Business Law Exam 3. Mizzou

Types of Property:

1. Tangible Personal Property

2. Real Property

3. Intangible Personal Property (including Intellectual Property )

What are the 3 Types of Property? (TRI)

Real Property

Land and everything permanently attached to it (fixtures) are known as _________________ _______________.

Surface Rights (including all fixtures)

Water Rights

Airspace

Mineral Rights (Subsurface Rights)

What are the 4 Extents of Land Ownership? (SWAM)

Fee Simple Absolute

The Right to POSESS FOR LIFE and devise (will) to heirs upon death; the MOST COMPLETE interest in real property is known as ___________ _________ __________________.

Leasehold Estate

The Right to possess (BUT NOT OWN) property for a stipulated period of time is known as ____________________ ______________.

Conditional Estate

With ________________ _________________ Interest is comparable to fee simple absolute, except that interest will terminate on OCCURENCE/NON OCCURENCE of a specified condition

-Granted for lifetime of an individual

- property possesion terminates upon life estate holder's death,

-property will pass to another party designated by original grantor

What are the characteristics of a Life Estate?

Future Interest

A Person's right to property ownership and possession in the future is known as ____________________ ______________.

Easements

Profits

Licenses

What are three examples of Non-possessory Estates?

Easement:

Irrevocable right to use some part of another's land for a specific purpose, without taking anything from the land (Example: Utility or driveway) is known as an __________________________.

Profit

Right to enter another's land and take part of the land, or take AWAY a product of it signifies a ____________________ example.(Example: Right to harvest timber on another's property)

License

Temporary, REVOCABLE right to use another's property is known as a ____________________. (Example: Theatre ticket)

Co-Ownership of Property

when property is owned by two or more persons at the same time in equal shares this is referred to as what?

Tenancy in Common

Under ________________ ____________ ________________________ a person has the right to possess, use, and sell his/her interest with the consent of the owners;

* Heirs of a this will receive the property interest upon the tenant's death.

Joint Tenancy

person has the right to possess, use, and sell his/her interest with the consent of the owners; if a tenant (owner) dies his/her property is divided EQUALLY among the remaining joint owners (called a "right of survivorship"). This occurs under ______________ ____________.

Tenancy by the Entirety

co-ownership by MARRIAGE in which one owner CANNOT sell his/her interest without the other's consent; a surviving spouse assumes full ownership under ______________ ____ ____ ______________________.

1. Listing Property with Broker— (Broker typically becomes an "agent" of the owner/seller)

2.Enter into a "written" contract of sale

"Closing" of a sale completes the voluntary transfer

What are Typical Steps in Voluntary Transfer

(Sale) of Real Property?

1. EXECUTION —preparation and signing of deed (may be completed by an agent, such as when the deed is executed by a representative of a business organization or through a power of attorney;

2. DELIVERY—of deed to grantee, with intent of transferring ownership to grantee;

3. ACCEPTANCE —grantee's expression of intent to possess and own property

Recording—filing deed with appropriate county office to protect interests of grantee (Ex. Boone County Recorder of Deeds)

The Actual Transfer of Real Property occurs in 3 steps. What are they?

Warranty deed: a deed under which the grantor GURANTEES that the title is GOOD (most common type of deed, used in most sales of real property)

Quitclaim deed: is a deed under which the grantor TRANSFERS whatever ownership interest the grantor has in the land WITHOUT any WARRANTY of title

*Other types of deeds: Deed of Trust, Deed of Release, Beneficiary Deed

Name and Describe 2 Types of Deeds Used to Transfer Real Property:

When a person OPENLY treats real property as his/her own, without permission from real owner, (10 YEARS in Missouri), ownership is Automatically vested in that person.

What are characteristics of Involuntary Transfers of Real Property of Adverse Possession?

Government acquires ownership of private property for "PUBLIC USE" for "just compensation" even if the private property owners does not wish to voluntarily sell to the government (* Remember the Fifth Amendment to the US Constitution?)

What are characteristics of Involuntary Transfers of Real Property Condemnation through Eminent Domain?

ANY

TENANCY FOR YEARS is for _________ period of time, even if the time stated is less than one year.

AUTOMATICALLY RENEWABLE

PERIODIC TENANCY is for a__________________ _________________ periods of time, such as month-to-month

Tenancy at will

tenancy with NO specific time frame; and is terminable by either party at any time is known as ________________ _____ __________.

Tenancy at sufferance

a wrongful possession of land by a tenant - either wrongful initial possession or a wrongful holding over after a lease term is known as _______________________ ______ ________________________.

- Notice of lease termination sent by a landlord in a periodic tenancy (which in most states must be given at least one FULL PERIOD in advance)

NOTICE OF LEASE TERMINATION

What are characteristics of Termination of Leasehold Estates Without cause?

Types of Property:

1. Tangible Personal Property

2. Real Property

3. Intangible Personal Property (including Intellectual Property )

What are the 3 Types of Property? (TRI)

Actual eviction

Eviction which usually occurs by LEGAL ACTION Is known as __________________ _______________.

Retaliatory eviction

an eviction in response to a complaint by a tenant (such as to a Housing Authority). Generally considered a wrongful eviction. Is reffered to as a _________________ __________________.

