Q&A Hero

Q: Which of the following is an example of a negative easement appurtenant? A. A driveway easement across one parcel to another. B. Rights-of-way for roads. C. A common drive easement where owners of adjoining lots must permit each other to use a driveway lying on their shaped property line. D. A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.

Q: According to the 2007 National Business Ethics Survey, most employees do not believe that their fellow employees are committed to ethics.

Q: An easement is the right to use land for a specific and limited purpose. Which of the following easements involves a relationship between two parcels of land, is a permanent feature of both parcels involved, and gives the dominant parcel some intrusive use of the servient parcel? A. Affirmative easement appurtenant B. Negative easement appurtenant C. Easement in gross D. License

Q: It is common and acceptable to use the terms morality and ethics to mean the same thing.

Q: Nonposessory interests (i.e. bundles of real property rights that do not include possession) include all of the following EXCEPT: A. leasehold interests B. easements C. restrictive covenants D. liens

Q: While leasehold interests are considered estates, they differ from freehold estates in all of the following respects EXCEPT: A. Leasehold estates are limited in time. B. The right of disposition is diminished with a leasehold estate. C. Leasehold estates are not titled interests. D. Leasehold estates are possessory interests

Q: The Protestant ethic was rooted in a formalist approach, meaning that honesty and keeping promises is intrinsically good.

Q: For utilitarians, the end justifies the means.

Q: Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring her residence for future university use. To allow the homeowner to continue to retain all rights of exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right of disposition, the university may want to purchase a(n): A legal life estate with remainder interest B. conditional fee absolute with reverter interest C. ordinary life estate with remainder interest D. tenancy for years

Q: Formalism focuses on individual rights and consequentialism focuses on the common good.

Q: Which of the following types of ownership estates is the most complete bundle of rights, and therefore carries the greatest value? A. Fee simple absolute B. Fee simple conditional C. Ordinary life estate D. Legal life estate

Q: Social contract theory has its origin in formalism.

Q: Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held by different individuals. Interests in real property that include possessions are referred to as: A. fixtures B. townships C. licenses D. estates

Q: Business ethics reflects elements of both formalism and consequentialism but tends to focus more heavily on consequentialism.

Q: Based on your understanding of the rules for determining when an object becomes a fixture, which of the following items would most likely be considered a fixture at the time of sale? A. Custom (built-in) bookshelves B. Refrigerator in a single-family residence being sold C. Fence installed by the tenant of a rental property D. Curtains

Q: A formalist would conclude that secret monitoring of employees is ethical because if the employee is cheating the company or otherwise acting unethically, the employee is clearly wrong and deserves to be stopped.

Q: A fixture is an object that formerly was personal property but has become real property. Of the following four rules for determining whether an object has become a fixture, which is the most dominant (i.e. if there is a conflict, which rule prevails)? A. Manner of the attachment B. Character of the article and manner of adaptation C. Intention of the parties D. Relation of the parties

Q: Formalism says that certain behaviors are always wrong and can't be justified.

Q: Property rights can be divided into two classes, real and personal. Which of the following is an example of real property? A. Vehicles B. Stocks and bonds C. Patents D. Commercial building

Q: Ultimately, the commitment to ethical values is superior to mere observance of the law in ensuring responsible business behavior.

Q: A principal definition of real estate is as a bundle of rights associated with the possession, use, and disposition of property. Each of the following is a fundamental characteristic of property rights EXCEPT: A. They are enforceable by the government. B. They apply only to tangible assets. C. They are nonrevocable. D. They are enduring.

Q: The terms legal and ethical have the same meaning.

Q: Real estate markets tend to be highly segmented due to the heterogeneous nature of the products. Which of the following examples depicts this issue of market segmentation? A. A couple searching for a single-family detached unit is willing to consider other residential property types such as an attached townhouse unit or condominium. B. A couple searching for a single-family detached unit has limited their search to homes in a single elementary school district C. A couple searching for a single-family detached unit has set a timeline for their search of 6 months, at which point they will renew their current apartment lease. D. A couple searching for a single-family detached unit has limited their search to be in a specific price range between $350,000 and $400,000.

