FINAL EXAM

1. In what ways does the Fair Housing Act limit sellers of SF dwellings, provided such owner does not own more than 3 such dwellings at one time?A The seller may not discriminate on the grounds of marital status

B The seller may not discriminate on the grounds of family status

C The seller may not discriminate on the grounds of sexual preference

D all of the above

E none of the above

2. Mrs. Murphy owns one single-family dwelling. "In the local paper, she advertises as follows: "Home for sale, $85,000. See Mrs. Murphy at 219 Homestead Place." An African-American couple applies, and is rejected by Mrs. Murphy because of race. Which of the following is true?A Mrs. Murphy's conduct violates the Fair Housing Act.

BMrs. Murphy's conduct violates the Civil Rights Act of 1866. Civil Rights Act of 1866 (42 U.S.C. 1982)

C Mrs. Murphy's conduct violates no law.D all of the aboveE none of the above

3. T1 is a Mexican-American who was told by R ("realtor") that a cooperative apartment in a 20-unit building was not available for purchase. An hour later, T asked his friend T2, who is Asian-American, to apply for a cooperative unit in the same building as a test. O told T2 that a cooperative unit was available. Under the Fair Housing Act, T1 should proceed with an action based on disparate impact. True or False?

TrueFalse

4. A lender interviews a young married couple on a prospective loan. They have no children, and both are employed. The lender is permitted by law to inquire as to their childbearing intentions. True or False?

TrueFalse

5. Default rules for the Statute of Frauds include which of the following?

AWhere no closing date is specified in a real estate contract, the courts will infer a "reasonable" time.

BWhere the contract does not specify when possession shall pass from the seller to the buyer, the court will infer a "reasonable" time.

CWhere the contract does not specify a sales price, a court will infer a "reasonable" price.

D All of the aboveE None of the above.

6. Which of the following are exceptions to the Statute of Frauds?

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A part performanceB equitable estoppelC neither a or bD both a and b

7. Buyer signs a sales contract with a "subject to financing" contingency clause that requires her to apply on or before the date specified for a mortgage loan with a 10% interest rate. In a timely manner, Buyer applies for a 9.75% interest rate mortgage loan and is turned down. Buyer has successfully avoided the "all cash at closing" default rule for real estate purchase. True or false ?

TrueFalse

8. Seller dies during the executory period. At a probate hearing, the Seller's devisees, to whom he willed the subject property, claim it as their own. The buyer also claims the property, offering to pay the proceeds to the Seller's estate. The devisees want the property, not the money. Who wins?

A BuyerB Seller

9. The preliminary title report shows a mortgage recorded ten years ago, securing a twenty-year loan, taken out by the seller's predecessor in title. If the mortgage has not been discharged prior to closing, which of the following is true?

A Buyers can refuse to close because the title is not marketable.B Buyers can refuse to close because record title has not been provided.C Buyers can refuse to close because the title is not insurableD All of the aboveE None of the above

9.5 Which of the following renders a title unmarketable?

AThe presence of a hostile occupant who has possessed the land for longer than the state of limitations on ejectment

B Lack of legal access to the property from any public streetC The presence of hazardous waste on the propertyD All of the aboveE None of the above

9.6 Which of the following does not render a title unmarketable?

AA common driveway, located partly on the property to be conveyed and partly on adjoining property, established by a written instrument

B A public easement for electric utilitiesC A zoning ordinance restricting the property to single-family residential housingD All of the aboveE None of the above

10. Seller's promises in a sales contract regarding the physical condition of the

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property (say, a promise that the furnace is in good working order) do not survive the closing, because of the doctrine of merger. True or False?TrueFalse

11. Buyer executes a sales contract promising to take the property "as is." Termites attack the foundations of the house (for the first time) before closing. Buyer moves to rescind. Who wins?

A BuyerB Seller

12. Buyer executes a sales contract, without an "as is" clause. Termites attack the foundations of the house (for the first time) before closing. Buyer moves to rescind. Who wins?

