Question 1

Which of the following factors help determine whether an item of personal property has become a fixture? Manner of affixation Value of the item Intent of the annexor

Accepted Answer

Manner of affixation = YES Value of the item = NO Intent of the annexor = YES The degree of affixation and the intent of the annexor are critical factors in determining whether an item is a fixture, but the value is not an issue. Integration into the real property is important, despite the value.

Question 2

Which of the following interests in land conveys the greatest ownership rights? Easement by implication. Life estate. Fee simple. Nonfreehold estate.

Accepted Answer

Fee simple. A fee simple estate gives the owner the right to sell, will, mortgage, and lien the property. It is the highest form of land ownership.

Question 3

In general, what must be included in the writing of Deeds and Lease agreements?

Accepted Answer

DESCRIPTION of the property!

Question 4

On August 15, 1994, Tower, Nolan, and Oak were deeded a piece of land as tenants in common. The deed provided that Tower owned 1/2 the property and Nolan and Oak owned 1/4 each. If Oak dies, the property will be owned as follows: Tower 1/2, Nolan 1/4, Oak's heirs 1/4. Tower 1/3, Nolan 1/3, Oak's heirs 1/3. Tower 5/8, Nolan 3/8. Tower 1/2, Nolan 1/2.

Accepted Answer

Tower 1/2, Nolan 1/4, Oak's heirs 1/4. In a tenancy in common, the owners have the right to pass their interests to their heirs through their estate.

Question 5

Which of the following deeds will give a real property purchaser the greatest protection? Quitclaim. Bargain and sale. Special warranty. General warranty.

Accepted Answer

A general warranty deed is the deed that gives the grantee/transferee the _best protection_ on title.

Question 6

Which of the following is a defect in marketable title to real property? Recorded zoning restrictions. Recorded easements referred to in the contract of sale. Unrecorded lawsuit for negligence against the seller. Unrecorded easement.

Accepted Answer

Unrecorded easement. These types of hidden defects affect marketable title.

Question 7

A purchaser who obtains real estate title insurance will: Have coverage for the title exceptions listed in the policy. Be insured against all defects of record other than those excepted in the policy. Have coverage for title defects that result from events that happen after the effective date of policy. Be entitled to transfer the policy to subsequent owners.

Accepted Answer

Be insured against all defects of record other than those excepted in the policy. The title policy protects against these types of defects unless specifically excluded.

Question 8

Rich purchased property from Sklar for $200,000. Rich obtained a $150,000 loan from Marsh Bank to finance the purchase, executing a promissory note and a mortgage. By recording the mortgage, Marsh protects its Rights against Rich under the promissory note. Rights against the claims of subsequent bona fide purchasers for value. Priority against a previously filed real estate tax lien on the property. Priority against all parties having earlier claims to the property.

Accepted Answer

Rights against the claims of subsequent bona fide purchasers for value. The purpose of recording is to keep the rights of the original parties intact and protect against future transfers or recorded rights.

Question 9

Mortgagor vs. Mortgagee

Accepted Answer

Mortgagor = the BUYER Mortgagee = the financial institution

Question 10

Sklar, Rich, and Cey own a building as joint tenants with the right of survivorship. Sklar gave Sklar's interest in the building to Marsh by executing and delivering a deed to Marsh. Neither Rich nor Cey consented to this transfer. Rich and Cey subsequently died. After their deaths, Marsh's interest in the building would consist of A 1/3 interest as a tenant in common. A 1/3 interest as a joint tenant. Total ownership due to the deaths of Rich and Cey. No interest because Rich and Cey did not consent to the transfer.

Accepted Answer

A 1/3 interest as a tenant in common. A joint tenancy requires that all tenants acquire their interests at the same time. Since Marsh acquired his interest after the fact, he would be a tenant in common. Marsh was not a joint tenant and therefore is not entitled to the interests of the other joint tenants who predeceased him.

Question 11

The Accounting Syndicate Publishing Co. (ASPC) wants an accounting textbook on IFRS for the university market. It hires Ed, a retired college professor, to write the book, on the understanding that the copyright would belong to ASPC. Ed finishes the book on January 1, 2010. ASPC is unenthusiastic about the book and does not publish it until January 1, 2018. Meanwhile, Ed has died on January 1, 2011. When does ASPC's copyright expire? Just before January 1, 2105. Just before January 1, 2131. Just before January 1, 2113. Just before January 1, 2130.

Accepted Answer

Just before January 1, 2113. This is 95 years from the date of publication, which is shorter than 120 years from the date of creation (January 1, 2130), so it is the best answer. _Work for Hire Rule_ is you take the shorter of 95 years from DOP or 120 years from date of creation.

