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Questions and Answers of
Business Law Today
Most of the basic ownership rules regarding real property in the United States actually had their origin a millennium ago in France. True/False
A person who owns real property for life or for the life of another owns an interest in real property called a life estate. True/False
When two or more persons own real property as tenants in common, each person owns an undivided share of the whole property. True/False
Title to real property may be acquired by sale or gift, will or descent, or by neglect. True/False
Municipal zoning laws that regulate the uses that may be made of properties within specified geographical areas or districts have been declared unconstitutional. True/False
Eminent domain is the right of federal, state, and local governments, or other public bodies, to take private lands, with compensation to their owners, for a public purpose. True/False
A license is just like a lease because it bestows upon the licensee the same type of property rights and ownership interests as those bestowed on a party with a lease. True/False
A tenancy at will is an ownership interest (estate) in real property for a definite period of time. True/False
An option to renew gives the lessee the right, at the end of the lease, to a new lease for an additional period. True/False
A landlord may not discriminate in selecting tenants on the grounds of race, creed, color, national origin, or gender. True/False
Tenants also have a duty to avoid damaging or destroying the property, that is, commit waste. True/False
States today do not allow landlords to use force to evict tenants. True/False
What constitutes real property?
What is the difference between freehold and leasehold estates?
What are the different types of co-ownership of real property?
What are the methods of acquiring title to real property?
What is eminent domain?
What are the five elements necessary to create a landlord–tenant relationship?
What are the essential requirements of a lease?
What are rent control and security deposits?
What are the duties of landlords and tenants?
How does tort liability apply to landlords and tenants?
Aloi sold a section of her land to Bell, including in the deed an easement allowing Bell to cross Aloi’s property to reach the newly acquired parcel. Three years later, Aloi sold his pro p erty to
Alfonso DiFilippo and his brother, Pasquale, owned a parcel of real property as tenants in co m mon. Pasquale died in 1961, leaving a life estate in the property to his widow, Annie, with the
When its lease expired, Kingston Frameworks made plans to move to another building. Prep rations were made to remove shelving, mat and glass cutters, display boards, benches, and other fixtures that
Smith and Dudley are next-door neighbors. The branches of a large maple tree on Smith’s property hangs over Dudley’s driveway, dripping sap onto Dudley’s car. Smith refuses to trim the branches
Two years after Jean Russell was divorced from Billy Russell, Jean signed a quitclaim deed conveying her interest in their jointly owned real property to Billy. Later, she tried to have the deed set
Bech owned a building in which Cuevas resided as a tenant at will. Alleging that Cuevas had committed waste, Bech delivered a letter to Cuevas ordering her to vacate the premises in two days. The law
The following language was in a handwritten agreement signed by Harold and Saul and their respective wives: “Saul & Zelda get the option to rent the lower level of the Hope Chest store when their
Goldstein rented an apartment from Dunbar as a tenant at will. She paid her rent on time and took good care of the premises; she was never disorderly.Dunbar decided to evict Goldstein and rent the
Sarah H. Brown and Sandy F. Soverow agreed to rent separate apartments from Osborn, the owner of an apartment complex called Nob Hill Apartments, which was being constructed. Because their single
Alabama Outdoor Advertising Co., Inc., leased part of a lot from All State Linen Service Co. to erect a commercial advertising sign. The term of the lease was for “indefinite years, beginning 1 st
Generally speaking, when the United States Supreme Court hears a case it involves some sort of major league controversy, like the establishment of a defendant’s rights in court, or a review of the
The Uniform Probate Code (UPC) has been adopted by all 50 states and Puerto Rico. True/False
A person who dies without a will is said to die testate . True/False
A person who makes a will is called a testator if a woman or a testatrix if a man. True/False
A will may be typewritten or handwritten, or it may consist of a filled-in form and, whatever the case, it must be under seal and notarized. True/False
A will may be contested for only one reason: unsound mind. True/False
When people die owning assets, their estates must be probated , that is, settled, under the supervision of the court. True/False
Advance directives are oral statements in which people give instructions for their future medical care if they become unable to do so themselves. True/False
A living will is a written expression of a person’s wishes to be kept alive using heroic and artificial methods. True/False
United States Supreme Court has ruled that the right to die is guaranteed by the Due Process Clause of the United States Constitution. True/False
When a trust is established, title to the trust property is held completely by the trustee. True/False
A spendthrift is one who is frugal and careful about spending money. True/False
Trustees are obligated by law to use an average standard of care when investing funds for the trust. True/False
What are the sources of probate law and why is it relevant to business entities?
When does a person who makes a will have the capacity to do so?
What are the protections given to the spouse and the children of a testator?
What are the different methods of revoking or changing a will?
What are the three grounds for contesting a will?
Who inherits the property of someone who dies without a will?
What are the steps to be taken by an executor or administrator in settling an estate?
What are the types and purposes of advance directives?
What are the various types of trusts and when might they be used?
Miguel Ruiz, who had a wife and two small children, did not have a will. A friend told Miguel that he should have a will because if he died without one, everything he owned would go to the state. Was
Ling Lee, who had two children, made a will leaving $1 to her husband, Seung, and the balance in equal shares to her two children. When Ling died, her husband, Seung, claimed that he was legally
D.W. Elmer, a hospital patient, was seriously ill and unable to write his name. He executed his will, however, by making a belabored X on the paper in the presence of witnesses. Can a signature on a
James and Wanda Barns, husband and wife, were killed in a head-on aut o mobile collision. It was impossible to determine who died first, and neither one had a will. The couple owned the following
Julia Dejmal executed her will while a patient in St. Joseph’s Hospital. The will was wi t nessed by Lucille and Catherine Pechacek . Catherine was 19 years old and employed as an assistant X-ray
It was contended that the will was not valid because one of the witnesses to it was a minor. Do you agree with the contention? Why or why not? Matter of Estate of Dejmal , 289 N.W.2d 813 (WI).
