Question 1

Pearl gives Raphael a smartphone as a gift. Raphael develops a new app for the phone. She obtains intellectual property protection, and forms QuikApps, LLC, to make and market the app. Raphael's acquisition of the app is by​

Accepted Answer

The answer of Pearl gives Raphael a smartphone as a...

Question 2

Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston. Subject to a bailment is​

Accepted Answer

Bailment refers to the transfer of possession and control of personal property from one person to another, with the understanding that the property will be returned. In this scenario, Emily checks her luggage at the ticket counter, thereby transferring possession and control of her luggage to Flyaway Airlines. Therefore, Emily's luggage is subject to a bailment.

Question 3

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is​

Accepted Answer

Enrico has entrusted his vehicle to Gordo's Auto Service, which creates a bailment relationship. A bailment involves one entity (the bailor, Enrico) entrusting their property to another entity (the bailee, Gordo's Auto Service) for safekeeping or repair. It is not a gift, confusion, or abandoned property.

Question 4

GR8 Vision, Inc., hires Haul-Way Company to transport fifty large-screen HDTVs from GR8's warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The bailee is​

Accepted Answer

Haul-Way is the bailee because they are being entrusted with the physical possession of the HDTVs during transport. GR8 Vision is the bailor because they are the ones who own the goods and are entrusting them to Haul-Way for transport. Ideal Electronics is not involved in the bailment agreement.

Question 5

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift​

Accepted Answer

An inter vivos gift is a gift given during the giver's lifetime and with no expectation of imminent death. In this scenario, Angela is in good health and sound mind when she gives Brianna the horse, indicating that she has no expectation of imminent death. Therefore, this is an inter vivos gift.

Question 6

Rhett works at Scarlett's Service Station. After work, in the station's restroom, Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed by​

Accepted Answer

The title to the ring belongs to Thalia, the owner who lost it. Rhett has only found it and has no ownership rights over it, nor can Scarlett's Service Station claim the ownership of the ring. If Thalia is not found, the ring can be turned in to the police, but it still belongs to Thalia.

Question 7

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is​

Accepted Answer

The answer of Lauren owns a 1967 Ford Mustang, which...

Question 8

Derrick buys a hunting license and goes hunting. He shoots a deer, cleans it, and takes it back to his truck. He takes the deer to town and has the meat processed. Derrick's acquisition of the deer is by​

Accepted Answer

Derrick acquired the deer by physically possessing it after shooting and cleaning it. He did not receive it as a gift or as a bailment from another person, and he did not produce the deer himself.

Question 9

Garth tells his daughter Heidi that she can have his restored 1932 Ford Coupé when he dies, but he does not add this to his will. This is

Accepted Answer

The answer of Garth tells his daughter Heidi that she...

Question 10

Inadvertently, Rocko leaves his backpack at Suki's Sushi when he stops for lunch and an hour of Facebook. The backpack is​

Accepted Answer

The answer of Inadvertently, Rocko leaves his backpack at Suki's...

Question 11

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town on a job for Plain States Construction, his employer. The bailor is​

Accepted Answer

The answer of Ben allows Cody to store his trailer...

Question 12

Yogi loans his laptop to Zoey. This is​

Accepted Answer

A bailment is a legal relationship where one person temporarily transfers possession of property to another person. In this case, Yogi is the bailor who has transferred possession of his laptop to Zoey who is the bailee.

Question 13

Gabrielle buys silver and jade to make jewelry. The finished products are sold to Hand Crafts, a shop that sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to

Accepted Answer

The passage states that Gabrielle buys silver and jade to make jewelry. This implies that she acquires the materials by purchasing them, indicating that purchasing personal property is the most common way to acquire it.

Question 14

In contemplation of death during risky surgery, Donnelly, a guitarist, gives his guitars to Cathy. The surgery is successful, and Donnelly does not die. The gift of the guitars is​

Accepted Answer

The answer of In contemplation of death during risky surgery,...

Question 15

Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is​

Accepted Answer

The answer of Nero and Omar agree to buy natural...

Question 16

Bram finds a tablet on the counter at Caffe Café. He takes the tablet to a police station. A police officer tells Bram that if the tablet is not claimed by a certain time, Bram can obtain title to it. This is acquiring possession by​

Accepted Answer

Acquiring possession through an estray statute refers to the process where a person becomes the legal owner of abandoned or unclaimed property after a certain period of time has passed. This is exactly what the police officer is referring to when he tells Bram that he can obtain title to the tablet if it remains unclaimed.

