously unowned things to

possession becomes their owner

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30
Q

Ownership: Intent

A

Measure whether previous owner intended to abandon
Something

Lawsuits may follow if unclear whether previous owner
Abandoned possession

31
Q

Possession of lost items

A

The finder must turn item over to police and place ads for
Certain period of time

If original owner doesn’t come forward to claim item during
Period, the finder becomes the new owner

32
Q

Adverse possession

A

Gives ownership of land under state statute

33
Q

5 requirements of state statute for adverse possession?

A 
1 open and notorious
2 actual and exclusive
3 continuos
4 wrongful
5 prescribed period of time
34
Q

Adverse possession: open and notorious

A

Possessor must occupy land in such way to put true owner

Of land on notice

35
Q

Adverse possession: actual and exclusive

A

Possessor must physically occupy land

Fences and buildings constitute occupation of land

36
Q

Adverse possession: continuous

A

Possession must be uninterrupted

37
Q

Adverse possession: wrongful

A

Possessor must not have owner’s permission to be on

Land

38
Q

Adverse possession: for prescribed period of time

A

Most state specify 10 to 20 years before possessor becomes

New owner

39
Q

Ownership through confusion

A

Arises when fungible goods (goods that are identical)
Are mixed together

If no evidence is there when identical goods are sold,
everyone is entitled to an equal share

40
Q

Doctrine of accession

A

When owner of old airplane engine has built and restored an airplane, the owner of the engine owns the whole airplane

41
Q

Gift

A

Receiving a gift is way of acquiring ownership

42
Q

Testamentary gift

A

Gift made through a will

43
Q

4 different types of ownership?

A

1 Fee simple
2 life estate
3 leasehold estate
4 concurrent ownership

44
Q

Estate

A

Bundle of rights and powers of land ownership

45
Q

Fee simple

A

Maximum estate allowed under law

Owner has fullest legal rights and powers to possess, use
And transfer land

46
Q

Fee simple absolute estate

A

No limitations or conditions attached

47
Q

Fee simple defensible

A

May have condition attached to estate’s transfer

Ex. Seller may convey land to buyer if they develop land
For agricultural purposes

48
Q

Conveyance

A

Transfer

49
Q

Life estate

A

Grants ownership in land for lifetime of specified person

When specified person dies, original grantor keeps reversion
Interest in the la d

50
Q

Life estate: remainder interest

A

Land goes to another person other than grantor after

Death of specified person

51
Q

Leasehold estate

A

Property right granted to tenants by landlords

52
Q

Concurrent ownership

A

More than one person owns the same thing

53
Q

Tenancy in common

2 joint tenancy

A

Tenants in common can own different shares of resources

2 tenants have equal ownership shares

54
Q

Joint tenancy: right of survivorship

A

One of joint tents dies, the other becomes the sole owner

Of entire resource

55
Q

Tenants

A

Have qualified possession, use and transfer of land

They can’t damage it by law

56
Q

Doctrine of partition

A

Allows owners or creditors of joint tenancy or tenancy in

Common to force separation of concurrent ownerships

57
Q

Title

A

Registration of ownership of property

58
Q

Deed

A

Document of title that transfers ownership of land

Contains precise legal description of land that specifies
Exact location and boundaries according to mapping
And surveying system

59
Q

Grantor

2) grantee

A

Seller

2 buyer

60
Q

Warranty deed

A

Promises buyer that grantor has good ownership and

Full power to convey it

61
Q

Quitclaim deed

A

Makes no guarantee other than grantor surrenders all claim

Against land

62
Q

Registration statutes

A

Protect buyers and lenders

Law enables buyers to register their deeds to land and
Lenders to register mortgage claims against land

63
Q

Easement

A

Right of passage to cross over land

64
Q

Bailment

2 bailor
3 bailee

A

Owner puts object protected by personal property into
Intentional possession of another person with understanding
It will be returned

2 owner
3 possessor of object

65
Q

2 types of security interests

A

1 mortgages

2 secured transactions

66
Q

Secured transactions

A

Legal fence that protects holder of security interest from
General claims of all other persons

Can be seized from debtor if they are unable to make their
Payments

67
Q

3 types of security interests in land

A

1 mortgages

2 deeds of trust

3 land sales contracts

68
Q

Under the Deed of trust

A

Borrower signs note, which shows borrower’s debt to
Lender

Signs deed of trust which grants lender security interest in
Land and building put up to secure the loan

69
Q

Deed of trust: Trustee

A

Third party that holds full ownership of land under deed of

trust until the debtor repays the entire deed

70
Q

Land sales contract

A

Owner of land sells it by contract subject to condition that
Seller retains title of land until buyer pays purchase price

Until that time, buyer has legal right to possess and use
Land and is responsible for insurance and taxes

71
Q

Motgagees

2 mortgagors

A

Creditors

2 debtors

72
Q

Recording statutes

A

If mortgagees fail to record mortgages, new buyers of
Lands who are unaware of mortgages will take lands
Free and clear of mortgages

73
Q

Foreclosure

A

Creditor must go through court system to ensure procedure

Is properly followed before debtor’s lose home and land

74
Q

Deficiency

A

Balance owed to mortgagee by mortgagor

75
Q

Right of redemption

A

Before actual foreclosure allows mortgagor to get back land
Upon payment of full amount of debt including all interest
Costs

Legal Business 1 (25 decks)

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