Lazer , a wealthy 17-year-old, learned that he was suffering from AIDS. He wrote a will leaving everything he owned to a friend he had met in school. Two years later, when Lazer died, his parents
Santiago, a widower, made a will leaving $1 to his son, Carlos, and the balance in equal shares to his other children, Benito and Angelita. The estate, after deducting debts, taxes, and expenses,
Evidence was introduced in court to show that, at the time she executed her will, Blanch Robi n son suffered from schizophrenia. She had delusions about having had a love affair with Nelson Eddy and
Walsh, as settlor , executed a declaration of trust, naming himself as trustee and giving himself the income from the trust during his lifetime. After his death, the income was to be paid to his
Sometimes the United States Supreme Court must dive into a controversy that has implications beyond the actual facts and issues in the case. In such situ ations, the court may decide a case on what
In a recent book entitled Dark Age Ahead , Jane Jacobs argues that Western Civilization in general and the United States in particular stand on the verge of cultural collapse. As the cause of this
Timothy Saueressig typed his will, which left his property to his friends, Scott Smith, Harry Ernst, and Cliff Thomas, and named Smith as his executor. Saueressig had no brothers or sisters, and his
The future that is outlined in the novel Unisave by Axel Madsen is dark, d e pressing, and discouraging.The novel is set in the 22nd century at a time when the planet’s natural resources, its
An accountant is a professional who can plan, direct, and evaluate a client’s financial affairs. True/False
An auditor’s report and the accompanying financial statements will always guarantee an institution’s financial health. True/False
Whenever certified public accountants ignore the rules established by GAAS and GAAP, they do so with little or no risk, because of their certified status. True/False
An architect is a professional who plans the construction or alteration of a variety of structures from single-family dwellings to enormous skyscrapers. True/False
For a plaintiff to fail in a malpractice case against an attorney, that attorney must di s prove the existence of all four elements of malpractice. True/False
Because attorneys are professionals and because the intricacies of the law are often mystifying to the layperson, the law requires that the elements of malpractice be supported by expert testimony.
For a patient to succeed in a negligence case against a health care professional, the patient must show that the four elements of negligence exist in the case. True/False
Today, most courts use a rule called the national rule or the national standard to make judgments in relation to the standard of care for health care providers in negligence cases. True/False
To ensure the patient’s right to see his or her records, the American Law Institute and the American Bar Association collab o rated to create a model act called the Health Insurance Portability and
A hospital can never be held liable for the torts of a physician unless that physician is an employee of that hospital. True/False
Ostensible authority applies only to hospitals in large urban areas. True/False
Negligent credentialing and negligent retention have been outlawed under the Restatement (Second) of Torts. True/False
What is the difference between a certified public accountant and a public accountant?
What are the various types of auditing opinions that can be issued by auditors?
What duties do accountants owe to their clients?
What are the registration requirements imposed on architects?
What are the duties that an architect owes to his or her clients?
What are the duties that an attorney owes to his or her clients?
What is the standard of care used to judge health care professionals?
What is the difference between the locality rule and the national standard in determining a health care provider’s liability?
What are the circumstances in which hospitals can be held liable for the torts of independent contractor physicians?
While she was under investigation by a grand jury, Martha Stewart penned an e-mail that explained the circumstances that led to the I m Clone scandal.Stewart then dispatched the e-mail to her
Fred Stern and Company applied to the Ultramares Loan Corporation for a credit advance in support of its import business. As was its custom, Ultramares asked Stern for a d e tailed financial
The Consolidata Services Company (CDS) was established to provide small bus i nesses with payroll services. All CDS clients were required to pr ovide CDS with an advance deposit equal to the amount
Burke, an energy tycoon, hired the accounting firm of Arthur Young and Company to audit several of his operations. The SEC brought an action against Burke for fraud and for failure to meet certain
Hutchins and O’Neil, as general partners in the Haddon View Investment Co., became limited partners in Car Wash Investments. The general par t ner in Car Wash was the Minit Man Development Company.
Bainbridge hired the architectural firm of Seymour, Shaefer , and Lashutke to draw up plans for the alteration of Bainbridge’s o f fice building in Albuquerque, New Mexico. The plans called for the
Craybaugh worked as a research scientist for National R e search Industries, Inc. While conducting a field experiment involving a new solar energy converter, something went amiss and the converter
Malcolm was a physician who ran a small private practice in Harrison, Kansas. One evening, the Sandersons brought their young daughter in for treatment of what they thought was a minor throat
Almost immediately after the Patient Protection and Affordable Care Act became law, the attorney general of Florida, joined by AGs from 12 other states, filed a lawsuit asking the courts to declare
In his essay, “The Chaotic Indeterminacy of Tort Law: Between Forma l ism and Nihilism,” Denis J. Brion , professor of law at Washington and Lee University School of Law, explains that two very
Samuel Sorrell works as a CPA for the accounting firm of Morris, Miller, and Kierns . He has just completed an audit of the Randall-Cassidy Sports Wear Corporation. The audit revealed that
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