A Cattle Rancher and a Wheat Farmer Own Adjacent Properties

question 67

Multiple Choice

A cattle rancher and a wheat farmer own adjacent properties that may or may not be separated by a fence. The accompanying table identifies the annual profit received by each party in the event there is, or there is not, a fence. If there is no fence, one can be installed and maintained at an annual cost of $25,000. $\begin{array}{lll}&\text { Fence }&\text {no Fence }\\\text { Cattle Rancher } & \$ 40,000 & \$ 35,000 \\\text { Wheat Farmer } & \$ 50,000 & \$ 20,000\end{array}$ If legal rights are assigned to the wheat farmer so that the cattle rancher is liable for any damage caused by his cattle to the wheat crop, then the:

• A) rancher will choose to close his ranch.
• B) farmer will not allow the rancher to stay in business.
• C) rancher will pay to build the fence.
• D) rancher will choose to compensate the farmer for damages.
• E) rancher will be indifferent toward neither building the fence nor compensating the farmer for damages.

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Definitions:

UCC

Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Endorsement

A signature or statement of support for a policy, idea, or candidate, or in the context of financial instruments, the act of signing over rights to another party.

Digital Cash

Money stored electronically and used in place of physical currency.

Electronic Funds

Money that is moved electronically from one bank account to another.