A BuyerB Seller

13. Buyer executes a sales contract promising to take the property "as is." At the final walk-through before closing, buyer discovers a structural defect in the foundation missed during the inspection before the contract was signed. Buyer moves to rescind. Who wins?

A BuyerB Seller

14. By general warranty deed, A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000. X, mortgagee of A's predecessor in title, forecloses on Blackacre and evicts C. Which of the following is true?

A C sues B for $15,000. If the deed from B to C is a quitclaim deed, C wins.

BC sues B for $15,000. If the deed from B to C is a general warranty deed, C wins.

CC sues B for $15,000. If the deed from B to C is a special warranty deed, C wins.

D All of the above.E None of the above.

15. By general warranty deed, A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000 by quitclaim deed. X, mortgagee of A's predecessor in title, forecloses on Blackacre and evicts C. C sues A for $20,000. C wins. True or false?TrueFalse

16. By special warranty deed, A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000 by quitclaim deed. X, mortgagee of A's predecessor in

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title, forecloses on Blackacre and evicts C. C sues A for $15,000. C wins. True or false?TrueFalse

17. By general warranty deed, A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000 by quitclaim deed. W, A's widow and co-tenant by the entireties, who did not sign the deed to B, sucessfully sues C to quiet title on Blackacre ten years later. The statute of limitations on deed warranties is six years in the state. C sues A's estate for $15,000. C wins. True or false ?TrueFalse

18. By general warranty deed, A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000 by quitclaim deed. W, A's widow and co-tenant by the entireties, who did not sign the deed to B, sucessfully sues C to quiet title on Blackacre ten years later. The statute of limitations on deed warranties is six years in the state. After W wins the quiet title suit, she evicts C from Blackacre. C sues A's estate for $15,000. C wins. True or false?TrueFalse

19. A conveys Blackacre to B for $20,000. B conveys Blackacre to C for $15,000 by quitclaim deed. Ten years later, X, holder of an unpaid mortgage made by Y, A's predecessor in title, forecloses the mortgage and evicts C. The statute of limitations on actions for breach of a deed covenant guaranteeing quiet enjoyment is eight years. Which of the following is true?

AIf A conveyed Blackacre to B by general warranty deed, C will win a damages action against A even though the statute has run.

BIf A conveyed Blackacre to B by special warranty deed, C will win a damages action against A even though the statute has run.

CIf A conveyed Blackacre to B by quitclaim deed, C will win a damages action against A's heirs even though the statute has run.

20. O executes a deed conveying Blackacre to A. Under which of the following circumstances has the deed not been delivered?

A O hands the deed to A "for safekeeping."B O acknowledges the deed before a notary public.C O records the deed.D All of the aboveE None of the above.

21. O executes a deed conveying Blackacre to A. O gives the deed to an escrow with instructions to deliver it to A at O's death. The deed has been delivered. True or False?

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TrueFalse

22. O executes a deed conveying Blackacre to A "if he survives me." O gives the deed to an escrow with instructions to deliver it to A at O's death. The deed has been delivered. True or False?TrueFalse

23. O executes a deed conveying Blackacre to A. O gives the deed to an escrow with instructions to deliver it to A at O's death "unless I tell you otherwise before my death." The deed has been delivered. True or FalseTrueFalse

24. Escrow instructions relating to a land purchase must be in writing. True or false?TrueFalse

25. Suppose an escrow agent absconds with the funds before the escrow closes. Who bears the risk of loss, buyer or seller?

A BuyerB Seller

26. A forged deed is voidable. True or False?TrueFalse

27. Seller's promises regarding the physical condition of the property (say, a promise that the furnace is in good working order) do not survive the closing, because of the doctrine of merger. True or False?TrueFalse

28. Which of these elements are NOT necessary for a deed to make a valid delivery of a property interest?

A Type of deedB Words of conveyanceC Date, acknowledgement, and/or recitation of valuable considerationD Signature of grantor and/or granteeE Property description

29. Which of the following is true?A Rescission annuls the contract and returns the parties to their pre-contract positionB Mutual rescission is a court ordered contract termination.

