Govt. Regulation of Bus: Real and Personal Property

Question 1

provision in UCC Article 2A- finance lease

Answer 1

1. Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is a merchant with respect to goods of that kind.
2. The lessor does not generally hold such goods in inventory.

Question 2

finance lease

Answer 2

lease with respect to which the lessor does not select, manufacture, or supply the goods.

Question 3

provision in UCC Article 2A- title to goods

Answer 3

Except as otherwise provided in Article 2A, each provision of Article 2A applies whether the lessor or a third party has title to the goods, and whether the lessor, the lessee, or a third party has possession of the goods.

Question 4

Does the naming in a negotiable bill of lading person to be notified of the arrival of the goods limit the negotiability of the bill?

Answer 4

No.

Question 5

If the document’s original terms name a person of endorsement and/or delivery, is a bill of lading’s negotiability hindered?

Answer 5

No.

Question 6

lease

Answer 6

1. transfer of the right to possession and use of goods for a term in return for consideration,
2. A sale, including a sale on approval or a sale or return,
   2a. or retention or creation of a security interest is not a lease.

Question 7

warranty of merchantability

Answer 7

implied by Article 2A of the UCC to other lease types, not finance leases.

Question 8

If a document of title is lost, stolen, or destroyed, what is the remedy for this situation?

Answer 8

A court may order delivery of the goods or issuance of a substitute document and the bailee may comply with the order without liability.

Question 9

Under UCC provisions relating to documents of title, what is the liability of a warehouse for damage or loss of goods in its possession?

Answer 9

1. A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise reasonable care with regard to the goods.

Question 10

How can a warehouse limit its liability?

Answer 10

1. Damages may be limited by a term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage beyond which the warehouse is not liable.
2. Such a limitation is not effective with respect to the warehouse’s liability for conversion to its own use.

Question 11

An issue of a warehouse receipt is liable to a good faith purchaser…

Answer 11

only as to the original terms of the instrument, regardless of the circumstances.

Question 12

If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary, unless otherwise agreed, the transferor warrants to its immediate purchaser that:

Answer 12

(1) the document is genuine;
(2) the transferor does not have knowledge of any fact that would impair the document’s validity or worth;
(3) AND, the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.

Question 13

Every trust requires the following:

Answer 13

1. Beneficiary
2. Trustee
3. Intent to create a trust
4. Trust res (trust property)

Question 14

Is a written instrument required for the creation of a trust?

Answer 14

No.

Question 15

Are assignments of a lease favored by law?

Answer 15

Yes, and are therefore presumed valid unless prohibited in the original agreement.

Question 16

Are subleases favored by law?

Answer 16

Yes, and are therefore presumed valid unless prohibited in the original agreement.

Question 17

copyright protection

Answer 17

1. Available to both published and unpublished works.
2. Additionally, the owner of a copyright has the exclusive right to sell, rent, lease, lend on copyright.
3. The owner of a copyright has the exclusive right to perform the work publicly.
4. Minors may claim copyright, but state laws may regulate the business dealings involving copyrights owned by minors.

Question 18

copyright definition of work made for hire

Answer 18

A work specially ordered or commissioned for use as a contribution to a collective work, a part of a motion picture or other audiovisual work, a translation, an instructional text, etc., is a work made for hire if the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire.

Question 19

In determining whether personal property becomes part of the real estate (a fixture) courts look at the:

Answer 19

1. Degree of annexation (e.g., the degree to which removal of the lifts would damage the property)
2. Intent of the parties. 2a. Length of the lease can be a factor in determining intent.

Question 20

The obligations imposed by Uniform Commercial Code (UCC) Article 7 on documents of title apply to a document of title regardless of the fact that:

Answer 20

(a) the document may not comply with the requirements of this Article;
(b) OR, the issuer may have violated laws regulating the conduct of his business;
(c) OR, the goods covered by the document were owned by the bailee at the time the document was issued;
(d) OR, the person issuing the document does not come within the definition of warehouseman if the document purports to be a warehouse receipt.