The Right of Utility Companies to Run Power Lines Over

question 198

Multiple Choice

The right of utility companies to run power lines over land and put water lines under private property is based on:

• A) an easement
• B) a covenant
• C) a deed
• D) a seisin
• E) a remainder

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Definitions:

Best Efforts

A contractual clause requiring one party to exert all reasonable attempts to fulfill the terms of the agreement.

Preemptive Rights

The rights that allow existing shareholders to purchase new shares in a company before the company offers them to the public, to maintain their proportionate ownership.

Standby Underwriting

An arrangement in which an underwriter agrees to buy any unsold shares after a public offering, ensuring the issuer sells all shares but only if necessary.

Common Shares

Type of equity security that represents ownership in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and/or capital appreciation.