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CEquitable rescission is a privately concluded agreement between the parties to terminate their contractual relationship.

D All of the aboveE None of the above

30. Legal rescission is court ordered rescission based not on the breach of a specific contract provision but on grounds such as mistake, undue influence, fraud, failure of consideration, illegality, or infringing the public interest.TrueFalse

31. B is unable to fulfill her obligations under a contract to purchase S's home for $300,000, and seeks a refund of her $25,000 deposit refunded. Seller has another buyer willing to pay $350,000. S will likely agree to refund B's money pursuant to a rescission because the best case scenario for S is a 25,000 profit.TrueFalse

32. S refuses to fulfill his obligations under a contract to sell his home to B for for $300,000. S sells the home to another buyer for a year later for $ 500,000. B sues for $200,000 damages. Who wins?

A BuyerB Seller

33. B refuses to fulfill her obligations under a contract to purchase S's home for $300,000, two days after S purchased a new home. S remains in possession of the original home, leaving the new one vacant. S later sells the home to another buyer at arms length for 240,000. Which of the following is true?

A S can recover actual ("expectation") damages of $60,000

BS can recover consequential damages for his gross costs in mortgage payments, taxes, insurance and maintenance costs on the original home for the time between B's breach and the S's resale.

CS can recover consequential damages for his gross costs in mortgage payments, taxes, insurance and maintenance costs on the replacement home for the time between B's breach and the S's resale.

D All of the aboveE None of the above

34. In which of the following cases are home sellers likely to sue breaching buyers for specific performance?

A Real property values are rapidly increasingB The buyer has deep pocketsC The current market value greatly exceeds the breached contract price for the propertyD All of the aboveE None of the above

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35. A lis pendens must be filed in the jurisdiction in which the lawsuit will commence.TrueFalse

36. Filing a lis pendens does not legally prevent the sale of the propertyTrueFalse

37. Which of the following are legal, as opposed to equitable remedies for breach of a real estate contract?

A Specific performanceB DamagesC Vendor's lienD All of the aboveE None of the above

38. Rescission seeks to place contracting parties in the position in which they would have been had the contract been fully performed.TrueFalse

39. Which of the following are remedies available for breach of covenant of warranty in a deed? a real estate contract?

A Specific performanceB DamagesC Vendor's lienD All of the aboveE None of the above

40. Which of the following is true?

AA property owner selling a property encumbered by a mortgage has his debt discharged if the buyer assumes it.

BIt is usually preferable to assume a mortgage rather than take property subject to a mortgage.

C In a note, the borrower agrees to a foreclosure process.D All of the aboveE None of the above

41. Non-recourse provisions in a note mean the creditor is limited to foreclosing on the security property in the event of debtor default. True or false?TrueFalse

42. Which of the following is false?A The borrower and the mortgagor must be the same person.

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B When another has paid one's debt we say the debt is redeemed.C A note cannot be recorded in the Recorder of Deeds office.D All of the aboveE None of the above

43. A holder in due course takes a negotiable note free of "personal" defenses such as "fraud in the factum." True or false?TrueFalse

44. Which of the following is false?A A non-negotiable note is still assignable.

BEven though mortgages may contain promises other than promises to unconditionally repay money

C Both of the aboveD None of the above

45. Which of the following is true?A "Strict" foreclosure means a forced sale of the security property.

BSince power of sale foreclosure is simpler and faster than judicial foreclosure, a lender has no reason to take the judicial route.

C Foreclosure terminates the debtor's right of statutory redemption.D All of the aboveE None of the above

46. In the majority of states that have redemption statutes, a debtor redeems his property from foreclosure by paying the outstanding amount on his note. True or false?TrueFalse

47. "Fair value" Antideficiency statutes give the debtor credit for the value fetched at the foreclosure sale or "fair market value" as determined by a jury, whichever is less. True or false?TrueFalse

48. In a "fair value" state, debtor XYZ Co. purchases property worth $1,250,000, with a $1 million loan from OneBank. XYZ defaults, and OneBank purchases the property, now worth $900,000, for $750,000 through a judicial foreclosure sale. Which of the following is true?

