Download Chapter 29 Practice Exam

Chapter 29 Practice Exam
Matching Questions
Match the following terms with their definitions:
(5) A. Warranty of habitability.
(3) B. Tenancy at sufferance.
(1) D. Constructive eviction.
1. Landlord’s substantial interference with a tenant’s use and enjoyment of the premises.
3. Tenant remains on premises after expiration of true tenancy.
5. Requires a landlord to meet state building code standards.
True/False Questions
Circle true or false:
1. T
F
A landlord must maintain an apartment in compliance with the state’s building code, unless
the lease specifically exempts that particular unit.
3. T F
A nonrenewable lease of a store, for six months, establishes a tenancy for years.
5. T
A landlord is generally liable for personal injuries sustained within an apartment, but cannot
be liable for criminal attacks that occur there.
F
Multiple-Choice Questions
7. CPA QUESTION: To be enforceable, a residential real estate lease must:
(a) Require the tenant to obtain liability insurance.
(b) Entitle the tenant to exclusive possession of the leased property.
(c) Specify a due date for rent.
(d) Be in writing.
9. In May, Sharon and Joanne, both sophomores, are looking for an apartment to share beginning in
September. They find the perfect unit which Ralph, the landlord, is working on right then. The parties
agree on a rent of $1,000 per month, for 12 months. “Come back in late August, when I’m finished
working,” says Ralph. “I’ll have a lease ready, I’ll take your deposit, and you can move right in.” The
young women return in August to discover that Ralph has rented the apartment for $1,500 to other
students. When they sue Ralph, Sharon and Joanne will
(a) Win $12,000.
(b) Win $18,000.
(c) Win possession of the apartment.
(d) Win the difference between $12,000 and whatever they are forced to spend for a similar
apartment.
(e) Lose.
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Short-Answer Questions
11. ETHICS: Lisa Preece rented an apartment from Turman Realty, paying a $300 security deposit.
Georgia law states: “Any landlord who fails to return any part of a security deposit which is required
to be returned to a tenant pursuant to this article shall be liable to the tenant in the amount of three
times the sum improperly withheld plus reasonable attorney’s fees.” When Preece moved out,
Turman did not return her security deposit, and she sued for triple damages plus attorney’s fees,
totaling $1,800. Turman offered evidence that its failure to return the deposit was inadvertent and that
it had procedures reasonably designed to avoid such errors. Is Preece entitled to triple damages?
Attorney’s fees? What is the rationale behind a statute that requires triple damages? Is it ethical to
force a landlord to pay $1,800 for a $300 debt?
Answer: The court held the defendant liable for $900 (treble damages) and an additional $900 in
attorney’s fees. The rationale for treble damages is that, historically, landlords often willfully refuse
to refund security deposits, knowing that most tenants would not bother to sue. That was obviously
unethical. By trebling the damages, state legislatures have given landlords a financial incentive to be
fair. By permitting attorney’s fees, such laws ensure that injured tenants have access to court and a
remedy. Preece v. Turman Realty Co., Inc., 228 Ga. App. 609, 492 S.E.2d 342, 1997 Ga. App.
LEXIS 1216 (Ga. App. 1997).
13. ROLE REVERSAL: Write a multiple-choice question concerning one of these issues: tenancy for
years, security deposit, or sublease.