For which of the following investment activities does the law clearly define the parties’ underlying rights? Multi-choice options listed below.a. Construction of a swimming and boating club on a...
For which of the following investment activities does the law clearly define the parties’ underlying rights? Multi-choice options listed below.
a. Construction of a swimming and boating club on a deserted lake. b. Planting apple trees in a public garden. c. Using scrap from neighborhood trash disposal site to create wrought iron furniture. d. Construction of a multi-storied building on an inherited property.
Option A would present a legal nightmare because no lake is truly "deserted" in a legal sense--in other words, some entity owns the lake, and a developer would have to perform a title search in order to ascertain the owner. In such a case, it is quite likely that the deserted lake is on US government property (if we're talking about the US), and negotiations would most likely take place between the developer and the Bureau of Land Management. Developing a swimming and boating club without obtaining title to the lake would be impossible.
Planting a certain species of tree in a public garden might be permissible, but it might also be illegal. One would have to contact the entity that oversees the garden in order to ascertain whether planting apple trees is allowed. Existing real estate law probably would not spell out what is allowed and not allowed in a public garden.
The issue with "C" is to establish who has the rights to trash once it its collected at the trash site. Even though many people simply take trash out of bins for their own use, they are technically stealing from the company that collects the trash.
Option D has the clearest answer because, as long as the zoning allows multi-storied buildings, whoever owns the land can theoretically build such a structure. Zoning laws would govern the ability to build, and such laws are clearly articulated in most jurisdictions. From an "investment activity" perspective, this scenario is the easiest to accomplish legally.
On another level, each of the options above has a solution based on an "investment activity." For example, building a resort on a "deserted lake" could be done if title to the lake were purchased from the lake's owner, whether that is a public or private entity. Likewise, in your third option, obtaining scrap from a trash site might be "legalized" by obtaining permission from the trash site owner to remove certain items. So, these options can be accomplished, but with varying degrees of difficulty, and Option D is the most straightforward as an investment activity.