Question 1

Ruby is young and healthy when she gives Pearl a prize-winning horse. The gift meets all the requirements to be effective. This is a gift

Accepted Answer

An inter vivos gift is a gift made during the donor's lifetime, which is the case with Ruby giving Pearl a prize-winning horse while Ruby is young and healthy. A causa mortis gift is a gift made in anticipation of impending death; by accession means acquiring ownership of property that was already owned by someone else through natural or artificial means, such as by inheritance; by confusion refers to a situation in which individuals mix up their property.

Question 2

Inadvertently, Rachel leaves her backpack at Chat n' Coffee when she stops for an hour of coffee and Facebook. The backpack is

Accepted Answer

The backpack is considered mislaid property because Rachel intentionally placed it somewhere (at Chat n' Coffee) and then forgot to take it with her.

Question 3

John steals an old, battered bicycle that is parked, unlocked, in front of a convenience store. He repairs, paints, and replac?es parts on the bike un?til it is like new. The original owner, Kim, claims the bike. The bike be?longs to

Accepted Answer

John stole the bicycle from Kim, which means she is the rightful owner. Any improvements or repairs made by John do not change the fact that he obtained the bicycle illegally. Therefore, Kim is the rightful owner and John has no claim to the bicycle.

Question 4

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 possession, as he physically obtained and controlled the animal. A bailment involves transferring possession of an item to someone else while still retaining ownership, confusion refers to a situation where it is unclear who owns a specific item, and production typically involves creating or manufacturing something from raw materials.

Question 5

Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance, this policy is an arrangement for

Accepted Answer

Fire insurance policies, like all insurance policies, are meant to transfer and allocate risk from the policyholder to the insurance company. By obtaining this policy, Bret is shifting the risk of his rental house being damaged by fire to Continental Insurance Company.

Question 6

Ira is declared mentally incompetent. Jay, Ira's son, is named his guard?ian. At Jay's insistence, Ira transfers his assets to Jay "for safekeeping." This gift may not be effective on the ground that there was no

Accepted Answer

The gift may not be effective because there was no donative intent. Ira, being declared mentally incompetent, may not have the capacity to form the necessary intent to make a gift.

Question 7

Mallory's sister gives Mallory a leather working kit for Christmas. Mallory uses the kit to make a saddle. Mallory's acquisition of the saddle is by

Accepted Answer

Mallory made the saddle using the leather working kit as a tool, so she produced the saddle.

Question 8

Wally asks Eddie if he can store his furniture in Eddie's garage while he serves a tour of duty with the U.S. Marines Corps. Eddie agrees. This is

Accepted Answer

This scenario describes a bailment, which is the temporary transfer of possession of personal property from one person (the bailor) to another person (the bailee) for a specific purpose. In this case, Wally is the bailor and Eddie is the bailee, and the purpose is to store Wally's furniture while he is away.

Question 9

Shingle & Tile Roofing Contractor, LLC, obtains an insurance policy against liability for injuries or losses sustained by employees during the course of their employment. The policy covers claims not covered by workers' compensation insurance. This is

Accepted Answer

The policy obtained by Shingle & Tile Roofing Contractor, LLC is employer's liability insurance, which covers claims not covered by workers' compensation insurance for injuries or losses sustained by employees during the course of their employment.

Question 10

Doctors Medical Associates obtains an insurance policy that protects its members against negligence claims by their pa?tients. This is

Accepted Answer

Malpractice insurance specifically protects professionals from legal liability arising from negligent acts or omissions in providing professional services.

Question 11

Venerable Company leases office furniture to Design Architects, Inc., under a contract that states, "Bailee agrees to pay Bailor for any damage to the furniture." During the lease, while the furniture is in Design's possession, it is stained by inks used in computer printers, copiers, fax machines, and so on. Most likely liable for the damage is

Accepted Answer

Design, the bailee, is responsible for the damage to the furniture while it is in their possession, as stated in the contract. "Bailor" refers to Venerable, the company leasing the furniture, so they are not liable for the damage unless it was caused by a defect in the furniture itself. As for the option of "no one" being liable, that is not a possibility because the contract specifically states that the bailee (Design) is responsible for any damage.

Question 12

Grace applies for a homeowners' insurance policy on her house with Heroic Insurance Company through Ian, a broker. In this transaction, Ian is

Accepted Answer

Ian is acting as Grace's agent in helping her find and secure a homeowners' insurance policy. While he may be paid by Heroic Insurance Company for facilitating the transaction, his primary loyalty is to Grace as his client. Therefore, he cannot be considered an agent of Heroic Insurance Company in this instance.

Question 13

Fred and Joanne are married. Joanne purchases a car. Fred and Joanne each technically own an undivided one-half interest in the car. This is

Accepted Answer

The answer of Fred and Joanne are married. Joanne purchases...

Question 14

Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Eton, but gives him the key to a safety-deposit box in First State Bank in which the stock certifi?cates are locked. Presenting the key is

Accepted Answer

This is constructive delivery because Clancy has given Eton access to the actual possession of the shares by giving him the key to the safety-deposit box. While the stock certificates themselves are not physically delivered, the key to the box serves as a means of access to the shares.

Question 15

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

Accepted Answer

This is a bailment because Victor is leaving his vehicle with Gordo's Auto Service for them to perform a service (oil change), but he still retains ownership of the vehicle. Gordo's Auto Service has a duty to take care of the vehicle while it is in their possession.

Question 16

Stan rents a safe-deposit box at Main Street Bank under a contract that gives Stan exclusive knowledge and control over its contents. This is

Accepted Answer

This is a bailment, as Stan has exclusive control over the contents of the safe-deposit box but the bank has a duty to safekeep the box itself.

Question 17

Early one morning, Tab agrees to lend his bike to Sheila, who promises to return it in the evening. Because there is no consideration, there is no contract. This is

Accepted Answer

The answer of Early one morning, Tab agrees to lend...

Question 18

Uri discovers a boat adrift, and retrieves and anchors it. The boat features a number on its side and other evidence pointing to its owner, Vera. This is

Accepted Answer

The answer of Uri discovers a boat adrift, and retrieves...

Question 19

Gilbert finds an iPad on the counter at Starbucks. He takes the iPad to the police station's lost and found desk. The officer at the desk tells Gilbert that if the iPad is not claimed in a certain amount of time, Gilbert can obtain title to it. This is an example of acquiring possession by

Accepted Answer

This is an example of acquiring possession by an estray statute, which allows finders to obtain title to property that has been abandoned or lost if the owner cannot be identified or located within a certain period of time.

Question 20

Rocco gives Sequoia a smartphone as a gift. Sequoia develops a new game app for the phone. She obtains intellectual property protection, and forms Titan Games, LLC, to make and market the game. Sequoia's ac?quisition of the game is by

Accepted Answer

Sequoia's acquisition of the game is by production, as she created it herself through her own efforts and resources, including the intellectual property protection she obtained. The fact that Rocco gave her the smartphone as a gift does not affect the ownership of the game itself. Accession refers to the situation where someone gains ownership of an item by adding value to or incorporating their own materials into it. Confusion refers to a situation where two or more people have commingled their property in such a way that it is difficult to distinguish who owns what.

Quiz 23: Personal Property, Bailments, and Insurance