Deck 41: Personal Property and Bailments

Question 1

Accession occurs when someone acquires title to a valuable piece of personal property by assuming a position of power.

Answer 1

False

Question 2

The gift of a large portion of a person's assets can indicate fraud.

Answer 2

True

Question 3

Simply finding property and holding onto it gives the finder all legal rights in it.

Answer 3

False

Question 4

A finder of mislaid property has no obligation to return the property to the true owner.

Question 5

Sometimes, a person can become an owner of personal property merely by possessing it.

Question 6

The concept of personal property can expand to take into account new types of ownership rights and interests.

Question 7

The law protects a person's rights and interests in anything with an ascertainable value that is subject to ownership.

Question 8

A promise to make a gift tomorrow or next year is a gift.

Question 9

On the completion of a bailment, the bailee may dispose of the property at will.

Question 10

A finder of mislaid property obtains title to the goods.

Question 11

Personal property can be converted into real property by being permanently attached to it.

Question 12

Estray statutes encourage the return of found property to its owner by making it possible for the finder to acquire title to it.

Question 13

Digital goods, including virtual goods, are personal property with real value.

Question 14

When accession occurs with a property owner's consent, there is not likely to be a dispute about who owns the property.

Question 15

If confusion of property occurs as a result of the act of some third party, the owners of the goods share ownership in order of seniority.

Question 16

The distinction between real and personal property is important because how property is acquired is determined by its classification.

Question 17

Many bailments do not include all of the elements of a contract.

Question 18

The delivery of documents that represent the rights to property can be sufficient to transfer that property to the recipient.

Question 19

Consideration is one of the necessary elements for an effective gift.

Question 20

Establishing ownership rights is more complicated for personal property than for real property.

Question 21

With respect to bailed goods, common carriers are absolutely-strictly-liable.

Question 22

Property would have little value if

A) virtually all property were digital.
B) the law did not define the rights of property owners.
C) property could be delivered to another without a transfer of title.
D) the preservation of property was the primary reason for government.

Question 23

Fifi, an independent contractor and technical writer, has a computer in her office. She has a copyright on her most recent work, Guide to Coding. Her tangible personal property includes

A) the computer.
B) the copyright.
C) the coding.
D) all of the choices.

Question 24

Failure to give up possession at the time the bailment ends could result in an action for conversion or negligence.

Question 25

Either physical or constructive delivery can result in the bailee's exclusive possession and control over bailed property.

Question 26

In a bailment for the sole benefit of the bailee, the bailee will be liable for even the slightest negligence in caring for the bailed property.

Question 27

Ogle owns a phone, a tablet, and a patent on an app. Ogle's intangible property includes

A) the phone.
B) the tablet.
C) the patent.
D) all of the choices.

Question 28

If the bailed property has been lost, a court will presume that the bailee was negligent, which he or she can rebut by showing an exercise of due care.

Question 29

In a bailment for the mutual benefit of the bailee and the bailor, the bailee need not exercise reasonable care in storing items or holding property.

Question 30

A bailment cannot arise without the bailor's voluntary delivery of the property to the bailee.

Question 31

In many states, hotel operators are not liable for any loss or damage to their guests' personal property, provided this limit is brought to the guests' attention.

Question 32

With respect to property, the law defines the right to

A) sell or dispose of it, but not prevent trespass onto it.
B) prevent trespass onto it, but not to sell or dispose of it.
C) sell or dispose of it, and prevent trespass onto it.
D) none of the choices.

Question 33

Ordinary bailments are distinguished according to which party receives a benefit from the bailment.

Question 34

A bailee has a right to the reimbursement of costs incurred in keeping the bailed property, even in a gratuitous bailment.

Question 35

The legally protected rights and interests that a person has in anything of established value subject to ownership is

A) accession.
B) commonwealth.
C) property.
D) a bailee's lien.

Question 36

A bailee has no right to limit his or her liability for loss or damage to the bailed goods because it would contravene public policy.

Question 37

Because a warehouse company is a professional bailee, it is expected to exercise a high degree of care to preserve and protect bailed goods.

Question 38

A transfer of personal property without an agreement for its return or disposal is not a bailment.

