Deck 27: Personal Property and Bailments

Question 1

If confusion occurs as a result of the act of a third party,that third party acquires ownership rights in proportion to the amount confused.

Answer 1

False

Question 2

If property is owned as community property,each spouse owns an undivided one-half interest in it.

Answer 2

True

Question 3

Constructive delivery occurs when property is physically transferred.

Answer 3

False

Question 4

Property used by a government for a public purpose such as a park is community property.

Question 5

Property voluntarily placed somewhere by its owner and inadvertently forgotten is abandoned property.

Question 6

A person who holds all rights in property owns the property in fee simple.

Question 7

A deceased joint tenant's interest in jointly held property passes to his or her heirs.

Question 8

A gift causa mortis is effective only if the donor dies and the donee lives.

Question 9

A joint tenant's sale of his or her interest terminates the joint tenancy.

Question 10

A person acquires title to fungible goods by mixing them.

Question 11

Personal property is sometimes referred to as personalty or chattel.

Question 12

One way to acquire ownership rights to property is merely to possess it.

Question 13

Tangible personal property represents a set of rights and interests but has no real physical substance.

Question 14

Delivery of intangible personal property must be done by constructive delivery.

Question 15

A gift to a dying donee is a gift causa mortis.

Question 16

A promise to deliver a gift is constructive delivery.

Question 17

Only two persons can hold property as tenants in common.

Question 18

It is presumed that a co-tenancy is community propertty unless there is a clear intention to establish a joint tenancy.

Question 19

The most common way to acquire personal property is to produce it.

Question 20

A gift is a voluntary transfer of property for which no consideration is given.

Question 21

Helen owns heavy construction equipment and the tools to service it,as well as office furniture,including computers.Ilya owns a number of patents,trademarks that identify the products made under those patents,and stock in the company that sells those products.Personal property includes the items owned by

A)Helen and Ilya.
B)Helen only.
C)Ilya only.
D)neither Helen nor Ilya.

Question 22

In a gratuitous bailment,a bailee has a right to be compensated for costs incurred in keeping bailed property.

Question 23

A finder acquires title to lost property good against the whole world,except the original owner.

Question 24

All bailments include a bailee's right to use the bailed property.

Question 25

In an ordinary bailment,a bailee has the right to limit his or her liability.

Question 26

In most bailments,the bailee has a right to place a lien on the bailed property until he or she is fully compensated.

Question 27

Unlike an ordinary bailee,a warehouse company cannot limit its liability.

Question 28

Faye owns the land on which Golden Spurs Ranch is situated,plus the ranch house,barn,and other structures permanently attached to the land.Faye's brother Huey owns everything else in the ranch's operation-livestock,feed,and so on.The personal property is owned by

A)Faye and Huey.
B)Faye only.
C)Golden Spurs Ranch.
D)Huey only.

Question 29

Property voluntarily discarded by its owner with no intention of reclaiming it is lost property.

Question 30

Edna and Flavia buy a boat that they dock in a marina near Gulfport,Mississippi.On the death of either owner,that owner's interest in the boat passes to her heirs.This is

A)a joint tenancy.
B)a tenancy by the entirety.
C)a tenancy in common.
D)ownership in fee simple absolute.

Question 31

Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation.On the death of ether owner,that owner's interest in the stock passes to the surviving owner.This is

A)a joint tenancy.
B)a tenancy by the entirety.
C)a tenancy in common.
D)ownership in fee simple absolute.

Question 32

Common carriers are held to a standard of care based on strict liability in protecting bailed property in their possession.

Question 33

Estray statutes determine ownership rights in fungible goods that have "strayed."

Question 34

Fanny buys clay to throw pottery,which is glazed and fired in a kiln.The finished products are sold to Gifte Shoppe,which sells these items and others to customers who often present them as gifts.Thus,property can be acquired in various ways.The most common way to acquire personal property,however,is to

A)buy it.
B)commingle it.
C)produce it.
D)receive it as a gift.

Question 35

For an effective bailment,the bailor must deliver possession of the bailed property with its title.

Question 36

Constructive delivery does not satisfy the delivery requirement for an effective bailment.

Question 37

In a bailment,possession of the property is transferred to the bailee.

Question 38

A bailment must be in writing to be valid.

Question 39

Those who find abandoned property cannot acquire ownership rights through mere possession of it.

Question 40

In most bailments,the bailor must notify the bailee of hidden defects that the bailor knows or could have discovered with reasonable diligence.

Question 41

Idaho Farms mistakenly puts its potatoes in Jackson Co-op's storage bin,which already contains Kelly Spud Farm's potatoes.It is impossible to tell which potatoes originally belonged to which party.This is

A)a bailment.
B)accession.
C)confusion.
D)production.

Question 42

Grain from Harvest Farms is wrongfully commingled with grain from Idyllic Fields,which obtains possession of all of the grain.This is

A)a bailment.
B)accession.
C)confusion.
D)production.

