1. Be sure to read the article: Wills in the State of Washington before answering this question!

(it is located in Canvas under FILES - Course Files Wills & Trusts)

Dan is a resident of Seattle. He had his attorney write up a Will for him, giving everything to his sister Maria, if anything happened to him on one of his mountain-climbing trips. Dan signed the form at home, then mailed it to Maria at her home in Spokane, Washington, with instructions for her to get a couple of her neighbors to sign the form as witnesses of Dans signature. Maria had a couple of her neighbors come over for coffee, and they signed the form as Maria had asked. The neighbors have never met Dan. Maria wants to make sure the Will is valid under Washington law what is your conclusion?

A. Yes, this Will is valid under Washington law.

B. No, this Will is not valid under Washington law.

2. Zaya wrote out a Will at his home in Seattle, all in his own handwriting, clearly giving his ownership of his copyrights to his good friend Abraham. He dated the Will on November 11, 2011 (so numerically it would be 11/11/11). He did not have any witnesses sign the Will. Everything else, including his bank accounts and real estate, he left to his adult children, Zelda and Zen, his only living relatives. The Personal Representative named in Zayas Will (his psychic advisor Madame Fifi) has presented Zayas Will to the judge of the King County probate court, but the judge in that court has refused to admit the Will to be probated. Why?

a. The judge can only allow one of Zayas relatives to act as the Personal Representative. Since the Will named a non-relative (Madame Fifi), the judge had to refuse to admit the Will.

b. There have to be two witnesses watch the signing of the Will to make it valid in Washington.

3. True or False A Power of Attorney document loses its authority once the person who has given the Power of Attorney dies.

4. True or False If someone dies without a Will, we say that they died intestate.

5. True or False (Before answering this question, you will want to read the article on Living Trusts in Canvas, under FILES Course Files Wills & Trusts.)

Max sets up a Revocable Living Trust, naming himself as the initial Trustee, and his son Fred as the successor Trustee once Max dies or becomes incapacitated. The Trust document provides that on Maxs death the three properties going into the trust should be deeded separately to his three children (Fred, Georgia, and Harry). Max transfers the following property into his Trust: his personal home in Seattle; a rental house in Portland, Oregon; and a condo on the beach in Kona, Hawaii; along with enough money to pay any estate taxes and fees. The total value of Maxs property (real estate and cash) was about $1 Million. Because the Trust is now the official owner of the real estate in these three states, when Max dies Fred can follow the terms of the Trust, avoid the Probate Court in those states, and just deed the real estate out to the three children as soon as he wants to, and not have to worry about getting permission from judges.

6. Marnie and Joel are brother and sister. They are given a gift from Mom of $20,000 by a check made out to both of them. They set up a bank account with both of their names on it, as Tenants in Common. Joel dies a few years later. Joels only surviving relative besides his sister Marnie, is his son Johnny. Johnny is claiming Joels half of the bank account. Marnie has never liked Johnny, and has refused to give Johnny any money from the account. If this matter goes to court, how should the judge rule, according to the law?

a. Johnny is entitled to half of the account as a matter of law.

b. Johnny is not entitled to anything. It is a Tenancy in Common account, so the whole account now belongs to Marnie.

7. Fred has been hired by a manufacturing company in Seattle, to make metal parts for a new product. He has to use a "metal-stamping" machine that applies pressure of 2,000 pounds per square inch (psi) to bend flat metal into the appropriate shapes. If Fred's fingers get injured by the machine while he is stamping metal parts, he will

A. Have to sue his employer to receive any compensation for his injuries.

B. Be able to get compensation from the State Worker's Compensation program (sometimes called Labor & Industries).

8. Fred owes money to the Internal Revenue Service on his 2016, 2017, and 2018 income tax returns, amounting to about $20,000 total. If he files for a Chapter 7 total liquidation bankruptcy, these debts will all be discharged by the bankruptcy court. True or False

9. Barretts father Rupert (a resident of the State of Washington) has recently died. Rupert left a Will, signed at a lawyers office back in 2010, with two witnesses and a Notary Public notarizing all the signatures, in which he left all of his property to Barrett, and left nothing for Barretts older brother Chris. There are no other surviving family members. Barrett has been working for several years and supporting himself, and taking college classes. Chris has spent most of his time hanging around the pool hall, drinking beer, and not doing anything much to earn income, always borrowing money from his father Rupert. Ruperts Will stated, in part: I give only 1 US Dollar to my lazy son Chris, and I hope he learns how to work for his living! Chris thinks this is unfair, and wants to challenge the legality of the Will. Likely result?

