Cuyamaca Community College Business Law Essay

There are two questions for this Contract.  We are looking for the ability to read and comprehend the contract so the appropriate contract clause can be applied to the questions connected with each contract.  In order to answer the contract fact scenario, you will also need to be able to identify the legal concept that is applicable to the situation described.  This is an analysis so please treat it as such.  Your personal opinion is not appropriate.

There are correct answers for the prompt.  If a student discusses a different legal theory for answering the prompt, partial points will be given.  In cases of complete or partial answers, textbook references are mandatory to support the remedy proposed by the student.  A textbook reference that has no bearing on the remedy or legal arguments will be counted as  “no text”.  For example, if any contract has an issue of risk of loss, referencing the text on contract formation will not meet the requirement.  The sections of the textbook that you have read contain all the information you need for this analysis.

Please remember to reference the applicable parts of the contract that you are using to answer the prompt.

A student will be given 6 points for the textbook reference, 6 points for the contract reference,  with 27 points for the analysis itself.

The remaining 6 points will be given as a spelling/grammar score.  Following is the prompt.

Residential House Lease

The following prompt is based on the Residential House Lease found in the Contracts Module.  Please reference the Lease by clause number as you answer the prompt. Remember to reference the textbook by chapter and section.

Essay (2 complete paragraphs with text references to support your answers)

Alecia, the landlord, refuses to fix a small leak in the roof that was there prior to the current tenant.  Joe, the current tenant, has just discovered the leak after a heavy rain. The consequence is that black mold has been forming in the attic for quite some time.  Joe still has significant time remaining on his lease.  Joe has notified Alecia in writing by email of the mold and leak issue but has received no response.  He is concerned about the premises becoming unsafe to live in. It has been 14 days since he emailed her his notification.

What are all of Joe’s options if Alecia declines to do the repairs?

Please discuss all remedies Joe may seek.  Please remember to reference the lease and text to support your analysis.You will be given the lease and the prompt for that lease. You will answer each prompt as it is due. There will be no formal paper produced but there will be a short essay.  The prompt will be posted in Canvas two weeks before the assignment is due.

You can approach this lease contract as you would any problem you encounter in your life by setting up the framework you need to help solve the problem.  What do the parties want (call it a remedy)?  What are the facts that each believes supports their “remedy”?  What does the contract say about their remedy?  What does the law say about that?  Now, can you come to a conclusion supported by the contract language and Landlord-Tenant law?  If yes, then write it out.  You must support your conclusion with at least one textbook reference.  If you use a quote from the text or contract to support your conclusion, then you must reference it.

Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 38 REAL PROPERTY
Learning Outcomes
LO1
Define real property.
LO2
Identify common types of real
property ownership.
Explain how real property ownership
is transferred.
Describe eminent domain.
LO3
LO4
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2
The Nature of
Real Property (1)
LO1
L O 1
▪ Real property is immovable and
includes:
– Land & Permanent Buildings.
– Airspace & Subsurface Rights.
– Plant Life and Vegetation.
– Subsurface (mineral) rights.
– Fixtures.
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3
The Nature of
Real Property (2)
LO1
L O 1
▪ Real property includes:
– Fixtures.
• Personal property that is
“intentionally” and permanently
affixed to real property.
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4
The Nature of
Real Property (3)
LO1
L O 1
▪ Real property includes:
– Fixtures.
• Intent is determined by showing:
–Property cannot be removed without
causing damage to the realty, or
–Property is so adapted to the realty
that it has become part of the realty.
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5
LO2
L O 2
Ownership Interests (1)
▪ Fee Simple Absolute.
– Gives owner the greatest
aggregation of rights, powers and
privileges possible under
American law.
– Potentially infinite in duration.
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6
LO2
L O 2
Ownership Interests (2)
▪ Fee Simple Absolute.
– Owner has exclusive possession
and use of property and can
assign to heirs.
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7
LO2
L O 2
Ownership Interests (3)
▪ Life Estates.
– Estate that lasts for the life of some
specified individual.
– “A grants property to B for B’s life”
grants B a life estate. When B dies,
the property returns to A.
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8
LO2
L O 2
Ownership Interests (4)
▪ Nonpossessory Interests.
– Easement: right to make limited
use of another person’s real
property without taking anything
from the property.
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9
LO2
L O 2
Ownership Interests (5)
▪ Nonpossessory Interests.
– Profit: right to go onto another’s
land and remove some part of the
land itself (or some product of the
land).
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10
LO2
L O 2
Ownership Interests (6)
▪ Nonpossessory Interests.
– License: revocable right to come
unto another’s land without
removing anything from the land.
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11
LO3
L O 3
Transfer of Ownership (1)
▪ Ownership in real property can
be transferred by:
– Written Deed.
– Gift.
– Sale.
– Inheritance.
– Adverse Possession.
