Question 1

A right of way can be acquired by prescription when a person's habitual use of land is not interfered with by the owner.

Accepted Answer

A) True 
 B)False  True

Question 2

Interests in land "run with the land." This means that:

Accepted Answer

A) all interests in land give the owner of that interest the right to exclusive possession. 
B) the interest in land is tied to the property itself and is therefore binding on subsequent owners of the land. 
C) the fee simple and life estate are types of freehold estates. 
D) a leasehold estate is a type of freehold estate. 
E) contracts for interests in land are governed by the privity of contract rule (i.e.,the contract affects only the parties to the contract). 
A) all interests in land give the owner of that interest the right to exclusive possession. 
B) the interest in land is tied to the property itself and is therefore binding on subsequent owners of the land. 
C) the fee simple and life estate are types of freehold estates. 
D) a leasehold estate is a type of freehold estate. 
E) contracts for interests in land are governed by the privity of contract rule (i.e.,the contract affects only the parties to the contract). B

Question 3

Where a first mortgagee forecloses in the event of a default,explain what the appropriate course of action would be for a second or third mortgagee.

Accepted Answer

They must be prepared to either buy out or pay off those prior to them in title-for example,the first mortgagee-or ask the court for an order of judicial sale.

Question 4

Corinne has a routine medical appointment with her family physician.She is instructed to undergo blood work and certain other diagnostic tests.After receiving the results,Corinne's doctor advises her that she has lupus.After discussing the situation with her husband,Corinne contacts their life insurance agent and applies for a new life insurance policy naming her husband as beneficiary.She does not disclose the lupus diagnosis on her insurance application.After her death the insurance company obtains the family doctor's medical records and refuses to pay her husband any amounts under the policy.They do return the premiums that Corinne paid after the policy was issued.The husband's lawsuit against the insurance company will:

Accepted Answer

A) succeed because the insurance company accepted the risk at the time the application for insurance was made. 
B) succeed because no autopsy was done and there was no clear evidence of what caused Corinne's death. 
C) fail because Corinne failed to provide full disclosure of her current health condition which constituted a misrepresentation and voided the policy. 
D) fail because Corinne ought to have applied for the insurance before she got the test results. 
E) succeed because the insurance company ought to have obtained the medical records from the family physician at the time the application was submitted. 
A) succeed because the insurance company accepted the risk at the time the application for insurance was made. 
B) succeed because no autopsy was done and there was no clear evidence of what caused Corinne's death. 
C) fail because Corinne failed to provide full disclosure of her current health condition which constituted a misrepresentation and voided the policy. 
D) fail because Corinne ought to have applied for the insurance before she got the test results. 
E) succeed because the insurance company ought to have obtained the medical records from the family physician at the time the application was submitted.

Question 5

A fidelity bond is when the employee pays the employer a fee to cover himself while he is on the job.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is one of the implied rights of a lessee of a commercial tenancy?

Accepted Answer

A) The lessor will repair unfurnished premises. 
B) The lessee will deliver vacant possession to the new tenant at the time they agreed the lease period would start. 
C) The lessee will give the lessor possession. 
D) The lessee can use and enjoy the premises for all usual purposes without physical interference from the lessor. 
E) The lessor is assured against the interference by a third party. 
A) The lessor will repair unfurnished premises. 
B) The lessee will deliver vacant possession to the new tenant at the time they agreed the lease period would start. 
C) The lessee will give the lessor possession. 
D) The lessee can use and enjoy the premises for all usual purposes without physical interference from the lessor. 
E) The lessor is assured against the interference by a third party.

Question 7

Blasting going on nearby that interferes with the tenant's work or sleep,construction that interferes with the tenant's access to the office,or a major leak that makes the premises uninhabitable are all breaches of a tenant's right to quiet enjoyment.

Accepted Answer

A) True 
 B)False

Question 8

If a person habitually crosses property over a number of years with the permission of the owner,he can,in some provinces,acquire a right to cross that property even though there has been no actual documented grant of such a right.Acquiring such a right is this manner is called:

Accepted Answer

A) profit à prendre. 
B) a dominant tenement. 
C) prescription. 
D) an estate in land. 
E) adverse possession. 
A) profit à prendre. 
B) a dominant tenement. 
C) prescription. 
D) an estate in land. 
E) adverse possession.

Question 9

If I grant my grandma a life estate and she asks about her rights and duties as a life tenant,which of the following is true?

