Deck 33: Personal Property and Bailments

Question 1

Property is considered to be mislaid if the owner intentionally placed the property out of his possession with the intent to relinquish ownership of it.

Answer 1

False

Question 2

There are two kinds of gifts: gifts per se and gifts de jure.

Answer 2

False

Question 3

Suppose you check your coat at an attended coatroom at a restaurant. If no charge is made for the service, it is likely to be treated as a bailment for the sole benefit of the bailor.

Answer 3

False

Question 4

The law makes the common carrier a limited (conditional) insurer of the goods it carries.

Question 5

When personal property is attached to, or used in connection with, real property in such a way as to be treated as part of the real property, it is known as a debenture.

Question 6

The old saying "finders keepers, losers weepers" is a reliable way of predicting the legal rights of those who find personal property that originally belonged to or still belongs to another person.

Question 7

Personal property is the earth's crust and all things firmly attached to it.

Question 8

An emolument is the delivery of personal property by one person to another person who accepts it and is under an express or implied agreement to return it.

Question 9

Felipe purchases a plot of land that is owned by Ron. After he purchases the property, Felipe discovers that the land contains valuable mineral deposits and quarries them. Ron, who did not know that the land contained valuable minerals at the time of sale, sues Felipe to recover the value of the mineral deposits. Under these circumstances, _____.

A) Felipe is the owner of the deposits because they became his personal property upon quarrying
B) Felipe is the owner of the deposits because the mineral deposits are fixtures
C) Ron can recover the fair market value of the mineral deposits because he did not intend to make a gift of personal property under these circumstances
D) Ron can rescind the sale because Felipe is liable for conversion under these circumstances

Question 10

The two major examples of unowned property that can be acquired by possession are wildlife and mislaid property.

Question 11

A promise to make a gift is usually enforceable.

Question 12

An example of intangible property is a _____.

A) music player
B) felled tree
C) patent
D) tract of land

Question 13

Today, one can acquire ownership of personal property by possessing it if the property is unowned.

Question 14

The type of bailment created can be important in determining the liability of the bailee for loss of or damage to the property.

Question 15

In the United States, private ownership of property is protected by the _____ Amendment to the Constitution.

A) Fifth
B) Ninth
C) Tenth
D) Fourteenth

Question 16

If you park your car in a parking lot, keep the keys, and can drive the car out yourself whenever you wish, a bailment has not been created.

Question 17

Adella works for a large software company as a security analyst. In her free time away from work, she likes to develop computer games. Which of the following statements is true in this case?

A) The software company owns the games that Adella develops.
B) Adella owns the games that she develops.
C) Adella and the software company jointly own the games that she develops.
D) The person who uses the game first owns the games that Adella develops.

Question 18

Any attempt by a bailee to be relieved of liability for intentional wrongful acts is consistent with public policy and will be enforced.

Question 19

The word property may refer to legal rights connected with an object, such as are found in the lease of a building.

Question 20

Which of the following statements about tangible property is true?

A) It has no physical existence.
B) It is subject to tax in the state in which it is located.
C) It is only owned by the government or a government unit.
D) It is only taxable in the state where its owner lives.

Question 21

If a bailee misdelivers the bailed property at the termination of the bailment, the _____.

A) bailee is liable to the bailor
B) bailor assumed the risk and is liable
C) property should not be returned to the bailor
D) bailee does not have the burden of showing that the accident occurred despite exercising due care

Question 22

Tiana wanted to vacation in Los Carneros and asked Cameron, her neighbor, to look after Amber, her Labrador Retriever. Cameron did not ask for a payment to take care of Amber. Before leaving, Tiana instructed Cameron on how to care for Amber, but Cameron failed to follow these instructions or take care to restrain Amber. While Tiana was in Los Carneros, Amber ran onto the street and got hit by a car. Which of the following statements is true of this situation?

A) A bailment does not exist because Cameron was not paid to look after Amber.
B) A bailment was created, but Cameron had no obligation to care for Amber, since both Tiana and Cameron benefitted from the bailment.
C) A bailment for the sole benefit of Tiana was created, which implies that Cameron is responsible for gross negligence.
D) A bailment for the sole benefit of Cameron was created, which holds Tiana responsible.

Question 23

Jose gave Stuart the permission to hunt on his land. While hunting, Stuart discovered a Civil War-era sword half buried in the dirt. Under these circumstances, _____.

A) Stuart is the owner of the sword
B) Jose is the owner of the sword
C) Jose and Stuart share joint ownership of the sword
D) the government is the owner of the sword

Question 24

Joshua and Alyssa dated for two years before deciding to get married. Joshua gave Alyssa a $20,000 diamond ring on the occasion of their engagement. Two months later, Joshua called off the engagement without giving Alyssa a valid reason. Under the traditional rule that uses a fault-based approach, _____.