Question 43

Rocco gives Sequoia a computer as a gift.Using the computer,Sequoia develops a new computer game,for which she obtains intellectual property protection,and forms Titan Games,LLC,to make and market the game.Sequoia's acquisition of the game is by

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

Question 44

Nouri is declared mentally incompetent.Omar,Nouri's friend,insists that she transfers her assets to him "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no

A)acceptance.
B)delivery.
C)donative intent.
D)relinquishment of control.

Question 45

Roy leaves his Honda sport utility vehicle at Sam's Auto Service for an oil change.This is a bailment for

A)neither party's benefit.
B)the parties' mutual benefit.
C)the sole benefit of the bailee.
D)the sole benefit of the bailor.

Question 46

Delacroix discovers a boat adrift,and retrieves and anchors it.The boat features a number on its side and other evidence pointing to its owner,Elvira.This is

A)an involuntary bailment.
B)a voluntary bailment.
C)an express bailment.
D)no bailment.

Question 47

Sid borrows Tony's paint sprayer to paint his house.Uma allows Vic to store his posthole digger in her shed.The party with a right to use the bailed property is

A)neither Sid nor Uma.
B)Sid and Uma.
C)Sid only.
D)Uma only.

Question 48

John steals an old,battered bicycle that is parked,unlocked,in front of a convenience store.He repairs,paints,and replaces parts on the bike until it is like new.The original owner,Kim,claims the bike.The bike belongs to

A)John and Kim as tenants in common.
B)John because he made substantial improvements to it.
C)John because Kim claimed it only after John improved it.
D)Kim because John stole it.

Question 49

Ansel owns Bar-B Ranch.Ansel's only son Cy owns Double-D Ranch in the same county.Ansel gives 90 percent of the Bar-B to Etta,a short-term employee.This gift

A)may lack the required element of "donative intent."
B)may lack the required element of "donor's acknowledgement."
C)may lack the required element of "heir's acquiescence."
D)meets all of the requirements for an effective gift.

Question 50

Before undergoing surgery that could cause death,Donnelly,a guitarist,gives his of guitars to Cathy.The surgery is successful,and Donnelly does not die.The gift of the guitars is

A)not revoked because it was a gift causa mortis.
B)not revoked because it was a gift inter vivos.
C)revoked because it was a gift causa mortis.
D)not revoked because it was a gift largesse.

Question 51

Rikki sells shares in Sunn Energy Company to Telsa.Rikki does not deliver the actual possession of the shares to Telsa,but gives her the key to a safety-deposit box in Unity Bank in which the stock certificates are locked.Presenting the key is

A)accession.
B)constructive delivery.
C)confusion.
D)conversion.

Question 52

Rhett works at Scarlett's Sandwich Café.After work,in the parking lot,Rhett finds a diamond ring lost by Thalia.Title to the ring is possessed by

A)Rhett.
B)Scarlett's.
C)Thalia.
D)the state.

Question 53

Jill loans her laptop to Kyle.This is a bailment for

A)neither party's benefit.
B)the parties' mutual benefit.
C)the sole benefit of the bailee.
D)the sole benefit of the bailor.

Question 54

Procter,who is not in contemplation of imminent death,tells his daughter Opal that she can have his Dodge truck on his death,whenever that happens.This is

A)a valid gift causa mortis.
B)a valid gift inter vivos.
C)a valid gift largesse.
D)not a valid gift.

Question 55

Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S.Marines Corps.Ned agrees.This is a bailment for

A)neither party's benefit.
B)the parties' mutual benefit.
C)the sole benefit of the bailee.
D)the sole benefit of the bailor.

Question 56

Patty's parents give her a car as a graduation present.While Patty spends the summer in Europe,her friend Rita agrees to keep the car in her garage.On Patty's part,this is acquisition of property by

A)bailment.
B)capture.
C)find.
D)gift.

Question 57

Kade and Lila each press certain quantities of olive oil to sell to Mediterranean Products,Inc. ,and agree to share storage costs until Mediterranean can take delivery.The oil is commingled so that Kade's cannot be distinguished from Lila's.This is

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

Question 58

Inadvertently,Morris leaves his backpack at NuWay Launderers when he stops to pick up his clothes.The backpack is

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

Question 59

Danielle delivers her dress to Every Day Cleaners for dry cleaning.Every Day's clerk promises that the dress will be ready within five business days.Danielle agrees to pay the charge for the cleaning when she picks up the dress.These parties have a contract.This is

A)an implied bailment.
B)an involuntary bailment.
C)an express bailment.
D)no bailment.