Question 12

Carlos writes a novel about an accountant that is published on January 1, 2010. Carlos files his novel with the U.S. copyright office on January 1, 2015. Carlos dies on January 1, 2020. Carlos' family wishes to know when the copyright will expire. It will expire immediately before: January 1, 2080. January 1, 2085. January 1. 2090. None of the above.

Accepted Answer

January 1. 2090. A copyright lasts for the life of the author, plus 70 years.

Question 13

Tim is a songwriter. One morning, he is sitting in a coffee shop, whistling some notes that he thinks might ultimately become part of a song he was working on. He forgot about the notes, until he heard them on the radio one day as part of a song written and recorded by Julie. It turns out Julie had been in the coffee shop that day and really liked what Tim was whistling. Tim sues Julie for copyright infringement. What will happen? He will lose, because he never filed anything with the government. He will lose, because he never reduced the notes to a tangible medium. A and B. None of the above.

Accepted Answer

He will lose, because he never reduced the notes to a tangible medium. Until Tim writes the notes down or records them, they are not protectable. _Elements of Copyrightability:_ 1. must fixed in some tangible medium of expression 2. creative 3. original

Question 14

Lanny files for a utility patent on January 1, 2011. The patent is granted on January 1, 2015. The patent will expire just before January 1: 2025 2031 2032 2035

Accepted Answer

2031 The patent would expire 20 years from the date of filing, and expire just before January 1, 2031. Note that this is a utility patent, design patents expire 14 years from the date of filing with the PTO.

Question 15

Sam patents a "rat zapper," a shoe-box-sized device that uses bait to lure in a rat and then kills it with an electrical charge. Lon files a patent application for a "gopher zapper," a slightly bigger device that uses bait to lure in a gopher and then kills it with an electrical charge. What is true regarding Lon's application? It will probably be denied, as not being useful. It will probably be denied as not involving patentable subject matter. It will probably be denied for failing the non-obviousness requirement. All of the above are correct.

Accepted Answer

It will probably be denied for failing the non-obviousness requirement. Unfortunately, Sam got there first. Lon's idea would be obvious to practitioners in the field of rodent control who had ordinary skill. _Elements of Patentability:_ 1. Patentable subject matter 2. must be useful 3. must be novel 4. must be non-obvious 5. must file with the Patent Trade Organization.

Question 16

A long-lost relative of Albert Einstein's recently filed for a patent for Einstein's famous formula, E = MC2. Which of the following is true? The patent application will be denied as filed in untimely fashion. The patent application will be denied as consisting of unpatentable subject matter. The patent application will be denied for failing the non-obviousness requirement. A and B.

Accepted Answer

A and B. A is correct, because the application was filed in extremely untimely fashion. B is correct, because abstract ideas are not patentable.

Question 17

How long is a trademark of a corporation valid under the law of the United States? 1. For 100 years if registered. 2. For 20 years if not registered and for 50 years if registered. 3. Indefinitely if not registered, until the corporation abandons it. 4. Indefinitely, but only if registered.

Accepted Answer

Indefinitely if not registered, until the corporation abandons it. Trademarks last as long as they retain their distinctiveness. Therefore, they can last indefinitely. Trademarks are terminated by their actual abandonment or their constructive abandonment if the owner allows the trademark to lose its distinctiveness.

Question 18

Dash has agreed to sell a warehouse for $300,000 to Bosch. The contract provided that Dash will convey to Bosch whatever interest Dash may have in the warehouse. Under the terms of the contract, Bosch is entitled to receive a(n) 1. Insurable deed. 2. Quitclaim deed. 3. General warranty deed. 4. Special warranty deed.

Accepted Answer

Quitclaim deed. A quitclaim deed conveys merely whatever interest the grantor has in a specified piece of real property. It gives no warranty as to title, right to convey, etc. Since the problem states that the contract provides that Dash will convey to Bosch only whatever interest Dash may have, without mention of any covenants, it appears that Bosch is entitled to receive a quitclaim deed.

Question 19

Rand conveys her real property to Hume by deed for 5 years with the remainder going to Tran for Tran’s life. If Rand dies first, Tran second, and Hume in 6 years, who has title to the real estate? 1. Rand’s heirs in 5 years. 2. Rand’s heirs in 6 years. 3. Hume’s heirs in 5 years. 4. Hume’s heirs in 6 years.

Accepted Answer

Rand’s heirs in 5 years. Once the 5 years are lapsed, Hume’s interest terminates. The interest goes back to Rand’s heirs because she is no longer living. Notice since Tran died before the 5-year period, Tran never received the property because Tran’s life estate terminates on his death.

