Question 1

In the making of a gift,a mutual exchange of resources occurs.

Accepted Answer

Receiving a gift is a way of acquiring ownership. In the making of a gift, no mutual exchange of resources occurs. Instead, a donor who owns something gives it to a donee, who becomes the new owner.

Question 2

Property helps generate prosperity by establishing the conditions necessary for capital formation.

Accepted Answer

Property helps generate prosperity by establishing the conditions necessary for capital formation, which refers to that quality of resources that produces new or different resources.

Question 3

State law generally specifies that a landlord and tenant must give each other written notice of 30 days or 60 days in order to terminate a lease that does not run for a definite duration.

Accepted Answer

State law generally specifies that a landlord and tenant must give each other written notice of 30 days or 60 days in order to terminate a lease that does not run for a definite duration.

Question 4

An easement by prescription ceases to exist when one person uses another person's land by crossing it wrongfully and using the land for a continuous period of 20 years.

Accepted Answer

An easement by prescription arises when one person has used another's land, such as by crossing it openly, wrongfully, and continuously for a period of years (frequently 20), and once an easement by prescription arises, a titleholder of the land can no longer prevent a person from continuing to use the land by crossing it.

Question 5

If one of the joint tenants in a joint tenancy dies,the remaining tenant becomes the sole owner of the entire resource.

Accepted Answer

Joint tenants, but not tenants in common, can have the right of survivorship. This right means that if one of the joint tenants dies, the remaining tenant becomes the sole owner of the entire resource.

Question 6

Property is infinite,and its boundaries are free from any ambiguity.

Accepted Answer

Property is absolute but not infinite, and its boundaries can be ambiguous. By "absolute" we mean that legally you can either seek the police or the courts to protect some resource or you cannot.

Question 7

Bailment arises when you store something in a warehouse or rent furniture from a rental store.

Accepted Answer

In many common situations, an owner puts an object protected by personal property into the intentional possession of another person with the understanding that the other person must return the object at some point or otherwise dispose of it. This property arrangement is known as a bailment, with the owner known as the bailor and the possessor of the object known as the bailee. Bailments arise when you store something in a warehouse, rent furniture from the rental store, lease a piece of equipment, loan your lawnmower to a neighbor, or store your car in a friend's garage while you are on vacation.

Question 8

In the property system,the state plans what people should do,and acquires and redistributes resources to them.

Accepted Answer

In the property system, the state does not plan what people should have, nor does it acquire and redistribute resources to them. Rather, the people themselves determine how resources are distributed through voluntary exchange, usually for money that they use to acquire other resources they need or want.

Question 9

House-sitting would be an example of a bailment because you are in temporary possession of someone's house with the intention to return full possession to the owners upon their return.

Accepted Answer

House-sitting is not an example of a bailment. Bailments are situations where an owner puts an object protected by personal property into the intentional possession of another person with the understanding that the other person must return the object at some point or otherwise dispose of it.

Question 10

In a number of states,courts have made merchants in mutual benefit bailments liable for any defect in a bailed object that causes personal injury.

Accepted Answer

In a number of states, courts have made merchants in mutual benefit bailments liable for any defect in a bailed object that causes personal injury.

Question 11

Private property is a system of law under which the state recognizes and enforces an individual's rights to acquire,possess,use,and transfer scarce resources.

Accepted Answer

Private property, which we will just call "property," is a system of law under which the state recognizes and enforces an individual's rights to acquire, possess, use, and transfer scarce resources.

Question 12

In a bailment for the sole benefit of the bailor,the bailee owes a very high duty of care.

Accepted Answer

In a bailment for the sole benefit of a bailor, the bailee owes only a slight duty of care while the object is in the bailee's possession, but in a bailment for the sole benefit of the bailee, such as where the bailee has borrowed the object, the bailee owes a very high duty of care, one that is greater than merely what is "reasonable."

Question 13

Intangible personal property includes intellectual property.

Accepted Answer

Personal property can be further divided into tangible personal property and intangible personal property. The latter includes intellectual property and securities, which are subject to special rules.

Question 14

The physical dimensions of real property are generally easy to define.

