Transcript of UNIT 4: PROPERTY LAW. Property Law Eminent Domain The power to take private property for public use...
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- UNIT 4: PROPERTY LAW
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- Property Law Eminent Domain The power to take private property
for public use by a state, municipality, or private person or
corporation authorized to exercise functions of public character,
following the payment of just compensation to the owner of that
property. Ex: Widening a road, construction of golf course,
condo/shopping complex, etc.
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- Eminent Domain New London condemned 15 non-blighted homes in a
middle-class neighborhood as part of an economic development plan
that included a state-of-the-art 90,000-square-foot research and
office facility that would be occupied by pharmaceutical giant
Pfizer, Inc. the economic development plan & condemnations were
necessary to spur economic development and stimulate a sagging
economy. U.S. Supreme Court in Kelo v. City of New London gave the
city its seal of approval and held that the Fifth Amendment of the
United States Constitution permits municipalities to condemn
non-blighted private property for the valid public purpose of
economic development. Other cases: Norwood, OH p. 267
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- Property Defined as anything subject to ownership. 2 types:
Real Property: land, buildings, anything permanently affixed
Sometimes called realty Personal Property: everything else; can be
tangible or intangible Whats Your Verdict, page 268
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- Intellectual property: Defined as intangible property created
by intellect & includes: 1. Copyrights: protects work of
authors, artists & composers. Owned by creator for lifetime +
70 years Ex: songs, books, computer programs, architectural plans
Copyright Infringement is unauthorized copying, sale, display or
performance of a protected work Fair use: limited use, ex: quoting
a paragraph from another book, one line in a song
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- Intellectual property: 2. Trademarks -unique word, mark, symbol
or device that identifies a product of a business -EX: 3. Service
marks -unique word, mark or symbol that identifies a service EX:
NBCs three tone chime -both protected indefinitely as long as there
is continuous use and the mark is in the public eye 4.
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- Intellectual Property 4. Patents: exclusive right to make, use,
import, sell and offer a product or process. -Ex: business methods,
chemical patents, software patents - Valid for 20 years 5. Trade
Secrets: valuable information to the owner that they attempt to
keep secret. -Ex: Cokes secret formula, Sales customer list
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- How Property is Acquired & Held Constructive Delivery:
symbol of the gift given as substitute Example: keys to a car
Accession: right of an owner to property based on an increase
Example: crops & animals born for a farmer. Lost property:
owner doesnt know when/where possession was lost Mislaid property:
placed intentionally then forgotten Occupancy: acquiring abandoned
or discarded property Page 275 caption & Question of
Ethics
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- 2 basic ways to hold property in Severalty: sole ownership
Co-ownership Joint tenancy: equal ownership & right of
survivorship Tenancy in common: shares unequal & no right of
survivorship Tenancy by entireties: married couples have joint
ownership Community property: all property acquired by husband
& wife is community property with each spouse having 50%
ownership
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- Chapter 15 Assessment Page 280: #1-14 Page 282: #32-39
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- Chapter 16 - Bailments physical possession of personal property
is transferred from one person (the 'bailor') to another person
(the 'bailee') who later returns the property or delivers it to a
third party. Bailment is distinguished from a contract of sale or a
gift of property, as it only involves the transfer of possession
and not its ownership. Examples: giving car to valet, storing goods
in a warehouse Actual bailments: bailee receive & accepts goods
themselves Constructive bailments: bailee receives symbol of the
personal property (keys to car)
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- Bailment duties Gratuitous Bailment only one party benefits,
generally the bailee must provide extraordinary care, strictly
liable for damages ex: stay in someones FL vacation home for free
Mutual Benefit Bailment: both parties benefit bailee must provide
ordinary care, liable if negligent Involuntary Bailment: without
consent of bailee benefits only bailor Provide minimal care Ex:
caring for a lost dog, items delivered to the wrong house Must the
bailment contract be in writing? Whats Your Verdict p. 289
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- Chapter 16 Assessment Page 294: #1-12 Page 296: #20-31
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- Chapter 17 Ownership & Transfer of Real Property Right to
air space above land: ownership power extends to the upper
atmosphere Ex: skyscrapers, tall trees. Mineral rights: ownership
extends from the lands surface to the center of the earth. Doctrine
of capture: person who extracts is granted ownership
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- Limitations on ownership Easements: the right to use the real
property of another without possessing it Restrictive covenants:
promise made between buyer & seller about use of the land
Zoning ordinances: city or county regulation on the location of
residences, business & industrial areas Spot zoning (treatment
of a single property differently than other similar properties)
generally prohibited unless there is a variance granted by a city
or county
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- Transfer of Ownership Grantor (party who transfers ownership
powers) & grantee (party who receives ownership powers). Deed:
legal document used to transfer ownership of real property.