A OneBank can recover a deficiency of $250,000 against XYZ.B OneBank can recover a deficiency of $100,000 against XYZC If XYZ redeems the property it must pay OneBank $900,000.D All of the above

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E None of the above

49. Race statutes do not change common-law priorities. True or False?TrueFalse

50. O conveys Blackacre to A, B, and C in that order. None of them record. B and C are BFPs for value and without notice. Which of the following statements is true?

A Under a notice statute C owns Blackacre.B Under a race-notice statute, A owns Blackacre.

CThere is no recording act statute under which B wins.

D All of the aboveE None of the above

51. O conveys Blackacre to A, then to B. Next, A records, then B. A and B are each BFPs for value and without actual notice. Which of the following statements is true?

A A wins title in all states.B In a notice state, B wins title.C In a race-notice state, B wins title.D All of the above.E None of the above

52. 25 DEL. CODE ANN. SECT. 153 (1998): PRIORITY OF DEED CONCERNING LANDS OR TENEMENTS, reads: "A deed concerning lands or tenements shall; have priority from the time that it is recorded in the proper office without respect to the time that it was signed, sealed, and delivered." What kind or recording act does Delaware have?

A RaceB NoticeC Race-notice

53. Assume both B and C are BFPS for value and without notice. Day 1: A conveys to B. Day 2: A conveys to C. Day 3: C records Day 4: B records Day 5: C conveys to D, who has actual knowledge of B's claim. D wins in all recording act jurisdictions. True or false?TrueFalse

54. O conveys Blackacre to A, B, and C in that order. A, B and C are BFPs for value and without actual notice. Which of the following is true?

AAfter C's conveyance, A, B and C record, in that order. B wins under none of the recording act statutes.

BAfter C's conveyance, B and C record, in that order. B wins under race-notice and notice statutes.

C Both of the above.

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D None of the above.

55. O contracts to sell Blackacre to A. Later, O deeds Blackacre to B for valuable consideration. B is unaware of the contract with A. If neither A or B records, A has the better right to Blackacre. True or False?TrueFalse

56. A deed valid between the parties, not recorded, conveys no legal interest. True or False?TrueFalse

57. A forged deed generally creates no rights in the holder, whether or not the deed is recorded. True or False?TrueFalse

58. A forged deed will grant an adverse possessor special rights under "color of title." True or false?TrueFalse

59. A forged deed can be cured by a marketable title act. True or false?TrueFalse

60. Which of the following protections are available to the holder of a warranty deed, but not the holder of a title insurance policy?

A Protection that runs with the land

BProtection against deeds missed because of mis-indexing or failure to index by the Recorder of Deeds.

CProtection against losses in value to the property due to disturbances in quiet enjoyment short of an eviction

D All of the aboveE None of the above

61. The holder of a title insurance policy must be evicted before bringing a claim against the title insurer. True or false?TrueFalse

62. Which of the following protections are available to the holder of a title insurance policy, but not the holder of warranty deed?

AProtection against deeds in the chain of title that are invalid because of forgery, duress, incompetence, or improper execution

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BProtection against deeds missed because of mis-indexing or failure to index by the Recorder of Deeds.

C Both of the aboveD None of the above

63. An easement by reservation creates a new easement that did not exist before. True or False?TrueFalse 64. An easement by exception excludes from a grant some pre-existing right which encumbers the grantor's title. True or False?TrueFalse 65. An easement in gross does not have a dominant tenement. True or false?TrueFalse

66. A grants B the right to enter upon A's estate, Blackacre, to regularly remove timber. B has an easement. True or False?TrueFalse

67. A grants B the right to drive from a public road onto A's property, Blackacre, to park his car. B paves a driveway from the road to the designated parking space. In the future, A revokes B's parking privileges. B brings an action in trespass to restore his privileges. If B wins, it is because he has which type of right?

