Deck 13: Real, Personal and Intellectual Property

Question 1

Brenna owns two adjacent lakeside lots. She sells one lot to Burt and Ernie, with the provisions that they agree not to develop any commercial facilities on the land and to plant a row of rose bushes between the properties. The covenants are registered in the appropriate Land Title Office. Which of the following is true?

A) The registration of a covenant guarantees that it is valid interest that runs with the land.
B) If Burt and Ernie sell their lot to Holly, Holly would not be bound by the covenant to refrain from developing commercial facilities.
C) If Burt and Ernie do not plant the bushes as agreed, Brenna could sue them for private nuisance.
D) If the title documents are silent on the point, Burt and Ernie take possession as joint tenants.
E) If Burt and Ernie sell the property, the new owner would not have to plant the row of rose bushes as provided in the original contract.

Answer 1

E

Question 2

Old Uncle Isaac has a cold and has become very morbid, talking continuously about funerals, death, and wills. Now he asks about life-estates and wills; should he give wife Juliet a life estate? Which of the following is a true statement about wills and life-estates?

A) The holder of a life estate must pay for normal upkeep, pay fees and taxes, and not harm the value of the reversionary interest.
B) The life tenant is entitled to exclusive possession of the property for an indefinite period of time.
C) The owner of the fee simple can grant a life estate only while he is alive.
D) A life estate can only be created by contract.
E) If Isaac doesn't make out a will, his property will revert back to the Crown.

Answer 2

A

Question 3

If Niles and Frasier buy a "fee simple" interest, which of the following is true with regard to their rights?

A) The maxim "to whomsoever the soil belongs, he owns also to the sky" remains unchanged and is as valid today as ever.
B) You can sue an airplane for trespass for flying at 30,000 feet over your property.
C) Today a person's right to the area above his land is restricted to that part of it he can make use of.
D) In law, they are entitled only to the surface of the earth within the boundaries.
E) They have rights to the area under their land, including the mineral rights.

Answer 3

C

Question 4

Tom, a classmate of yours at Red River College, was employed as a programmer by Mohawk Oil Company about three months after graduation. Because you could understand the program he was working on and because you write well, he called to ask if you wanted to take on the task of writing the manual to accompany the program. Read each of the following separately and indicate which is true.

A) If you contract as an independent contractor (independent consultant) with the company, and the contract does not specify otherwise, the company owns the copyright.
B) If the company hires you as an employee to write the manual, the company would own copyright unless your employment contract provided otherwise.
C) The owner of the copyright will be whoever first gets his claim of ownership in the copyright office.
D) If two persons wrote the manual together, only one person can have ownership of the copyright.
E) The issue of who owns copyright in the manual depends solely on who writes it.

Question 5

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

A) If they took the property as tenancy in joint tenants and she decides that she does not want the "right of survivorship," she cannot change that type of ownership without his permission.
B) If they co-own the property as joint tenants, Jane could control what happened to her share upon her death by a well-crafted will.
C) If the type of co-ownership is not stated on the conveyancing documents, they will take possession as joint tenants.
D) If it is a joint tenancy and no changes are made, if she dies first her husband gets the whole property.
E) A joint-tenancy cannot be severed by one party selling their interest.

Question 6

Marian met with the owner of a warehouse and contracted for factory space for a two-year term. The amount to be paid ($2,400 yearly) and the premises were made clear, but nothing else was discussed. The law, however, implies some terms. Which of the following is a term of the contract?

A) The landlord has no general obligation to deliver premises that are clean or in good repair.
B) The tenant is responsible for normal wear and tear.
C) The landowner has no obligation to provide vacant possession at the time the lease period is to start.
D) The landlord need not provide quiet enjoyment of the premises.
E) The premises will be reasonably fit for her purpose.

Question 7

If Sam buys the fee simple, which of the following is true with regard to his rights?

A) In law, he is entitled only to the surface of his property within the boundaries, and not to things attached to the land, such as fences and barns.
B) If someone intrudes onto his property, the proper cause of action is to sue for the tort of public nuisance.
C) He would have the right to all below the surface except those things retained by the Crown in the original Crown grant.
D) If fumes from the neighbouring processing plant kill his bushes and vegetables, he may be able to sue the neighbour for the tort of trespass.
E) The maxim "to whomsoever the soil belongs, he owns also to the sky" remains unchanged and is as valid today as ever.

Question 8

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?

A) The owner of the fee simple also owns what is below the land including mineral rights.
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) Technically, only the Crown owns the land, but the fee simple interest is the greatest bundle of rights, other than the Crown's, a person can own.
E) The owner of the fee simple has the right to exclusive possession of the land until his death.

Question 9

With regard to interests in land, which one of the following statements is true?

A) If the fee simple is conveyed to "Mr. Bill and Mr. Phaster" without indicating the nature of their co-ownership, they take the land as joint tenants.
B) The interest in land referred to as the "life estate" is not outright ownership but is the greatest "bundle" of rights in relation to that land that the owner can have.
C) If a joint tenant severs the joint tenancy, he can then will his interest in the land to whomever he chooses, and on his death the person named will take his interest.
D) A joint tenant can sever the joint tenancy by bequeathing his interest in a will the property to a third person.
E) An easement in land is characterized by giving the owner of the estate exclusive possession of that property for some time.

Question 10

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

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

Question 11

Which of the following is essential for a work to have copyright protection?

A) The creator of the work must register his/her work in Canada.
B) The subject matter of the work must only fall into either musical or artistic categories.
C) The idea on which the work is based must be original.
D) The expression of the idea will generally be sufficient.
E) The expression of the idea must be an original product of the author's own skill.

