If Sam Buys the Fee Simple, Which of the Following

question 42

Multiple Choice

If Sam buys the fee simple, which of the following is true with regard to his rights?

• A) In law, he is entitled only to the surface of his property within the boundaries, and not to things attached to the land, such as fences and barns.
• B) If someone intrudes onto his property, the proper cause of action is to sue for the tort of public nuisance.
• C) He would have the right to all below the surface except those things retained by the Crown in the original Crown grant.
• D) If fumes from the neighbouring processing plant kill his bushes and vegetables, he may be able to sue the neighbour for the tort of trespass.
• E) The maxim "to whomsoever the soil belongs, he owns also to the sky" remains unchanged and is as valid today as ever.

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Definitions:

Cash Dividends

Direct payments of profit made to shareholders, proportionate to the number of shares they own.

Treasury Stock

Shares that were first put into circulation by a company and then taken back, diminishing the quantity of shares actively traded on the market.

Small Stock Dividend

A dividend paid in the form of additional shares of the issuing corporation, typically representing less than a 25% increase of the outstanding shares.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.