Oregon 30-Hour Real Estate Law Practice Test

When display cases are removed from a jewelry store moving to a different location, the cases are classified as what?

1. Trade fixtures

2. Personal property

3. Real property

4. Leasehold improvements

The correct answer is: Trade fixtures

When display cases are removed from a jewelry store that is relocating, they are classified as trade fixtures. Trade fixtures are items that are installed in a commercial property for the purpose of conducting business. They are typically associated with the business operation and, although they may be attached to the property, they remain the personal property of the business owner. In this case, the display cases are specifically utilized for the operation of the jewelry store, making them integral to the business’s functionality. Since the owner has the right to remove these fixtures upon vacating the premises, they maintain their classification as personal property despite being affixed to the store's property during the lease term. Understanding this classification is key, as it differentiates between items that are considered part of the real estate (real property) and those that are personal property or improvements made specifically for business use.