A easement implied from prior continuous use.B easement by prescriptionC irrevocable license

68. The owner of a landlocked parcel has the right to an easement across the land of his or her neighbor in order to access the nearest public road. True or false?TrueFalse

69. Permission from the owner of the servient tenement makes it impossible to secure an easement by prescription. True or False?TrueFalse

70. A license and an easement in gross are similar in that neither is a possessory interest. True or False?TrueFalse

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71. A, owner of Blackacre, consistently used a driveway path from one end of his property to a through road. He later subdivided Blackacre, landlocking his own parcel by selling the parcel abutting the road to B. Subsequent to the sale, a small access way opened from A's remaining parcel to another public road. This new route is not as convenient for A as the driveway. If you were A's lawyer, which theory would you advise him to pursue?

A A has an easement implied because of prior use.B A has an easement implied because of necessity.C Both of the above.D Neither of the above.

72. A owns 5 adjoining tracts of land, numbered 1 through 5, which were purchased in that order from O. Lot five is landlocked, standing in the middle of the other four. Parcels 1 and 2 have access to a public road on the north; parcels 3 and 4 have access to a public road on the south. Which of the following statements is true?

A A has an easement across Lot 4.B A has an easement across Lot 1.C O had an easement across Lot 4 that has been extinguished.D All of the aboveE None of the above

73. In a majority of modern U.S. jurisdictions, which of the following is true?

AAn easement reserved by implication from prior use requires a showing that the easement is strictly necessary

BAn easement reserved by implication for necessity requires a showing that the easement is strictly necessary.

C Both of the aboveD None of the above

74. An easement can be created by which of the following methods?A grantB implicationC prescriptionD all of the aboveE none of the above

75. Which of the following is true?

AA negative easement permits the owner of the dominant tenement to restrain the servient owner' use of the servient land.

BA negative easement grants the owner of the dominant tenement power to do something on the servient land.

C Both of the aboveD Neither of the above

76. Easements can be terminated only by merger, release, or estoppel. True or

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False?TrueFalse

77. An easement acquired by prescription can be used as liberally as one acquired by grant. True or False?TrueFalse

78. In which of the following cases is a court least likely to award damages in a lawsuit by the servient owner?

Aowner of the dominant tenement seeks to extend the use of an easement to his or her adjoining property.

Bowner of the dominant tenement seeks to increase the intensity of his or her use of an easement by subdividing the the dominant tenement.

Cowner of the servient tenement seeks to change the physical location of an easement on the servient land.

D all of the aboveE none of the above

79. An adverse possessor is in vertical privity with the title-holder whom he has ousted. True or false?TrueFalse

80. A and B record their agreement in writing that Blackacre, which B occupies, shall only be used for residential purposes. B transfers his interest in Blackacre to C. If C, with notice of the agreement, proceeds to open a drugstore on Blackacre, under which circumstance is C not liable to A in damages for breach of the covenant?

A B occupied Blackacre as A's tenant and B assigned his tenancy to C.B B occupied Blackacre as A's grantee in fee, and B conveyed his fee interest to C.C B occupied Blackacre as A's tenant and B sublet Blackacre to C.D all of the aboveE none of the above

81. A and B record their agreement in writing that Blackacre, which B occupies, shall only be used for residential purposes. B transfers his interest in Blackacre to C. If C, with notice of the agreement, proceeds to open a drugstore on Blackacre, under which circumstance is B not liable to A in damages for breach of the covenant?

A B occupied Blackacre as A's tenant and B assigned his tenancy to C.B B occupied Blackacre as A's grantee in fee, and B conveyed his fee interest to C.C B occupied Blackacre as A's tenant and B sublet Blackacre to C.D all of the aboveE none of the above

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82. Assume A, a developer, creates a subdivision with four parcels, which he conveys to B, C, D, and E, in that order. Each parcel is conveyed by a recorded warranty deed which contains a covenant restricting use of the parcel to single-family residences. C builds an addition to his house and leases the addition to another family, in violation of the covenant. B sues C for damages. C will win the lawsuit. True or false?TrueFalse

83. Easements, but not real covenants, can arise by implication. True or False?TrueFalse

84. A and B agree in writing, but do not record their agreement that Blackacre, which B occupies, shall only be used for residential purposes. B transfers his interest in Blackacre to C. If C proceeds to open a drugstore on Blackacre, under which circumstance is C not liable to be enjoined by A from breaching the covenant?

