Deck 20: Personal Property and Bailments

Question 1

In states that follow the community property tradition, property acquired after the marriage belongs solely to the party who acquired it.

Answer 1

False

Question 2

Personal property is lost when an owner does not know where it is located but intends to find it.

Answer 2

True

Question 3

Unclaimed property is often transferred to the government under the concept of escheat.

Answer 3

True

Question 4

An ordinary gift made between two living persons is called an inter vivos gift.

Question 5

If a thief sells stolen property to a good-faith buyer, the buyer acquires title to the property.

Question 6

Title to personal property can be acquired by gift or purchase or stolen property.

Question 7

The intent to make a gift requires an intent to transfer title at that time.

Question 8

A custodian who holds money for the benefit of a minor under the Uniform Gifts to Minors Act may choose to use the money to send the minor to summer camp.

Question 9

Most courts consider an engagement ring to be a conditional gift.

Question 10

Wrongful dominion over a principal's tangible personal property is a form of conversion.

Question 11

If while trespassing a hunter kills game, the game belongs to that hunter.

Question 12

Joint tenancy and tenancy in common both feature the right of survivorship.

Question 13

At common law, a tenancy by entirety is created when property is transferred to both husband and wife.

Question 14

Upon the death of a joint tenancy with a right of survivorship, that deceased joint tenant's share passes to the remaining tenants equally.

Question 15

Proper delivery of a car would be satisfied with the delivery of a key.

Question 16

Personal property is tangible and immovable.

Question 17

Severalty is a form of property ownership by two or more persons.

Question 18

A gift causa mortis is considered a conditional gift.

Question 19

Title to abandoned property is acquired by the first person who obtains possession and control of the property.

Question 20

A right in a thing is considered property.

Question 21

If a maintenance employee at a hotel finds a pocketbook with $500 in cash while cleaning an empty guest room, the employee:

A) is entitled to keep the property, because the employee has the legal status of a "finder."
B) must give the property to the manager of the hotel to be kept for the owner.
C) must place an advertisement in a local newspaper, and if the property is not claimed within seven (7) business days, the employee is entitled to keep it.
D) can retain possession of the property until the owner establishes ownership.

Question 22

Transfer or possession and use of bailed property without compensation is called a constructive bailment.

Question 23

An ordinary bailment can arise with only an implied agreement between the parties.

Question 24

A bailee's lien gives the bailee the right to keep possession of the bailed property until reasonable charges for storage and/or repairs are paid.

Question 25

Tom established a bank account for his daughter Mary under the Uniform Gifts to Minors Act. Tom named himself the custodian. Later, Tom had a serious disagreement with Mary and ordered the bank to transfer the money in that account to a similar account maintained in the same bank for Tom's son Ed. The bank must:

A) comply with Tom's order, because the custodian controls the account.
B) refuse Tom's order, because this would clearly not be for the benefit of Mary.
C) comply with Tom's order, because Uniform Gifts to Minors accounts are not final.
D) comply with Tom's order if Mary is under 18 years of age and refuse the order if she is over 18 years of age.

Question 26

If a bailment is for the sole benefit of the bailee, the bailor has no obligation to inform the bailee of known defects.

Question 27

In certain cases, real property can constitute a bailment.

Question 28

A bailee's duty of care for bailed property depends on the type of bailment.

Question 29

In a bailment, the person who turns over the possession of bailed property is the bailee, and the person who accepts possession is the bailor.

Question 30

Joe rents a unit at the local Stor-More storage complex and places a lock on the unit's door. Joe has created a bailment with Stor-More.

Question 31

A person becomes a(n) __________ at the moment of taking possession of abandoned personal property.

A) bailor
B) bailee
C) constructive bailee
D) owner

Question 32

In order for a bailment to be valid, the bailor must be the owner of the subject property.

Question 33

Which of the following forms of cotenancy does not have right of survivorship?

A) joint tenancy
B) tenancy by entirety
C) tenancy in common
D) community property

Question 34

To establish a gift, the party claiming to be the donee must prove:

A) delivery only.
B) intent only.
C) intent and a promise to deliver.
D) intent and delivery.

Question 35

In a bailment, the bailee does not necessarily have to be aware that the bailed goods were placed within the Bailee's exclusive possession or control.

Question 36

Barry and Eldridge owned Blueacre as tenants in common. Eldridge died. Blueacre is owned:

A) solely by Barry because of the survivorship feature.
B) jointly by Barry and the state because of escheat.
C) by Barry and Eldridge's heirs.
D) solely by Eldridge's heirs.

Question 37

__________ property means land and things embedded in the land.

A) Real
B) Personal
C) Intangible
D) Tangible

Question 38

Sylvia and Morris were married and owned their home as tenants by the entirety. When Morris died, his will said that he left his half of his home to his brother Tim. Who owns the home at Morris's death?