– Eminent Domain.
© 2019 Cengage. All rights reserved.
12
LO3
LO3
Transfer of Ownership (2)
▪ Deeds.
– Legal, written document setting forth
the interests in real property being
transferred.
– Necessary components: names of
grantor and grantee, words evidencing
intent to convey, legal description,
grantor’s signature, and delivery of the
deed.
© 2019 Cengage. All rights reserved.
13
LO3
LO3
Transfer of Ownership (3)
▪ Will or Inheritance.
– Owner of real property dies, his
property is transferred by will
(testate).
▪ Without Will (intestate).
– Title is transferred at the time state
law provides.
© 2019 Cengage. All rights reserved.
14
LO3
LO3
Transfer of Ownership (4)
▪ Adverse Possession.
– One person possesses the property
of another for a statutory period of
time. Possession must be:
• Actual and exclusive.
• Open, visible and notorious.
• Continuous and peaceable.
• Hostile and adverse.
© 2019 Cengage. All rights reserved.
15
Transfer of Ownership (5)
▪ Eminent Domain.
LO4
– Government can only “take”
private land for public use with
just compensation.
– Generally invoked during
condemnation proceedings.
© 2019 Cengage. All rights reserved.
16
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 40 WILLS AND TRUSTS
Learning Outcomes
LO1
Outline the requirements of a will.
LO2
Discuss how to revoke or modify a
will.
Describe intestate distribution of
property.
List the elements of a trust.
LO3
LO4
© 2019 Cengage. All rights reserved.
2
Wills (1)
▪ A will is the final declaration of
how a person wants to have his
property disposed of after death.
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3
Wills (2)
▪ Terminology.
– Testator (Testatrix): person who
makes a will.
– Probate a will: establish its
validity.
– Probate Court: oversees
administration of estate.
© 2019 Cengage. All rights reserved.
4
Wills (3)
▪ Terminology.
– Executor is a personal
representative named in a will.
– Administrator is a personal
representative appointed by a
court for a person without a will.
© 2019 Cengage. All rights reserved.
5
Wills (4)
▪ Terminology.
– Devise: gift of real estate.
– Bequest (Legacy): gift of personal
property.
© 2019 Cengage. All rights reserved.
6
Wills (5)
▪ Types of Gifts.
– Specific: describes particular
property.
– General: specifies value of
property.
– Residuary: pays for debts after
gifts are made.
© 2019 Cengage. All rights reserved.
7
LO1
L O 1
Requirements of
a Valid Will (1)
1. Testamentary Capacity: Testator
must have legal capacity at the time
the will is made (the “sound mind”
requirement).
2. Testamentary Intent: Testator must
have the intent to transfer and
distribute his or her property.
© 2019 Cengage. All rights reserved.
8
LO1
L O 1
Requirements of
a Valid Will (2)
3. Written: Will must be in writing.
(Holographic will in Testator’s
handwriting.)
4. Signed: Will must be signed by
Testator.
5. Witnessed: A written will must be
witnessed (attested to be genuine) by
at least two competent witnesses.
© 2019 Cengage. All rights reserved.
9
LO1
L O 1
Requirements of
a Valid Will (3)
5. Publication: will is published by
Testator by an oral declaration to
the witnesses that the document
they are signing is in fact his last
will and testament.
© 2019 Cengage. All rights reserved.
10
LO2
L O 2
Revocation of a Will
▪ Revocation by Act of Testator.
– Physical Acts.
– Subsequent Writings.
– Marriage.
– Divorce.
– Children.
© 2019 Cengage. All rights reserved.
11
LO3
L O 3
Intestacy Laws (1)
▪ State laws that regulate how a
decedent’s property is
distributed when he or she dies
without a will.
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12
LO3
L O 3
Intestacy Laws (2)
▪ Order of Distribution.
– First decedent’s debts.
– Then to surviving spouse and
children. If no surviving spouse or
child, then to grandchildren, then
brothers and sisters, and then
parents.
© 2019 Cengage. All rights reserved.
13
LO3
L O 3
Intestacy Laws (3)
▪ Surviving Spouse and Children.
– Surviving spouse usually receives
the homestead and a share of the
estate, as follows:
– 1/3 of estate if two or more
children.
© 2019 Cengage. All rights reserved.
14
LO3
L O 3
Intestacy Laws (4)
▪ Surviving Spouse and Children.
– 1/2 of estate if one surviving child.
– Entire estate, if no children or
grandchildren.
© 2019 Cengage. All rights reserved.
15
LO3
L O 3
Intestacy Laws (5)
▪ Grandchildren.
– Per Stirpes Distribution: method of
dividing an intestate share by which
a class or group of distributees take
the share that their deceased parent
would have been entitled to inherit
had that parent lived.
© 2019 Cengage. All rights reserved.
16
LO3
L O 3
Intestacy Laws (6)
▪ Grandchildren.
