Question 1

What is a lien?

Accepted Answer

A lien is a charge against property to secure the payment of a debt.

Question 2

What level of care must a bailee exercise in a bailment for his own exclusive benefit?

Accepted Answer

If the bailment is solely for the benefit of the bailee,the bailee is expected to exercise a high degree of care.

Question 3

Marjorie leaves her bag in the checkroom of a hotel that has an attendant.When she returns a few hours later,she finds her bag missing,the attendant on another duty,and a new sign outside the checkroom stating "Goods left at owner's risk." Which of the following is true if Marjorie tries to recover damages from the hotel?

Accepted Answer

A bailee's ability to be relieved of liability for negligence is limited.Any disclaimer must be communicated to the bailor at the time of the bailment,not after it.

Question 4

In which of the following circumstances would the bailee be expected to exercise ordinary care?

Accepted Answer

When the bailment is a bailment for mutual benefit,the bailee is expected to exercise ordinary or reasonable care.

Question 5

Debbie gives Barry a Cartier watch as a gift for their engagement.A week later,Debbie suddenly leaves the country,leaving Barry a note that she cannot marry him.Assume that Debbie had no good reason to break off the engagement.Under the traditional rule:

Accepted Answer

The traditional rule applied in many states provides that if the donee breaks the engagement without legal justification or the engagement is broken by mutual consent,the donor will be able to recover the ring or other engagement gift.

Question 6

Why is a conditional gift considered to be an incomplete gift?

Accepted Answer

A conditional gift is not a completed gift.It may be revoked by the donor before the donee complies with the conditions.

Question 7

Chloe took her watch to a jeweler to have it repaired.While the jeweler had possession of the watch,a thief broke into the shop.The thief stole Chloe's watch and other jewelry pieces.Which of the following is true?

Accepted Answer

As a mutual benefit bailment,the jeweler is expected to exercise ordinary or reasonable care.

Question 8

Boris borrowed Martha's lawnmower to cut his grass.Boris will be liable for damage to the lawnmower if he:

Accepted Answer

The bailee is responsible for taking steps to protect the property during the time she has possession of it.If the bailee does not exercise proper care and the property is lost or damaged,the bailee is liable for negligence.

Question 9

A gift inter vivos is a gift:

Accepted Answer

A gift inter vivos is a gift between two living persons.

Question 10

The Uniform Transfers to Minors Act:

Accepted Answer

Under this Act,the transferor (the person who gives or otherwise transfers the property)delivers,pays,or assigns the property to,or registers the property with,a custodian who acts for the benefit of the minor.

Question 11

In a bailment,the bailee is liable for loss or damage to the bailed property while it is in the hands of the bailee:

Accepted Answer

If the bailee does not exercise proper care and the property is lost or damaged,the bailee is liable for negligence.

Question 12

Which of these is an essential element of a bailment?

Accepted Answer

One essential feature of a bailment is that the bailor owns personal property or holds the right to possess it.

Question 13

Which of the following characterizes the Uniform Transfers to Minors Act?

Accepted Answer

The Uniform Transfers to Minors Act defines a minor as any person under the age of 21.

Question 14

Arthur borrows a new pair of stereo speakers from Jim,his classmate,who stays in the campus hostel.After about a week,Arthur goes to the hostel and leaves the speakers with Ryan,who lives on the floor adjacent to Jim's,asking him to give them to Jim.Ryan forgets to do so and loses the speakers.In such a situation:

Accepted Answer

The bailee is liable to the bailor if he misdelivers the bailed property at the termination of the bailment.The property must be returned to the bailor or to someone specified by the bailor.

Question 15

What is the best possible solution for a bailee if there is a third-party,who claims to have superior rights to those of the bailor for possession of the bailed property?

Accepted Answer

The bailee may protect himself by bringing the third-party claimant into a lawsuit along with the bailor so that all the competing claims can be adjudicated by the court before the bailee releases the property.

Question 16

Carl gave his car to be serviced and washed at Harold's carwash.Unknown to either of them,Danny replaces the engine in the car with a new four-speed transmission.Danny now claims that the car belongs to him.Which of the following is true?

Accepted Answer

As a general rule,the owner of the original property becomes the owner of the improvements.

Question 17

You need to drive to Spokane to pick up your parents.Your car is being repaired and is therefore unavailable.You ask your good friend Ed if he will lend you his car.You take Ed's car and drive to Spokane.This is:

Accepted Answer

The bailment was made with the sole benefit for the person who borrowed Ed's car.

Question 18

What is the term for a voluntary transfer of property to a donee from the donor?

Accepted Answer

A gift is a voluntary transfer of property to the donee from the donor.

Question 19

Karen parked her car in a parking lot.She paid the $2 fee and left for several hours.She kept her keys and had access to her car during that time.When Karen returned,she saw that her car had been damaged.Has a bailment been created here?

Accepted Answer

There is no bailment here because the keys were with Karen and there was no attendant at the parking lot.Courts treat this situation as a lease of space rather than a bailment.

Question 20

Davidson borrowed a motorcycle from his friend,Harley.Harley did not know that the motorcycle had a defect that could cause the brakes to malfunction.While Davidson was riding the motorcycle,the brakes malfunctioned.This caused an accident and Davidson was injured.What duty of care,if any,did Harley owe to Davidson under the traditional common law rule?

Accepted Answer

If the bailment is for the bailee's sole benefit,the bailor is liable for injuries that result from defects in the bailed property only if the bailor knew about the defects and did not tell the bailee.

Quiz 23: Personal Property and Bailments