Property & Its Acquisition Chapter 16 Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Ch Objectives Define Property Identify the classifications of property Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Property & Its Classification What is property? ◦ Rights & interests we recognize in one another in tangible & intangible things ◦ Tangible – you can touch or see ◦ Intangible – cannot see or touch  Patents, franchise, copyright ◦ Title, possession, use, enjoyment, profit, & alienation (dispose of it by sale, gift, consumption, or destruction) Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Classification of property A.Real property (realty)  Rights & interests in land, buildings, & those things permanently affixed to them (fixtures)  Airspace above the land  Water & minerals on or below the surface B.Personal property (personalty)  Rights & interests in anything that is not real property (not permanently fixed)  Intellectual property – intangible property created by the intellect & includes copyrights, service marks, trademarks, patents, and trade secrets Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

C.Copyrights – protects the expression of creative work  Owners of the copyright have the exclusive right to reproduce, sell, perform, or display the work  Fixed and original  Infringement – unauthorized copying, sale, display, or performance of a copyright protected work  Fair use – very limited use of copyrighted works by critics, researchers, news reporters, & educators Life + 70 years Classification of property Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

D. Trademarks & Service Marks ◦ Trademark: word, mark, symbol, or device by which the products of particular manufacturer or the commodities of a particular merchant can be distinguished from those of others ◦ Service Mark: Unique word, mark or symbol that identifies a service as opposed to a product ◦ Lanham Act of 1946 is current U.S. trademark laws ◦ Lose exclusive rights to trademark if: 1.Permits competitors to use trademark to refer to similar products 2.Trademark used as a generic descriptive term ie. ‘shredded wheat’ and ‘cellophane’ generic Classification of property Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

E.Patents  Grant of the exclusive right to make, use, import, sell, & offer a novel or new, non-obvious, useful product or process.  Novel – no one has ever thought of the product/process before  Non-obvious – above basic engineering standards  20 years, non-renewable F.Trade Secrets  Commercially valuable information that the owner attempts to keep secret Classification of property Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Features of Intellectual Property Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007 Chart pg. 288

Ch Objectives State the different ways of acquiring property Differentiate the various ways of hloding ownership to property Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Ways of Acquiring Property AAcquiring Ownership by contract ◦B◦B ought, sold ◦M◦M ost common AAcquiring Ownership by Gift ◦3◦3 elements (must demonstrate 2): 1)Intent is needed; Promise = no legal obligations 2)Delivery CConstructive delivery – symbol of subject is substituted (keys or deed) 3)Acceptance EEngagement ring is conditional Causa Mortis (anticipate death), Inter Vivos (during life) Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

 Acquiring Ownership in Intellectual Labor ◦ Exclusive property rights ◦ Patents, copyrights  Acquiring Ownership by Inheritance  Acquiring Ownership by Accession ◦ Right of an owner of property to all that property produces, naturally or artificially, or to a significant increase in that property Ways of Acquiring Property Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

 Acquiring Ownership by Finding ◦ Lost property is created when the owner does not know when or where it disappeared from the owner’s possession ◦ Mislaid property is placed intentionally somewhere but forgotten ◦ Finder vs. Property owner of where lost or mislaid item was found (ie. leaving coat at restaurant)  Acquiring Ownership by Occupancy ◦ Acquiring title by taking possession of personal property that belongs to no one else ◦ Abandoned or discarded ◦ Wildlife – properly licensed person on public lands Ways of Acquiring Property Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

How is Ownership of Property Held? Ownership in Severalty ◦ Exists when one person own 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 (4 types) ◦ Equal rights of possession ◦ Right of partition  Allows any co-owner to legally compel the division of the property among the co-owners Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Types of Co-Ownerships a. Joint Tenancy ◦ Co-ownership of the same property w/ the right of survivorship  If one of the joint owners dies, the remaining owner or owner still retain their ownership right to the whole property b. Tenancy in Common ◦ Number of shares owned may be equal or unequal, & there is no right or survivorship  In death, passes to heirs or beneficiaries designated Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Types of Co-Ownerships c. Tenancy by the Entireties ◦ Can only be entered into by married couples ◦ Carries the right of survivorship ◦ One tenant cannot sell or mortgage the subject property w/o the spouse’s consent. ◦ Divorce transfers to a tenancy in common d. Community Property (some States) ◦ All property acquired by husband & wife during their marriage ◦ Each spouse owns ½ interest in property ◦ Property owned by either party prior to marriage or inherited, gift during marriage is separate Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Limitations on Ownership Rights are not absolute Not permitted to use property in unreasonable or unlawful manner that injures another Government may adopt laws to protect public health, safety, morals and welfare ◦ Destroy contaminated food, maintain certain level of livability, city zoning laws regarding livestock Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007

Types of Co-Ownership Adamson, John E., Law for Personal and Business Use, 18 th Ed., South-Western Cengage Learning, 2007 Chart pg. 294

Ch. 16 Quiz (10pts. +5EC) What are the 2 main classifications of property? If someone has exclusive rights to reproduce, sell, or display their work, they must have a ______________. T/F “Shredded wheat” is a trademark. Which “Acquiring Ownership” has 3 elements? What are the 3 elements? What is the most common type of “Acquiring Ownership?

Ch. 16 Quiz – Extra Credit List 2 examples of a trade secret. What type of co-ownership is for married couples only? What type has the right of survivorship? Explain right of survivorship.