Question 60

Bowie owns a 1957 Chevrolet coupe,which Danica customizes and details to Bowie's specifications.The car earns several awards at regional vehicle customizing competition shows.The result of Danica's efforts is

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

Question 61

Venerable Company stores office furniture with Warehouse Storage,Inc.(WSI),under a contract that limits the warehouse company's liability for lost or damaged property to $500.Venerable declines the option to pay a higher storage rate for an increase in the liability limit.The furniture is lost through no fault of WSI.The loss is most likely suffered by

A)Venerable and WSI.
B)Venerable only.
C)WSI only.
D)neither Venerable nor WSI.

Question 62

Stan is liable for the conversion of Tyler's business law textbook

A)if Tyler proves that the book was in Stan's possession when it disappeared.
B)if Tyler proves that the book is now in a third party's possession.
C)if Tyler proves that the book was not in his possession when it disappeared.
D)under no circumstances.

Question 63

Fact Pattern 27-1
Town Transport Company (TTC) agrees to pick up two containers for Unlimited Sales, Inc., and store their contents, to be delivered later. While TTC un¬loads one container, the other disappears from TTC’s loading dock

-Refer to Fact Pattern 27-1.TTC can avoid liability

A)by proof that TTC did not convert the goods and was not negligent.
B)by proof that TTC's warehouse is located in a high-crime area.
C)by proof that Unlimited Sales was negligent in hiring TTC.
D)under any circumstances.

Question 64

Bob rents a golf cart at Country Club Golf Course.The brakes are worn,and while Bob is driving the cart,they fail.The cart crashes into a tree,and Bob is injured.Country Club could have discovered,with reasonable diligence,that the brakes were worn.Liability for Bob's injuries most likely rests with

A)Bob and Country Club.
B)Bob only.
C)Country Club only.
D)neither Bob nor Country Club.

Question 65

Tab stores video equipment with U-Store-It,Inc. ,under a contract that excuses the warehouser from liability for any damage.A fire due to U-Store-It's negligence destroys the equipment.The loss is most likely to be imposed on

A)neither Tab nor U-Store-It.
B)Tab and U-Store-It.
C)Tab only.
D)U-Store-It only.

Question 66

During a storm on Blue Lake,a boat sinks,but its owner Cappy survives.Cappy plans to return to the site of wreck to salvage its equipment and his possessions,but he delays.Meanwhile,Dick,an amateur diver,discovers the wreck and strips it clean of useful items.Cappy learns of the recovery and files a suit against Dick,claiming that the items are his.Dick responds that the sunken boat was abandoned and therefore he has good title to everything to which he took possession.What is the court likely to rule,and why?

Question 67

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town.Later,Ben notices rainwater collecting in the trailer and covers it with a tarp at a cost of $40.This cost is most likely borne by

A)Ben and Cody.
B)Ben only.
C)Cody only.
D)neither Ben nor Cody.

Question 68

BroadView Company arranges to have Carrier Corporation,a common carrier,transport 500 DVD players from New York to California.Dan is Carrier's driver.BroadView will have no cause of action against Carrier if Carrier fails to deliver the players on time because

A)authorities are stopping and searching all trucks entering California.
B)Carrier's dispatcher mistakenly delays Dan's departure.
C)Carrier's truck is broken into and the players are stolen.
D)Dan has to wait two days in Denver for the truck to be repaired.

Question 69

Owen takes a Paisley-made pinball machine to Quality Games,Inc. ,for repair.Lacking certain parts,Quality ships the game to Regal Repair Company.While in Regal's possession,the game is damaged.Quality can recover for the damage from

A)no one.
B)Owen.
C)Paisley.
D)Regal.

Question 70

Frenchy's Fast Fries (3F)requires that its employees wear uniforms and protective clothing while on the job.3F provides a locker room for the employees to leave their street clothes and personal items while working.A sign on the back of the locker room door states,"Frenchy's is not responsible for the loss of any property in the locker room." Grant,a 3F employee,changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his locker.When he returns after his shift,the wallet and watch are gone.Does Grant's leaving personal items in the locker room constitute a bailment? If so,what type of bailment? If not,what legal relationship is it? Does 3F's sign exculpate the com?pany for Grant's loss? Why or why not?

Question 71

GR8 Stores,Inc. ,hires Haul-Way Company,a common carrier,to transport fifty large-screen HDTVs from San Diego to Phoenix.En route,a pothole causes the truck to crash,damaging the goods.Liability for the damage most likely rests with

A)GR8 Stores and Haul-Way.
B)GR8 Stores only.
C)Haul-Way only.
D)neither GR8 Stores nor Haul-Way.

Question 72

Fact Pattern 27-1
Town Transport Company (TTC) agrees to pick up two containers for Unlimited Sales, Inc., and store their contents, to be delivered later. While TTC un¬loads one container, the other disappears from TTC’s loading dock

-Refer to Fact Pattern 27-1.These facts give rise to

A)a presumption of intentional or negligent conversion by TTC.
B)a presumption of theft by a third party.
C)a presumption of theft by TTC.
D)Unlimited Sales's liability for the container's loss.