A) Joshua cannot recover the ring
B) Alyssa must return the ring
C) the ring must be sold and the proceeds divided between Joshua and Alyssa
D) Alyssa may retain the ring only if she pays its fair value to Joshua

Question 25

Identify the statement that is true of a bailee's duty of care.

A) The bailee is liable to the bailor even if the property is lost or damaged without the fault or negligence of the bailee.
B) If the bailment is solely for the benefit of the bailor, then the bailee has no duty to care for the bailor's property.
C) If the bailment is for the sole benefit of the bailee, then the bailee may be held to a lower degree of care.
D) The bailee must use the same kind of care a reasonable person would use to protect his or her own property in a mutual benefit bailment.

Question 26

The _____ requires the true owner of property to claim it or bring a legal action to recover possession of it within a certain number of years after it has been mislaid.

A) estray statute
B) real property statute
C) ownership statute
D) statute of limitations

Question 27

Isis used a municipal parking lot to park her car in an American city. She used an electronic lock to lock her car and kept the keys in her wallet. On returning, she noticed the word "angels" scratched on her car door. Isis spent $200 in repairing the damage. Isis's boyfriend suggested that she sue the city because it was the city's responsibility to prevent vandalism. In this situation, _____.

A) a bailment was not created and, therefore, it was not the city's duty to protect Isis's automobile
B) a bailment was created solely for Isis's benefit and, therefore, the city only owed minimal care in protecting Isis's car
C) a bailment was created solely for the benefit of the city and, therefore, the city should have exercised ordinary care in preventing vandalism of Isis's car
D) a bailment was created for the mutual benefit of Isis and the city and, therefore, both parties were responsible for protecting the car from vandalism

Question 28

Oscar drove his 1963 Rambler automobile to the Park & Run, Inc. parking garage. Oscar delivered the keys to the attendant and left the premises. The attendant parked the car. Oscar did not tell the attendant that there was an antique painting valued at $5,000 in the trunk of the car. A thief entered the parking garage, pried open the trunk of Oscar's car, and stole the painting. In this context, identify the correct statement.

A) Park & Run is a bailee only to the automobile, but not to the painting.
B) Park & Run is a bailee to both the automobile and the painting.
C) A bailment for the painting was created automatically when Park & Run accepted delivery and possession of the car.
D) A bailment for the car or the painting was not created since Park & Run did not make an express warranty.

Question 29

If property is mislaid by its owner, _____.

A) the finder of the property has the right to hold the property for the rightful owner
B) the finder can be held guilty of conversion and must pay the owner the fair value of the property
C) the finder acquires no rights to the property
D) the first person who thereafter takes possession of it with the intent of claiming ownership becomes its owner

Question 30

When Banks, a dealer in antique furniture, stores goods in a commercial warehouse, it is a bailment for the:

A) sole benefit of Banks.
B) sole benefit of the commercial warehouse.
C) mutual benefit of Banks and the commercial warehouse.
D) mutual benefit of the government and the commercial warehouse.

Question 31

A statute that allows finders of property to clear their title to the property after taking steps to see whether the true owner can be located is known as a(n) _____.

A) estray statute
B) statute of limitations
C) statute of repose
D) nonclaim statute

Question 32

When Martha of Martha's Homemade Pies Corp., gives a freshly baked apple-cinnamon double-crust pie to her sales clerk to put in the window case for display, the clerk:

A) has possession of the pie.
B) has custody of the pie.
C) is a bailee to Martha.
D) is the owner of the pie.

Question 33

Which of the following statements is true about the possession of wild animals?

A) The person who takes possession of a wild animal acquires its ownership rights, if the person acts in accordance with his or her hunting license.
B) Individuals are never given personal ownership rights for wild animals.
C) Wild animals caught in traps inside a private property are usually considered to be the property of the first person who finds the animal.
D) The ownership of the property on which a wild animal is taken is not a factor in the ownership of a captured wild animal.

Question 34

Fredrick is about to undergo a major surgery to remove a brain tumor. Fredrick gives his watch to his nephew, Harry, and tells Harry he wants him to have it if he does not survive the operation. Fredrick's gift to Harry is a:

A) gift inter vivos.
B) general gift.
C) residuary gift.
D) gift causa mortis.

Question 35

George rented a car from RentaCar Corp. When he returned the car to RentaCar Corp., he forgot to retrieve his wallet from the glove compartment. In this scenario, George's wallet is _____.

A) lost
B) mislaid
C) abandoned
D) unowned

Question 36

When the finder of a lost property knows who the owner is and refuses to return it to him or her, _____.

A) the finder is liable to revest the title of the property back to the owner
B) the finder will not be found guilty of conversion
C) the finder will be found guilty of accession
D) the finder is liable to pay the owner the fair value of the property

Question 37

Rafael is the owner of Raphael Upholstery Services Inc. Kiara wanted some of her furniture reupholstered, so she brought these items to Rafael's store and left them there. Rafael and Kiara did not discuss Raphael's charges for reupholstering the furniture. Under these circumstances, _____.

