1. You have three (3) hours to complete this exam; you may allocate your time as you please.

2. This is an open book exam. Written materials of any sort are permitted.

3. This examination has two (2) parts.

· Part I contains 113 True/False questions. Correct True/False answers are to be marked on the separate “ParSCORE TEST FORM” using pen or pencil and following the instructions on that form. If you change your answer, place a clear X through the wrong answer and mark the correct answer. A machine will score the exam and any ambiguities will be counted as a wrong answer.

· Part II constitutes 1/3 of the exam. It consists of one (1) essay question divided into three (3) parts. You must answer all three parts. Read the facts carefully. Answers based on incorrect facts are treated as incorrect answers. If you think that important facts are missing or ambiguously stated, make reasonable and explicit assumptions about them. Do not make assumptions that make the entire problem vanish! Abbreviate where appropriate. Please type or answer these in blue books. Write legibly on every other line and one side of the page only. Illegible answers will not be read.

4. Write your exam number on your exam envelope, all used blue books, at the top of each page in this exam question packet. Do this now. Do not use your name, student ID number, or Social Security Number on any exam materials.

5. At the conclusion of the exam, return all test materials, including blue books, scratch paper, the ParScore answer sheet and this entire exam packet to the envelope and submit it to the proctor. DO NOT seal the envelope. Failure to return all materials will result, among other sanctions, in a failing grade of “F” for the course.

6. If you have comments on any questions you want me to read, write those comments directly next to the questions themselves, and mark here on this cover (below) what their numbers are. I won’t pay attention to any written notes inside the exam book except those listed here. Don’t try to make each question into a little essay just to get some extra credit points, because a wrong comment can also make a correct answer wrong.

Questions with comments:

PART II. Essay Section: Read Instructions on Page 1

Lana and her brother Brad recently purchased a shopping center from its former owner, the Former Corp (FC). The sales contract provided among other things, that Former Corp transferred all rights and liabilities under the existing leases to Lana and Brad. All of the shopping center leases were uniform as to their terms (except for duration and rent). Each lease specified the business that the tenant was allowed to engage in and prohibited the tenant from transferring the lease without the consent of the landlord; the leases all declared that the landlord would permit only high class businesses in the center and would prohibit any noxious use from existing in the center and disturbing any of the other tenants.

Lana and Brad took title as tenants in common, but – because they were brother and sister - they did not execute any tenancy in common agreement between themselves.

Now they find themselves with this problem: A lease executed in 2001 for a twenty year term to Alan for the operation of a ladies shoe store was transferred three months ago by Alan to Betty. Although the rent checks have since come from Betty rather than Alan, the transfer was made without the knowledge or consent of Former Corp., and its bookkeeper did not pick up the switch.

Betty has now changed the use of the premises from a ladies shoes store into a video arcade for teenagers (again without the knowledge or consent of the landlord). This has angered many of the other tenants because the presence of so many teenagers is hurting their businesses.

Some of the tenants complained to the city planning department, and in response the town zoning inspector, Zelda, has notified Lana and Brad, that video arcades are declared by the local ordinance to constitute noxious uses and are not permitted in any district zoned commercial, as this area is. Zelda has demanded that Lana and Brad shut down the video arcade immediately.

Some tenants have stopped paying rent and/or have moved out of the shopping center because of the video arcade. Other tenants have sued Lana and Brad, contending that the leases compel the landlord to close down the video arcade or to evict Betty. These tenants also are claiming damages for breach of lease.

Betty maintains that she is entitled to run her video arcade and refuses to shut it down. She says the zoning ordinance is illegal, and that she is not bound by the lease because neither she nor Lana or Brad was a signatory to it. She says she will sue for damages if Lana and Brad try to stop her or evict her.

Brad refuses to do anything: he says the tenants should be the ones to sue Betty, because their leases entitle them to do that and that he and Lana should sue any tenants who stop paying rent or leave before the end of their term.

Lana thinks she should do something, but cannot persuade Brad to act, and does not exactly know what she should do. Lana comes to you. The shopping center is not necessarily in California. Respond to Lana’s questions in the order presented.

1. Can Lana force Betty to stop operating a video arcade, or evict Betty if she won’t stop? And if Betty is evicted, can Lana recover rent or damages from her (Betty) thereafter? (Forget Brad for this question).

2. If Lana does not do anything about Betty, can the other tenants move out or withhold their rent or recover damages from Lana? (Again Forget Brad for this.)

3. Can Lana take any action without Brad’s consent? And what can Brad do if Lana does decide to act on her own?

END OF EXAM