Conveyance: When ownership is granted by a deed Adverse possession:
person publicly possesses the land of another private person for
years
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- Leasing Real Property Lease: one party receives temporary
possession of anothers real property Rent payment is given as
consideration Landlord is lessor, tennat is lessee Eviction:
landlord removes tenant from the real property Subletting: tenant
leases all or part of the property to a third party Page 314: #1-11
& Page 317: #32-37
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- Chapter 18 Insurance Contractual agreement that protects
against financial loss Life, health, auto, home, business Policy:
written contract of insurance. Face value: maximum amount that
could be paid for injury Premium: consideration paid by the insured
(party covered/protected) to the insurer (State Farm, Geico, All
State, etc.) Indemnify: insurer makes good on and covers the loss
to the suffering party (insured)
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- Types of Insurance Life: Term-written for a certain number of
years Whole-for as long as the insured lives or 100 years; aka
ordinary or straight life Fire: protects damage caused by fire and
smoke Casualty: 1. Automobile: -Collision moving car(s) collides
-Comprehensive (vandalism, theft, weather) -No-fault insurance: all
parties in automobile accident are indemnified by their own
insurance company, regardless of fault 2. Burglary, robbery, theft
& larceny: protects personal property 3. Liability: if parties
suffer injury or loss from negligence 4. Disability: hospital
bills, loss of income. if you get hurt and miss work it wont hurt
to miss work.
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- Property & Casualty Insurance Property Insurance: Fire,
theft, act of God Casualty Insurance: losses from accident, chance
or negligence Insurable interest: your potential to sustain a loss
Endorsements: attachments to policies for additional needs; aka
riders Example page 325 Coinsurance: fire insurance policy clause,
requires policyholder to maintain coverage equal to a percentage of
the value of the property. Page 336 #1-12 Page 338 #26-31
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- Chapter 19- Property Distribution upon Death Decedent: person
who dies Estate: property of the deceased (personal & real)
Testator: maker of a will Executor: appointed to carry out the
wills directions Testate: dying with a will Intestate: person who
dies without a will Administrator appointed by the court to take
charge of intestates property Very costly on beneficiary & adds
large estate tax costs Living will: directives to physicians for
life support issues
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- Requirements of a will 1. Testamentary intent: no duress or
undue influence in signing the will 2. Testamentary capacity: maker
must know property involved & who stands to benefit upon their
death. 3. Writing: will must be in writing, signed and witnessed by
two adults. Codicil: formal, written, witnessed amendment -usually
the result of marriage, birth or divorce Holographic will: written
& signed by decedent, no witness. Recognized by some states
Nuncupative (nun-coo-pa-tive) will: an oral will, must be
witnessed
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- Distribution of a will After proof of death is established the
executor of the estate has four responsibilities: 1. Organizing
& appraising assets, collecting debts owed to the estate 2.
Public notice of the estate & filing claims against it 3.
Paying valid claims against the estate 4. Distributing remaining
money according to the will -Statutory period for filing claims is
generally 6 months -Law Brief, page 345. If a person dies without a
will
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- Trusts The transfer of some or all property to another party
with direction from a third party Settler: Creator of the trust.
Aka trustor or donor Trustee: legal entity that has title &
direction to the property Beneficiary: party for whom the trust has
been created Child, grandchild
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- Trusts (contd) Inter vivos trust: Created during the settlors
lifetime Latin for between the living Testamentary: Created after
the settlors death