Question 1

Rhett works at Scarlett's Sandwich Café.After work,in the parking lot,Rhett finds a diamond ring lost by Thalia.Title to the ring is possessed by
A)Rhett.
B)Scarlett's.
C)Thalia.
D)the state.

Accepted Answer

The title to the ring is possessed by Thalia, the rightful owner of the ring. Just because Rhett found it does not give him ownership of it, and it does not belong to Scarlett's Sandwich Café either. If Thalia can be identified as the owner, the ring should be returned to her.

Question 2

Roy leaves his pick-up truck at Sam's Auto Service for an oil change.This is a bailment for
A)neither party's benefit.
B)the parties' mutual benefit.
C)the sole benefit of the bailee.
D)the sole benefit of the bailor.

Accepted Answer

A bailment for mutual benefit involves both parties benefiting from the arrangement. In this case, Roy benefits by having his truck serviced and Sam's Auto Service benefits by receiving payment for the service.

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
A)John and Kim as owners in common.
B)John because he made substantial improvements to it.
C)John because Kim claimed it only after John improved it.
D)Kim because John stole it.

Accepted Answer

John stole the bike and therefore does not have rightful ownership. Even if he made improvements to it, he still acquired the bike through illegal means. Kim is the rightful owner and should have the bike returned to her.

Question 4

Rikki sells shares in Sparkling Spa Company to Telsa.Rikki does not deliver the actual possession of the shares to Telsa,but gives her the key to a safety-deposit box in Unity Bank in which the stock certifi?cates are locked.Presenting the key is
A)accession.
B)constructive delivery.
C)confusion.
D)conversion.

Accepted Answer

Rikki has not physically delivered the shares but has given Telsa access to them through the safety-deposit box key. This is a form of constructive delivery where the symbol of the shares (the key) has been transferred to the buyer.

Question 5

Patty's parents give her a car as a gradua?tion present.While Patty spends the sum?mer in Europe,her friend Rita agrees to keep the car in her ga?rage.On Patty's part,this is acquisition of property by
A)bailment.
B)capture.
C)find.
D)gift.

Accepted Answer

Patty's acquisition of the car is through a gift from her parents, as it was given to her as a graduation present.

Question 6

With Meg's permission,Nell cuts the trees growing on Meg's land.Nell sells the timber to Olin,who converts it to a variety of wood products.Personal property includes
A)after the trees are cut,the timber and the wood products.
B)only,after the trees are cut and sold,the wood products.
C)only,after the trees are cut,the timber.
D)only the trees while they are growing on the land.

Accepted Answer

Personal property includes both the timber and the wood products since they are no longer attached to the land and can be bought and sold as goods. The trees while they were growing on the land were considered real property, but once they were cut down and became separate items, they became personal property.

Question 7

Luna leases a commercial building to operate Mom's Diner.During the term of the lease,Luna installs a new roof and a walk-in cooler,and repaves the parking lot.Most likely to meet the definition of a trade fix?ture is
A)the cooler.
B)the parking lot.
C)the roof.
D)none of these choices.

Accepted Answer

A trade fixture is an item that is used in a tenant's trade or business and can be removed without causing damage to the building. The cooler is likely to be considered a trade fixture because it is essential to Mom's Diner's business and can be removed without causing damage to the building. The roof and parking lot are permanent improvements to the building and would not be considered trade fixtures.

Question 8

Baboo rents a golf cart at Country Club Golf Course.Durwood,the attendant,gives Baboo key number "12" and points to the cart lot behind the clubhouse.This is
A)constructive delivery.
B)physical delivery.
C)not a delivery until Baboo turns the key and starts the cart.
D)no delivery.

Accepted Answer

Constructive delivery occurs when the means of obtaining possession, such as a key, is transferred, even if the physical item is not directly handed over.

Question 9

Fact Pattern 49-1B
Town Transport Company (TTC)agrees to pick up two containers for Unlimited Sales,Inc. ,and store their contents,to be delivered later.While TTC un?loads one container,the other disappears from TTC's loading dock.
-Refer to Fact Pattern 49-1B.These facts give rise to
A)a presumption of negligence by TTC.
B)a presumption of theft by a third party.
C)a presumption of theft by TTC.
D)Unlimited Sales's liability for the container's loss.

Accepted Answer

TTC had control over the containers, and the disappearance of one while under their care suggests negligence on their part.

Question 10

Veritable Company stores office furniture with Warehouse Storage,Inc.(WSI),under a contract that limits the warehouse company's liability for lost or damaged property to $500.The furniture is lost through no fault of WSI.The loss is most likely suffered by
A)Veritable and WSI.
B)Veritable only.
C)WSI only.
D)neither Veritable nor WSI.

