Question 1

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.

Accepted Answer

Chattel refers to tangible personal property or movables. This can include items such as furniture, vehicles, and livestock. It is distinguished from real property, which refers to land and buildings.

Question 2

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.

Accepted Answer

Real property refers to land and everything permanently attached to it, including buildings, structures, and fixtures. Therefore, a house built on a lot is an example of real property.

Question 3

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.

Accepted Answer

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. This duty cannot be contracted out of or waived by the tenant. Therefore, the landlord is responsible for repairing the back stairs and hand railing to comply with safety standards.

Question 4

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.

Accepted Answer

A bailment is a legal relationship in which the owner of personal property (the bailor) gives possession of the property to someone else (the bailee) to hold for a particular purpose or to keep for a certain period of time. The bailee has a duty to take reasonable care of the property while it is in their possession. Therefore, Choice E, which describes a bailment, best fits the scenario given.

Question 5

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.

Accepted Answer

If the owner of the fee simple dies without a will, the estate passes to their heirs or next of kin, not back to the Crown.

Question 6

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.

Accepted Answer

For a bailment to be created, there must be an understanding that the property will be returned to the owner at the end of the bailment period. Choice A is incorrect because payment is not necessary for a bailment to be created. Choice B is incorrect because incidental transfers can also create bailments. Choice D is incorrect because bailment refers to the transfer of property, not the release of people from jail. Choice E is incorrect because bailments can also be created without a formal contract.

Question 7

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.

Accepted Answer

Both leaseholds and life estates grant the holder the right of exclusive possession, meaning they have the right to occupy and use the property without interference from others. 
Option A is false as oral leases can be enforceable in certain circumstances. 
Option B is false as a leasehold is a type of estate. 
Option D is false as leases are available in both residential and commercial tenancies. 
Option E is false as leases can be for a definite or indefinite period of time.

Question 8

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.

Accepted Answer

The answer of Mable was employed as a waitress at...

Question 9

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.

Accepted Answer

A true lease involves exclusive possession and control of the property for a specific period, typically with regular payments of rent. Option A involves shared usage and hourly payments. Option B suggests temporary and sporadic usage, while option D describes a holdover tenancy. Option E, renting a hotel room, typically involves more of a license to use rather than a true lease. Option C is the only one that accurately fits the definition of a true lease, involving a specific period of exclusive use for a rental fee.

Question 10

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.

Accepted Answer

This statement is incorrect because there are circumstances under which attached personal property can be removed, such as if the owner of the real property gives permission or if the property is classified as a trade fixture.

Question 11

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.

Accepted Answer

This is an example of a gratuitous bailment for the benefit of the bailor only. In this case, Jane is entrusting her valuable violin to Harry for safekeeping while she is away. As a bailee, Harry has a duty to exercise reasonable care in ensuring the safekeeping of the violin. However, since no consideration is being given in exchange for Harry's service, this is a gratuitous bailment. Additionally, since the benefit of this arrangement is primarily for the benefit of Jane (the bailor), this is a gratuitous bailment for the benefit of the bailor only.

Question 12

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.

Accepted Answer

A true lease is a rental contract for a specific period of time, usually involving land or buildings. Option E states that the person has contracted for a warehouse for a two-week period, which is a clear example of a true lease. The other options involve temporary accommodations (A, D) or an expired lease (C) which do not qualify as true leases. Option B may be a lease, but more information is needed to determine if it is a true lease.

Question 13

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

Accepted Answer

A good affixed to real property is considered part of the real property and not personal property.

Question 14

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.

Accepted Answer

A periodic tenancy is a type of lease agreement in which the parties agree to no set termination date but to the rental period being automatically renewed. The tenancy will continue until either the tenant or landlord provides notice to terminate the tenancy. This is also known as a month-to-month tenancy.

Question 15

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.

Accepted Answer

When a person finds a valuable item in a public place, he is entitled to that property over everyone else except the rightful owner. This is the principle of 'finders keepers' in common law, which dictates that the original owner retains the right to claim the property as long as he can prove ownership. If the rightful owner does not claim the property after a certain period of time, the finder may be able to claim it as his own under the legal principle of 'adverse possession.' However, if the item was found on an employer's premises, the employer may have a claim to the lost property under the legal principle of 'vicarious possession.'

Question 16

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

Accepted Answer

Temporary possession of a chattel by arrangement with the owner is known as bailment. The other options do not refer to this specific situation.

Question 17

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.

Accepted Answer

Harry has borrowed the lawnmower for his own benefit, which makes it a gratuitous bailment. As such, he has a duty of care to be reasonably careful with the lawnmower to ensure no harm or accident comes to it. He is responsible for any damage or loss caused to the lawnmower while it is in his possession.

Question 18

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.

Accepted Answer

A tenancy does "run with the land" and can bind a purchaser of the building, meaning the new owner must honor existing leases.

Question 19

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.

Accepted Answer

In property law, ownership does not extend indefinitely above and below the land. Airspace and subsurface rights can be limited or regulated by law.

Question 20

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.

Accepted Answer

Involuntary bailment occurs when goods are left in someone's possession without their consent, creating a responsibility for the involuntary bailee to care for the goods.

Quiz 13: Real, Personal and Intellectual Property

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

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

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

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?

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

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

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?

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

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

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?

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

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

A periodic tenancy means

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

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

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?

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

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?

Which of the following describes involuntary bailment?