Question 1

A bailment may be made of either real or personal property.

Accepted Answer

A bailment involves only personal property, as it is the legal relationship that arises when one person (the bailor) gives possession of movable personal property to another (the bailee) under an agreement that the property will be returned or otherwise disposed of according to the terms of the agreement. Real property, such as land or buildings, cannot be subject to bailment.

Question 2

A bailee has the exclusive right to possess the property for the term of the bailment.

Accepted Answer

A bailee is granted with the exclusive right to possess the property during the bailment period. This means that the bailor cannot demand the return of the property until the bailment period is over or unless there is a breach of the conditions of the bailment agreement.

Question 3

Although Mackenzie has paid her annual insurance premium,her insurance company sends her a written notification that it is cancelling her policy,which should have had four more months of coverage.The insurer need do nothing more to effect the cancellation.

Accepted Answer

The insurer must provide a valid reason for the cancellation, such as non-payment of premiums (not applicable in this case), fraud, or material misrepresentation, and typically must also provide notice within a specific time frame as required by state laws or the policy terms before the cancellation can take effect.

Question 4

A thief stole Phoebe's car and installed new stereo speakers in it.Later the police caught the thief and returned the car to Phoebe.Phoebe now owns the speakers by accession.

Accepted Answer

According to the principle of accession, when a person adds value to someone else's property or object, they become the rightful owner of the added value. In this case, the thief installed new stereo speakers in Phoebe's car, which means that Phoebe now owns the speakers by accession.

Question 5

A straight bill of lading under which goods are deliverable only to a person named in the bill may be transferred by assignment or negotiation.

Accepted Answer

A straight bill of lading is not negotiable and can only be delivered to the named consignee or their authorized representative. It cannot be assigned or transferred to another party through negotiation.

Question 6

A trade fixture is not intended to become part of the realty.

Accepted Answer

A trade fixture is personal property that is attached or installed in a commercial property for the purpose of conducting business. It is not intended to become part of the realty, unlike a building or a land.

Question 7

Clark receives a telephone call from his Aunt Mia in which Mia says she has decided to give Clark her pet python as a gift.Clark may refuse to accept,making the intended gift invalid.

Accepted Answer

According to the law of gift, the recipient has the right to refuse the gift which makes the intended gift invalid.

Question 8

The Uniform Commercial Code covers all the issues involving ownership and transfer of title to personal property.

Accepted Answer

The Uniform Commercial Code (UCC) covers many issues involving commercial transactions for personal property but does not address all issues related to ownership and transfer of title to personal property, such as real estate transactions or certain aspects of intellectual property.

Question 9

An heir of a person who dies receives title to the property of the decedent by reason of a gift.

Accepted Answer

An heir receives title to the property of the decedent by reason of inheritance, not a gift.

Question 10

Rights represented by a stock certificate or a promissory note are examples of intangible property.

Accepted Answer

Stock certificates and promissory notes represent ownership or debt, but they do not have a physical existence and are thus considered intangible property.

Question 11

An example of a bailment for the bailor's sole benefit is when Sherri,without compensation,lends her Cappuccino maker to Ed for Ed's party.

Accepted Answer

A bailment for the bailor's sole benefit means that the bailor does not receive any benefit from the bailee's use of the bailed property. In this example, Ed is receiving a benefit from the use of Sherri's Cappuccino maker for his party, so it is not a bailment for Sherri's sole benefit.

Question 12

Zoe's loan of her lawnmower to her neighbor cannot be a bailment if Zoe receives no compensation for the use.

Accepted Answer

A bailment occurs when personal property is transferred from one person (the bailor) to another person (the bailee) for a specific purpose and for a specific period of time. Compensation is not a necessary element for a bailment to exist. Therefore, even if Zoe does not receive any compensation for loaning her lawnmower to her neighbor, it can still be considered a bailment.

Question 13

Lessees of property and holders of security interests have insurable interests in property.

Accepted Answer

Lessees and holders of security interests have legal and financial rights in the property which give them insurable interests.

Question 14

If Harold buys a tomato plant,he owns the tomatoes produced by the plant based on confusion.

Accepted Answer

Owning a tomato plant does not necessarily equate to owning the tomatoes produced by the plant. It depends on the specific agreement or understanding between the buyer and the seller or the owner and the caretaker of the plant.

Question 15

Property insurance policies are freely assignable before,but not after,a loss occurs.

Accepted Answer

Property insurance policies typically require the insurer's consent before the policy can be assigned to another party, regardless of whether a loss has occurred. This is because the insurer's risk assessment is based on the original insured's characteristics and circumstances.

Question 16

Shea put a box of her old clothes in the bedroom of her roommate.The roommate now owns the clothes,because they are presumed to be a gift.

Accepted Answer

Simply placing a box of clothes in another person's room does not necessarily indicate a gift. Without clear communication or agreement, it cannot be presumed that the roommate owns the clothes.

Question 17

A bailee is required to return the identical goods bailed,in the same condition as when the bailee received them.

Accepted Answer

A bailee must return the goods in the same condition as received, except for normal wear and tear or changes agreed upon by the bailor and bailee. However, in some cases like fungible goods, identical goods rather than the specific ones bailed can be returned.

Question 18

The same item may be the object of both tangible and intangible property rights.

Accepted Answer

This is true, for example, a person may own a physical book as tangible property, but also have intellectual property rights over the written content within the book as an intangible property right.

Question 19

Levi finds a cell phone on a park bench at Wild and Crazy rollercoaster park.Levi cannot keep the cell phone,because it is mislaid property.

Accepted Answer

According to the legal definition of mislaid property, it is something that is intentionally placed by the owner and then forgotten. In such cases, the finder does not have the right to keep the property and must turn it over to the owner or to the authorities. Therefore, Levi cannot keep the cell phone he found on the park bench because it is considered mislaid property.

Question 20

The transfer of personal property involves formalities not required in the transfer of real property.

Accepted Answer

The transfer of real property involves more formalities such as a deed, while the transfer of personal property may simply require a bill of sale or other basic documentation.

Quiz 47: Introduction to Property,property Insurance,bailments,and Documents of Title