Question 39

In a bailment for the sole benefit of the bailor, the bailee need not exercise even a slight degree of care in preserving the bailed property.

Question 40

Although a written agreement is not required for a bailment of less than a year, because the Statute of Frauds does not apply, it is a good idea to have one.

Question 41

Sheila finds Tim's briefcase in her office after Tim leaves following their meeting. This is

A) a physical bailment.
B) a voluntary bailment.
C) an involuntary bailment.
D) not a bailment.

Question 42

Mary goes hunting during elk season. While trespassing on Nate's rural land, she shoots an elk. This elk is the property of

A) Mary.
B) Nate.
C) the state.
D) none of the choices.

Question 43

While moving to a new apartment, Vance discards a sofa near the entrance to his old residence, with no intention of recovering it. The sofa is

A) abandoned property.
B) converted property.
C) lost property.
D) mislaid property.

Question 44

To become a bailment, a delivery of property from one person to another must

A) involve personal property.
B) include a transfer of title.
C) follow an exchange of consideration.
D) be subject to a written agreement.

Question 45

Kay and Lease-Away Inc. enter into a bailment involving the delivery of a moving van to Kay for her use. Unless stated otherwise, the agreement assumes that Kay will

A) return the van.
B) return the van or its equivalent.
C) retain the van.
D) none of the choices.

Question 46

One of the elements of a bailment is

A) tangible, not intangible, items.
B) non-exclusive possession of the bailed property by the bailee.
C) an agreement for the return or disposal of the bailed property.
D) conversion of the bailed property by the bailee.

Question 47

Before entering the dining room in Café Peru, Diego checks his coat in the lobby with a valet employed by the restaurant. In the coat's pocket is an iPhone. A bailment may exist between the restaurant and its customer for

A) the coat only.
B) the phone only.
C) the coat and the phone.
D) neither the coat nor the phone.

Question 48

Slim owns cattle, a pick-up truck, and stock in Range Corporation, which owns and operates the Big R Ranch. Capable of being involved in a bailment is

A) the cattle, the truck, and the stock.
B) the Big R Ranch.
C) Slim.
D) all of the choices.

Question 49

The identify of the party who receives a benefit from an ordinary bailment dictates

A) the rights and liabilities of both parties.
B) the return or disposal of the bailed property at the end of the bailment.
C) the extent of the bailment period.
D) none of the choices.

Question 50

After shopping at a Cut-Price store, Dyan finds a fitness watch in her bag of purchases that she knows she did not pay for. If Dyan fails to return the watch to the store or to pay for it, she will have committed

A) accession.
B) confusion.
C) conversion.
D) production.

Question 51

Robin stores her grain at a facility owned and operated by Silo Inc. At the end of the storage period, Silo must

A) return the exact same grain originally stored.
B) return the same grain or grain of the same type, grade, and quantity.
C) retain the grain.
D) none of the choices.

Question 52

Ada owns Blueberry Farm. Ada's only daughter Cherry owns the adjacent Delicious Apple Orchard. Ada makes a gift of the farm to Evert, a short-term employee who Ada does not know well. This gift may lack the required element of

A) acceptance.
B) delivery.
C) donative intent.
D) dominion.

Question 53

While hiking on Mountain Trail, Ness's camera falls from his pocket. He fails to notice its loss for a mile, and is then unable to find it. Ole finds the camera. Pau tries to take it from Ole. The party who can assert the best title to the camera is

A) Ness.
B) Ole.
C) Pau.
D) none of the choices.

Question 54

Before going on a business trip, Gina leaves the key to her apartment with Harry. She checks her suitcase at the airport, and boards the plane. A bailment is created when Gina

A) delivers the key to Harry.
B) checks her suitcase.
C) boards the plane.
D) all of the choices.

Question 55

After agreeing to rent a car from Drive-a-Round Inc., Eden is given the keys to one of the agency's cars by Fess, a Drive-a-Round employee. With respect to the bailed property, this is

A) a physical delivery.
B) a constructive delivery.
C) an involuntary delivery.
D) not a delivery.

Question 56

Inadvertently, Brie loses her textbook during an afternoon in City Park. She eventually gives up any attempt to find it. The textbook will then most likely be considered

A) abandoned property.
B) converted property.
C) lost property.
D) mislaid property.

