Exam 7: The Property System

A secured transaction involves a creditor who has sold something on credit or made a loan to a debtor who agrees to give the creditor a security interest in a valuable object,called ______.

According to the Congressional Budget Office,poorer taxpayers pay a higher percentage of their incomes in state and local sales taxes than do wealthier taxpayers.

State law generally specifies that a landlord and tenant must give each other written notice of 30 days or 60 days in order to terminate a lease that does not run for a definite duration.

When the owner of an old airplane engine has it restored and has an airplane built around it,the owner of the engine now owns the entire airplane through the doctrine of ______,which refers to something "added."

Private property is a system of law under which the state recognizes and enforces an individual's rights to acquire,possess,use,and transfer scarce resources.

Zoning ordinances apply to types and locations of physical structures but not to aesthetic characteristics such as color and exterior design.

Which of the following is an example of a bailment?

Mike rents a car from Brandy Car Rentals at $40 per day.In this scenario,which of the following statements is true?

Danny has five pit bull dogs.They bark constantly and terrify the neighbor,Terry.When Terry tries to sell his house,no one wants to buy the house due to the dogs.In this scenario,if Terry takes Danny to court,what should Danny be held liable for by Terry?

Goods that are identical are known as a(n)______.

The right of redemption allows a mortgagor,before foreclosure,to get back land upon payment of the full amount of the debt.

Which of the following statements is true of an easement?

Suzette leaves her purse at her favorite restaurant during lunch.Suzette's friend Mary,a waitress at the restaurant,sees the purse and takes it to the back office where she puts it with her own things,reminding herself to return it to Suzette when she gets off work.However,when Mary returns to the back office after her shift,she sees that many things have been stolen,including Suzette's purse.Is the restaurant liable to Suzette for the purse? Explain your answer.

Seth takes his laundry to Denise's Dry Cleaners.When Seth gets his clothes back,he notices that two of his shirts,perfect when brought in,are ripped.In this scenario,which of the following statements is true?

House-sitting would be an example of a bailment because you are in temporary possession of someone's house with the intention to return full possession to the owners upon their return.

What is meant by a life estate in land,and why might one give someone else a life estate rather than a fee simple ownership?

An easement by prescription ceases to exist when one person uses another person's land by crossing it wrongfully and using the land for a continuous period of 20 years.

Which of the following statements is true about adverse possession?

If your home is being foreclosed on,you may retain ownership of the property if you pay the full amount of the debt before the sale.This is called a

Wallace buys a television from Dotty,but a week later,a clerk from Conduit City,an electronics store,contacts Wallace to inform him that the store will be repossessing his television.Wallace states that he bought the television free and clear from Dotty.The clerk explains that Conduit City has a purchase money security interest in the television,which permits them to repossess the TV.Who is right between Wallace and the clerk? Explain your answer.