Question 17

Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no​

Accepted Answer

For a gift to be valid, the donor must have donative intent, meaning the intent to transfer ownership of the property to the donee as a gift. Since Paca is mentally incompetent, she may not have had donative intent when transferring her assets to Quelita "for safekeeping." This lack of donative intent could make the gift invalid. Acceptance by the donee, constructive delivery, and relinquishment of control are all important elements of a gift, but without donative intent, the gift is not valid.

Question 18

Ester sells stock in Fast Food Franchise Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is

Accepted Answer

This is constructive delivery, as Ester has given Gayle access to the certificates by giving her the key to the safety-deposit box where they are stored. While the physical delivery of the certificates has not taken place, Gayle has been given the means to take possession of them.

Question 19

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is​

Accepted Answer

This scenario involves a bailment, which is a legal relationship in which the bailor (Nancy) gives possession of personal property to the bailee (Octavio), who agrees to return the property at a later time or dispose of it according to the bailor's instructions.

Question 20

Gretel, an inventor, has tools in her workshop, including hammers, a table saw, and drills. She has a patent on her most recent invention, a kitchen gas grill. She licenses the patent to Housewares, Inc. Her tangible personal property includes​

Accepted Answer

The answer of Gretel, an inventor, has tools in her...

Quiz 34: Personal Property and Bailments

Pearl gives Raphael a smartphone as a gift. Raphael develops a new app for the phone. She obtains intellectual property protection, and forms QuikApps, LLC, to make and market the app. Raphael's acquisition of the app is by​

Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston. Subject to a bailment is​

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is​

GR8 Vision, Inc., hires Haul-Way Company to transport fifty large-screen HDTVs from GR8's warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The bailee is​

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift​

Rhett works at Scarlett's Service Station. After work, in the station's restroom, Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed by​

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is​

Derrick buys a hunting license and goes hunting. He shoots a deer, cleans it, and takes it back to his truck. He takes the deer to town and has the meat processed. Derrick's acquisition of the deer is by​

Garth tells his daughter Heidi that she can have his restored 1932 Ford Coupé when he dies, but he does not add this to his will. This is

Inadvertently, Rocko leaves his backpack at Suki's Sushi when he stops for lunch and an hour of Facebook. The backpack is​

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town on a job for Plain States Construction, his employer. The bailor is​

Yogi loans his laptop to Zoey. This is​

Gabrielle buys silver and jade to make jewelry. The finished products are sold to Hand Crafts, a shop that sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to

In contemplation of death during risky surgery, Donnelly, a guitarist, gives his guitars to Cathy. The surgery is successful, and Donnelly does not die. The gift of the guitars is​

Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is​

Bram finds a tablet on the counter at Caffe Café. He takes the tablet to a police station. A police officer tells Bram that if the tablet is not claimed by a certain time, Bram can obtain title to it. This is acquiring possession by​

Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no​

Ester sells stock in Fast Food Franchise Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is​

Gretel, an inventor, has tools in her workshop, including hammers, a table saw, and drills. She has a patent on her most recent invention, a kitchen gas grill. She licenses the patent to Housewares, Inc. Her tangible personal property includes​

Pearl gives Raphael a smartphone as a gift. Raphael develops a new app for the phone. She obtains intellectual property protection, and forms QuikApps, LLC, to make and market the app. Raphael's acquisition of the app is by

Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston. Subject to a bailment is

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is

GR8 Vision, Inc., hires Haul-Way Company to transport fifty large-screen HDTVs from GR8's warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The bailee is

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift

Rhett works at Scarlett's Service Station. After work, in the station's restroom, Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed by

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is

Derrick buys a hunting license and goes hunting. He shoots a deer, cleans it, and takes it back to his truck. He takes the deer to town and has the meat processed. Derrick's acquisition of the deer is by

Inadvertently, Rocko leaves his backpack at Suki's Sushi when he stops for lunch and an hour of Facebook. The backpack is

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town on a job for Plain States Construction, his employer. The bailor is

Yogi loans his laptop to Zoey. This is

In contemplation of death during risky surgery, Donnelly, a guitarist, gives his guitars to Cathy. The surgery is successful, and Donnelly does not die. The gift of the guitars is

Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is

Bram finds a tablet on the counter at Caffe Café. He takes the tablet to a police station. A police officer tells Bram that if the tablet is not claimed by a certain time, Bram can obtain title to it. This is acquiring possession by

Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is

Gretel, an inventor, has tools in her workshop, including hammers, a table saw, and drills. She has a patent on her most recent invention, a kitchen gas grill. She licenses the patent to Housewares, Inc. Her tangible personal property includes