Question 1

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California.As a bailee,Charles is automatically entitled to use Tuan's car while Tuan is away.

Accepted Answer

As a bailee, Charles is not automatically entitled to use Tuan's car while Tuan is away, unless it was explicitly stated in their agreement or if it is necessary for the preservation of the car.

Question 2

Stephen wants to give his niece,Dawn,a piece of jewelry as a gift.Stephen gives Tracy,his agent,the bracelet to take to Dawn.The delivery element of making a gift has been completed.

Accepted Answer

The delivery element of making a gift requires the item to be delivered to the recipient, Dawn, not just to an intermediary like Tracy.

Question 3

In January,Erwin told David,his nephew,that he would give him a car when he graduates from college.David graduated in May.If Erwin refuses to give David a car,David can sue him for breach of an inter vivos gift.

Accepted Answer

An inter vivos gift requires delivery, acceptance, and intent to give at the time of the gift, not a promise to give something in the future. Erwin's statement is a promise, not an immediate gift, so it does not constitute an inter vivos gift.

Question 4

A bailment was created for the parties' mutual benefit.This means that the bailee must use ordinary care with the property.

Accepted Answer

A bailment for mutual benefit means that both the bailor and bailee stand to gain something from the agreement. The bailee is obligated to take ordinary care of the property since both parties are benefiting from it.

Question 5

Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant.Even though no employee of the restaurant is present,the provision of the cloakroom makes Jerry think it will be safe.In this situation,the restaurant is the bailor of Jerry's coat.

Accepted Answer

Jerry, by leaving his coat in the cloakroom, is entrusting his property to the care of the restaurant, making him the bailor and the restaurant the bailee.

Question 6

While shopping at the mall,Everett's wallet fell out of his pocket.Jon found the wallet.The wallet is abandoned property and Jon may keep it.

Accepted Answer

Jon has a duty to try to return the wallet to its rightful owner before keeping it. Abandoned property is property that has been intentionally discarded by the owner and is not the case with a lost wallet.

Question 7

Dersett Trucking hauls granite for the major granite companies in Minnesota.Dersett Trucking does not make its trucking services available to the general public.Dersett Trucking is a contract carrier and does not incur strict liability.

Accepted Answer

The statement correctly describes Dersett Trucking as a contract carrier that hauls granite for specific companies, and not for the general public. As a contract carrier, they are not subject to strict liability.

Question 8

If property is mislaid,the finder of the property will have a superior claim to possession of the property against everyone except the true owner.

Accepted Answer

In the case of mislaid property, the owner of the premises where the property was found has a superior claim to possession over the finder, except against the true owner.

Question 9

Alexander loans Miko his baking dish so she can make lasagna for dinner tonight for her family.What kind of bailment is this?

Accepted Answer

This is a bailee benefit bailment because Miko (the bailee) is primarily benefiting from the use of Alexander's (the bailor's) baking dish to make lasagna for her family.

Question 10

Buck,fearing death from severe injuries suffered in a machinery accident,assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl,a friend,who gladly accepts.Buck ends up recovering from the injuries.Why must Pearl give the certificate of deposit back to Buck?

Accepted Answer

The gift in this scenario is a gift causa mortis, which is a conditional gift that is made in contemplation of one's impending death. If Buck recovered, the gift is automatically revoked, and Pearl must give the certificate of deposit back to Buck.

Question 11

After a meeting with his advisor to register for a class at State University,Ron forgot his calculator in the dean's outer office.Theresa,another student,found the calculator.The calculator is treasure trove and Theresa may keep it.

Accepted Answer

Theresa did not have the right to keep the calculator as it belongs to Ron and he simply forgot it in the office. It is her responsibility to return it to the rightful owner or hand it over to the lost and found department.

Question 12

All bailments have to be by agreement between the bailor and bailee.

Accepted Answer

Some bailments can occur by operation of law without an explicit agreement between the bailor and bailee, such as when property is lost and someone finds it.