A) The home is now owned solely by Sylvia.
B) The home is now owned by a joint tenancy between Sylvia and Tim.
C) The home is now owned by a tenancy in common between Sylvia and Tim.
D) The home is now owned by Sylvia and the state, in equal and divisible shares.

Question 39

A third person to whom a joint tenant's interest is transferred becomes a: tenant by the entirety.

A) joint tenant.
B) cotenant.
C) tenant in common.
D) tenant by the entirety.

Question 40

A gift causa mortis does not become irrevocable until the donor ______ from the contemplated event, but it is ______ revoked if the donor survives.

A) dies, automatically
B) recovers, automatically
C) dies, not
D) recovers, not

Question 41

Bailments may be:

A) created orally or through a writing.
B) created for either real or personal property.
C) created for nonpossessory personal property.
D) made only after delivery to the bailor is accomplished.

Question 42

If Susan rents a locked space in a U-Haul storage facility, she and U-Haul:

A) have created a mutual benefit bailment.
B) have not created a bailment until she pays the first month's storage fee.
C) have not created a bailment because there was no delivery of goods.
D) have created a constructive bailment.

Question 43

Vacarro gave her son Mark a car on the day Mark left for college. Vacarro told Mark that she expected him to use the car for school purposes and to earn good grades. Mark flunked out of college in his second semester. Vacarro sued to regain title to the car on the ground that the gift was conditional on Mark's earning good grades and remaining in college. Will Vacarro win the case?

Question 44

A bailee's __________ gives the bailee the right to maintain possession of the bailed property until reasonable storage and/or repair charges are paid.

A) reversionary interest
B) lien
C) remainder interest
D) mortgage

Question 45

Nelson took her computer to ABC Computer for repairs. ABC repaired the computer at a cost of $350 and informed Nelson that her computer was ready. Before Nelson came to pick up her computer, ABC was burglarized and Nelson's computer was taken. ABC had a commonly-used alarm system that was operating properly on the night of the burglary, and all the doors and windows were properly secured. Nelson sued ABC for the cost of the computer. ABC denied any liability and counterclaimed for the $350 in repairs. Who will win?

Question 46

When a bailor sues the bailee for damages to the bailed property, who has the burden of proving fault and that such fault was the proximate cause of the bailor's loss?

A) the person in possession of the property
B) the bailor
C) the bailee
D) the jury

Question 47

In a(n) ___________, the bailor has a legal duty to make a reasonable investigation for defects and inform the bailee if any are known or found

A) mutual benefit bailment
B) bailment for the sole benefit of the bailee.
C) constructive bailment
D) gratuitous bailment

Question 48

Humberto called his friend John and asked him to come over immediately because Humberto had suffered a stroke and might be dying. In their telephone conversation, Humberto advised John that he wanted to give John his gold watch. Immediately after their telephone conversation, Humberto wrote out a will that left his share in Blackacre to John. Blackacre was the marital home of Humberto and Connie, who owned the home as tenants by the entirety. Humberto died before John arrived at Blackacre. John claims the watch and a share in the home. Connie contests both matters. Decide.

Question 49

Which of the following is not a classification of ordinary bailments?

A) for the sole benefit of the bailor
B) for the sole benefit of the bailee
C) for the sole benefit of the third party beneficiary
D) for the mutual benefit of the bailor and the bailee

Question 50

Joan brought her car into Ace's Service Station for a tune-up. After tuning up the car, Ace decided to visit his mother. Ace drove Joan's car. Ace was following all safety precautions when a negligent driver without insurance struck Joan's car. Joan sued Ace for the damages to her car. The probable result is:

A) Ace will win, since he was taking reasonable care of the bailed goods.
B) Ace will win, since the bailee has the right to use the bailed goods.
C) Joan will win, since the harm was sustained during the bailee's unauthorized use of the property.
D) Joan will win, since bailees are absolutely liable for bailed goods in their possession and control.

Question 51

Warren brought his television in for repairs. After Warren left the store, gunmen came in to rob the proprietor. As they ran out, Warren's television was knocked over and destroyed. Warren demanded that the proprietor of the store compensate him for the fair market value of the television. The bailee:

A) is liable, since the goods were not returned to Warren in proper condition.
B) is liable, since the bailee did not prevent the gunmen from damaging the television.
C) is not liable, since this was a mutual-benefit bailment.
D) is not liable, since the damage was caused by the criminal act of a third party.

Question 52

Jill claims that Fred, who is terminally ill and scheduled for surgery, gave her a gift of a pearl necklace. Fred says he never made such a gift and that Jill has wrongfully retained his property. If this dispute goes to court, what will the court need to determine?

A) Whether Fred made a gift causa mortis.
B) Whether Fred had donative intent.
C) Whether Jill accepted the property.
D) Whether Jill made a gift inter vivos.

Question 53

A bailee's interest in the bailed property can be characterized as:

A) ownership.
B) a fractional proprietary interest.
C) possession.
D) constructive ownership.