Constructive eviction Requires: (1) that there is a substantial defect in the premises or an interference with possession that causes substantial interference with the ability of the tenant to live there; (2) the tenant notifies the landlord of the problem, but the landlord fails to remedy the situation; and (3) the tenant abandons the real estate. A constructive eviction is a wrongful eviction.

_______________ _________________ is abandonment by a tenant of residential real property because the landlord's actions give no reasonable alternative. What are its requirements?

1.Trademark

2.Trade Dress

3. Trade Secret

4. Patent

5. Copyright

What are 5 examples of Intellectual Property? 3TPC

Negotiable Instrument

A Substitute for cash; a written

document, containing signature of creator,

that makes unconditional promise or order

to pay sum certain in money, either on

demand or at a definite time, is known as a ___________________ ______________________.

1. Note"/"Promise" Paper: Promise by

maker to pay a

payee (Ex.

Promissory

Notes)

2."Draft" Paper": Order by drawer to a

drawee to pay a

payee (Ex. CHECKS)

What are two types of Negotiable Instruments and give examples:

"Order" Paper

Example: "Pay to the order of John Smith"

An ________________ _______________ has a SPECIFIC payee named on instrument.

"Bearer" Paper: Instrument payable to

possessor

(Bearer paper treated like cash)

* Blank endorsement on order instrument

converts instrument into bearer paper

Instrument payable to a

possessor is known as a ________________ _____________,

- requires payee's delivery of

instrument to holder

(physical transfer of

negotiable instrument)

What does a "Bearer" Paper require?

Requires endorsement

and delivery

(but a blank endorsement would turn this into

bearer paper)

What does an "Order" Paper require?

Proper Negotiation

____________ __________________ would

give the holder rights equal

to or greater than

the transferee's rights.

Fourth Amendment

The __________________ Amendment protects

from

unreasonable

search and

seizure

("exclusionary rule" prohibits

introduction

of evidence obtained in violation of the __________________ Amendment))

Fifth Amendment

Protection from

double jeopardy and self-incrimination describes the ___________________ _________________.

Sixth Amendment

The right to speedy trial,

impartial jury, and counsel comes under the _______________________ _______________________.

Eighth Ammendment

freedom from

excessive bail, fines, and cruel and

unusual punishment fall under the ____________________ ____________________.

Security Interest

Interest in property (real or personal) which

secures payment/performance of obligation is known as a ______________________ ___________________.

1. Security for payment of debts from the

debtor

2. Preferable treatment, such as offered by

bankruptcy laws

What are 2 benefits of a Security Interest?

Secured

Creditors always prefer to hold a ____________________

position, but that may be impractical (such

as credit card companies) or impossible

(such as when debtor has no assets) in

some situations.

Blank

Payee's (or last endorsee's)

signature (generally converts an order

instrument into bearer paper) is known as a ________________ endorsement.

Endorser's signature

plus named endorsee

What are the characteristics of a "Special" endorsement?

Qualified

Endorser's signature

plus use

of language "without recourse" (limits

endorser liability)is known as a ______________________ Endorsement.

Restrictive

Endorser's signature

plus

restrictions on future negotiation of

instrument (ex. "for deposit only") are known as a ________________________________ endorsement.

Sole-Proprietorship

A business structure in which an individual and his/her company are considered a single entity for tax and liability purposes. (not registered with the state as a limited liability company or corporation) is known as a ______________ _____________________.

General Partnership

An association of two or more people carrying on a business with the goal of earning a profit is considered a __________________ __________________________.

At least ONE GP and at least ONE limited partner.

A Limited Partnership must have what?

Limited Liability Partnership

a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities is known as a what?

Limited Liabilities Company (LLC)

a business structure that combines the PASS THROUGH TAXATION of a partnership or sole proprietorship with the limited liability of a corporation is known as a what?

Corporation

A legal entity formed by issuing

stock to investors (shareholders); created by

filing Articles of Incorporation are known as a _________________________.

Corporation

Under a ____________________ , Owners' are called "shareholders" and have

liability limited to amount of investment

Members

What are owners of an LLC called?

"S" Corporations

Which corporations can avoid double taxation?

Double Taxation

Profits taxed as income to corporation, plus

income to owners/shareholders fall under ________________ _________________.

Items you can see or touch. (installed on land)

Example:

House

Fence

Electrical Lines

vehicles

furniture

What are some examples of tangible property?

Items not seen or touched.

Easement

What are some examples of intangible property?

Articles of Organization

To form an LLC, what needs to be filed?

Chapter 11 Bankruptcy

Reorganization of debtors financial affairs under supervision of bankruptcy court falls under CHAPTER _____ BANKRUPTCY

Chapter 12 Bankruptcy

Reorganization of family farmer/ Fishermans debts fall under CHAPTER _____ BANKRUPTCY

Chapter 7 Bankruptcy

SALE of debtors non exempt assets by trustee, and distribution of money to creditors falls under CHAPTER _____ BANKRUPTCY

CHAPTER 13 bankruptcy

Reorganization of individuals debts (Consumer) falls under CHAPTER ______ Bankruptcy