Law in Society

Ms. Baumgartner

Chapter 16Property & Its

Acquisition

16-1 Types of Property

1. Define property2. Identify the classifications of property

What is your definitionof property?

Neerow won $20 million from the GA lottery. When he received the actual $13 million (after taxes) he went on a spending spree. He had a lot of plastic surgery—including a face lift. Then, he bought a condo in Florida, a new car (which he wrecked right away), clothes he never even wore, a mink coat for a friend and a large yacht. The next year, he threw wild parties including a New Year’s Eve party with 50 new friends. While living his new lifestyle, Neerow totally neglected his business—where he employed 10 people. The business almost reached the point of bankruptcy.

Should he be stopped from spending his money? Why/Why Not?

HOT DEBATE!!

Property includes tangible & intangible thingsTangible – books, clothing, jewelry, carsIntangible – secret formula of Coca Cola,

copyright of textbook, patents for inventions

Property – the rights and interests we recognize in one another in tangible and intangible thingsRead What’s Your Verdict on page 285

Property & Its Classification

Jon rented a house in Beach Haven, NJ for a couple of weeks after he finished writing his new book. He looked forward to relaxing and getting away from everything during that period.

Did Jon acquire property under that lease?

What's Your Verdict?

YES—because he acquired possession for 2 weeks by renting the house

Property can be classified as real or personalReal property – rights & interests in land,

buildings, & those things permanently affixed to them (fixtures)Includes the surface of the earth and

water/minerals below the surface. Also can include airspace above land. Also includes buildings and anything permanently attached to buildings.

Property & Its Classification

Personal property – rights and interests in anything that is not real property; tangible or intangibleTangible has physical formIntangible does not have physical formEX: intellectual property

Intellectual propertyIntangible property created in your mind

CopyrightTrademarksPatentsTrade secrets

Property & Its Classification

Copyright – protects the expression of a creative work, such as the work of an author, artist, or composerSongs, books, computer programs,

architectural plans, etc.To be copyrighted, the expression must be

fixed (so others understand) and original (unique)

Damages ($$) may be collected for infringement (unauthorized copying, sale, display, or performance of a copyright protected work)

Property & Its Classification

Can you identify the following trademarks?

Property & Its Classification

Under the federal copyright law, not all infringements are penalizedFAIR USE—very limited use of copyrighted

works by critics, researchers, news reporters and teachers.

EX: an author quoting a paragraph from another author’s book and citing it

EX: a teacher making a fair amount of copies of worksheets

Trademark - A word, mark, symbol, or device by which the products of a particular manufacturer or the commodities of a particular merchant can be distinguished from those of othersEX: KODAK (includes name of owner and product)

Service Mark – a unique word, mark or symbol that identifies a service instead of a product

Patent – the grant of exclusive right to make, use, import, sell, and offer a novel or new, non-obvious, useful product or process EX: a unique chair or table

Trade secret – commercially valuable information that the owner must keep secret (the secret formula for Coke)

Property & Its Classification

Answer questions #1-6, 8-9

16-1 Assessment Questions

16-2 How Property is Acquired & Held1. State the different ways of acquiring property2. Differentiate the various ways of holding ownership to property

On a long trip to an away game, the five starters of the Tigerettes basketball team were talking about their MP3 players. Andrea bought hers with earnings from her job at a local animal shelter. Bridget received hers as a birthday gift. Caren inherited hers from a very hip aunt who recently passed away. Darlene, a computer geek, made her own. Elena found hers on the street and, after months of trying, had been unable to find the owner.

Did each of the teammates have the same rights to her MP3 player—regardless how she got it?

What's Your Verdict?

All had same ownership rights except Elena—she only had rights of a FINDER (possession and use only)

Real or personal property is acquired most commonly by contract, gift, or inheritanceAcquiring ownership by contract – people

acquire most of their property by purchasing itAcquiring ownership by gift – must contain 3

elements….intent to transfer ownership (cannot just promise

to give someone something)delivery of the product (shift of possession from 1

to another)Constructive Delivery: having a symbol of a gift in

place of the delivery of the item (keys instead of a car)acceptance of the gift/product (accept by not

rejecting in a certain amount of time)

Ways of Acquiring Property

Acquiring ownership by inheritance Acquiring ownership by Accession

The right of an owner of property and to all that property produces to increase their property

EX: farm crops and offspring of animals belong to landowner.

EX: when a new hard drive is installed in a computer, it becomes part of the computer

Acquiring ownership by FindingAnyone who loses property has the right to recover it

from the finderYou must prove true ownershipThe finder must return the item if he/she knows who

the owner is or be guilty of theftSome laws say the finder must try to locate the

property owner (post an ad in the newspaper, craigslist, etc.)

If owner is unknown, finder may keep item until true owner appearsLost property: created when the owner does not know

when/where it disappearedMislaid property: placed somewhere intentionally but

forgot where it was put. If you remember later, you still have right.

Acquiring Ownership by OccupancyMeans acquiring by taking possession of

personal property that belongs to no one elseProperty abandoned or thrown away by

anotherIn this case, the finder becomes the ownerEX: picking up sea shells on the beach

Beth and Maureen inherited a 12-acre piece of land from their parents. Beth moved onto the property and Marureen stayed in her former home. Beth decided Maureen could have the back 6 acres and she would keep the front 6 acres.

CAN BETH KEEP MAUREEN FROM THE PART OF LAND THAT SHE CALLED DIBS ON?

How is Ownership of Property Held?

No, she has no right to exclude Maureen from the front 6 acres unless they legally divide the property in court

There are 2 basic ways to own property – in severalty or by co-ownershipOwnership in severalty – exists when 1

person owns all of the personal or real property involved; most common form of ownership for personal property

Co-ownership – exists when 2 or more persons have ownership rights in the same property

All forms of co-ownership have 2 things in common:All co-owners have equal rights of possessionRight of partition – allows any co-owner to legally

begin dividing the property among co-owners

How is Ownership of Property Held?

The co-ownership of the same property Includes the RIGHT OF SURVIVORSHIP

Means that if one joint owner dies, the remaining owner still retains their ownership over the whole property

Joint Tenancy

The parts owned by people may be equal or unequal and there is no right of survivorship

If a tenant in common dies, their ownership passes along to their beneficiaries in their will

Tenancy in Common

Co-ownership between a husband and wifeCan only be entered into by married couplesOne tenant cannot sell the property without

spouse’s consentIf they divorce or separate, it changes to

tenancy in common and those rules begin to apply

Tenancy by the Entireties

In some states, all property acquired by husband and wife during marriage is called community property

Each spouse owns ½ interest in shared property

While both spouses are alive, both must consent to selling the property

Community Property

Owner of a property can not use it in illegal manner

Cannot injure anotherBuildings must be safe for all who live/own

Ownership Rights

16-2 Assessment

Answer questions #1-11 on your own (page 295)

Additional Chapter AssignmentsChapter 16

Assessment Vocab #1-14, 27, 28, 30, 32, 33, 39

Chapter Review Worksheets