Chapter 9
3. Turner Company owned and operated a cable television business. The company owned more than 780 miles of feeder cable. The cable was annexed to telephone poles owned by BTT Telephone Company under a lease that required removal of the cable if BTT should need the space for its own service needs. Butte County assessed the Turner Company cable as real property because it is properly classified as a fixture. Is the county correct? Why?
A fixture is defined as personal property that has become attached or annexed to real estate; a fixture generally is treated as part of real estate. There are certain things considered when determining whether or not the item will be considered as a fixture. First, it will need to be determined whether the fixture is included in the real estate for tax purposes. Second it would need to determine if the sale of the real estate will include the item of property. Third, it will need to be determined whether the item is covered by the mortgage and fourth, if the item belongs to the landowner, not the tenant that could be terminated of a lease. Base on information above, although the cable was annexed to the telephone poles, it was based on a lease, it did not belong to the landlord owner, therefore it could not qualify as a fixture. In addition, the cable is not included in the value of the property nor is it part of a security given by mortgagor. The cable is an item that can be removed in which will not change the value of the property.

6. Jericho was on a business trip in December. He checked into a downtown hotel and parked his car in an unguarded parking lot under the hotel. The charge for parking was $12.00 per night. Jericho went gift shopping later in the day and put gifts into the backseat of the car. Upon entering his car the next morning, he discovers that his gifts are gone. Is the hotel liable? Why?