Accepted Answer

The physical dimensions of tangible personal property are generally easy to define. We understand what it means to own a car or a smartphone and understand immediately when someone interferes with it. Real property is more complex. Because land is not fully contained when owned or transported when sold, law rather than intuition must provide the physical boundaries.

Question 15

Mike repaired Rosie's car,and Rosie refused to pay the bill.Mike was still in possession of the car and therefore could claim a mechanic's lien on the car.

Accepted Answer

In this scenario, Mike cannot claim a mechanic's lien on the car. A mechanic's lien arises only when someone contributes materials and/or services to real estate.

Question 16

A fee simple absolute represents restricted,limited ownership of personal property.

Accepted Answer

The fee simple absolute estate has no limitations or conditions attached. Fee simple represents the maximum estate allowed under law, the owner having the fullest legal rights and powers to possess, use, and transfer the land.

Question 17

Common carriers are responsible for acts of God or of public enemies.

Accepted Answer

Many states have laws that apply to particular kinds of bailments, such as those involving common carriers, warehouses, and innkeepers (hotels). Common carriers, which include airlines, railroads, and public trucking companies, carry packages for the public. Common carriers are not responsible for acts of God or of public enemies, the acts of the bailor in failing to package properly, defects in the packaged object itself, or acts of the public authority (such as the stopping of a truck carrying produce at a state border because of concern about plant disease).

Question 18

Property is the legal right to exclude others from resources that are originally possessed or are acquired without force,theft,or fraud.

Accepted Answer

Property is the legal right to exclude others from resources that are originally possessed or are acquired without force, theft, or fraud.

Question 19

The property interest is divided equally in both joint tenancy and tenancy in common.

Accepted Answer

Forms of concurrent ownership include the joint tenancy and the tenancy in common. In both of these forms of ownership, the property interest is undivided, but the tenants in common can own different shares of the resource (e.g., two-thirds and one-third), whereas the joint tenants must have equal ownership shares (e.g., one-half and one-half).

Question 20

Ken has to go to work and cannot find his car keys.After searching for 20 minutes,he finds them in the pocket of the jeans he wore the previous day.In this scenario,the keys would have been considered lost until he found them.

Accepted Answer

In this scenario, the keys would be considered as mislaid rather than as being lost. The law distinguishes things that have been lost from things that have simply been mislaid. The difference in the way the law treats these two situations is based on an assumption that the original owner will know where to come back and reclaim mislaid things.

Quiz 7: The Property System

In the making of a gift,a mutual exchange of resources occurs.

Property helps generate prosperity by establishing the conditions necessary for capital formation.

State law generally specifies that a landlord and tenant must give each other written notice of 30 days or 60 days in order to terminate a lease that does not run for a definite duration.

An easement by prescription ceases to exist when one person uses another person's land by crossing it wrongfully and using the land for a continuous period of 20 years.

If one of the joint tenants in a joint tenancy dies,the remaining tenant becomes the sole owner of the entire resource.

Property is infinite,and its boundaries are free from any ambiguity.

Bailment arises when you store something in a warehouse or rent furniture from a rental store.

In the property system,the state plans what people should do,and acquires and redistributes resources to them.

House-sitting would be an example of a bailment because you are in temporary possession of someone's house with the intention to return full possession to the owners upon their return.

In a number of states,courts have made merchants in mutual benefit bailments liable for any defect in a bailed object that causes personal injury.

Private property is a system of law under which the state recognizes and enforces an individual's rights to acquire,possess,use,and transfer scarce resources.

In a bailment for the sole benefit of the bailor,the bailee owes a very high duty of care.

Intangible personal property includes intellectual property.

The physical dimensions of real property are generally easy to define.

Mike repaired Rosie's car,and Rosie refused to pay the bill.Mike was still in possession of the car and therefore could claim a mechanic's lien on the car.

A fee simple absolute represents restricted,limited ownership of personal property.

Common carriers are responsible for acts of God or of public enemies.

Property is the legal right to exclude others from resources that are originally possessed or are acquired without force,theft,or fraud.

The property interest is divided equally in both joint tenancy and tenancy in common.

Ken has to go to work and cannot find his car keys.After searching for 20 minutes,he finds them in the pocket of the jeans he wore the previous day.In this scenario,the keys would have been considered lost until he found them.