Lee Has an Assortment of Oak Trees on His Land,which

question 54

Multiple Choice

Lee has an assortment of oak trees on his land,which he does not use for any purpose.Marc was able to obtain a profit á prendre with respect to any oak trees on Lee's land.The next day,a new man named Gary came onto Lee's land and began cutting down trees.When Lee angrily questioned Gary,Gary innocently told Lee that Marc had sold him the trees purchased in the profit á prendre,giving Gary rights to harvesting.Which of the following is true?

• A)The rights to extract timber cannot be bought because timber is not considered a mineral.
• B)Gary can only take trees from Lee's land if Marc is present with him.
• C)The profit á prendre that was sold to Marc is an interest in land and,therefore,does not contain any harvesting rights.
• D)Only express easement can grant the rights to harvesting minerals or other sought after materials.
• E)Marc was wrong to sell Gary any sort of rights to the trees,since the timber does not belong to Marc until he harvests it.

---

Definitions:

Net Operating Income

The amount of income generated from regular business operations after subtracting operating expenses but before taxes and interest.

Single Product

Refers to a business strategy or condition where a company focuses on producing and selling one specific product.

Absorption Costing

A costing method that includes all manufacturing costs, both direct and indirect, in the cost of a product.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues, but before taxes and interest are deducted.