1ARE 306 EXAM II March 25, 2003 Select the best answer. You may use one 3x5 card of notes, handwritten, front and back, and no other materials. All answers must be placed on the Trans-Optic® answer sheet using a number two pencil. (For True/False questions, True=a, and False=b.) The test includes several fact patterns upon which questions that immediately follow are based. Fact pattern #1 Fred and Addie own neighboring hog farms. Fred has been in business for 15 years. Addie started raising hogs six months ago. Both have about 3500 sows and both store waste in lagoons. Both border a river. Fred's farm is downstream from Addie's. One day Fred noticed that the level of waste in Addie's lagoon was very close to running over. Fred called Addie to let him know that there was a problem. Addie replied, "Mind your own business - if I run it over the top it is no concern of yours!" and hung up the phone. That night, after a short rain, the dam on the river side of Addie's lagoon broke, allowing several million gallons of raw hog waste to flow into the river. Fred, who had used water from the river for his hog operation, has had to truck in water since the break. The stench of the hog waste combined with that of fish killed by the spill is so overpowering that Fred and his family have been forced to leave their home and live in a motel. Upon seeing the spill, Fred ordered his lawyer to immediately file a lawsuit against Addie. 1. What is Addie's best defense against an action on a nuisance theory? a. Fred did not engage in pre-litigation mediation b. Fred does not own the river c. Addie's farm has been in business for more than one year d. Fred is also a hog farmer e. None of the above 2. What is Addie's best defense against an action on a trespass theory? a. Fred did not engage in pre-litigation mediation b. Fred does not own the river c. Addie's farm has been in business for more than one year d. Fred is also a hog farmer e. None of the above 3. If Fred can get the case to trial, remedies are likely to include: a. abatement b. actual damages c. punitive damages d. actual and punitive damages e. abatement and actual and punitive damages 4. Fred's suit based upon a nuisance theory will likely be based upon which category of tort? a. strict liability b. intentional tort c. negligent tort d. negative tort e. none of the above 5. Assume that Addie had also been in the hog business for 15 years. What is Addie's best defense against an action on a nuisance theory? a. Fred did not engage in pre-litigation mediation b. Fred does not own the river c. Addie's farm has been in business for more than one year d. Fred is also a hog farmer e. None of the above2Fact pattern #2 Alice lives in dire poverty on a farm of 25 acres. She holds it as a life estate, which was granted to her by her late husband, Argon. At the same time that Argon granted the life estate to her, he granted the remainder interest in the property to their two sons, John and James. While hunting squirrels to stave off starvation, Alice fired into the ground and inadvertently discovered oil. Alice has signed a lease with a major oil company to extract the oil, and plans to move to Beverly Hills. John, who has a successful medical practice, and, James, a well-known attorney, have filed suit to prevent Alice and the oil company from extracting oil from the property. 6. Who wins the lawsuit? a. Alice b. Argon c. John alone d. James alone e. John and James together 7. True or False John and James hold a reversion. End of questions based upon Fact pattern #2 8. True or False A holder of a life estate who changes the use of the property commits waste. 9. True or False. Making a counteroffer revokes the original offer. 10. True or False Survivorship property may pass by will. 11. True or False The owner of a vested future interest in real property can sell that interest. 12. True or False The owner of a vested future interest in real property can use that interest. 13. True or False The owner of a vested future interest in real property has no right to possess the property. 14. True or False Property owned as tenants in common carries a right of survivorship. 15. True or False Property owned as joint tenants in North Carolina carries a right of survivorship. 16. Which is not a duty of a life tenant? a. make repairs b. pay taxes c. avoid waste d. make improvements e. none of the above 17. True or False Any group of people may hold property as tenants by the entireties. 18. True or False A creditor of both spouses may execute against property held as tenants by the entireties. 19. True or False Trust property does not benefit the trustee. 20. Which rule requires those contracts for the sale of real estate to be in writing? a. statute of frauds b. parol evidence rule c. integration clause d. Sam's rule e. none of the above3 21. In which type of state does the owner of livestock have the duty to prevent the livestock from straying across the property of another? a. fence in b. fence out c. fence away d. fence anyway e. none of the above 22. True or False Elle went to the shoe store and told the clerk that she wanted to purchase running shoes. The clerk sold her a pair of high-heeled dress shoes. The store violated its warranty of merchantability. 23. True or False The effect of "as is" language in a contract is to disclaim all warranties and insulate the seller from liability for fraud. 24. True or False. Negligence an issue when one property owner damages the undeveloped property of another by undermining it. 25. An owner of a life estate who discovers oil and pumps it commits: a. adultery b. bigamy c. waste d. improvement e. none of the above 26. True or False. Only real property may be survivorship property. 27. Which is not an element of a valid contract. a. consideration b. offer c. acceptance d. proper subject matter e. writing 28. Name the rule that requires certain contracts to be in writing. a. parol evidence rule b. statute of frauds c. rule against perpetuities d. Elmo's theorem e. none of the above 29. Olle and Anne, husband and wife, own Pleasant Acres as tenants in common. Olle died with a will leaving his share of Pleasant Acres to his friend, Dan. Who gets Olle's share of the property: a. Anne continues to own a one-half undivided interest b. Anne owns it all c. Dan owns a one-half undivided interest d. Dan owns it all e. None of the
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