AC is a nonprofit organization that received Blackacre from B as a charitable donation.

B C is an ordinary business purchaser of Blackacre.

CC is an ordinary business purchaser of Blackacre who was told of the covenant by a third party.

D all of the aboveE none of the above

85. For either the benefit or the burden of an equitable servitude to run with the land, both horizontal and vertical privity of estate are required.True or False?TrueFalse

86. B occupies Blackacre as A's tenant. A and B record their agreement in writing that Blackacre, which B occupies, shall only be used for residential purposes. B sublets Blackacre to C. C, with notice of the agreement, proceeds to open a drugstore on Blackacre. A cannot enjoin C from breaching the covenant. True or False?TrueFalse

87. Assume A, a developer, subdivided his land into four parcels, which he conveyed to B, C, D, and E, in that order. Each parcel was conveyed by a recorded warranty deed containing a covenant restricting use of the parcel to single-family residences. In which of the following cases, under the rule in Sanborn v. McLean, will the indicated plaintiff not have the ability to enjoin the designated defendant from breaching the covenant?A A sues BB B sues C

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C E sues DD all of the above

Enone of the above

88. The covenant in Shelley v. Kraemer would violate the Fair Housing Act even in the absence of state action. True or False?TrueFalse

89. After Shelley v. Kraemer, racially restrictive covenants can still be enforced by damage remedies. True or False?TrueFalse90. Covenants can lose their enforceability only through abandonment, waiver, estoppel, or acquiescence in breaches. True or False?TrueFalse

91. Easements created by grant can lose their enforceability because of changed conditions. True or False?TrueFalse

92. Was the zoning ordinance upheld in Euclid cumulative zoning or non-cumulative zoning?A cumulative zoningB non-cumulative zoning

93. A owns Blackacre, which is a lot situated in a residential zone, at the border. He wishes to build a small convenience store on the lot, which is across the street from a commercial zone. Which type of "zoning form of action" should A pursue?A nonconforming useB special exceptionC area varianceD use varianceE direct attack on the ordinanceF rezoning -- text amendmentG rezoning -- map amendment

94. A develops a subdivision on land zoned commercial under a cumulative zoning ordinance. There has been no development in the vicinity. The deeds to each parcel in the subdivision restrict their use to single-family residential purposes. For which of the following could B, owner of one of the parcels, use his property?A single-family homeB drugstore

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C small electronics assembly plantD all of the aboveE none of the above

95. In PA Northwest v. ZBA was it necessary for plaintiff to appeal the zoning officer's decision to the ZBA, or could he have gone directly into court?A appeal the zoning officer's decisionB go directly into court

96. Distinguish between amortization of a nonconforming use and prohibiting a nonconforming use's expansion and change. To which of these are courts most likely to show hostility?A AmortizationB Prohibiting expansion and change of nonconforming use

97. A owns Blackacre, which is a lot situated in a residential zone, at the border. He wishes to build a small convenience store on the lot, which is across the street from a commercial zone. Which type of "zoning form of action" should A pursue?A nonconforming useB special exceptionC use varianceD All of the aboveE None of the above

98. Which of the following serve to distinguish between a variance and a special exception?A the "negative" criteriaB The variance requires a showing of unnecessary hardship

CThe special exception is an administratively authorized departure from the terms of the ordinance.

D all of the aboveE none of one above

99. Legislative action results in the application of policy, while judicial action results in the formulation of policy. True or false?TrueFalse

100. Resort to a referendum in zoning procedures bypasses zoning and planning procedures, while a call for an initiative comes only after these procedures are completed. True or false?TrueFalse

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