Accepted Answer

A) If I make no indication of who the property is to go to when she dies,the property reverts back to my estate. 
B) The life tenant,after 20 years,can establish an easement interest in the property. 
C) The life tenant is not responsible to make repairs to keep the property in good condition,only the fee simple owner has that responsibility. 
D) Grandma,as life tenant,holds a reversion interest in the property. 
E) The life tenant can transfer the fee simple to someone in her will. 
A) If I make no indication of who the property is to go to when she dies,the property reverts back to my estate. 
B) The life tenant,after 20 years,can establish an easement interest in the property. 
C) The life tenant is not responsible to make repairs to keep the property in good condition,only the fee simple owner has that responsibility. 
D) Grandma,as life tenant,holds a reversion interest in the property. 
E) The life tenant can transfer the fee simple to someone in her will.

Question 10

When a person buys property but under the title is prevented from building certain types of structures or carrying on certain types of activities at that location,this is called what?

Accepted Answer

a restrict

Question 11

Jane had two teenage sons.Her husband died when the boys were ages 14 and 16.She met Jack,who had a son and daughter by his first marriage.He was divorced from both a first and a second wife.Jane and Jack decided to marry.Once married,they bought a house as co-owners.Which of the following is true with regard to co-ownership?

Accepted Answer

A) If Jane and Jack took the property as joint tenants and Jane decides that she does not want the "right of survivorship," she cannot change that type of ownership without Jack's permission. 
B) Even under joint tenancy,when one dies,the other will face inheritance taxes and probate fees. 
C) If Jane and Jack co-own the property as joint tenants,Jane could control what happens to her share upon her death through a well-crafted will. 
D) A joint tenancy cannot be severed by one party selling his or her interest. 
E) If it is a joint tenancy and no changes are made,if Jane dies first then Jack gets the whole property. 
A) If Jane and Jack took the property as joint tenants and Jane decides that she does not want the "right of survivorship," she cannot change that type of ownership without Jack's permission. 
B) Even under joint tenancy,when one dies,the other will face inheritance taxes and probate fees. 
C) If Jane and Jack co-own the property as joint tenants,Jane could control what happens to her share upon her death through a well-crafted will. 
D) A joint tenancy cannot be severed by one party selling his or her interest. 
E) If it is a joint tenancy and no changes are made,if Jane dies first then Jack gets the whole property.

Question 12

A fidelity bond provides compensation for the wrongful conduct of employees.

Accepted Answer

A) True 
 B)False

Question 13

Mario bought a small house in Nelson and was puzzled when he saw the conveyancing documents,which referred to a transfer of a "fee simple." The following statements were made to him to explain the term.Which is correct?

Accepted Answer

A) The owner of the fee simple has the right to exclusive possession of the land until his death. 
B) If the owner of the fee simple dies without a will,his estate reverts back to the Crown. 
C) The owner of the fee simple has rights to the surface of the earth and also unlimited use of the airspace above his property. 
D) The owner of the fee simple also owns what is below the land,including mineral rights. 
E) Technically,only the Crown owns the land,but the fee simple interest is the greatest bundle of rights,other than the Crown's,that a person can own. 
A) The owner of the fee simple has the right to exclusive possession of the land until his death. 
B) If the owner of the fee simple dies without a will,his estate reverts back to the Crown. 
C) The owner of the fee simple has rights to the surface of the earth and also unlimited use of the airspace above his property. 
D) The owner of the fee simple also owns what is below the land,including mineral rights. 
E) Technically,only the Crown owns the land,but the fee simple interest is the greatest bundle of rights,other than the Crown's,that a person can own.

Question 14

The separation or division of joint ownership is referred to as severance.

Accepted Answer

A) True 
 B)False

Question 15

Maab owns a small pet shop.He carries on business in commercial premises he leases from his landlord,Susan.Due to a downturn in the local economy,Maab fails to pay his rent for three months.Susan takes the appropriate steps to re-enter the premises,thereby terminating the tenancy and evicting Maab for failure to pay rent.Maab was unable to remove all of his assets from the premises before the eviction.He has a large aquarium with thousands of dollars of exotic fish that Susan has now threatened to sell and apply the proceeds to the outstanding rent arrears.Is she legally entitled to do so?