Q: Growing diversity in the workplace has reduced concerns over ethical values.

Q: Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following EXCEPT: A. Low transaction costs B. Risk sharing amongst investors C. Highly segmented markets D. High information efficiency

Q: Kant's emphasis on consistency is called the categorical imperative.

Q: Real estate is defined as land and its permanent improvements. Which of the following is an example of an improvement to the land? A. Fence B. Building C. Sewer system D. Personal property

Q: Because of the news media, it has become increasingly difficult for businesses to hide questionable behavior.

Q: A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply of properties to:A. increase if current property values are greater than the cost of constructionB. decrease if current property values are greater than the cost of constructionC. increase if current property values equal the cost of constructionD. decrease if current property values equal the cost of construction

Q: Diverse societies promote shared ethical values that guide behavior.

Q: Helping to constrain entry into real estate related occupations, which of the following branches of government is directly involved in establishing rules and regulations for the licensing of professionals in the field of real estate? A. Local government B. State government C. National government D. Foreign government

Q: Today over 20% of big companies have ethics officers.

Q: Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n): A. Appreciation rate B. Capitalization rate C. Discount rate D. Internal rate of return

Q: The 14th amendment recognizes that law may be enforced by taking resources owned by a citizen. Name the instances in which someone's resources may be taken.

Q: Capital markets can be divided into two broad categories: equity interests and debt interests. Equity investors in real estate expect to earn a return on their investment through: A. The collection of rent and price appreciation B. The collection of interest on the borrowed funds used to purchase the property C. The receipt of property taxes D. The case of a borrower default on required mortgage payments

Q: What information can be obtained from the citation of a case?

Q: Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties? A. Structural attributes B. Financing attributes C. Location attributes D. Land attributes

Q: When the former Soviet Union collapsed, many observers thought that the new private market would promptly improve Russia's economy. Why has the Soviet economy been slow to recover from the decline that it experienced?

Q: Investors in real estate can choose to hold properties directly in the private market or indirectly through publicly traded real estate securities. The market for buying selling, and leasing real estate can be characterized by all of the following EXCEPT: A. localized markets B. highly segmented markets C. privately negotiated contracts D. low transaction costs

Q: Why is there a need to have a uniformity of law in certain areas and what are the two ways in which uniformity of law can be attained?

Q: The required rate of return that an individual demands on a real estate investment is determined in the: A. user market B. capital market C. government D. local market

Q: What are some of the main advantages of stare decisis and why might a judge not follow stare decisis in a particular case?

Q: The national government can have a significant impact on the value of real estate through: A. property tax policy B. income tax policy C. building Codes D. real estate licensing requirements

Q: Congratulations, you have been appointed to the United States Supreme Court? Which "school" of jurisprudence will you follow as your primary legal philosophy? Explain the philosophy and your reasons for believing in it.

Q: By the third quarter of 2011, U.S. households had accumulated $6.2 trillion in housing equity, which represents about 11 percent of their net worth. What proportion of U.S. households own their home?A. one-thirdB. one-halfC. two-thirdsD. three-fourths

Q: Name at least four Internet law issues.

Q: Consistently the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commercial properties valued well over $10 million are often referred to as: A. segmented property B. investment-grade property C. speculative-grade property D. immobile property

Q: What are the four basic sources of law?

Q: Each property has unique features, whether it is its age, the building design of its structures, or its location. As such, real estate markets consist of assets that are considered: A. homogeneous B. heterogeneous C. substitutes D. complements

Q: Define and distinguish common law and civil law.

Q: Competition for the currently available supply of locations and space coupled with the existing supply of leasable space, determines: A. the current level of rental rates for each submarket and property B. the riskiness of the expected cash flows of an income-producing property C. the timing of the expected cash flows of an income-producing property D. the cost of financing the purchase of a property

Q: When Princeton graduate student Erica Field researched ownership in Peru, what effects did she find when the "average squatter family" was granted property ownership?

Q: Primarily through land use controls and property tax policy, which of the following branches of government has the largest influence on real estate values? A. Local government B. State government C. National government D. Foreign government

Q: Much, if not most, business in the United States is transacted through: A.Sole proprietorships B.Partnerships. C.Corporations. D.Administrative agencies.