Accepted Answer

The contract limits the liability of WSI to $500, therefore Veritable would only be able to recover up to $500 for their loss. WSI would not suffer any loss as they are protected by the contract.

Question 11

Faye owns the land on which Golden Spurs Ranch is situated,plus the ranch house,barn,and other structures permanently attached to the land.Faye's brother Huey owns everything else in the ranch's opera?tion-livestock,feed,and so on.The personal property is owned by
A)Faye and Huey.
B)Faye only.
C)Golden Spurs Ranch.
D)Huey only.

Accepted Answer

The personal property, such as livestock and feed, is owned by Huey only as stated in the scenario. Faye owns only the land and the structures permanently attached to it. Therefore, the personal property is not owned by Faye or the ranch itself, but by Huey.

Question 12

Uri borrows Vera's boat to enjoy with Wendell for a weekend.Uri runs the boat aground,damaging the hull.Liable for the cost of repairing the boat is
A)Uri and Vera equally.
B)Uri,Vera,and Webdell proportionately.
C)Uri only.
D)Vera only.

Accepted Answer

Uri is solely responsible for the damage he caused while operating Vera's boat. It is his duty to pay for any repair costs required to fix the hull. Wendell is not responsible for the damage as he was not operating the boat at the time. Vera is not liable because she did not cause the damage and was not operating the boat at the time.

Question 13

GR8 Stores,Inc. ,hires Haul-Way Company,a common carrier,to trans?port 500 Intelo Game consoles from San Diego to Phoenix.En route,a pothole causes the truck to crash,damaging the goods.Liability for the damage most likely rests with
A)GR8 Stores and Haul-Way.
B)GR8 Stores only.
C)Haul-Way only.
D)Intelo only.

Accepted Answer

Haul-Way is responsible as the common carrier for the transport of the goods and should have taken appropriate steps to ensure that the goods were transported safely. GR8 Stores may have some responsibility if they failed to package the goods properly, but ultimately the liability rests with the carrier, Haul-Way. Intelo is not responsible as they have no control over the transportation of the goods.

Question 14

Nouri is declared mentally incompetent.Omar,Nouri's friend,insists that she transfers her assets to him "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no
A)acceptance.
B)delivery.
C)donative intent.
D)relinquishment of control.

Accepted Answer

A court might conclude that the gift is not effective due to the lack of donative intent, as Nouri is declared mentally incompetent and may not have the capacity to form the intent to make a gift.

Question 15

Fact Pattern 49-1B
Town Transport Company (TTC)agrees to pick up two containers for Unlimited Sales,Inc. ,and store their contents,to be delivered later.While TTC un?loads one container,the other disappears from TTC's loading dock.
-Refer to Fact Pattern 49-1B.TTC can avoid liability
A)by proof that TTC was not negligent.
B)by proof that TTC's warehouse is located in a high-crime area.
C)by proof that Unlimited Sales was negligent in hiring TTC.
D)under any circumstances.

Accepted Answer

TTC can avoid liability by proving that they were not negligent in the disappearance of the container. Negligence is a legal concept that requires certain elements to be met, including a duty of care, a breach of that duty, causation, and damages. If TTC can show that they exercised reasonable care in unloading the first container and did everything within their power to prevent the theft of the second container, they may be able to avoid liability for the loss. The other options are not relevant to this situation - the location of TTC's warehouse and Unlimited Sales' hiring decisions do not affect TTC's liability for the loss.

Question 16

Bowie owns a 1957 Chevrolet coupe,which Danica customizes and details to Bowie's specifications.The car earns several awards at regional ve?hicle customizing competition shows.The result of Danica's efforts is
A)accession.
B)acquisition.
C)conversion.
D)dominion.

Accepted Answer

Accession refers to the process of adding value to property through labor or materials, which is what Danica did by customizing and detailing the car.

Question 17

Owen takes a Paisley-made pinball machine to Quality Games,Inc. ,for repair.Lacking certain parts,Quality ships the game to Regal Company.While in Regal's possession,the game is damaged.Quality can recover for the damage from
A)no one.
B)Owen.
C)Paisley.
D)Regal.

Accepted Answer

Quality Games, Inc. can recover for the damage from Regal Company, as Regal Company had possession of the pinball machine when it was damaged.

Question 18

Grain from Harvest Farms is wrongfully commingled with grain from Idyllic Fields,which obtains possession of all of the grain.This is
A)a bailment.
B)accession.
C)confusion.
D)production.

Accepted Answer

Confusion occurs when two or more fungible goods become mixed together in such a way that their identities cannot be distinguished. In this case, the grain from Harvest Farms and Idyllic Fields have become commingled, which means that their identities cannot be distinguished. As a result, confusion has occurred.