Accepted Answer

A) Yes,because Maab failed to remove all of his assets prior to the re-entry and eviction. 
B) No,because a commercial landlord is never entitled to sell assets owned by a tenant. 
C) Yes,because the landlord has a general right to seize assets of the tenant found on the premises and sell them to recover arrears of rent. 
D) No,because the landlord is not permitted to terminate the tenancy thereby removing the tenant and subsequently exercise a right of distress. 
E) Yes,because Susan is not a residential landlord. 
A) Yes,because Maab failed to remove all of his assets prior to the re-entry and eviction. 
B) No,because a commercial landlord is never entitled to sell assets owned by a tenant. 
C) Yes,because the landlord has a general right to seize assets of the tenant found on the premises and sell them to recover arrears of rent. 
D) No,because the landlord is not permitted to terminate the tenancy thereby removing the tenant and subsequently exercise a right of distress. 
E) Yes,because Susan is not a residential landlord.

Question 16

Harry's lawn mower ceased to work,and in order to get the lawn mowed,he borrowed his neighbour's lawn mower.Which one of the following is correct with respect to Harry's responsibility in relation to that lawn mower?

Accepted Answer

A) Because the lawn mower is valuable,this is an example of a bailment for value. 
B) This is a voluntary bailment and,as such,Harry has no legal obligation to look after the lawn mower. 
C) This is a voluntary bailment for Harry's benefit and,as such,Harry has a duty to be reasonably careful that no harm or accident comes to that lawn mower. 
D) Because Harry has borrowed the lawn mower,he is obligated to return it in the condition it was given and is liable for any damage or loss no matter what the reason. 
E) If,when Harry asked his neighbour to borrow the lawn mower,the neighbour was reluctant to loan it to Harry but did so anyway,this is an example of an involuntary bailment. 
A) Because the lawn mower is valuable,this is an example of a bailment for value. 
B) This is a voluntary bailment and,as such,Harry has no legal obligation to look after the lawn mower. 
C) This is a voluntary bailment for Harry's benefit and,as such,Harry has a duty to be reasonably careful that no harm or accident comes to that lawn mower. 
D) Because Harry has borrowed the lawn mower,he is obligated to return it in the condition it was given and is liable for any damage or loss no matter what the reason. 
E) If,when Harry asked his neighbour to borrow the lawn mower,the neighbour was reluctant to loan it to Harry but did so anyway,this is an example of an involuntary bailment.

Question 17

Late one night,Mr.Kane found a duffle bag in his front yard.He opened it and discovered that it contained $30 000.He called the police department to report what he had found.The police picked up the bag and the cash.During a thorough investigation,it was determined that the $30 000 was payment for illegal drugs.Who would have legal claim to the money?

Accepted Answer

A) the person who lost it 
B) the government 
C) Mr.Kane (since the duffle bag was located on his property) 
D) Mr.Kane and the government 
E) Mr.Kane (since he found the duffle bag) 
A) the person who lost it 
B) the government 
C) Mr.Kane (since the duffle bag was located on his property) 
D) Mr.Kane and the government 
E) Mr.Kane (since he found the duffle bag)

Question 18

Life insurance provides compensation to named beneficiaries when the insured dies.Whole life insurance:

Accepted Answer

A) involves a premium paid strictly to insure against the death of the insured. 
B) involves significantly lower premiums but only pays compensation to beneficiaries if death of insured occurs before age 65. 
C) provides income to the insured when because of accident or sickness the insured can no longer work. 
D) involves a certain investment aspect as well as life insurance coverage. 
E) is a mechanism by which businesses can supply health and disability insurance to their employees. 
A) involves a premium paid strictly to insure against the death of the insured. 
B) involves significantly lower premiums but only pays compensation to beneficiaries if death of insured occurs before age 65. 
C) provides income to the insured when because of accident or sickness the insured can no longer work. 
D) involves a certain investment aspect as well as life insurance coverage. 
E) is a mechanism by which businesses can supply health and disability insurance to their employees.

Question 19

The private right to sue for private nuisance was reinforced with the Supreme Court of Canada decision in St.Lawrence Cement Inc.v.Barrette in Quebec.Which of the following is incorrect related to this case?

Accepted Answer

A) The court gave a broader definition to neighbour,giving all of the people affected the right of action. 
B) The common law doctrine of nuisance would have led to a different decision. 
C) This action went forward as a class action,allowing the burden of bringing action to be spread much more widely. 
D) As a result of this case,private nuisance is a much more effective tool. 
E) St.Lawrence Cement Inc.was found liable. 
A) The court gave a broader definition to neighbour,giving all of the people affected the right of action. 
B) The common law doctrine of nuisance would have led to a different decision. 
C) This action went forward as a class action,allowing the burden of bringing action to be spread much more widely. 
D) As a result of this case,private nuisance is a much more effective tool. 
E) St.Lawrence Cement Inc.was found liable.