– Per Capita Distribution: each
person takes an equal share of the
estate.
© 2019 Cengage. All rights reserved.
17
Per Stirpes Distribution
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18
Per Capita Distribution
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19
Trusts (1)
▪ Trust.
– An arrangement to administer
property for the benefit of
another.
© 2019 Cengage. All rights reserved.
20
Trusts (2)
▪ Trustee.
– Holds property on behalf of the
beneficiary.
– Acts with honesty, good faith, and
prudence in administering the
trust and must exercise a high
degree of loyalty toward the trust
beneficiaries.
© 2019 Cengage. All rights reserved.
21
LO4
L O 4
Elements of a Trust
▪ Designated beneficiary.
▪ Designated trustee.
▪ Fund sufficiently identified to
enable title to pass to the trustee.
▪ Actual delivery to the trustee with
the intention of passing title.
© 2019 Cengage. All rights reserved.
22
Express Trusts
▪ Living Trusts: created by and
effective during grantor’s lifetime
(revocable vs. irrevocable).
▪ Testamentary Trusts: created as
part of a will, comes into
existence at testator’s death.
© 2019 Cengage. All rights reserved.
23
Revocable Living Trust
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24
Implied Trusts
▪ Constructive Trusts.
– Arises by operation of the law in
the interest of equity and fairness.
▪ Resulting Trusts.
– Arises from the conduct of the
parties.
© 2019 Cengage. All rights reserved.
25
RESIDENTIAL HOUSE LEASE AGREEMENT
This Residential House Lease Agreement (“Lease”) is made and effective this [Date] by and
between [Landlord] (“Landlord”) and [Tenant One] and [Tenant Two] (“Tenant,” whether one
or more). This Lease creates joint and several liability in the case of multiple Tenants.
1. PREMISES.
Landlord hereby rents to Tenant and Tenant accepts in its present condition the house at
following address: [Complete Address of House] (the “House”).
2. TERM.
The term of this Lease shall start on January 1, 2019 and end on January 1, 2020. In the event
that Landlord is unable to provide the House on the exact start date, then Landlord shall provide
the House as soon as possible, and Tenant’s obligation to pay rent shall abate during such period.
Tenant shall not be entitled to any other remedy for any delay in providing the House.
3. RENT.
Tenant agrees to pay, without demand, to Landlord as rent for the House the sum of $1,700.00
per month in advance on the first day of each calendar month, at [Address for Rent Payments],
or at such other place as Landlord may designate. Landlord may impose a late payment charge
of $5.00 per day for any amount that is more than five (5) days late. Rent will be prorated if the
term does not start on the first day of the month or for any other partial month of the term.
4. SECURITY DEPOSIT.
Upon execution of this Lease, Tenant deposits with Landlord $1,700.00, as security for the
performance by Tenant of the terms of this Lease to be returned to Tenant without interest,
following the full and faithful performance by Tenant of this Lease. In the event of damage to
the House caused by Tenant or Tenant’s family, agents or visitors, Landlord may use funds from
the deposit to repair, but is not limited to this fund and Tenant remains liable.
5. QUIET ENJOYMENT.
Landlord agrees that if Tenant timely pays the rent and performs the other obligations in this
Lease, Landlord will not interfere with Tenant’s peaceful use and enjoyment of the House.
6. USE OF PREMISES.
A. The House shall be used and occupied by Tenant exclusively as a private single-family
residence. Neither the House nor any part of the House or yard shall be used at any time during
the term of this Lease for the purpose of carrying on any business, profession, or trade of any
kind, or for any purpose other than as a private single-family residence.
B. Tenant shall comply with all the health and sanitary laws, ordinances, rules, and orders of
appropriate governmental authorities and homes associations, if any, with respect to the House.
-1-
7. NUMBER OF OCCUPANTS.
Tenant agrees that the House shall be occupied by no more than [Total Number of Occupants]
persons, including no more than [Maximum Number of Children] under the age of eighteen
(18) years, without the prior written consent of Landlord.
8. CONDITION OF PREMISES.
A. Tenant agrees that Tenant has examined the interior living space of the house and that it is, at
the time of this Lease, in good order, good repair, safe, clean, and tenantable condition.
B. Landlord and Tenant agree that a copy of the “Joint Inspection,” the original of which is
maintained by Landlord and a copy provided to Tenant, attached hereto reflects the condition of
the House at the commencement of Tenant’s occupancy.
9. ASSIGNMENT AND SUBLETTING.
A. Tenant shall not assign this Lease,or sublet or grant any concession or license to use the
House or any part of the House without Landlord’s prior written consent.
B. Any assignment, subletting, concession, or license without the prior written consent of
Landlord, or an assignment or subletting by operation of law, shall be void and, at Landlord’s
option, terminate this Lease.