Question 12

In 2011, Jonah sold a building to his two married sons: Bert, and Charles. In 2012, Charles was thinking of severing the joint tenancy, but before anything was said or done, Charles and Bert both drowned in a boating accident. Charles died immediately, but Bert died two months later, never having regained consciousness. Charles had willed his interest in the property to his wife and Bert had willed his to his son. On these facts, which of the following is true?

A) Bert's son is entitled to the whole property.
B) As soon as they made the wills, the parties became joint tenants.
C) Charles's wife and Bert's son have now acquired possession through adverse possession.
D) Charles's wife is entitled to the whole property.
E) Charles's wife and Bert's son now have a leasehold interest in the building.

Question 13

Which of the following is true with regard to real property law?

A) An easement acquired by prescription must be restrictive in nature to be binding on subsequent purchasers of land.
B) A profit a prendre is a type of restrictive covenant attaching to all the properties within a particular development plan.
C) A true interest less than estate, whether properly registered or not, runs with the land and therefore is an exception to the privity of contract rule.
D) A contract for land in which a person sells the property with a restriction that the new owner not sell to any person of a certain race cannot be challenged by the courts because it is a restrictive covenant that runs with the land.
E) The essential characteristic of an estate in land is that the owner of the estate, whether it is a fee simple, life estate, or leasehold, has exclusive possession.

Question 14

Which of the following is considered real property in legal terms?

A) Chattels
B) Intangible property or chose in action
C) Land
D) A claim against someone that has value
E) Intellectual property (ideas and creative work)

Question 15

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?

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 is not responsible to make repairs to keep the property in good condition, only the fee simple owner has that responsibility.
C) The life tenant after 20 years, can establish a easement interest in the property.
D) The life tenant can transfer the fee simple to someone in her will.
E) The life tenant cannot rent out the property during the life tenancy.

Question 16

Which one the following is true with regard to real-property law?

A) If two people own land as tenants in common, the surviving joint owner takes the interest of the deceased co-owner.
B) The "leashold estate" interest in land is the greatest interest that can be granted and bestows the rights to use or sell the property.
C) Property includes only the land and not the buildings attached to it.
D) A person who owns an interest less than an estate (e.g., a right of way) has a right to exclusive possession of that property.
E) A legal, registered restrictive covenant "runs with the land"; i.e., it can bind subsequent owners who were not parties to the original contract under which it arose.

Question 17

Jack and Joan got married. It was the second marriage for both of them, and each brought one teenaged child into the marriage. They bought a house in Langley as joint tenants. They worked very hard to create a loving home, but when the children had disputes, it always affected the relationship between Jack and Joan because of the loyalty to their own child. Joan now thinks that it was a mistake to buy the house as joint tenants and wants her share in the house to go to her child in the event of her death. Which of the following will bring about such a change?

A) Joan could purchase an option agreement to lease her interest in the house to herself.
B) Jack and Joan cannot sever the joint tenancy.
C) Joan could lease her interest in the house.
D) Joan could sell her interest in her house to her uncle and have him sell it back to her.
E) Joan could have a will drawn up by which her share in the house would be left to her child.

Question 18

Which of the following is true with regard to our Canadian Copyright Act?

A) The statute provides that the employer owns copyright in a work created by the employee in the course of his employment, in the absence of any agreement to the contrary.
B) The statute provides for copyright protection only where the copyright is registered and the owner of copyright uses the following form of notice: (c) year of creation, name of creator.
C) The statute expressly provides that computer programs are not copyrightable.
D) Copyright is protected both by statute and in common law.
E) The statute is a provincial statute with each province having its own unique statutes.

Question 19

Zack, Virgil, and Craig, friends for several years and all worried about the alarming rise in land prices, want to go in together and buy a four-acre parcel in the country. There is a small cabin on it. They hope that the land value will appreciate, and they want to sell it in a few years to help finance a house of their own. Read each of the following separately and indicate which is true with regard to their ownership of this property.

A) If they buy the land and do not take possession, in some provinces they could lose their right to claim possession, and their rights become a fee simple estate.
B) Ownership of the fee simple does not guarantee their right to everything below the surface of their property.
C) Ownership of the property entitles them not only to the surface of the earth between the boundaries, but also to the infinite airspace above and everything below the surface of their property.
D) If they do not indicate on the transfer documents the nature of the co-ownership, the law presumes they will take as joint tenants.
E) In Canada, in strict legal terms, the only owner of land is the Crown, and if they buy land free and clear, they are only getting a life estate.

Question 20

If a person habitually crosses property over a number of years with 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

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

Question 21

With regard to real property law, which one of the following is true?

A) If the fee simple is conveyed to Mr. and Mrs. So and there is no indication of the nature of their co-ownership, they take the land as joint tenants.
B) If a father cuts his family out of his will and leaves the property to someone else, there is no legal recourse for the family; i.e., the property is his to dispose of entirely as he wishes.
C) If one co-owner wants to sell but the other won't consent to the sale, the first one may be able to get a court order to sell the property.
D) A life estate is an interest in land that necessarily ends when the life of the grantor ends.
E) An interest in land less than an estate (e.g., an easement) gives its owner exclusive possession of that property for some period of time.

Question 22

A husband and wife own Lot A as joint tenants and Lot B as tenants-in-common. The husband's will reads: "I leave Lot A to my son John and Lot B to my daughter Mary." Who takes what when the husband dies?

A) Mary will get her father's interest in Lot B, but John will get no interest in Lot A.
B) The son, John, gets Lot A and daughter Mary gets Lot B, just as their father wished and designated in his will.
C) Mary will get all of Lot B but John will not get Lot A because it was co-owned with the mother in joint-tenancy, so the mother takes Lot A as the surviving joint tenant.
D) Mary will get her father's interest in Lot B, but John will only get a life tenancy in Lot A.
E) John will get Lot A but Mary will not get Lot B because it was co-owned with the mother as tenants-in-common, so the mother takes Lot B as the other tenant-in-common.

