Gretchen Bought a Lot 17 Years Ago and Built a Home

question 12

Multiple Choice

Gretchen bought a lot 17 years ago and built a home with a solar heating system to heat her swimming pool.In the 18th year of her ownership, however, Jim begins to build a three-story apartment building that will block most of the sun necessary for the system to function properly.Gretchen now argues she has an easement by prescription, since she lives in a state in which an easement in general can be acquired in 15 years.Under the law of most states:

• A)Jim can finish his building.
• B)Gretchen could successfully argue that she has an easement by prescription.
• C)Gretchen could not prove she owns an easement by prescription, but could very likely prove an easement by necessity.
• D)Jim would be estopped from building since Gretchen relied to her detriment on her neighbor's goodwill in allowing her access to the sunlight.

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Definitions:

Deadweight Loss

An economic inefficiency resulting from the failure to achieve or the impossibility of achieving equilibrium in the market for a particular good or service.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing to provide.

Tax Revenue

The earnings obtained by governments from tax collection.

Consumer Surplus

The contrast between what consumers intend to pay for an item or service and the real cost they bear.