Bar Exam (US) Constitutional law: Question below is based on the following fact situation. For m...

Question

Question below is based on the following fact situation.

For many years, persons engaged in real estate transactions in Utah have utilized "installment land contracts." The so-called installment land contract has been popular as a substitute for the mortgage or deed of trust. Under such a contract, the seller agrees to accept and the buyer agrees to pay the purchase price in installments over a stipulated period of time. The vendor retains legal title as security for the payment of the purchase price; the vendee has equitable title under the doctrine of equitable conversion. The most important characteristic of the installment land contract, however, is the forfeiture clause which provides that if the vendee is in default for 30 days, the vendor may at his/her option declare a forfeiture of the contract in which case all payments made shall be forfeited as "liquidated" damages and the buyer shall become a tenant at will of the seller.

Over the years, many sellers of property under such "installment land contracts" have declared forfeitures in situations where the prospective buyers were delinquent in their payments, even when the buyer was late with a single payment after nearly all the other payments had been made. In order to remedy this inequitable situation, the legislature of Utah enacted a new law requiring any seller attempting to declare a forfeiture of an "installment land contract" to do so by instituting a formal foreclosure action in the courts. The new law also provided that prior to the commencement of such a foreclosure action, the seller under such an arrangement must give the buyer a sixty-day grace period to make up any delinquent installment payment with interest. The new law expressly applied both to "installment land contracts" entered into subsequent to its enactment and to "installment land contracts" already in existence at the time of its enactment.

Is this new Utah law likely to be held constitutional?

AnswerChoose the correct answer.Choose all that apply. Correct Partially correct Incorrect Don't Know

  1. A
    Correct Answer
    Yes, because it is a reasonable regulation of the procedure to be followed in such cases and does not substantially diminish the underlying obligations of the buyer.
  2. B
    Correct Answer
    Yes, because the authority to enact laws regulating real estate sales transactions occurring within the boundaries of individual states is reserved exclusively to the states by the Tenth Amendment.
  3. C
    Correct Answer
    No, because application of the law to "installment land contracts" entered into prior to its enactment impairs the obligation of contracts.
  4. D
    Correct Answer
    No, because application of the law to "installment land contracts" entered into before or after its enactment is a deprivation of a proprietary interest without due process of the law.
0 users answered this question.

Explanation

Try a similar question!
Practice One More

Sorry

Don't know? See answer. Members onlySign up for free to see the answer! Don't know? See answer.
This question does not have an explanation yet.
Or practice a similar question Practice 1 More Question
Try a similar question!
Published on by Kaplan Test Prep
Premium
Favorite

Assign this pod Create New Group You don't have any group to choose from yet. Create your first one!

This pod belongs to a paid product. Group members who receive this pod as an assignment will be asked to purchase the product.
You don't have any group to choose from yet. Create your first one!
1 0 1 Choose a group or create a new one.
1 Name this group.
/ chars.
0 1 2 2 Add your students' emails.

Invite students by entering their email addresses below or distributing the 6-digit alphanumeric Group Code shown after the group is created.

You can enter multiple email addresses separated by commas or new lines.
You can enter multiple email addresses separated by commas or new lines.

The email address belongs to you. You cannot add yourself as a group member. You can preview the assignment email by clicking on the "Send Test Email to Yourself" button below.

Assignment will be sent to

  • x
0 2 3 Name this group.
/ chars.

The email address belongs to you. You cannot add yourself as a group member. You can preview the assignment email by clicking on the "Send Test Email to Yourself" button below.

This group does not have any members. Add new members.

Assignment will be sent to will be added to your group.

  • x
  • x

not joined this group yet.

2 3 4 Preview and assign. A test email has been sent to you. Please check your inbox.
This assignment will be emailed to your students once they join the group via their group invites.
You already assigned this pod to this group.
2 3 4 Preview and assign. A test email has been sent to you. Please check your inbox.
This assignment will be emailed to your students once they join the group via their group invites.
You already assigned this pod to this group.

You have assigned this pod to successfully!

Using their dashboards,students can also enter the Group Code to join this group. This Code expires on .

To receive each student's results by email, please instruct your students to click on "End Practice" once they have completed the pod.

You have created new group

Using their dashboards,students can also enter the Group Code to join this group. This Code expires on .

Share
Add to Draft Pod
You can only add questions to pods that have not been published yet. Add to a new draft pod.
Create New Draft Pod

Title*

Description

Sorry

There was an error creating this pod. Please try again later.

Resend Pending Invites

Pending invites can be resent once per day.

You are resending an invites to students:

    Invites Resent

    You have reinvited students successfully!

    Resend Pending Invites

    Sorry, something went wrong. Try again later, or contact us at info@learningpod.com

    Do you really want to retake this pod?

    This will delete your current answer choices and practice results. If you received this pod as an assignment, your teacher will be notified of the retake.