A. In Washington, it is perfectly legal for a parent to disinherit a child, and leave nothing for them in his/her Will. So the judge will probably enforce the Will as it is written.

B. In Washington, a parent cannot legally disinherit a child, so the judge will have to ignore the Will, and split Ruperts estate equally between the two sons.

10. Approximately how much does it cost each year for a basic renters insurance policy for a student who is renting a small apartment in Seattle, which will provide liability insurance in case a visitor gets injured while visiting, and which will provide theft insurance for all the basic contents of the apartment, up to about $20,000 in contents? You may have to call around to a couple of insurance agents to get this info or check online.

a. About $150 per year

b. About $500 per year

c. About $900 per year

Facts for Questions 11 15.

Keith and Estelle have been married for twenty years, living in Seattle. They have one child, Jin, age eighteen. Keith owned a house prior to their marriage, that was completely paid off before they got married this is where Keith and Estelle and Jin have all lived together since the marriage. Keith also owned a rental house, also paid off before they got married. The rental income is deposited into a KeyBank account that Keith owned before marriage, that provides Keith with enough income to pay all the expenses for the rental property, and all the expenses for the home they live in. Keith never changed the titles to the houses when he and Estelle got married. Keith and Estelle are both working, and they deposit their wages into a Joint Tenancy (JTWROS) bank account with Umpqua Bank, from which they buy their groceries, bought two cars, pay for car expenses and vacations, and pay for medical insurance. The Umpqua Bank account currently has about $100,000 in it. Neither Keith nor Estelle have written a Will. From their Umpqua Bank account, they also pay for a joint life-insurance policy that will pay the survivor $300,000 upon the death of either husband or wife. Keith had a heart attack over the weekend, and died. Estelle is worried about her financial situation she has come to you to find out what property she will receive from Keiths estate. What do you tell her, based on the State of Washington intestate law? (You will also want to look at the article on Community Property, and the chart of Co-ownerships copies are in FILES Course Files on the Canvas website for the class)

11. The rental house was Keiths Separate Property, so the ownership of that will be divided between Estelle and Jin (one-half each). True/False

12. The family home is Community Property, because that is the house they lived in while married, so Estelle will get 100% title to that. True/False

13. Jin and Estelle will have a 50% ownership of the $100,000 Umpqua Bank account. True/False

14. Estelle will receive all of the $300,000 life-insurance policy proceeds. True/False

15. Since there are two cars, Estelle is entitled to one, and Jin is entitled to the other. True/False

16. Teresa leased a house from Lawrence for two years, ending on January 31, 2020. She paid a security deposit of $2,000, and they signed a written lease. Teresa took possession, and lived there without incident for the entire period, always paying her rent on time. She left the house in clean condition, on January 31, 2020. Lawrence has not returned the security deposit, and has not responded to Teresas multiple requests for the money.

a. Teresa should just forget about the deposit.

b. Teresa has no statutory protection here just a common-law right to sue her former landlord.

c. Teresa has statutory protection, under Washingtons Residential Landlord-Tenant Act. If she sues her former landlord, she will be entitled to get her security deposit back, but thats all.

d. Teresa has statutory protection, under Washingtons Residential Landlord-Tenant Act. If she sues her former landlord, the court can award Teresa up to twice the amount of her security deposit.

17. An S-Corporation can have up to 300 shareholders. True/False

18. True or False General Partners in a General Partnership each have unlimited personal liability for all obligations of the partnership.

Facts for Questions 19 & 20:

Roberto and Maria are general partners in a general partnership. They have entered into a partnership agreement which provides as follows: 1. Roberto is to contribute $100,000 to the partnership. 2. Maria is to contribute $200,000 to the partnership. 3. Roberto is to have a 1/3 ownership interest; and Maria is to have a 2/3 ownership interest. 4. Roberto is to receive 40% of all profits earned by the partnership, and Maria is to receive 60% of all profits. 5. Roberto and Maria are to each be responsible for 50% of all losses or other obligations of the partnership. Roberto has a net worth of about $400,000, all in bank accounts. Maria has a net worth of about $4 Million, all in a stock-brokerage account.

In Year 1 of operations, the company has a disastrous year financially! They lose $500,000. Roberto and Maria each contribute another $250,000, to make up for the loss, reducing Robertos net worth down to $150,000, and Marias net worth down to $3.75 Million. In Year 2, they lose another $400,000! Roberto pays into the business all that he can - $150,000. Maria pays in the other $250,000, so the company can keep going. In Year 3, the company finally breaks even, but a customer sues for $2 Million in physical harm when the product they sell explodes and results in the customer losing both of his legs. The customer wins in court, and gets a judgment against the partnership for the full $2 Million. The company has virtually no assets left.