10. ALTERATIONS AND IMPROVEMENTS.
A. Tenant shall make no alterations to the House or construct any building or make other
improvements without the prior written consent of Landlord.
B. All alterations, changes, and improvements built, constructed, or placed on or around the
House by Tenant, with the exception of fixtures properly removable without damage to the
House and movable personal property, shall, unless otherwise provided by written agreement
between Landlord and Tenant, be the property of Landlord and remain at the expiration or earlier
termination of this Lease.
11. DAMAGE TO PREMISES.
If the House, or any part of the House, shall be partially damaged by fire or other casualty not
due to Tenant’s negligence or willful act, or that of Tenant’s family, agent, or visitor, there shall
be an abatement of rent corresponding with the time during which, and the extent to which, the
House is untenantable. If Landlord shall decide not to rebuild or repair, the term of this Lease
shall end and the rent shall be prorated up to the time of the damage.
12. DANGEROUS MATERIALS.
Tenant shall not keep or have on or around the House any article or thing of a dangerous,
inflammable, or explosive character that might unreasonably increase the danger of fire on or
around the House or that might be considered hazardous.
-2-
13. UTILITIES.
Tenant shall be responsible for arranging and paying for all utility services required on the
premises, except Landlord will provide: water. Tenant shall not default on any obligation to a
utility provider for utility services at the House.
14. MAINTENANCE AND REPAIR.
A. Tenant will, at Tenant’s sole expense, keep and maintain the House and appurtenances in
good and sanitary condition and repair during the term of this Lease. In particular, Tenant shall
keep the fixtures in the House in good order and repair; keep the furnace clean; and keep the
walks free from dirt and debris. Tenant shall, at Tenant’s sole expense, make all required repairs
to the plumbing, range, oven heating apparatus, electric and gas fixtures, other mechanical
devices and systems, and appliances, floors, ceilings and walls whenever damage to such items
shall have resulted from Tenant’s misuse, waste, or neglect, or that of the Tenant’s family, agent,
or visitor.
B. Tenant agrees that no signs shall be placed or painting done on or about the House by Tenant
without the prior written consent of Landlord.
C. Tenant agrees to promptly notify Landlord in the event of any damage, defect or destruction
of the House, or the failure of any of Landlord’s appliances or mechanical systems, and except
for repairs or replacements that are the obligation of Tenant pursuant to Subsection A above,
Landlord shall use its best efforts to repair or replace such damaged or defective area, appliance
or mechanical system.
15. ANIMALS.
Tenant shall keep no domestic or other animals in or about the House without the prior written
consent of Landlord.
16. RIGHT OF INSPECTION.
Landlord and Landlord’s agents shall have the right at all reasonable times during the term of this
Lease and any renewal of this Lease to enter the House for the purpose of inspecting the
premises and/or making any repairs to the premises or other item as required under this Lease.
17. DISPLAY OF SIGNS.
During the last thirty (30) days of this Lease, Landlord or Landlord’s agent may display “For
Sale” or “For Rent” or “Vacancy” or similar signs on or about the House and enter to show the
House to prospective purchasers or tenants.
18. HOLDOVER BY TENANT.
Should Tenant remain in possession of the House with the consent of Landlord after the
expiration of the Term of this Lease, a new tenancy from month to month shall be created which
shall be subject to all the terms and conditions of this Lease, but shall be terminable on thirty
-3-
(30) days by either party or longer notice if required by law. If Tenant holds over without
Landlord’s consent, Landlord is entitled to double rent, pro-rated per each day of the holdover,
lasting until Tenant leaves the House.
19. SURRENDER OF PREMISES.
At the expiration of the Lease, Tenant shall quit and surrender the House in as good a condition
as it was at the commencement of this Lease, reasonable wear and tear and damages by the
elements excepted.
20. FORFEITURE OF SECURITY DEPOSIT – DEFAULT.
It is understood and agreed that Tenant shall not attempt to apply or deduct any portion of any
security deposit from the last or any month’s rent or use or apply any such security deposit at any
time in lieu of payment of rent. If Tenant fails to comply, such security deposit shall be forfeited
and Landlord may recover the rent due as if any such deposit had not been applied or deducted
from the rent due. For the purposes of this paragraph, it shall be conclusively presumed that a
Tenant leaving the Premises while owing rent is making an attempted deduction of deposits.
Furthermore, any deposit shall be held as a guarantee that Tenant shall perform the obligations of
the Lease and shall be forfeited by the Tenant should Tenant breach any of the terms and
conditions of this Lease. In the event of default, by Tenant, of any obligation in this Lease which
is not cured by Tenant within fifteen (15) days notice from Landlord, then in addition to
forfeiture of the Security Deposit, Landlord may pursue any other remedy available at law,
equity or otherwise.