Question 23

With respect to the land titles system of registering interests in land, which one of the following is true?

A) All the documents concerning an interest in land must be kept in the land title office, and to ensure the state of the title, a potential purchaser is advised to examine the various documents that have accumulated over the years.
B) Mortgages, restrictive covenants, building schemes, easements, and even entries under the Builders' Lien Act need not be registered to protect those interests against third-party claims. Registration of such interests is voluntary and won't affect one's interest.
C) The system is to safeguard the documents; the government is not guaranteeing title.
D) This registration system is the same throughout Canada because the procedure has been set by the federal government to ensure a uniform method of registration.
E) When documents concerning an interest in land are filed in the land title office, each document is examined, and if it is in order, the state of title certificate is amended to show the change.

Question 24

Which of the following is false with regard to condominiums and cooperatives?

A) The owner of a condominium can be forced to pay a fee levied by the condominium association governing the condominium.
B) The owner of a condominium can mortgage his interest.
C) An owner of a cooperative, like the owner of a condominium, has a real property interest in the suite.
D) The owner of a condominium owns a share in the common areas.
E) The owner of a condominium has a fee simple interest in his unit within the condominium structure.

Question 25

Mr. Bucks owned a 10-hectare property in Langley. He subdivided the land into two 5-hectare lots. He decided to keep lot A for himself and to sell lot B. His friend and neighbour, Ms. Goode, wanted lot B, so they made the following deal: for lot B, Ms. Goode would give Bucks $100,000, her car, a right-of-way of 3 metres along the east side of lot B to provide access to the highway, her promise not to remove any of the cedar trees (a row of which benefits lot A by blocking the view of a factory) and her promise to plant a 5-metre-long laurel hedge to block his view of her driveway. All promises were registered. Which one of the following is true?

A) Ms. Goode would have to comply with all the terms of this contract except for the part about the laurel hedge, because that is a positive covenant.
B) If Ms. Goode sells lot B to Mr. Ho, Mr. Ho could cut down the cedar trees because the promise was part of the contract between Mr. Bucks and Ms. Goode to which Mr. Ho was not privy, and which therefore does not affect him.
C) With regard to the right of way, lot B is the dominant tenement and lot A is the servient tenement.
D) If the right-of-way is properly registered in the land title office, it would bind subsequent purchasers of either lot A or lot B even though they were not privy to the original contract.
E) This kind of deal for land is not possible because it is too complicated.

Question 26

Which of the following is true with regard to obtaining a patent?

A) The Patent Act allows a patent to someone for an existing process or machine that is in use but has not been patented.
B) The inventor does not have to send specifications or a model when he sends his application.
C) If a patent application is denied, the inventor can apply for trademark protection instead.
D) The inventor's expression of the idea is automatically protected under the provincial Patent Act.
E) To obtain a patent, besides satisfying the provisions of the Patent Act, the inventor must show that the invention was not known or used by any other person before he or she invented it.

Question 27

Which of the following is correct with respect to trade secrets?

A) The employee need not be informed that the information is confidential.
B) Personal information cannot be a trade secret, even if it affects the business.
C) The information must be fully disclosed under the provincial Trade Secrets Act.
D) There is no duty not to disclose trade secrets, unless specified in contract.
E) Trade secrets include such things as formulas, patterns, recipes.

Question 28

The will read, "To my beloved wife, I leave our matrimonial home for life, remainder to our son, Ivan." Ivan, the adult son, no longer lived in B.C. Upon her husband's death, his wife remarried and moved out of the matrimonial home, but she allowed her friend Tilly to live there. Upon learning that his mother had moved out, Ivan considered moving back to the home. Which one of the following is true?

A) If the wife sold her interest to Tilly, Tilly could stay in the home until she (Tilly) dies regardless of when the wife dies.
B) Ivan's legal right to return to the home does not arise until the death of his mother.
C) Ivan has the legal right to return to the home because, as the remainderman, he has a better right to live there than Tilly does.
D) Ivan has the legal right to return to the home because, as a blood relative, he has a better right to live there than Tilly does.
E) If the wife willed the home to her new husband, upon her death the new husband would inherit the home.

Question 29

If a person wanted to build a log cabin in a new subdivision what might prevent him from doing it?

A) Restrictive covenant
B) Strata regulations
C) Prescription
D) Federal statute
E) Easement

Question 30

Chad was the best private detective in the west. His system for tracking persons who have caused themselves to disappear was markedly superior to that of others. Sally, his only assistant, was considered so valuable that he always had her sign five-year contracts with non-disclosure clauses. Sally took notes at a private meeting between Chad and a representative of the RCMP who was negotiating a contract with Chad for tracking down two criminals. Sally and Chad took care that the discussions were understood to be confidential -- regarding both the information from the RCMP and from Chad about his methods. Sally was approached by a competitor of Chad, Mr. Adolph, who offered her three times her salary if she would break her contract with Chad, sign with him, and bring him information about Chad's tracking system. After some months, she did just that. Furthermore, she told Adolph the details of the information given to Chad by the RCMP, which caused the RCMP embarrassment, time, and money. Which of the following is true?

A) Sally owes no fiduciary duty to Chad even though she had a trusted position as an employee.
B) Chad could sue Sally for disclosing the information only if he had signed a non-disclosure clause.
C) The RCMP could not sue Chad for breach of confidence because the information disclosed by Sally was not novel know-how that was giving the RCMP the cutting edge in business competition.
D) Chad could sue Sally for breach of her employment contract, not only on the clause relating to the term of her employment, but also on the non-disclosure clause.
E) Chad could sue Adolph for the tort of passing-off.

