Question 1

The coverage of fire insurance policies varies by state, but the policies are written for no more than one-year terms.

Accepted Answer

False

Question 2

Bailments for the bailee's sole benefit are usually limited to the gratuitous loan of personal property for use by the bailee.

Accepted Answer

Bailments for the bailee's sole benefit involve the bailee receiving a benefit without compensation to the bailor, often in the form of a gratuitous loan of personal property.

Question 3

Claudia hires Greg to plant a tree in her yard. Greg discovers a shoebox buried in the ground. Greg owns the shoebox and its contents since he is the finder.

Accepted Answer

In most jurisdictions, the owner of the land (Claudia) where the item is found typically has a stronger claim to the item than the finder (Greg), unless the item is considered abandoned or lost and the landowner has no knowledge of it.

Question 4

The most frequently used documents of title are the warehouse receipts issued by warehousers and the bills of lading issued by carriers.

Accepted Answer

Warehouse receipts and bills of lading are commonly used documents of title in trade and shipping, representing ownership and facilitating the transfer of goods.

Question 5

A thief stole Harold's car and installed a tape deck in it. Later the police caught the thief and returned the car to Harold. Harold now owns the tape deck by accession.

Accepted Answer

Accession is a legal principle where the owner of property becomes the owner of additions or improvements to that property, even if made by someone else.

Question 6

A bailment may be made of either real or personal property.

Accepted Answer

A bailment involves the transfer of possession of personal property, not real property, from one party to another under an agreement.

Question 7

A negotiable electronic document of title running to the order of a named person or to bearer is negotiated by delivery, which means voluntary transfer of control.

Accepted Answer

A negotiable electronic document of title can be transferred by delivery, which involves the voluntary transfer of control to another party, similar to physical documents.

Question 8

Barbara put her old clothes in a box in the bedroom of her roommate. The roommate now owns the clothes, because they are presumed to be a gift.

Accepted Answer

Ownership transfer requires clear intent to gift and acceptance by the recipient, merely placing items in someone's space doesn't automatically constitute a gift.

Question 9

Insurance companies have been successful in limiting the authority of local selling agents to bind the company through waiver or estoppel.

Accepted Answer

The answer of Insurance companies have been successful in limiting...

Question 10

Sales of tangible personal property involve the transfer of title.

Accepted Answer

The sale of tangible personal property typically involves the transfer of ownership or title from the seller to the buyer.

Question 11

Mark finds a camera on a park bench at Disneyland. Mark can keep the camera if the true owner cannot be found, because it is lost property.

Accepted Answer

Lost property is property that has been lost by its owner and has not been abandoned. The owner of lost property has the right to reclaim it from the person who found it. However, if the true owner cannot be found, the finder of lost property may keep it.

Question 12

Accession means the right of the owner of property to any increase in it.

Accepted Answer

Accession is a legal principle where the owner of a property gains rights to any natural or man-made additions to that property.

Question 13

Clara receives a telephone call from her Aunt Mary in which Mary says she has decided to give Clara her pet python as a gift. Clara may refuse to accept the gift.

Accepted Answer

Clara has the right to refuse a gift, as acceptance is a necessary component for a gift to be legally binding.

Question 14

If Clark buys a tomato plant, he owns the tomatoes produced by the plant based on "confusion."

Accepted Answer

"Confusion" refers to the mixing of goods or substances, not the ownership of products from a plant. Ownership of the tomatoes would typically be based on property rights or agreements, not confusion.

Question 15

An example of a bailment for the bailor's sole benefit is when Sherri, without compensation, lends her Cappuccino maker to Ed for Ed's party.

Accepted Answer

This scenario describes a bailment for the bailee's sole benefit, as Ed (the bailee) benefits from using the cappuccino maker without compensating Sherri (the bailor).

Question 16

The transfer of personal property involves formalities not required in the transfer of real property.

Accepted Answer

The transfer of real property typically involves more formalities, such as deeds and registration, compared to personal property, which often requires fewer formalities.

Question 17

The finder of lost property is entitled to possession of it, even against the true owner.

Accepted Answer

The finder of lost property is generally entitled to possession against everyone except the true owner. The true owner retains the right to reclaim their property.

Question 18

A furnace would often be classified as a "fixture."

Accepted Answer

A furnace is typically considered a fixture because it is a permanent installation in a building, attached to the property, and intended to remain in place.

Question 19

The delivery necessary for a gift may be accomplished constructively.

Accepted Answer

Constructive delivery refers to a legal concept where the transfer of ownership of a gift is achieved without physical delivery, often through symbolic means or actions that indicate the intention to transfer ownership.

Question 20

An heir of a person who dies receives title to the property of the decedent by reason of a gift.

Accepted Answer

An heir receives title to the property of the decedent through inheritance, not as a gift. A gift is a voluntary transfer of property made during the giver's lifetime.

Quiz 47: Introduction to Property, Property Insurance, Bailments, and Documents of Title