21. ABANDONMENT.
If at any time during the term of this Lease, Tenant abandons the House or any of Tenant’s
personal property in or about the House, Landlord shall have the following rights: Landlord may,
at Landlord’s option, enter the House by any means without liability to Tenant for damages and
may relet the House, for the whole or any part of the then unexpired term, and may receive and
collect all rent payable by virtue of such reletting; Also, at Landlord’s option, Landlord may hold
Tenant liable for any difference between the rent that would have been payable under this Lease
during the balance of the unexpired term, if this Lease had continued in force, and the net rent for
such period realized by Landlord by means of such reletting. Landlord may also dispose of any
of Tenant’s abandoned personal property as Landlord deems appropriate, without liability to
Tenant. Landlord is entitled to presume that Tenant has abandoned the House if Tenant removes
substantially all of Tenant’s furnishings from the House, if the House is unoccupied for a period
of two (2) consecutive weeks, or if it would otherwise be reasonable for Landlord to presume
under the circumstances that the Tenant has abandoned the House.
22. SECURITY.
Tenant acknowledges that Landlord does not provide a security alarm system or any security for
the House or for Tenant and that any such alarm system or security service, if provided, is not
represented or warranted to be complete in all respects or to protect Tenant from all harm.
Tenant hereby releases Landlord from any loss, suit, claim, charge, damage or injury resulting
from lack of security or failure of security.
-4-
23. SEVERABILITY.
If any part or parts of this Lease shall be held unenforceable for any reason, the remainder of this
Agreement shall continue in full force and effect.
24. INSURANCE.
Tenant acknowledges that Landlord will not provide insurance coverage for Tenant’s property,
nor shall Landlord be responsible for any loss of Tenant’s property, whether by theft, fire, acts of
God, or otherwise.
25. BINDING EFFECT.
The covenants and conditions contained in the Lease shall apply to and bind the heirs, legal
representatives, and permitted assigns of the parties.
26. GOVERNING LAW.
It is agreed that this Lease shall be governed by, construed, and enforced in accordance with the
laws of the State of California.
27. ENTIRE AGREEMENT.
This Lease shall constitute the entire agreement between the parties. Any prior understanding or
representation of any kind preceding the date of this Lease is hereby superseded. This Lease
may be modified only by a writing signed by both Landlord and Tenant.
28. NOTICES.
Any notice required or otherwise given pursuant to this Lease shall be either by email as supplied
by each party, in writing; hand delivered, mailed certified return receipt requested, postage
prepaid, or delivered by overnight delivery service, if to Tenant, at the House and if to Landlord,
at the address for payment of rent. An email with a return receipt is acceptable.
IN WITNESS WHEREOF, the parties have caused this Lease to be executed the day and year
first above written.
[Signature]
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JOINT INSPECTION
THIS INSPECTION SHOULD BE COMPLETED PROMPTLY FOLLOWING INITIAL
OCCUPANCY OR UPON DELIVERY OF POSSESSION
LANDLORD: [Landlord]
TENANT: [Tenant]
TENANT: [Tenant]
PREMISES: [Complete Address of House]
DATE OF POSSESSION: [Move-in Date]
CONDITION OF PREMISES: INDICATE WITH A CHECK OF EITHER “YES” OR “NO”
IF THE FEATURE IS CLEAN AND UNDAMAGED. IF “NO”, PROVIDE AN
EXPLANATION IN THE “NOTES”, OR IF “NOT APPLICABLE” INDICATE WITH “NA”.
Yes
No
Notes
LIVING ROOM
Walls & Baseboard
Carpet
Drapes, Rods, Hooks
Door & Lock
Coat Closet
DINING AREA
Walls & Baseboard
Carpet
Light Fixture
Windows & Screens
KITCHEN
Walls & Baseboards
Light Fixture
Stove
Drip Pans
Oven
Broiler Pan
Hood, Fan & Light
Refrigerator
Defrosted
Ice Trays
Hydrator Cover
Dishwasher
Cupboards
Drawers
Counter
Sink
Disposal & Stopper
Floor
HALL
Walls & Baseboards
Carpet/Floor
-6-
Light Fixture
Linen Closet
BATHROOM – 1
Walls & Baseboard & Sink
Counter
Cabinets/Mirror
Toilet
Bath Tub/Shower
Light Fixture
Floor
Tissue Holder/Towel Bars
BATHROOM – 2
Walls & Baseboard & Sink
Counter
Cabinets/Mirror
Toilet
Bath Tub/Shower
Light Fixture
Floor
Tissue Holder/Towel Bars
BEDROOM – 1
Walls & Baseboard
Windows & Screens
Drapes, Rods & Hooks
Light Fixtures
Carpet
Closet
Floor
BEDROOM – 2
Walls & Baseboard
Windows & Screens
Drapes, Rods & Hooks
Light Fixtures
Carpet
Closet
Floor
DEN or BEDROOM – 3
Walls & Baseboard
Windows & Screens
Drapes, Rods & Hooks
Light Fixtures
Carpet
Closet
Floor
BASEMENT/FURNACE ROOM
Furnace
Washer & Dryer
Water Storage Tank
MISCELLANEOUS
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Balcony/Patio
Storage Area
Garage
Mailbox
OTHER
FURNITURE INVENTORY (If the furniture is provided by Landlord)
Item
LIVING ROOM
Couch
Chairs
Lamps
Coffee Table
End Table
Nbr
Item
Nbr
BEDROOM 1
Beds
Dressers
Mirror
Nightstands
Lamps
DINING AREA
Table
Chairs
Hutch
BEDROOM 2
Beds
Dressers
Mirror
Nightstands
Lamps
KITCHEN
Stove
Oven
Refrigerator
Dishwasher
Table
Chairs
BEDROOM 3
Beds
Dressers
Mirror
Nightstands
Lamps
LAUNDRY/UTILITY ROOM
Washer
Dryer
DEN / STUDY
Desk
Chairs
Tables
Bookcases
Lamps
OTHER
The parties acknowledge that the above inspection was made on ___________________, and
that the conditions of the premises and the inventory of furnishings and appliances is as shown
above. The parties further agree that a copy of this Joint Inspection was provided to Tenant.