Question 31

Which of the following is true with regard to the copyright law in Canada?

A) Everyone can receive copyright protection in Canada for his or her work created elsewhere.
B) Copyright law is governed by the Copyright Act, but an author need not register under the statute to acquire copyright.
C) Generally, the term of copyright is fifty years.
D) A Canadian author must register upon the creation of her book, in order to acquire copyright protection.
E) Registration of copyright is restricted to published works.

Question 32

Lodown Ltd., a company created by Mr. Day, became very successful over its ten-year history. The company was run by Day, as president, and three vice-presidents (Martin, Mull, and Rand) who made up the executive board. At their last meeting, Mr. Day announced that he had confidential information to share with them, namely, that his wife was terminally ill, that he was withdrawing from active management for an indefinite period of time, and that he would transfer his responsibilities to Martin. Rand repeated this information to others, and by doing, so he caused the company to lose a lucrative contract being negotiated and caused Day personal embarrassment and monetary loss in his personal affairs. On these facts, which of the following is true?

A) Rand cannot be sued since the information disclosed was personal and did not deal directly with the business.
B) In law, there can be an no action against Rand because the information he repeated was not a trade secret.
C) A non-disclosure provision is required, Day simply putting the members of the executive on notice that they were expected to keep the information confidential is not sufficient to bring action.
D) Rand owes no fiduciary duty to the company as an officer of the company.
E) The company would have an action against Rand because it is a commercial enterprise that suffered a loss because he breached his fiduciary duty to the company.

Question 33

In 2005, Jonah sold a building to his two married sons: Bert, and Charles. In 2015, Charles was thinking of severing the joint tenancy, but before anything was said or done, Charles and Bert both drowned in a boating accident. Charles died immediately, but Bert died two months later, never having regained consciousness. Charles had willed his interest in the property to his wife and Bert had willed his to his son. On these facts, which of the following is false?

A) As soon as they made the wills, the parties became tenants in common.
B) Bert's son is entitled to the whole property.
C) Charles's wife and Bert's son are now joint tenants.
D) Charles's wife and Bert's son are now tenants in common.
E) Charles's wife is entitled to the whole property.

Question 34

About ten years after their marriage, Eric and Bev had saved enough money to buy an investment property. First they bought a duplex, which they held as joint tenants, and later they bought a building lot in Surrey, which they held as tenants-in-common. Eric's will provided that his interest in the duplex would go to their daughter, Lisa, and that his interest in the Surrey lot would go to their son, Max. Indicate the statement that accurately describes who will take what upon Eric's death.

A) Bev will get Eric's interest in the Surrey lot but Lisa will get his interest in the duplex.
B) Bev will get both properties because she and Eric co-owned them both.
C) Max will get Eric's interest in both properties as the oldest son.
D) Bev will get Eric's interest in the duplex but Max will take Eric's interest in the Surrey lot.
E) Lisa will get his interest in the duplex and Max will get the interest in the Surrey lot just as the will said.

Question 35

Which of the following is true with respect to the duty owed when a person is in possession of confidential information?

A) The duty is owed only between partners within a partnership.
B) There is an obligation of duty, only if stems from contract law.
C) There must be a fiduciary duty, in order to have a legal obligation not to disclose confidential information. .
D) A duty is only owed when the information is copyrighted or patented.
E) The nature of the duty is not to disclose confidential information about a business that would cause harm to the business or bring personal benefit.

Question 36

An option agreement is

A) a contract by which the offeror of property promises to hold his offer open for a period of time during which the offeree can accept the offer and the property can't be sold to another.
B) a contract that provides that a debtor will transfer title in property to a creditor as security for repayment of the debt.
C) a contract transferring the fee simple to a new owner.
D) a contract by which an offeree promises to buy the property offered at a later date set in the contract.
E) a contract that provides that a seller will retain the title in the property until the buyer has made all of the required payments.

Question 37

Which of the following is true with regard to trademark?

A) The distinctive design of a product container cannot be the subject of trademark protection.
B) If a person registers a trademark but later fails to use it, protection of the mark will not be lost; it is still his and is protected for the remainder of the period of protection granted.
C) Registration of a trademark gives the owner of the trademark the exclusive right to use it throughout Canada.
D) Registration of a trademark grants the owner protection for life plus 50 years with the right to renew.
E) Registration under the Trademark Act provides protection for only registered trademarks, unregistered marks and names are protected under the common law tort of copyright.

Question 38

Aunt Juliet wants to know whether or not to register her trademark. Which of the following is true with regard to registration of trademarks?

A) Trademarks can only consist of socially acceptable symbols or logos. Words and expressions must seek copyright protection.
B) Registration of the trademark would give her exclusive use of that mark nationwide even though she was not marketing her wares nationwide.
C) A registered trademark is required for a passing-off action.
D) If she does not register her trademark under the Trademark Act, she will have no legal protection of her mark.
E) Registration gives her the right to use her mark for her life plus fifty years.

Question 39

For advertising purposes, Mr. Storage, the owner of a restaurant in the middle of the city, attached an enormous balloon to the roof of the building. The wind caused the balloon to rest most of the time right above a small adjacent grocery store. The balloon caused no damage, but its presence annoyed the owner of the grocery store, Mr. Greens, who was thinking of putting his own sign above his store. What action, if any, does Mr. Greens have against Mr. Storage?

A) Public nuisance
B) Negligence
C) Trespass
D) Breach of the Aeronautics Act
E) None

Question 40

Which of the following is true with regard to the law governing patents?