Question 20

When one person leaves tangible personal property with another to look after,the resulting relationship is called:

Accepted Answer

A) a chattel. 
B) a chose in action. 
C) a bailment. 
D) a fiduciary relationship. 
E) a fixture. 
A) a chattel. 
B) a chose in action. 
C) a bailment. 
D) a fiduciary relationship. 
E) a fixture.

A right of way can be acquired by prescription when a person's habitual use of land is not interfered with by the owner.

Interests in land "run with the land." This means that:

Where a first mortgagee forecloses in the event of a default,explain what the appropriate course of action would be for a second or third mortgagee.

A fidelity bond is when the employee pays the employer a fee to cover himself while he is on the job.

Which of the following is one of the implied rights of a lessee of a commercial tenancy?

Blasting going on nearby that interferes with the tenant's work or sleep,construction that interferes with the tenant's access to the office,or a major leak that makes the premises uninhabitable are all breaches of a tenant's right to quiet enjoyment.

If a person habitually crosses property over a number of years with the permission of the owner,he can,in some provinces,acquire a right to cross that property even though there has been no actual documented grant of such a right.Acquiring such a right is this manner is called:

If I grant my grandma a life estate and she asks about her rights and duties as a life tenant,which of the following is true?

When a person buys property but under the title is prevented from building certain types of structures or carrying on certain types of activities at that location,this is called what?

A fidelity bond provides compensation for the wrongful conduct of employees.

Mario bought a small house in Nelson and was puzzled when he saw the conveyancing documents,which referred to a transfer of a "fee simple." The following statements were made to him to explain the term.Which is correct?

The separation or division of joint ownership is referred to as severance.

Harry's lawn mower ceased to work,and in order to get the lawn mowed,he borrowed his neighbour's lawn mower.Which one of the following is correct with respect to Harry's responsibility in relation to that lawn mower?

Life insurance provides compensation to named beneficiaries when the insured dies.Whole life insurance:

The private right to sue for private nuisance was reinforced with the Supreme Court of Canada decision in St.Lawrence Cement Inc.v.Barrette in Quebec.Which of the following is incorrect related to this case?

When one person leaves tangible personal property with another to look after,the resulting relationship is called:

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Enforcing Contractual Obligations

Legislation in the Marketplace

Agency and Employment

Methods of Carrying on Business

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Electronic Commerce and International Trade

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Exam 8: Property

A right of way can be acquired by prescription when a person's habitual use of land is not interfered with by the owner.

Interests in land "run with the land." This means that:

Where a first mortgagee forecloses in the event of a default,explain what the appropriate course of action would be for a second or third mortgagee.

A fidelity bond is when the employee pays the employer a fee to cover himself while he is on the job.

Which of the following is one of the implied rights of a lessee of a commercial tenancy?

Blasting going on nearby that interferes with the tenant's work or sleep,construction that interferes with the tenant's access to the office,or a major leak that makes the premises uninhabitable are all breaches of a tenant's right to quiet enjoyment.

If a person habitually crosses property over a number of years with the permission of the owner,he can,in some provinces,acquire a right to cross that property even though there has been no actual documented grant of such a right.Acquiring such a right is this manner is called:

If I grant my grandma a life estate and she asks about her rights and duties as a life tenant,which of the following is true?

When a person buys property but under the title is prevented from building certain types of structures or carrying on certain types of activities at that location,this is called what?

A fidelity bond provides compensation for the wrongful conduct of employees.

Mario bought a small house in Nelson and was puzzled when he saw the conveyancing documents,which referred to a transfer of a "fee simple." The following statements were made to him to explain the term.Which is correct?

The separation or division of joint ownership is referred to as severance.

Harry's lawn mower ceased to work,and in order to get the lawn mowed,he borrowed his neighbour's lawn mower.Which one of the following is correct with respect to Harry's responsibility in relation to that lawn mower?

Life insurance provides compensation to named beneficiaries when the insured dies.Whole life insurance:

The private right to sue for private nuisance was reinforced with the Supreme Court of Canada decision in St.Lawrence Cement Inc.v.Barrette in Quebec.Which of the following is incorrect related to this case?

When one person leaves tangible personal property with another to look after,the resulting relationship is called:

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Enforcing Contractual Obligations

Legislation in the Marketplace

Agency and Employment

Methods of Carrying on Business

Ideas and Information

Electronic Commerce and International Trade

Filters