[Signature]
-8-
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 39 LANDLORD AND TENANT LAW
Learning Outcomes (1)
LO1
LO2
LO3
LO4
Identify the different types of
tenancies.
Describe a lease agreement.
Outline the rights and duties under a
lease agreement.
Discuss the transfer of rights to
leased property.
© 2019 Cengage. All rights reserved.
2
Learning Outcomes (2)
LO5
Explain how a lease usually
terminates.
© 2019 Cengage. All rights reserved.
3
LO1
LO1
Types of Tenancies (1)
▪ Tenancy for Years.
– Created by an express contract.
– Property is leased for a specified
period of time.
© 2019 Cengage. All rights reserved.
4
LO1
LO1
Types of Tenancies (2)
▪ Periodic Tenancy.
– Does not specify how long lease
lasts.
– But rent paid at certain intervals.
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5
LO1
LO1
Types of Tenancies (3)
▪ Tenancy at Will.
– For as long as both agree.
▪ Tenancy at Sufferance.
– Wrongful possession without the
right to possess.
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6
LO2
LO2
The Lease Agreement (1)
▪ Lease Agreement.
– Can be oral or written (oral may
not be enforceable).
– Gives tenant the temporary right
to exclusively possess the
property, and:
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7
LO2
LO2
The Lease Agreement (2)
▪ Lease Agreement.
– 1. Express an intent to establish
the relationship.
– 2. Transfer the property’s
possession to the tenant at the
beginning of the term.
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8
LO2
LO2
The Lease Agreement (3)
▪ Lease Agreement.
– 3. Provide for landlord’s
reversionary (future) interest,
allowing her to retake possession
of the property.
– 4. Describe the property (give its
street address).
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9
LO2
LO2
The Lease Agreement (4)
▪ Lease Agreement.
– 5. Indicate the length of the term,
the amount of the rent, and how
and when the rent is to be paid.
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LO3
LO3 Rights and Duties of
Landlords and Tenants (1)
▪ Possession.
– Tenant’s right to exclusive
possession is only subject to
landlord’s limited right to come
unto the property.
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11
LO3
LO3 Rights and Duties of
Landlords and Tenants (2)
▪ Possession.
– Covenant of Quiet Enjoyment:
Landlord promises Tenant’s peace
and enjoyment of the property.
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12
LO3
LO3 Rights and Duties of
Landlords and Tenants (3)
▪ Possession.
– Eviction: occurs when Landlord
deprives tenant of possession of
the leased property; or interferes
with use or enjoyment of the
property to the extent that Tenant
cannot use or enjoy.
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13
LO3
LO3 Rights and Duties of
Landlords and Tenants (4)
▪ Rights and Duties: Possession.
– Constructive Eviction: occurs when
landlord breaches lease or
covenant or quiet enjoyment; and
landlord makes it impossible for
the tenant to use and enjoy the
property.
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14
LO3
LO3 Rights and Duties of
Landlords and Tenants (5)
▪ Use and Maintenance.
– Implied Warranty of Habitability:
Landlord must furnish premises in
habitable condition.
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15
LO3
LO3 Rights and Duties of
Landlords and Tenants (6)
▪ Use and Maintenance.
– Implied Warranty of Habitability:
landlord responsible for maintaining
common areas (e.g., stairs, parking
lots, elevators), and repairing major
or substantial defects.
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16
LO3
LO3 Rights and Duties of
Landlords and Tenants (7)
▪ Rent for Leased Property.
– Payment based on agreement,
custom, state statute, waiver.
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17
LO3
LO3 Rights and Duties of
Landlords and Tenants (8)
▪ Rent for Leased Property.