A) An amendment to the Patent Act allows patent protection automatically.
B) A patent will only be granted if the invention has been the subject of a publication of over one year prior to the application.
C) If a patent is developed by an employee, the employee has the right to obtain the patent.
D) Computer programs, as a general rule, can be patented as well as copyrighted, because they are a set of instructions to the computer.
E) In exchange for the monopoly given under the Patent Act, the owner of the patent must disclose the invention in its entirety.

Question 41

Which of the following is the correct definition of a chattel?

A) The term chattel is the broad term used to describe any kind of property interest.
B) A chattel is a name used to describe the land registration system in place in the Western provinces.
C) Chattel is an intangible form of personal property, such as a debt or claim.
D) Chattel is the term used to describe tangible personal property or movables.
E) Chattel refers to intellectual property such as patents and copyrights.

Question 42

When a house is built on a lot the house is an example of

A) a chattel.
B) a profit a prendre.
C) a house is not considered property.
D) real property.
E) an easement.

Question 43

When Joan entered into a contract with Mr. Shultz to rent an apartment in a converted house, she noticed that the back stairs and hand railing looked as if they were in disrepair. On the day when she took possession, she found she couldn't use the back stairs because the last two steps were rotten and the handrail was not bolted down at one end. Which of the following is true?

A) The common law places no duty on the landlord to repair, and this has not been overridden by any statute.
B) Unless the contract states that the landlord has an obligation to repair, the landlord has no obligation to repair.
C) The landlord has a statutory duty to provide premises in a state of repair that complies with safety standards irrespective of the state of the premises at the time of contract.
D) The landlord has an obligation to provide premises in a good state of repair only if any defect was brought to his attention at the time of the contract.
E) Because Joan has taken possession, she would have the obligation to replace the steps and bolt down the handrailing.

Question 44

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

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

Question 45

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 incorrect?

A) The owner of the fee simple also owns what is below the land subject to the reservations in favour of the Crown.
B) The owner of the fee simple has the right to exclusive possession of the land and can sell it in his lifetime or dispose of it by his will.
C) If the owner of the fee simple dies without a will, his estate reverts back to the Crown.
D) Technically, only the Crown owns the land, but the fee simple interest is the greatest bundle of rights, other than the Crown's, a person can own.
E) The owner of the fee simple has rights to the surface of the earth and also to anything attached to it, e.g., crops, houses, fences.

Question 46

Which of the following statements is correct with respect to the creation of a bailment?

A) For a bailment to be created, the property must be given with the understanding that payment would be given for the service.
B) A bailment is not created when the transfer of the property is only done incidentally, such as leaving a watch with a watchmaker for repair.
C) For a bailment to be created, it is necessary for the parties to have anticipated that the property would be returned at the end of the bailment period.
D) A bailment is the process provided for releasing people from jail before trial.
E) Bailments can only be created through contracts.

Question 47

Consider the following statements regarding the nature of the landlord-tenant relationship. Indicate the true one.

A) An oral lease is never enforceable.
B) A leasehold is one kind of interest less than an estate.
C) A characteristic shared by leaseholds and life estates is that they both grant to the holder the right of exclusive possession.
D) Leases are only available in residential tenancies.
E) The term of a lease must be for a definite period of time.

Question 48

Mable was employed as a waitress at a respectable restaurant in Vancouver. After cleaning up at one of the tables, she noticed a valuable broach on the floor beneath the table. Which of the following is correct with respect to her legal claim to the broach?

A) Although she found the broach in a public part of the restaurant, she must give the broach to her employer, who has the right to keep it if the rightful owner is not found.
B) She has no claim to the broach no matter where she found it.
C) As the finder of the broach, she is entitled to it. She has a prior claim against all but the rightful owner of the broach.
D) Because of the principle of "finders keepers," she gets to keep the broach even against the original owners who lost it.
E) She must hand it to the police, and if the rightful owner does not come forward, the broach becomes the property of the government.

Question 49

In which of the following does a person have a true lease?

A) When he pays by the hour to use a woodworking shop along with other users.
B) When he has been given permission to sleep on a cot in the dark room used at the photography shop where he works.
C) When he has contracted for the use of a warehouse for a two-month period commencing June 10, 2011.
D) When a person's one-year commercial lease has expired and he has paid no further rent but remains on the premises without the agreement or consent of the lessor.
E) When a person rents a hotel room.

Question 50

Which of the following statements is incorrect with respect to personal property that becomes attached to real property?

A) When a person renting a home attaches a mirror to the wall to better use it, he can take that mirror with him when he leaves, providing no damage is done by removing it.
B) When such tangible personal property becomes attached, it becomes part of the real property.
C) The owner of real property has the right to detach a fixture if he so desires.
D) When such tangible personal property becomes attached to the real property, it is unlawful to remove it under any circumstances.
E) When a tenant attaches tangible personal property to the real property he has rented in order to use it in his trade or profession, those trade fixtures can be removed when he leaves.

Question 51

Jane asked her friend Harry to look after her very valuable Stradivarius violin while she was away on vacation. Which one of the following statements is correct with respect to the legal relationship created?

A) This is an example of a gratuitous bailment for the benefit of the bailee.
B) Because he is doing his friend a favour, Harry has no legal duty to be careful of the violin.
C) This is an example of a gratuitous bailment for the benefit of the bailor only.
D) This is an example of an involuntary bailment.
E) Because the violin is a Stradivarius, this is an example of a bailment for value.

Question 52

In which of the following does a person have a true lease?

A) When he spends the night in an inn.
B) When a person contracts for a room in a boarding house for one month.
C) When a person's one-year lease has expired and he has paid no further rent, but remains on the premises contrary to the wishes of the lessor.
D) When he has been given permission to sleep on a cot in the dark room used at the photography shop where he works.
E) When he has contracted for a warehouse for a two-week period commencing June 1, 2001.