Question 20

In a notice-type recordation jurisdiction, failure by the mortgagee to record its mortgage 1. Releases the mortgagor (borrower) from the underlying obligation to pay. 2. Permits a subsequent mortgagee without knowledge of the prior mortgage to have a superior security interest. 3. Permits a subsequent purchaser for value with knowledge of the mortgage to take the property free of the prior security interest. 4. Permits a subsequent mortgagee with knowledge of the prior mortgage to have a superior security interest provided he promptly records his mortgage.

Accepted Answer

Permits a subsequent mortgagee without knowledge of the prior mortgage to have a superior security interest. The recordation of a mortgage serves to protect the rights of the mortgagee against third parties who do not have actual knowledge of a prior mortgage. Under a notice-type recordation statute, if a subsequent mortgagee acquires a mortgage in a parcel of property, without the knowledge of a prior mortgage, then the subsequent mortgagee obtains a superior security interest over the prior mortgagee’s interest, whether the second mortgagee records the mortgage or not. Under the race-notice-type statute, a subsequent mortgagee who acquires the security interest in good faith only defeats a prior mortgagee if the second mortgagee records his mortgage first (i.e., a race to file first). Under a notice-type statute, a subsequent good-faith mortgagee has priority over previous mortgagee who did not file

Question 21

Datam Corporation purchased some software for use in its business from Softcompute Company. Softcompute claims that the software has been legally copyrighted. Which of the following is correct? 1. Datam cannot be subject to a copyright unless the software contained a copyright notice. 2. Datam may make archival copies in case of malfunction. 3. If any portion of the software is based on a database, it may not be copyrighted. 4. If the software consists entirely of a database compiled by Softcompute, it may not be copyrighted.

Accepted Answer

Datam may make archival copies in case of malfunction. It is not an infringement of a software copyright if the purchaser makes copies that will be used if the purchased copy becomes unusable.

Question 22

To which of the following people does the 1967 Age Discrimination in Employment Act apply? 1. A 16-year-old checkout clerk at a grocery store employing 40 people. 2. A 38-year-old mechanic in an auto shop employing 15 people. 3. A 52-year-old waitress at a cafe employing 12 people. 4. A 45-year-old assistant controller at a tool and die company employing 200 people.

Accepted Answer

A 45-year-old assistant controller at a tool and die company employing 200 people. 1. Generally applies to individuals at least 40 years old 2. Applies to most businesses employing at least 20 people

Question 23

Mini, Inc. entered into a 5-year lease with Rein Realtors. The lease was signed by both parties and immediately recorded. The leased building was to be used by Mini in connection with its business operations. To make it suitable for that purpose, Mini attached a piece of equipment to the wall of the building. Which of the following statements is correct regarding Mini’s rights and liabilities? 1. Mini is prohibited from assigning the lease if it is silent in this regard. 2. Mini has a possessory interest in the building. 3. Mini is strictly liable for all injuries sustained by any person in the building during the term of the lease. 4. Mini’s rights under the lease are automatically terminated by Rein’s sale of the building to a third party.

Accepted Answer

Mini has a possessory interest in the building. A lease creates a possessory interest in real property. Mini has the right to occupy the building for the term of the lease regardless of whether the owner, Rein, sells the property to a third party.

Question 24

Jane and her brother each own a 50% interest in certain real property as tenants in common. Jane’s interest 1. Is considered personal property. 2. Will pass to her brother by operation of law upon Jane’s death. 3. Will pass upon her death to the person Jane designates in her will. 4. May not be transferred during Jane’s lifetime without her brother’s consent.

Accepted Answer

Will pass upon her death to the person Jane designates in her will. Under tenancy in common, a deceased tenant’s interest in real property will pass to the individual named in a will if the deceased died testate (with a valid will), or to her legal heir(s) if she died intestate (without a valid will). Therefore, if Jane executed a valid will before her death, the interest in the property will pass to the person she designated in the will. Tenancy in common, unlike joint tenancy, does not have the right of survivorship. If Jane and her brother had owned the property as joint tenants, upon Jane’s death the property would have passed to her brother by operation of law.

Question 25

Unless an exception to title is noted in the title insurance policy, a title insurance company will be liable to a land purchaser for 1. Closing costs. 2. Recorded easements. 3. Unrecorded assessments. 4. Zoning violations.

Accepted Answer

Recorded easements. Title insurance insures against all defects of record and defects the grantee may be aware of. Thus, a title insurance company would be liable to a land purchaser for recorded easements. Generally used to insure that title is good and to cover the warranties by seller a.Not required if contract does not require it. Without title insurance, purchaser’s only recourse is against grantor and s/he may not be able to satisfy the damages

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