– Tenant can deposit rent into an
‘escrow’ account if landlord
breaches the implied warranty of
habitability.
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LO4
LO4 Transferring Rights to
Leased Property (1)
▪ Landlord may sell any and all
of his rights in the real
property.
– New owner buys “subject to the
lease,” if lease is recorded.
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LO4
LO4 Transferring Rights to
Leased Property (2)
▪ Assignment.
– Tenant transfers his or her entire
interest in the lease to a third
person, but original Tenant is not
released from liability under the
lease.
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20
LO4
LO4 Transferring Rights to
Leased Property (3)
▪ Sublease
– Tenant transfers all or part of his
interest in the lease for a shorter
period of time than the lease. The
original tenant is not relieved of
liability under the lease.
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21
LO5
LO 5
Terminating the Lease (1)
▪ Usually terminates when it
ends; tenant surrenders
property and landlord retakes
possession.
– Once lease terminates, tenant has
no legal right to remain.
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22
LO5
LO 5
Terminating the Lease (2)
▪ Terminating The Lease.
– What happens when a tenant
abandons the premises?
• Tenant is responsible to pay the rent,
but landlord is responsible to mitigate
his damages by making reasonable
attempts to lease the property.
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23
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 6 INTELLECTUAL PROPERTY
Learning Outcomes
LO1
LO2
LO3
LO4
LO4
Identify intellectual property.
Discuss legal protection for
trademarks.
Describe legal protection for patents.
Summarize legal protection for
copyrights.
Define trade secret.
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2
LO1
LO1
Intellectual Property
▪ Intellectual property: Property
resulting from intellectual,
creative processes.
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3
Trademarks and
Related Property (1)
▪ A trademark is a distinctive
identity that a manufacturer
attaches to its product.
▪ Consumers can be misled
when a trademark appears on
other products.
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4
Trademarks and
Related Property (2)
▪ The tort of trademark
infringement occurs when one
who does not own a
trademark copies it to a
substantial degree or uses it in
its entirety.
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5
Trademarks and
Related Property (3)
▪ Trademark Protection.
–Lanham Act (1946) protects
businesses from competitors that
use confusingly similar trademarks.
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6
Trademarks and
Related Property (4)
▪ Trademark Dilution.
–Occurs when a trademark is used
in a way that diminishes its
distinctiveness.
–Requires a mark be famous when
the dilution occurs.
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7
Trademarks and
Related Property (5)
LO2
▪ Distinctive Marks.
–Only trademarks that are deemed
sufficiently distinctive from all
competing trademarks are
protected.
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8
Trademarks and
Related Property (6)
LO2
▪ Distinctive Marks.
–Distinctive (strong) trademarks are
less likely to be infringed.
• Fanciful: Xerox, Google.
• Arbitrary: Dutch Boy.
• Suggestive: Dairy Queen.
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9
Trademarks and
Related Property (7)
LO2
▪ Distinctive Marks.
–Secondary Meaning.
• Descriptive terms are not inherently
distinctive and do not receive
protection under the law.
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10
Trademarks and
Related Property (8)
LO2
▪ Distinctive Marks.
–Secondary Meaning.
• Geographical terms, personal names:
Calvin Klein.
• Secondary meaning may arise once
customers associate the product with
the name.
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11
Trademarks and
Related Property (9)
▪ Trademark Registration.
–State and federal governments
provide for the registration of
trademarks.
–Registration is not required for
protection, but the mark must be
distinctive and in use.
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12
Trademarks and
Related Property (10)
▪ Trademark Registration.
–Trademark registration provides for
proof of the date of inception.
▪ Infringement.
–A trademark has been infringed
when it is used without
authorization.
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13
Trademarks and
Related Property (11)
▪ Counterfeit Goods.
–Crime to intentionally (or attempt
to) traffic goods or trademarks.
–Criminal penalties.
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14
Trademarks and
Related Property (12)
▪ Service Marks and Trade Names.
–Service marks distinguish services
rather than goods.
–Protected in the same way as
trademarks.
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15
Trademarks and
Related Property (13)
▪ Service Marks and Trade Names.
–Trade names are not the same as
trademarks.
–Trade names indicate part or all of a
business name that is directly
related to it and its goodwill.
Example: Safeway.
16
–.
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Trademarks and
Related Property (14)
▪ Domain Names.
–Internet address, such as
www.amazon.com.
–No two businesses can have the
same domain name on the internet.
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17
Trademarks and
Related Property (15)
▪ Domain Names.
–Unauthorized use of domain name
constitutes trademark infringement.
–Internet Corporation for Assigned
Names and Numbers (ICANN)
oversees distribution, complaints,
and disputes.
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18
Trademarks and
Related Property (16)
▪ Cybersquatting.
–Occurs when a person registers a
domain name that is the same as, or
similar to, the trademark of another
and then offers to sell the domain
name back to the trademark owner.