Question 53

Which of the following is not considered personal property in legal terms?

A) Intellectual property (ideas and creative work)
B) Intangible property or chose in action
C) Chattels
D) A claim against someone that has value
E) A good affixed to real property

Question 54

A periodic tenancy means

A) a lease in which the parties agree to no set termination date but to the rental period being automatically renewed.
B) a tenancy created when an owner of property allows a purchaser to take possession before title transfers to him.
C) a term lease.
D) a lease granting the lessee exclusive possession for one year.
E) a lease created when a tenant is over-holding after the termination date of his lease without the landlord's permission.

Question 55

Which of the following statements is correct with respect to the person who is entitled to found property?

A) You only have a claim to personal property you find if it is a chose in action.
B) When a person finds valuable property, he must turn it over to the police, and if the rightful owner is not found, the property goes to the government.
C) When a person finds a valuable watch in a public place, he is entitled to that property over everyone else except the rightful owner.
D) When a person finds a valuable watch in a public place, he is entitled to that property over everyone else including the rightful owner.
E) When an employee finds an item of lost property on the premises of his employer, he is entitled to that lost property if the rightful owner cannot be found.

Question 56

When a person acquires temporary possession of a chattel by arrangement with the owner, it is known as which of the following?

A) Fixture
B) Bailment
C) Consignment
D) Chose in action
E) Holder in due course

Question 57

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

A) If, when Harry asked his neighbour, the neighbour was reluctant to loan it to Harry but did so anyway, this is an example of an involuntary bailment.
B) This is a gratuitous bailment, and as such, Harry has no legal obligation to look after the lawnmower.
C) Because Harry has borrowed the lawnmower, 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.
D) Because the lawnmower is valuable, this is an example of a bailment for value.
E) This is a gratuitous bailment for Harry's benefit, and as such, Harry has a duty to be reasonably careful that no harm or accident come to that lawnmower.

Question 58

Which of the following is false with regard to the law of landlord and tenant, lessor and lessee?

A) The law of frustration applies to residential leases.
B) A tenancy is primarily contractual and therefore does not "run with the land"; it does not bind a purchaser of the building.
C) A lease agreement is a contract that grants an estate in land; i.e., it gives the lessee exclusive possession for a period of time.
D) Residential properties are governed by provincial statute and vary from jurisdiction to jurisdiction.
E) If a commercial lessee defaults on his rent, the lessor has the power to seize the lessee's property left on the premises.

Question 59

After saving his money for years, Taylor was finally able to buy property with a small house and a lake. Which of the following is false?

A) Taylor owns all of the area above his land and all of the land below.
B) His ownership extends to include "fixtures."
C) He can sell part of his interest and create a joint tenancy.
D) Despite the extent of his interest, the Crown can grant the mineral rights to someone else.
E) Taylor's interest is referred to as a fee simple.

Question 60

Which of the following describes involuntary bailment?

A) The bailee refuses to claim the stored goods.
B) The bailor sells the goods to compensate for storage costs.
C) The borrower refuses to return goods.
D) Someone is forced to provide bail.
E) Goods have been left without permission.

Question 61

The case of Applewood Lane West Ltd. v. Scott involved two tenants who, to get out of their lease, had a series of "lease-breaking parties". As expected, they were evicted. The landlord had trouble renting the premises and sued the tenants. What was the result?

A) The conduct of the tenants constituted abandonment of the lease, and so the tenants were liable.
B) The landlord chose to evict the tenants and, in doing so, the landlord abandoned all claims against them.
C) The conduct of the landlord resulted in a forfeiture of the lease, so no damages were payable.
D) The lease was void for illegality, so no damages were payable.
E) The tenants had been evicted without cause, and so the landlord was required to pay damages on the counterclaim.

Question 62

Which of the following is true with regard to trademark infringement and the remedies of the trademark owner?

A) If a person forges a trademark, that person can be sued by the owner of the trademark for infringement in a civil action, but there cannot be any criminal charges laid against him.
B) Once a trademark is registered, the owner of the trademark cannot lose the right to use that mark.
C) Before a trademark owner can sue successfully for an infringement, he must prove that the mark used by the defendant was the same as his mark.
D) Before a trademark owner can sue successfully for an infringement, he must prove that the mark used by the defendant actually did confuse members of the public.
E) The owner of a trademark can sue someone who forges his trademark, and can ask the court for an injunction, an accounting of profits, and custody of the offending wares.

Question 63

Jurg was hosting a luncheon when his punchbowl broke. He went next door and asked his neighbour, Ethan, if he could borrow his. Ethan reluctantly agreed, commenting that the punchbowl was a family heirloom. This made Jurg a little nervous. On his way back home, he was wondering what his responsibility would be in relation to the bowl. Which one of the following statements is true?

A) Because this is a gratuitous bailment, Jurg has no legal obligation in relation to the punchbowl.
B) Because this is a gratuitous bailment for Jurg's benefit, Jurg must be reasonably careful that no harm or damage comes to the punchbowl.
C) Because Ethan lent the punchbowl to him reluctantly, the rules of an involuntary bailment apply.
D) Because Jurg borrowed the punchbowl, he must return it in the same condition and is liable for any damage howsoever caused.
E) Because the punchbowl is valuable, the rules of a bailment for value will be enforced.

Question 64

Which of the following is false with regard to the copyright law in Canada?

A) Not everyone can receive copyright protection in Canada for his or her work created elsewhere.
B) Generally, the term of copyright is the life of the author plus fifty years.
C) Registration of copyright is restricted to published works.
D) Copyright law is governed by the Copyright Act, but an author need not register under the statute to acquire copyright.
E) A Canadian author automatically acquires copyright upon the creation of her book, if she wasn't employed to write it.