Q: Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is: A. real property B. home mortgages C. equity REITs D. mortgage backed securities

Q: Which of the following would be considered private law? A.Administrative law. B.Criminal law. C.Contract law. D.Constitutional law.

Q: The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called: A. amortization B. discounting C. compounding D. accounting

Q: The Federal Communications Commission has just issued a ruling banning the word "friggin" on terrestrial radio and non-cable television determining it to be obscene. This ruling would be called a/an: A.Statute. B.Regulation. C.Ordinance. D.Order.

Q: The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the: A. User Market B. Capital Market C. Government Sector D. Property Market

Q: Punitive damages are frequently awarded in: A.Ordinary negligence cases. B.Intentional tort cases. C.Breach of contract cases. D.Criminal cases.

Q: Real estate values derive from the interaction of three different sectors in the economy. Which of the following sectors serves to allocate financial resources among households and firms requiring funds? A. User market B. Capital market C. Government D. Property market

Q: Which of the following is not an intentional tort? A.Battery. B.False imprisonment. C.Assault. D.Negligence.

Q: As of 2011, the single largest asset category in the net worth portfolios of households is: A. government and corporate bonds B. stocks and mutual fund shares C. consumer durable goods D. housing

Q: A local zoning law is an example of: A.An ordinance. B.A statute. C.An order. D.A regulation.

Q: The size of a single family residential lot is typically: A. less than one acre B. between one and two acres C. between two and three acres D. greater than three acres

Q: The fact that a search warrant must usually be obtained before entering and searching a citizen's home is based on: A.Substantive law. B.Property law. C.Administrative law. D.Procedural law.

Q: If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as: A. "Raw" land B. Building site C. Developed land D. Property infrastructure

Q: Damages, awarded to make the victim of the breach of a contract "whole" in the economic sense, are called ________. A.Compensatory. B.Consequential. C.Punitive. D.Specific.

Q: Real estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset? A. Land B. Building C. Mortgage D. Fence

Q: Which of the following is not used as a punishment for a crime in the U.S. today? A.Death. B.Imprisonment. C.Fine. D.Public whipping.

Q: When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements on the land include: A. fences B. walkways C. sewer systems D. streets

Q: If the citation for a case is 115 N.W. 2d 338 (1950), where can it be found in the Northwestern Reporter? A.Volume 115, page 338. B.Volume 338, page 115. C.Volume 338, page 1950. D.Volume 115, page 1950.

Q: When judges write their decisions on legal issues they set out their reasoning in _______. A.Judgments. B.Verdicts. C.Opinions. D.Citations.

Q: Which of the following is not a typical legal sanction for criminal conduct? A.Payment of damages to the victim for her injuries. B.Possible disqualification of voting rights. C.Possible removal from political office. D.Fine paid to the government.

Q: Which of the following will be considered the lowest source of law and be voided or prevailed over by the others? A.A federal administrative regulation. B.A state constitution. C.A Congressional statute. D.An amendment to the U.S. Constitution.

Q: Which of the following is not a means of applying the exclusionary right of property? A.Private property. B.Common property. C.Personal. D.Public property.

Q: An automobile accident occurs in Alabama, but the lawsuit is brought in Georgia. The judge will apply what law for the accident? A.Alabama. B.Georgia. C.Federal law. D.Either Alabama or Georgia law.

Q: Which of the following is false regarding uniform laws: A.The National Conference of Commissioners on Uniform Laws drafts uniform laws which become binding on the states upon approval by the National Conference. B.The National Conference of Commissioners on Uniform Laws drafts uniform laws which, upon approval by the National Conference, are recommended to state legislatures for approval. C.Uniform laws do not have to be adopted in every state. D.Uniform laws may be adopted by state legislatures in principle, but, changes may be made in some provisions to meet local needs.

Q: Dicta is: A.The same thing as the decision. B.Like stare decisis. C.The comments from the court that accompanies the decision. D.The main thrust of the dissent.

Q: All but which of the following is a disadvantage of stare decisis and the common law system: A.Time involved. B.Predictability. C.Conflicting precedent. D.Dicta.