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19
Trademarks and
Related Property (17)
▪ ACPA (1999): Anticybersquatting
Consumer Protection Act.
–A mark’s owner can file a suit under
ACPA against an alleged
cybersquatter.
▪ Meta Tags: unauthorized use of
constitutes infringement.
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20
Patents (1)
▪ A patent is a grant from the
government that conveys to, and
secures for, an inventor the
exclusive right to make, use, and
sell an invention for a period of
twenty years.
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21
Patents (2)
LO3
▪ Patent Infringement.
–If a firm makes, uses, or sells
another’s patented design, product,
or process without the patent
owner’s permission, the tort of
patent infringement exists.
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22
Patent Infringement
LO3
▪ Licensing.
–An agreement permitting the use
of intellectual property.
–Allows the use of the patented
design, product, or process for
certain specified purposes.
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23
Copyrights (1)
▪ Intangible right granted by statute
to the author or originator of
certain literary or artistic
productions by federal law (U.S.
Copyright Act).
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24
Copyrights (2)
▪ Copyright Protection.
–Copyrights can be registered with the
U.S. Copyright Office, not required.
–Automatic protection.
–© not necessary to protect against
infringement.
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25
Copyrights (3)
▪ What is Protected Expression?
– A work must be original, fixed in a durable
medium, and fit into one of these categories:
● Musical
• Literary
● Pantomimes and Choreographic
• Dramatic
• Pictorial, graphic, and sculptural
• Motion pictures and other audiovisual
• Sound recordings
• Computer software
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26
Copyrights (4)
▪ Copyright Exclusions.
–Any “idea, procedure, process,
system, method of operation, concept,
principle or discovery, regardless of the
form in which it is described, explained,
illustrated, or embodied.”
–Only expressions of ideas can be
copyrighted, not ideas.
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LO4
LO4
Copyright Infringement (1)
▪ Whenever the form or
expression of an idea is copied,
an infringement of copyright
occurs.
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Copyright Infringement (2)
LO4
LO4
▪ “Fair use”— exception to
infringement. Courts consider:
1. Purpose of the use.
2. Nature of the copyrighted work.
3. How much of the original is
copied.
4. Effect of the use on the market
for the original.
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LO4
LO4
Copyright Infringement (3)
▪ The First Sale Doctrine.
–Once a copyright owner sells or gives
away a copy of a work, the copyright
owner no longer has the right to
control the distribution of that copy.
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Copyright Protection for Software
▪ Computer Software Copyright Act, 1980.
– Covers software coding and binary-language
object code of the program.
– Elements of overall structure, sequence, and
organization of a program may also be
copyrightable.
– Does not cover general appearance. (This may
fall under trademark laws.)
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31
Copyrights in Digital Information (1)
▪ Copyright law is probably the
most important form of
intellectual property protection
on the Internet.
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32
Copyrights in Digital Information (2)
▪ Courts have held that loading a
file or program into a
computer’s RAM constitutes a
copy for purposes of copyright
law.
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33
Copyrights in Digital Information (3)
▪ The Digital Millenium Copyright
Act (DMCA).
–Established civil and criminal
penalties for anyone who
circumvents (bypasses) encryption
software or other technological
antipiracy protection.
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34
Copyrights in Digital Information (4)
▪ The Digital Millenium Copyright
Act (DMCA).
–Exception to DMCA Liability: under
“Fair Use” doctrine.
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35
Copyrights in Digital Information (5)
▪ ISP Limited Liability.
–Internet service providers are not liable
for infringements by subscribers if
unaware of the violation.
–ISP may be liable if it has knowledge and
fails to take action. Copyright holders
must act promptly to file suit.
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36
Copyrights in Digital Information (6)
▪ File Sharing.
–People make files on their own PCs
directly accessible to others via
network.
–On the Internet, usually a web server.
–P2P networking, generally via
software.
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Trade Secrets
LO5
▪ Information or a process that
gives a business an advantage
over competitors who do not
know the information or process.
▪ The Economic Espionage Act of
1996 made the theft of trade
secrets a federal crime.
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International Protection for
Intellectual Property (1)
▪ The Paris Convention of 1883.
–Allows parties in one country to file
for patent and trademark protection
in any of the other member countries.
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International Protection for
Intellectual Property (2)
▪ The Berne Convention of 1888.
–Every member country must
recognize the copyrights of authors
who are citizens of other member
countries.
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40
International Protection for
Intellectual Property (3)
▪ The TRIPS Agreement of 1994.
–Trade-Related Aspects of Intellectual
Property Rights.
–Specifically provides protection for
computer programs.
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41
International Protection for
Intellectual Property (4)
▪ The Anti-Counterfeiting Trade
Agreement of 2011 (ACTA).
–International treaty to combat
counterfeiting.
–Applies to physical goods as well as
works being distributed online.
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