A) a bailment for the sole benefit of Kiara was created even though Rafael and Kiara did not discuss Raphael's charges
B) Rafael is entitled to reasonable compensation from Kiara for the value of his services because of the creation of a bailment for mutual benefit
C) Kiara is not liable to make any payment because a bailment was not created
D) a bailment was created only for the storage of Kiara's property for which Rafael is entitled only to payment for storage services

Question 38

Which of these actions is applicable under the Uniform Gifts to Minors Act?

A) Adults are prohibited from making gifts of unregistered securities to minors.
B) Adults can make a gift of money to minors by depositing the money with a bank in an account in the donor's name.
C) Gifts of registered securities can be made by merely delivering the securities to a bank trustee.
D) Gifts of unregistered securities can be made by registering the securities in the name of another adult.

Question 39

Which of the following statements is true about accession?

A) Accession is the intermixing of goods belonging to different owners in such a way that the goods cannot later be separated.
B) Even if a person improves personal property without the consent of its owner, he has to be reimbursed by the owner.
C) A person who mistakenly improves property in good faith assuming that he is its owner is usually entitled to recover the cost of the improvement.
D) Under accession, the owner of the original property generally doesn't become the owner of the improvements.

Question 40

Jared, a regular customer at Pablo's Bookstore, placed his backpack near one of the bookshelves where he was browsing. Jared forgot to take his backpack when leaving the store. If Farah, another customer at Pablo's, found Jared's backpack in the store, _____.

A) Farah would have the right to hold the backpack for Jared
B) the bookstore would have the right to hold the backpack for Jared
C) Farah would acquire possession and ownership of the backpack
D) the bookstore would acquire possession and ownership of the backpack

Question 41

While staying at Smith Hotel Corp., Nina asked her son to take her two diamond rings to the hotel clerk for safekeeping. The rings were shown to the clerk and then placed in a "safe-deposit envelope" which was sealed. The son received a depositor's check stub, which had a number corresponding to the number on the envelope. The envelope was kept in a safe, located in the hotel's front desk, which was used to keep the hotel's cash as well as the valuables of guests. Though equipped with a combination lock, the safe was usually kept unlocked as there would always be a clerk on duty at the reception desk. The following night, the hotel was robbed by two armed men and Nina's rings were taken. She sued the hotel for the value of the rings. The hotel claimed that the robbery was an "act of a public enemy" that relieved the hotel of liability. If the safe-deposit envelope is analyzed in the way that safety deposit boxes are, was the hotelkeeper liable for the theft of property left with it for safekeeping?

Question 42

Define a bailment and discuss its essential elements.

Question 43

What are the differences between a gift inter vivos and a gift causa mortis?

Question 44

Phoebe rented a safe deposit box in a bank to keep her valuables. In this case, _____.

A) Phoebe is the bailee
B) the bank is the bailor
C) the bank is not an insurer of the contents of the box
D) the bank is not liable to explain any loss or damage to the contents of the box

Question 45

What are the basic duties of a bailee? Explain the critical elements that determine the degree of care that a bailee is required to exercise.

Question 46

Earline rented a drilling machine from Quatero Rental Corp. While Earline was drilling as instructed by the product manual, the drill bit snapped and injured her seriously. A thorough examination of the broken drill bit showed that it had a flaw that caused it to snap under intense heat or pressure. Under these circumstances, Quatero will _____.

A) be held liable for Earline's injuries because a bailment for the sole benefit of the bailee was created
B) be held liable for Earline's injuries if it knew of the flaw in the drilling machine when it rented it to Earline, but failed to warn her of the defect
C) not be held liable for Earline's injuries because both Quatero and Earline share mutual benefits from the bailment
D) not be held liable for Earline's injuries because it is a private contract carrier and is held to a lower level of responsibility

Question 47

Explain the difference between abandoned, lost, and mislaid property.

Question 48

An involuntary bailee:

A) cannot divest himself of the property in any circumstances.
B) cannot assume control of the property in any circumstances.
C) has no duty to return the return the property to the owner.
D) does not have the right to destroy the property or to use it.

Question 49

Common carriers are:

A) not responsible for any loss or damage to goods entrusted to them.
B) usually allowed to limit their liability to a stated value.
C) persons who carry goods only for persons selected by the carrier.
D) held to a lower level of responsibility than private carriers.

Question 50

A common carrier is liable for loss of or damage to property if the:

A) damage was caused by the nature of the goods themselves.
B) damage was caused by an act or order of the government.
C) goods were damaged because of the shipper's negligence.
D) goods entrusted to it are stolen by some unknown person.