Question 57

Buto buys a bus ticket at a window in the City Bus Depot before checking his backpack and boarding a bus. In this situation, the subject to a bailment is

A) Buto.
B) the backpack.
C) a seat on the bus.
D) none of the choices.

Question 58

Angie voluntarily transfers her prize-winning horse Beaux to Cady without consideration. Provided all of the requirements are met, this is acquisition of property by

A) conversion.
B) accession.
C) possession.
D) gift.

Question 59

Earl buys a fishing license and goes fishing. He catches a trout, cleans it, cooks it, and eats it. Earl's acquisition of the trout is by

A) possession.
B) accession.
C) confusion.
D) production.

Question 60

Sara owns a ring. She asks Tomas, a jeweler, to add a diamond to it. Adding the diamond will increase the value of the ring. This is

A) accession.
B) acquisition.
C) conversion.
D) validation.

Question 61

Hotel operators can limit their liability for any loss or damage to their guests' personal property

A) in many states, by providing a safe for their guests' valuables.
B) under state statutes that limit the liability for articles not kept in a safe.
C) in the absence of negligence.
D) all of the choices.

Question 62

In a bailment, in some circumstances, the dollar amount of liability for any loss or damage to bailed goods can be limited by

A) common carriers.
B) warehouse companies.
C) ordinary bailees.
D) all of the choices.

Question 63

In a bailment, strictly liable for any loss or damage to bailed goods are

A) common carriers.
B) warehouse companies.
C) ordinary bailees.
D) all of the choices.

Question 64

On Demi's authorization, Engine Work Inc. repairs her car. She refuses to pay for the job. Engine Work can

A) keep the car and place a lien on it until Demi pays.
B) undo the repair and keep the car.
C) use the car for any purpose.
D) all of the choices.

Question 65

Arnold wants to give Beth a pearl necklace that he has in his safe deposit box at Capital Bank. The bank is closed for a holiday. Arnold gives Beth a key to the box and tells her to go to the bank after the holiday and take the necklace. Beth does this. The next day, Arnold dies unexpectedly. His heirs want the necklace. Can Beth keep the necklace? Explain.

Question 66

Leo borrows Mae's car to drive Nina to the airport. Considering the purpose of the bailment, Leo has the right to

A) compensation from Nina.
B) reimbursement from Mae for any parking costs.
C) use the bailed property.
D) none of the choices.

Question 67

Delivery Service Inc. agrees to pick up a truckload of merchandise for Exporters Corporation and store the contents to be delivered later. Delivery's obligation to deliver the load to Exporters is excused if the contents are

A) any of the choices.
B) lost through no fault of Delivery.
C) stolen through no fault of Delivery.
D) claimed by a third party with a superior claim.

Question 68

Carrier Inc. agrees to pick up two truckloads of housewares for Discount Corporation and store the contents to be delivered later. After Carrier unloads the goods at its warehouse, some of them disappear from the loading dock. A court will presume that

A) Carrier was negligent.
B) Discount was negligent.
C) the goods were stolen through no fault of Carrier.
D) the warehouse is in a high-crime area.

Question 69

Gene leaves her Honda Fit with In-Town Motors for routine maintenance. On its return, the interior of the car is greasy and the exterior is scratched and dented. Who suffers the loss and why?

Question 70

Earth Farm arranges to have Fresh Express Inc., a common carrier, transport a load of almonds. Fresh Express will be liable for any loss or damage to the almonds

A) under any circumstances.
B) unless the carrier exercised reasonable care.
C) unless the loss or damage is caused by a natural disaster.
D) under no circumstances.

Question 71

A court may use the identity of the party who receives a benefit from an ordinary bailment to determine, with respect to the bailed property, the standard of

A) negligence to be applied to the deal.
B) proof required to show loss or damage.
C) care required of the bailee.
D) quality expected by the bailee.

Question 72

A large sign at the entrance to Fitness Club states in bold red letters that "the club is not responsible for any loss due to theft." Most likely, with respect to limiting the club's liability, this sign is

A) effective.
B) not effective because it is against public policy.
C) not effective because it is an exculpatory cause.
D) not effective because an ordinary bailee cannot limit his or her liability.