Ace and Loretta Were Neighbours

question 24

Multiple Choice

Ace and Loretta were neighbours.He owned Blackacre and she owned Whiteacre.They purportedly created a restrictive covenant under which she promised that she would not build a pool in her backyard, and that she would prune her trees on an annual basis.Loretta sold Whiteacre to Moira.Moira wants to build a pool in her backyard and she refuses to prune her trees.Which of the following statements is TRUE?

• A)Because a restrictive covenant runs with the land, Moira cannot build a pool and must prune her trees.
• B)Moira is bound by the restrictive covenant, at least in part, even if she did not have any way of knowing about it when she bought Whiteacre from Loretta.
• C)Moira may be prohibited from building a pool, but she cannot be required to prune her trees.
• D)Ace cannot possibly enforce the restrictive covenant against Moira because she was not a party to the contract that created the restrictive covenant.
• E)Ace can enforce the restrictive covenant against Moira only if he provided consideration to her after she purchased Whiteacre from Loretta.

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Definitions:

Indirect Distribution Channel

A chain of intermediaries through which a product passes before reaching the consumer, involving one or more third parties.

Customer Service

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The level of market coverage pursued by a company, deciding how widely a product will be distributed, ranging from exclusive to intensive distribution.