19. The customer can take his judgment and:

a. claim $2 Million of Marias stocks. Maria will have to seek reimbursement from Roberto for his 50% responsibility.

b. claim $1 Million of Marias stocks. The customer will have to get the rest from Roberto when (and if) Roberto ever gets any more net worth.

c. claim $1 Million of Marias stocks. The customer will have a claim on any assets that Roberto gets in the future, until his $1 Million is paid off. In the meantime, the customer can get a portion of Robertos monthly paychecks by turning in a garnishment order to his payroll office.

20. True or False If Maria and Roberto had set up a corporation or LLC, instead of a general partnership, they could have limited their individual liability for debts of the company, to just what they had invested.

21. Sunil and his brother Leandro set up an investment account with a bank, as Tenants in Common. Each puts $25,000 into the account, and they buy and sell stock together, splitting all interest and dividend income equally, and sharing any losses equally. After about thirty years of doing this, the account has grown to a total of about $200,000. Sunil got married, and had one child, Arjun. Sunils wife unfortunately died in 2015. Leandro has never married, and has no children. Sunil died in February, 2020. Leandro is claiming ownership of the entire Investment account. Result if Arjun challenges Leandro in court? Everyone lives (or lived) in the State of Washington.

A. Leandro will be awarded ownership of the entire account.

B. Arjun will be awarded half of the account.

22. Billy-Bob owns a condo in Seattle, and a farm in Yakima. His older brother, Bobby-Lee, has some severe health problems and is unable to work anymore, and just has Social Security Disability income of about $800/month. Billy-Bob records a deed giving a life estate to Bobby-Lee as long as he lives, with the remainder to go to Billy-Bobs sister, Judy.

A. Bobby-Lee now owns the fee simple title to the property, as long as he lives.

B. Once Bobby-Lee dies, Judy will own the fee simple title to the property.

C. No one will own the fee simple title to the property.

23. What is an easement?

A. The exclusive right to buy someones land if they want to sell it.

B. The right to enter someones land, and take something from it, like minerals.

C. The temporary right to be on someones land.

D. The permanent right to cross over or be on someones land for a particular purpose.

24. Serena has a large garden on her property in Seattle, but she wants to make it bigger. She enlarges her garden to go over onto her next-door-neighbor Nels land by about ten feet, and she puts up a wooden fence to keep anyone else from using the garden area. No one objects, so Serena continues to use the enlargened garden area as her own for the next 21 years! Finally, her next-door-neighbor Nel dies, and Nels estate sells the property to a new owner. The new owner has a survey done, and finds out that Serenas fence is on Nels former property. Serena refuses to take the fence down, and the new owner takes Serena to court. Who wins?

A. The new owner will win Nel never gave Serena this land, so it should belong to the new owner!

B. Serena will win she now owns the land by eminent domain.

C. Serena will win she now owns the land by adverse possession.

D. Serena will win she now owns the land by specific performance.

25. Leilani signs a lease to take possession of a house near Greenlake, beginning April 1, 2020, and ending December 31, 2020. She will pay rent of $2,000 per month on the first day of each month. This is an example of:

A. a periodic tenancy

B. a tenancy for years

C. a tenancy at will

26. Jun rents an apartment in the University District in Seattle. He invites a few friends over for dinner on the weekend. While preparing the food, he spills some water on the kitchen floor, and forgets to clean it up. One of his guests (Zhang) walks into the kitchen, slips on the water, and falls and breaks his leg. Who is legally responsible for the medical expenses, and lost wages for Zhang?

A. The Landlord

B. Jun, the Tenant

C. Zhang

27. Maha has a lease to rent an apartment until December 31, 2020, at $1,500 per month. The owner of the apartment building has just sold the building to Jean-Louis. Jean-Louis sent Maha a notice, telling Maha that he is raising her rent to $1,600 per month, immediately.

A. The new owner has the right to increase rents he is not bound by the previous owners agreements.

B. Maha can enforce her lease against Jean-Louis, just as she could against the previous owner.

28. True or False Copyrights are a type of property.

29. True or False A patent will usually last for the lifetime of the inventor.

30. True or False A trade secret has to be filed with the US Copyright Office in order to enforce it in court.

business law 201