Question 65

As part of his preparation for a debate on whether the Criminal Code should be amended to include a crime for the unauthorized use of computer programs, Joe photocopied a short essay on the topic to study at home. The essay proved to be an excellent argument for his side -- namely, that such a crime should be created. Although some of the other articles advanced different arguments he could use, Joe was short of time and just turned in the essay as his own and later used its ideas in the debate. Which of the following is true?

A) Using the essay's arguments in the debate is an infringement of copyright even though they would be expressed in Joe's own words.
B) Joe cannot use the essay in any way without infringing copyright.
C) There would be an infringement of copyright when Joe used the essay as his own work.
D) The first time Joe copied the essay was clearly an infringement of copyright; there is no defence available to him.
E) There can be no infringement of copyright by a student.

Question 66

If a copyright owner has grounds for believing that a person is infringing his copyright, but fears that the infringer may destroy the evidence, the owner could get a court order to allow him to search and seize the evidence. Which of the following is such an order?

A) Anton Piller order
B) Execution order
C) Order for an accounting
D) Order for specific performance
E) Interlocutory injunction

Question 67

Which of the following is false with regard to trademark?

A) The distinctive design of a product container may be the subject of trademark protection.
B) If a person registers a trademark but later fails to use it, protection of the mark will not be lost; it is still his and is protected for the remainder of the period of protection granted.
C) Registration under the Trademark Act establishes a presumption that the person registered is the owner of the trademark.
D) Registration of a trademark gives the owner of the trademark the exclusive right to use it throughout Canada.
E) Registration of a trademark grants the owner protection for 15 years with the right to renew.

Question 68

In Durham Condominium Corporation No. 123 v. Amberwood Investments Limited, an agreement was registered that required a fee payment and provided that this obligation was to run with the land. The Court found that this was a positive obligation requiring Durham to make payments. Such an obligation

A) would not run with the land, but would still bind a subsequent owner who purchased the land.
B) would not run with the land and would not bind a subsequent owner who purchased the land.
C) would run with the land, but would not bind a subsequent owner who purchased the land.
D) would run with the land and would, therefore, bind a subsequent owner who purchased the land.
E) is void as an illegal restraint on property and not in the interest of the public.

Question 69

Paul and Robert designed a new disk holder that they wanted to introduce to a large market. They decided that the quickest way to have their product recognized would be a symbol that would alert the buyer that it can be used with any computer. After playing with some symbols, they decided to use a slight variation of Apple Computer Ltd.'s symbol of an apple because it was pleasing to the eye and well-known. Which of the following is true?

A) If Apple Computer Ltd. did sue Paul and Robert for infringement of trademark, it could ask the court for an injunction as well as for damages.
B) Even if Paul and Robert knowingly forged the trademark, they would only be liable in a civil action and could never be charged with a criminal offence.
C) It is one of the jobs of the trademark office to alert owners of trademarks when their symbols are being used by others.
D) There could be no infringement of Apple Computer Ltd.'s registered trademark unless Apple Computer Ltd. suffered a loss because of this unauthorized use of its symbol.
E) There could be no infringement of Apple Computer Ltd.'s registered trademark unless the apple symbol used by Paul and Robert were exactly like its symbol.

Question 70

The case of Horn Ventures International Inc. v. Horn Plastics Inc. involved ta lease that required the tenant to leave the premises clean and in good repair. Instead, the defendant removed equipment not included in the agreement and damaged the premises in the process. What was the result?

A) The Court determined that the premises had been left in better condition than they were when the tenant took possession, and hence there was no award of damages.
B) The Court determined that the premises had to be left in the same condition they were when the tenant took possession, except for normal wear and tear, and there was an award for damages and lost income.
C) The conduct of the landlord resulted in a forfeiture of the lease, so no damages were payable.
D) The tenants had been evicted without cause, and so the landlord was required to pay damages on the counterclaim.
E) The Court determined that the premises had to be left in the same condition they were when the tenant took possession, except for normal wear and tear and there was an award for only damages.

Question 71

Maureen, who frequently developed gadgets, had an idea for a machine that could feed her animals (cats, dogs, rabbits, and fish) while she was away on vacation for a week. She was very sure of the idea and began discussions with a manufacturer. Unfortunately, after it was concluded that he could make the machine, they could not agree on his proper compensation and they broke off negotiations. Shortly afterwards, this manufacturer, Easylife Ltd., began to manufacturer "the animal feeder" based on her idea. On these facts, which of the following is true?

A) Maureen has no action against the manufacturer because she had not patented her invention.
B) The manufacturer could not be sued for misuse of a trade secret because he was not Maureen's employee and thus was not in a position of trust and could use the information for his own benefit.
C) The manufacturer could not be sued for misuse of a trade secret because he had not signed any document in which he acknowledged he understood it was confidential information and in which he promised not to use it to her detriment.
D) The manufacturer could not be sued for misuse of a trade secret because Maureen only told her idea and ideas cannot be protected by trade secret law.
E) Maureen could not sue the manufacturer for infringement of copyright but could sue for misuse of a trade secret if she can show that it was apparent in the circumstances that he was being trusted with confidential information.

Question 72

Computer students who watched their teachers go out on strike were amazed when they heard about the difficult logistics required in such an operation. Two students spent two nights and two days developing a program for organizing a strike and picket line. It included such variables as legal requirements, number of sites, number of picketers, communications network, shifts, media contacts, etc. The students called their program "Picket Program." The students took their package -- program and manual -- to a computer developer/publisher, Mr. Lacs, to discuss the feasibility of marketing the program. Lacs said it was feasible. However, negotiations, which had lasted over a two week period, broke down when Lacs rejected the students' terms in their licensing agreement. Three months later, the students learned that Lacs developed and published a program called "Picketers' Path" based on their ideas, with a manual that they recognized as theirs. On these facts, which of the following is true?

