1. Give a hospitality, recreation, recreation therapy or tourism example (different from those listed in the textbook) for each of the following: Trademark, service mark, patent, copyright, and trade dress (integrate evidence from the assigned reading in your own words in every posting).2. Describe a minimum of four important considerations when leasing property for a hospitality or recreation business (integrate evidence from the assigned reading in your own words in every posting).3. Analyze this situation 6.2. Read and respond to the situation on page 100 of your textbook. Discuss whether you think the purchase of pans was a good idea, the legal and ethical issues at play, and whether Wayne would get to keep the pans (integrate evidence from the assigned reading in your own words in every posting).
Chapter 1 © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Chapter 6 Legally Managing Property Images used under license from Shutterstock.com © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Legally Managing Property Introduction to Property Purchasing Property Financing the Purchase of Property Leasing Property Respecting Intellectual Property Rights © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved In This Chapter, You Will Learn: 1. The difference between real property and personal property. 2. The function of the Uniform Commercial Code when buyers of property. 3. The role of liens and financing statements in protecting rights of buyers and sellers in purchasing property. 4. How to evaluate the purchase-versus-lease decision from a legal perspective. 5. How to avoid infringement of trademark, patent, copyright, and concept rights. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Introduction to Property Real Property Personal Property Tangible Intangible © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Introduction to Property Legalese: Real Property – Land and all the things that are permanently attached to it. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Introduction to Property Legalese: Personal Property – Tangible and intangible items that are not real property. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Introduction to Property Legalese: Real Estate - Land, including soil and water, buildings, trees, crops, improvements, and the rights to the air above, and minerals below, the land. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Introduction to Property Legalese: Chattel - Personal property, movable or immovable, that is not considered real property. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Introduction to Property Legalese: Fixture - An article which was once a chattel but that has become a part of the real property because the article is permanently attached to the soil or to something attached to the soil. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Analyze the Situation 6.1 Jay Geier purchased a cinnamon roll franchise from a franchisor. To house the operation, he purchased a small, but ideally located building from David Stein. The two individuals agreed upon a fair price, and then both Mr. Geier and Mr. Stein signed the sales contract. Mr. Geier was to take possession of the property on March 1. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Analyze the Situation 6.1 On the morning of February 28, Mr. Geier arrived at the property to take some exterior measurements he would need in order to get a contractor's bid on resurfacing the parking lot. He observed Mr. Stein removing a window air-conditioning unit from the small manager's office at the rear of the building. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Analyze the Situation 6.1 Mr. Geier protested that the air conditioner should not be removed as it was part of the sale. Mr. Stein replied that the air conditioner was his personal property and was never intended to be sold with the building, nor was it specifically mentioned in the sales contract. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Analyze the Situation 6.1 1. Can Mr. Stein be permitted to take the air conditioner? 2. Would the air conditioner be considered real or personal property? 3. Should the air conditioner have been mentioned in the sales contract? © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Personal Property Legalese: Tangible Property - Personal property that has physical substance and can be held or touched. Examples include furniture, equipment, and inventories of goods. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Personal Property Legalese: Intangible Property - Personal property that cannot be held or touched. Examples include patent rights, copyrights, and concept rights. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Purchasing Real Property Legalese: Title - The sum total of all legally recognized rights to the possession and ownership of property. Deed - A written legal document for the transfer of land or other real property from one person to another. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Purchasing Real Property Legalese: Warranty Deed - A deed that provides that the person granting the deed agrees to defend the title from claims of others. In general, the seller is representing that he or she fully owns the property and will legally stand behind this promise. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Purchasing Real Property Legalese: Quitclaim Deed - A deed that conveys only the rights that the grantor has, if any. This type of deed transfers the owner’s interest to a buyer, but does not guarantee that there are no other claims against the property, or that the property is indeed legally owned by the seller. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Purchasing Real Property Legalese: Title Search - A review of land records to determine the ownership and description of a piece of real property. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Purchasing Real Property Title insurance - buyers can protect their equity in real property by purchasing title insurance, a one-time premium. A critical part of any commercial purchase of real estate. Protects against forgery, improper court proceedings, survey mistakes, missing heirs and unfiled liens. Lenders will require it before loaning funds for purchasers. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Purchasing Personal Property Legalese: Bill of Sale - A document noting that personal property is transferred from a seller to a buyer. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Purchasing Personal Property Ownership of Stolen Property If an owner innocently buys stolen goods, no criminal penalty but may have no recourse if rightful owner reclaims the goods. Buy from only reputable sellers. If price is too good to be true, probably isn’t a reputable sale. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Analyze the Situation 6.2 As the owner operator of a popular Italian restaurant, controlling costs is an important part of your day-to-day activities. Costs of labor, food, and equipment are your direct responsibility. Profit margins are good, but controlling costs is a constant challenge. At a meeting of the local chapter of the state restaurant association, you see your friend, Wayne, who excitedly tells you about a purchase he has just made. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Analyze the Situation 6.2 He owns and operates an upscale steak house in your town. He purchased 50 full-sized stainless-steel line pans for $2 each from a passing “liquidator.” Wayne tells you that he jumped at the chance to buy them because when new, the line pans cost over $75 each. © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Analyze the Situation 6.2 When you inquire about the seller, Wayne says that two men simply arrived at his restaurant in a small pick-up truck, with a variety of equipment and small wares in the uncovered back. “Best of all,” Wayne says with a wink, “as soon as I washed them and put them in with my regular stock, there was no way anyone could tell the difference between the ones I just purchased from the ones I already had!” © 2017 Stephen C. Barth P.C., Diana S. Barber, JD and John Wiley & Sons, Inc. All Rights Reserved Analyze the Situation 6.2 Talk at the restaurant association meeting centers on rising food costs and the likelihood of having to raise menu prices. Several operators state that they are seriously looking at price increases. You, too, have been considering such a move. Wayne tells the group that at his place, “We are going to hold the line on