LAW & YOU
UNIT 3 TEST: Chapters 15-19
TRUE/FALSE
1. Property can be either tangible or intangible.
2. Fair use is the very limited use of copyrighted works by critics, researchers, news reporters and
educators.
3. A fixed, original expression of a creative work can be protected by a trademark.
4. A unique word, mark or symbol identifying a product is called a service mark.
5. Patents are good for ten years and are renewable.
6. Any kind of property may be acquired and transferred by contract.
7. The promise to make a gift creates a legal obligation.
8. Property placed intentionally somewhere but then forgotten is mislaid.
9. Occupancy is a means of acquiring abandoned property.
10. The right of partition comes with ownership in severalty.
11. Temporary possession and control of goods is the focus of the bailment relationship.
12. The subject of the bailment must be real property.
13. Actual bailments and constructive bailments are two ways to transfer possession and control of
goods.
14. Both bailor and bailee must intend that the goods be returned.
15. The bailee must return the goods to the bailor and no one else.
16. When there is no difference between one unit of the goods and another, the goods are said to
be fungible.
17. A gratuitous bailment for the sole benefit of the bailee requires a duty of care that is
extraordinary.
18. Minimal care means that the bailee will be liable if negligent in some way.
19. Courts often find disclaimers not enforceable.
20. A bailee entitled to payment may exercise the bailee’s lien.
Section II: Multiple Choice
21. Surface rights include the right to (a) occupy the land, (b) develop the land with building, (c) lay
waste to the land (d) all of these
22. The doctrine of capture grants ownership of fluids such as oil and natural gas found under the
surface to (a) the party who extracts them, (b) the owner of the land, (c) the person who knew
they existed in that location (d) none of these
23. Ownership for a limited period of time falls under (a) conditional estates, (b) fee simple
absolute, (c) non-freehold estates, (d) none of these
24. The most common document used to transfer ownership of realty is (a) a covenant, (b) a deed,
(c) a license, (d) none of these
25. When adverse possession occurs, (a) the occupation is without the consent of the owner, (b) the
occupation is open and notorious, (c) the possession is continuous for several years, (d) all of
these
26. Duties of the tenant do NOT include, (a) replacing a roof, (b)paying rent on time, (c) making
minor repairs, (d) general maintenance
27. A landlord may evict a tenant (a) if the landlord has a better offer of rent, (b) if the tenant is not
staying on the premises even though the rent has been paid, (c)if the tenant has failed to make
minor repairs, (d) if the tenant fails to pay their rent
28. The implied warranty of habitability is the responsibility of the (a) Fair Housing Act, (b) landlord,
(c) tenant, (d) community.
29. Zoning ordinances (a) restrict the owner’s use of this or her realty, (b) promote the health,
safety, morals and general welfare of the community, (c) both a and b, (d) none of these
30. If a tenant fails to pay rent the landlord may (a) sue to evict, (b) throw the tenant out, (c)
nothing, (d) none of these
31. When an insurance company makes payment for a loss to suffering party, the insurance
company is said to (a) benefit the loss, (b) endorse the loss, (c) indemnify the loss, (d) none of
these
32. The stated maximum amount of money that can be pad on an insurance policy is the (a) benefit,
(b) endorsement, (c) face value, (d) premium.
33. The type of insurance that covers structural loss due to rain, hail, earthquake, and windstorm is
(a) fidelity, (b) fire, (c) inland marine, (d) social
34. The type of insurance that covers automobile, burglary, disability and liability is (a) casualty, (b)
fidelity, (c) inland marine, (d) social
35. Insurance providing protection against claims of parties who suffer injury or other loss as a
result of negligence committed by the insured is (a) fidelity, (b) inland marine, (c) liability (d)
social
36. A fire insurance clause that requires the insured to maintain coverage equal to ta certain
percentage of the total current value of the insured property is (a) coninsurance, (b) inland
marine, (c) liability (d) social
37. A hostile fire is started by (a) accident or negligence, (b) a deliberate act, (c) friendly fire that
becomes uncontrollable, (d) all of these
38. Automobile insurance coverage indemnifying insureds for damage to their own vehicles is (a)
collision, (b) comprehensive, (c) not available, (d) both a and b.
39. A life insurance clause prohibiting the insurer from refusing to perform due to
misrepresentation or fraud after the policy has been in effect for one or two years is (an
endorsement, (b) exclusion, (c) incontestabality clause, (d) omnibus clause
40. The primary source for social insurance coverage in the country is the (a) Federal Insurance
Contributions Act, (b) Retirement, Survivor’s Disability Act and Health Insurance Act, (c) Social
Security Act, (d) Medicare Act.
41. The maker of a will is called (a)administrator, (b) executor, (c) testator, (d) trustee
42. A court-appointed personal representative overseeing an estate is called (a)administrator, (b)
executor, (c) testator, (d) trustee.
43. In most states a person under 18 does not have (a) testamentary capacity, (b) testamentary
intent (c) testamentary formality, (d) all of these
44. A will only takes effect (a) upon the death of the maker, (b) upon the witnessed signing of it, (c)
upon the official recording of it, (d) upon the one-year anniversary of the death of the maker.
45. If proclaimed during the maker’s last illness or by service personnel on active duty, some states
will recognize (a) a codicil, (b) a holographic will, (c) nuncupative will, (d) testamentary trust.
46. When a separate entity under law becomes the transferee of the property, it creates (a) an
estate, (b) a codicil, (c) a council, (d) a trust.
47. A trusted created during the lifetime of the settlor is ___ trust (a) charitable (b) inter vivos, (c)
spendthrift (d) testamentary
48. The trust that protects the beneficiary’s interest in the subject property from the beneficiary’s
creditors is a ____ trust (a) charitable, (b) inter vivos, (c) spendthrift (d) testamentary
49. A constructive trust is a type of ___ trust (a) charitable, (b) express, (c) implied, (d) private.
50. The clear intention to make a will without undue influence of others is called (a) testamentary
capacity, (b) testamentary intent, (c) testamentary formality, (d) all of these
Cases – analyze each case and provide a descriptive response using terms from the unit in your
response. 5 points per case.
51. Kurt & his best friend bought a motorcycle together and as friends they decided to co-own the bike
as joint tenants. Years later Kurt married and in his will he stated that all personal property should go to
his wife. While driving to work Kurt crossed railroad tracks and was killed in his car. Who owns Kurt’s
interest in the motorcycle and why?
52. The city of Johnston maintained an old-fashioned Merry Go-Round near a beach. All summer both
kids and adults would ride it. It was shut down during the winter. Occasionally, kids would climb the
fence around the Merry Go-Round, start the electrical motor, and ride it for free. Shelly, age 12, climbed
the fence, started the motor, but had her hand crushed when it was caught between the v-belt and a
pulley on the motor. Is the city of Johnston liable to Shelly and if so, why?
53. Erica drove her car into a self-parking lot at the Lambert Airport in St. Louis. She entered through an
automatic gate and received a ticket bearing the date and time of arrival. She parked, locked the car,
and left with the keys. Normally, when ready to depart, she would drive her car to the exit, give the
ticket to the attendant and pay her parking fee. This time the car had been stolen. Erica sued the
defendant, Airport Parking Company of St. Louis, for damages. Is the defendant liable? Why or why not?
54. John had a considerable amount of wealth in his estate and he had three children & a wife whom he
loved dearly. John did not want to show favoritism in the distribution of his estate upon death so he did
not make up a will. Explain what will happen to his estate and if this decision was a good idea financially
by him.