Question 13

While digging in his backyard to plant a pear tree,Jonah discovers a bag of gold coins -- all of which were minted in the 1800s.The bag of coins would most likely be considered

Accepted Answer

A treasure trove refers to a valuable collection of coins or other precious items that have been deliberately hidden with the intention of later recovery. The fact that the coins were all minted in the 1800s and buried suggests that they were purposefully hidden rather than accidentally lost or abandoned. Therefore, the bag of gold coins would most likely be considered a treasure trove.

Question 14

Jimmy stole Dave's motorcycle and completely revamped the engine and changed the body.These accessions were very expensive,but Jimmy was completely satisfied with the results,intending to sell the motorcycle for a huge profit.If the motorcycle is recovered from Jimmy,Dave must pay Jimmy for the improvements.

Accepted Answer

Jimmy committed theft by stealing Dave's motorcycle, and therefore, he has no right to demand payment for the improvements he made on the stolen property. If the motorcycle is recovered from Jimmy, it should be returned to Dave in its original condition, without any compensation for the changes made by Jimmy.

Question 15

The difference between an inter vivos gift and a gift causa mortis is that the inter vivos gift is made during the donor's lifetime and a gift causa mortis is a gift made after the donor's lifetime by the donor's estate.

Accepted Answer

The statement is incorrect. An inter vivos gift is made during the donor's lifetime, while a gift causa mortis is made by the donor during their lifetime but with the understanding that it will only take effect upon their death or impending death. It is still a gift made during the donor's lifetime, not by their estate after their death.

Question 16

If one party makes accessions without agreement and the improvements can be "undone" without damaging the property,the improver must undo them.

Accepted Answer

This is known as the "doctrine of accession" and applies in situations where one party makes improvements to property without the agreement of the owner. If the improvements can be reversed or undone without causing damage to the original property, then the improver must undo them. This is based on the principle that the owner of the property has the right to control what happens to it and any changes made without their permission are not valid.

Question 17

In which of the following scenarios has a gift been made?

Accepted Answer

In scenario C, Grandpa gives Jessica his pocket watch as a gift. He willingly and intentionally transfers ownership to her without receiving anything in return.

Answer: B
 In scenario B, Tim offers to sell his comic book collection to Noah at a reduced price. Although he is selling the items at a lower price than their value, this is still a transaction in which Noah is giving Tim money in exchange for the comics.

Therefore, the correct answer is C.

Question 18

Jody loaned her neighbor,Phil,her snow blower.Phil set it near his driveway and later accidentally ran over and destroyed it.In a suit to recover damages,Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

Accepted Answer

The answer of Jody loaned her neighbor,Phil,her snow blower.Phil set...

Question 19

Mega Corporation,the bailor,negotiates a bailment agreement with Huge Corporation,the bailee.Huge Corporation insists that an exculpatory clause be included in the terms and conditions of the bailment agreement.Later,Huge Corporation negligently (ordinary negligence,not gross negligence)damages the property that is the subject of the bailment.Most courts will allow Huge Corp.to stand behind its exculpatory clause and deny liability.

Accepted Answer

Many courts will enforce exculpatory clauses in bailment agreements as long as they are clear and unambiguous, not against public policy, and do not involve gross negligence or willful/wanton misconduct. In this case, the negligence of Huge Corporation is considered ordinary negligence and therefore, the exculpatory clause may be upheld and they may not be held liable for damages to the property.

Question 20

Ed wants to give Howard his old car,but Howard says he doesn't want it.Howard later reconsiders and tells Ed he does want the car.His previous repudiation means there is no gift,and Howard has no rights in the car.

Accepted Answer

A gift is not complete until it is accepted by the donee. Howard's initial repudiation of the gift meant that there was no acceptance, and therefore no gift. His later reconsideration did not create a new gift, as the original offer had already lapsed.

Quiz 43: Personal Property and Bailment