Question 19

Danielle delivers her dress to Every Day Cleaners for dry cleaning.Every Day's clerk promises that the dress will be ready within five business days.Danielle agrees to pay the charge for the cleaning when she picks up the dress.These parties have a contract.This is
A)an implied bailment.
B)an involuntary bailment.
C)an express bailment.
D)no bailment.

Accepted Answer

This is an express bailment because the terms of the agreement were discussed and agreed upon between Danielle and Every Day Cleaners, including the promise of when the dress will be ready and the agreement to pay for the cleaning when the dress is picked up.

Question 20

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town.Later,Ben no?tices rainwater collecting in the trailer and covers it with a tarp at a cost of $40.This cost is most likely borne by
A)Ben and Cody.
B)Ben only.
C)Cody only.
D)neither Ben nor Cody.

Accepted Answer

Since Cody is the owner of the trailer and is benefiting from its storage on Ben's property, it is Cody's responsibility to maintain and cover the trailer. Therefore, the cost of covering the trailer with a tarp is most likely borne by Cody only.

Quiz 49: A: Personal Property and Bailments

Rhett works at Scarlett's Sandwich Café.After work,in the parking lot,Rhett finds a diamond ring lost by Thalia.Title to the ring is possessed by

Roy leaves his pick-up truck at Sam's Auto Service for an oil change.This is a bailment for

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

Rikki sells shares in Sparkling Spa Company to Telsa.Rikki does not deliver the actual possession of the shares to Telsa,but gives her the key to a safety-deposit box in Unity Bank in which the stock certifi?cates are locked.Presenting the key is

Patty's parents give her a car as a gradua?tion present.While Patty spends the sum?mer in Europe,her friend Rita agrees to keep the car in her ga?rage.On Patty's part,this is acquisition of property by

With Meg's permission,Nell cuts the trees growing on Meg's land.Nell sells the timber to Olin,who converts it to a variety of wood products.Personal property includes

Luna leases a commercial building to operate Mom's Diner.During the term of the lease,Luna installs a new roof and a walk-in cooler,and repaves the parking lot.Most likely to meet the definition of a trade fix?ture is

Baboo rents a golf cart at Country Club Golf Course.Durwood,the attendant,gives Baboo key number "12" and points to the cart lot behind the clubhouse.This is

Fact Pattern 49-1B Town Transport Company (TTC) agrees to pick up two containers for Unlimited Sales,Inc. ,and store their contents,to be delivered later.While TTC un?loads one container,the other disappears from TTC's loading dock. -Refer to Fact Pattern 49-1B.These facts give rise to

Veritable Company stores office furniture with Warehouse Storage,Inc.(WSI) ,under a contract that limits the warehouse company's liability for lost or damaged property to $500.The furniture is lost through no fault of WSI.The loss is most likely suffered by

Faye owns the land on which Golden Spurs Ranch is situated,plus the ranch house,barn,and other structures permanently attached to the land.Faye's brother Huey owns everything else in the ranch's opera?tion-livestock,feed,and so on.The personal property is owned by

Uri borrows Vera's boat to enjoy with Wendell for a weekend.Uri runs the boat aground,damaging the hull.Liable for the cost of repairing the boat is

GR8 Stores,Inc. ,hires Haul-Way Company,a common carrier,to trans?port 500 Intelo Game consoles from San Diego to Phoenix.En route,a pothole causes the truck to crash,damaging the goods.Liability for the damage most likely rests with

Nouri is declared mentally incompetent.Omar,Nouri's friend,insists that she transfers her assets to him "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no

Fact Pattern 49-1B Town Transport Company (TTC) agrees to pick up two containers for Unlimited Sales,Inc. ,and store their contents,to be delivered later.While TTC un?loads one container,the other disappears from TTC's loading dock. -Refer to Fact Pattern 49-1B.TTC can avoid liability

Bowie owns a 1957 Chevrolet coupe,which Danica customizes and details to Bowie's specifications.The car earns several awards at regional ve?hicle customizing competition shows.The result of Danica's efforts is

Owen takes a Paisley-made pinball machine to Quality Games,Inc. ,for repair.Lacking certain parts,Quality ships the game to Regal Company.While in Regal's possession,the game is damaged.Quality can recover for the damage from

Grain from Harvest Farms is wrongfully commingled with grain from Idyllic Fields,which obtains possession of all of the grain.This is

Danielle delivers her dress to Every Day Cleaners for dry cleaning.Every Day's clerk promises that the dress will be ready within five business days.Danielle agrees to pay the charge for the cleaning when she picks up the dress.These parties have a contract.This is

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town.Later,Ben no?tices rainwater collecting in the trailer and covers it with a tarp at a cost of $40.This cost is most likely borne by