A) The students' manual was not protected by copyright, because they had not yet applied for protection under the Copyright Act.
B) The students cannot protect the computer program under the law of trade secrets because all the information it contained could be obtained by others, e.g., the law from the library, the necessities of picketers from observation or unions, etc.
C) With regard to the computer program, Lacs could not be sued for misuse of a trade secret because the students only told him their idea and ideas cannot be protected by trade secret law.
D) The students could sue for breach of trade secret law if they can show it was apparent in the circumstances that Lacs was being trusted with confidential information.
E) Because there was no non-disclosure agreement signed by Lacs, he cannot be sued for misuse of a trade secret.

Question 73

Which of the following is true with regard to the law of trade secrets/breach of confidence?

A) The protection afforded by this area of the law is limited to breaches of confidence only in a commercial setting, e.g., stealing a company's customer list, plans, etc.
B) The court cannot award punitive damages, just compensatory damages, for breach of confidence.
C) While an employee is prohibited from disclosing confidential information he has learned on the job, he can use the general skills he has acquired on that job when he changes employment.
D) Trade secret law is governed by a provincial statute.
E) Computer software is not a proper subject matter for trade secret/breach of confidential protection because it can be protected by copyright law.

Question 74

When a landlord seizes property left by the tenant and holds it until the rent is paid, or sells it to pay rent owing, this is referred to as

A) an order absolute.
B) distress.
C) an order nisi.
D) relief against forfeiture.
E) tenancy at sufferance.

Question 75

Pete is an accountant and Judy works in a bank, but every evening of last year they worked to create a clever computer game. When they approached a publisher, they had no difficulty in gaining the interest of the publisher. Pete and Judy hired a lawyer to draft a licence agreement in which they would give the publisher exclusive rights to sell the game in North America for royalties based on gross sales. When the game was published, the advertising was rather vulgar but acceptable to Pete and Judy. They learned, however, that there was a further change -- the villain had been changed and clearly represented a world leader of an Asian country. Pete and Judy were embarrassed and outraged. On these facts, which of the following is true?

A) They have a cause of action even though there has been a partial assignment, if the modification is prejudicial to their honour or reputation.
B) They have no cause of action because once there has been an assignment of rights, the creators would not have their name on the product and thus no right to sue.
C) There is not protection here; a game is not something that can be copyrighted.
D) They have no protection here since they failed to register their copyright in the game.
E) They would have a cause of action only if the contract provided that there should be no alterations without their consent. Such a change would then be a breach of contract.

Question 76

Mr. and Mrs. Dunn were divorced and Mr. Dunn applied for a division of the matrimonial home in which they were joint tenants. Mr. Dunn died before the matter was settled. In Dunn Estate v. Dunn, the issue was whether the home was part of Mr. Dunn's estate, or whether it passed by survivorship to Mrs.
Dunn. What did the Court find?

A) The home was part of the estate. A joint tenancy is instantly severed by the death of either joint tenant.
B) The home was part of the estate. The divorce was enough to sever the tenancy.
C) The home passed to the wife. Neither divorce nor commencement of a matrimonial property action was enough to sever the tenancy.
D) The home was part of the estate. The commencement of a matrimonial property action was enough to sever the tenancy.
E) The home passed to the wife. A joint tenancy, if properly created, cannot be severed.

Question 77

Which of the following is true with regard to the law of trade secret/breach of confidence?

A) An injunction could be granted by the court only against a person who stole a trade secret, not against a third person using the stolen secret.
B) An Anton Piller order is an order of the court requiring a person who stole and used a trade secret to make an accounting of all the profit realized from its use.
C) The protection afforded by this area of the law applies only to personal information, not commercial matters the disclosure of which would increase competition.
D) The subject matter protected by the law of trade secret is set out in the provincial Trade Secrets Act.
E) A person could seek protection under the law of trade secret and the law of copyright at the same time.

Question 78

In Shun Cheong Holdings B.C. Ltd. v. Gold Ocean City Supermarket Ltd., premises were leased for use as a grocery store. Seepage of a "smelly greasy fluid" interfered with the operation of the store. When the lease was abandoned, the issue was whether the landlord could bring an action against the tenant for
Breach of the lease. What did the Court find?

A) There had been a breach of the tenant's fundamental right of quiet enjoyment and the abandonment was justified.
B) The presence of the fluid breached the tenant's right of vacant possession, so damages were payable.
C) Because the premises were leased for a commercial purpose, not a residential one, the landlord had no obligations.
D) The tenant's obligation to pay supercedes any obligation on the part of the landlord, so the tenant was liable.
E) Because of the frustration endured by the tenant, a tenancy at sufferance was established.

Question 79

In Spycher Estate v. J.L. Coulter Ltd., a mobile home was damaged while being transported by a hired trucking company. What did the Court of Appeal find?

A) The defendant was a bailee, but was exempt from liability on the basis of relief against forfeiture.
B) The defendant was a bailee, but not liable for any damage to goods occurring while in his possession, because this was not clearly specified in a written agreement.
C) The defendant was a gratuitous bailee, and therefore not liable for any damage.
D) The defendant was a bailee for hire and therefore liable for any damage, unless he could show he was not negligent or had contracted out of his negligence.
E) The defendant was an involuntary bailee, and therefore automatically liable for any damage caused.

Question 80

There is an equitable principle that when a landlord retakes a property for failure to pay rent prior to the end of the lease term, the tenant can pay the arrears and apply in the court to have the lease reinstated. This is known as

A) tenancy at sufferance.
B) relief against forfeiture.
C) distress.
D) an order nisi.
E) an order absolute.