Question

1. Mollie purchases plants from a nursery which she in turn sells in her store. Mollie’s store sells plants to builders who replant them in the front yards of the homes they build. The plants Mollie purchases and sells are?

1. Real property because the plants were once attached to land.
2. Real property because Mollie’s clients intend to replant the plants.
3. Personal property because the plants sold by Mollie are not attached to land.

2. Desperate for funds, Gene borrows money at an interest rate of 80%. When Gene is unable to pay, the lender sues Gene. Which of the following is true?

1. The lender will lose with respect to the usury interest rate.
2. The lender will lose and also face criminal charges.
3. The lender will win because there is freedom of contract.

Answer 1

ANS 1. OPTION C IS THE CORRECT ANSWER.

PERSONAL PROPERTY IS ANYTHING, EXCEPT LAND, WHICH THAT IS OWNED BY AN INDIVIDUAL. IN THIS CASE THE PLANTS THAT MOLLIE HAS BECOMES HER PROPERTY WHEN SHE BUYS THEM FROM A NURSERY AND THEY ARE NOT ATTACHED TO LAND NOW AND THEN SELLS THEM AS HER PROPERTY. THEREFORE IT IS A PERSONAL PROPERTY.

ANS 2. IN THIS CASE THERE CAN BE TWO POSSIBILITIES OF THE SOLUTION. OPTION A AND C BOTH CAN BE THE CORRECT ANSWER. REASONS FOR BOTH ARE MENTIONED BELOW:

OPTION A CAN BE CORRECT BECAUSE THE RATE OF INTEREST IS VERY HIGH WHICH IS NOT PERMITTED TO BE CHARGED. BUT SINCE THERE IS NO MARKET RATE GIVEN IN THE STATEMENT FROM WHERE WE CAN COMPARE AND SAY THAT THE RATE IS USURY. THEREFORE IT COULD BE THE ANSWER BUT NOT DEFINITE.

OPTION C CAN BE CORRECT OPTION BECAUSE NO SUCH PROVISIONS ARE MENTIONED IN THE CONTRACT WHICH SHOWS THAT LENDER WILL NOT SUE GENE IF HE IS UNABLE TO PAY THE MONEY BACK. THEREFORE LENDER HAS FULL FREEDOM TO SUE GENE. SO IT COULD BE THE ANSWER ALSO.