Question 1

Insurance protects a business from:

Accepted Answer

Insurance can protect a business from any potential liability, including tort liability, strict liability, and negligence. By having the appropriate insurance coverage, a business can be financially protected in the event of a lawsuit or other costly legal issue.

Question 2

Larry leaves his hat under the seat at the movie theater.Is this a bailment?

Accepted Answer

A bailment is a legal relationship where one party (the bailor) gives possession of personal property to another party (the bailee), with the understanding that the bailee will return the property to the bailor or dispose of it in a certain way. In this case, Larry left his hat under the seat at the theater, which could be considered a bailment if the theater manager finds the hat and takes possession of it with the intention of returning it to Larry. Therefore, choice C is the best answer.

Question 3

Name and briefly describe the special features or extraordinary duties of five special types of bailments.

Accepted Answer

The answer of Name and briefly describe the special features...

Question 4

A bill of lading serves as:

Accepted Answer

A bill of lading is a legal document that serves as proof of ownership of goods being shipped, and it also serves as a document of title that can be traded or sold. It includes the details of the shipment, the names of the parties involved, and the terms of the contract between the shipper and carrier. It is not a receipt for storage of goods, a warehouser's lien, or evidence of insurance on the goods covered by the document.

Question 5

Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers.Who owns the grain? Can Farmer Brown get his grain back? Explain.

Accepted Answer

The answer of Farmer Brown brings his crop of wheat...

Question 6

If Jim,Ken,and Lee each deposit 10,000 bushels of wheat in a grain elevator,they would own one-third of the remaining mixture by:

Accepted Answer

The correct answer is D) confusion. This legal principle applies when goods are commingled to the extent that they cannot be distinguished from one another, and each contributor owns a proportionate share of the mixed goods. In this scenario, Jim, Ken, and Lee each deposit an equal amount of wheat into a common storage, making their individual contributions indistinguishable from one another, and thus each owns one-third of the total mixture.

Question 7

Why are delivery and acceptance both necessary to a valid gift? Explain.

Accepted Answer

The answer of Why are delivery and acceptance both necessary...

Question 8

Taylor Corp.rents a warehouse where it conducts a small manufacturing operation.As a condition of its lease,it pays a fire insurance premium.Taylor needs more room and rents larger quarters.Taylor then subleases its old warehouse to Mack.Taylor also assigns its already-paid insurance policy to Mack.This action is:

Accepted Answer

Assigning an insurance policy to another party without the insurer's consent is generally not binding on the insurer. Insurance policies often include clauses that restrict the policyholder's ability to transfer the policy without the insurer's approval, primarily because the risk profile of the new insured might be significantly different from that of the original policyholder.

Question 9

Marilyn brought her $300 silk dress to University Dry Cleaners to be cleaned.On the back of the ticket she received in exchange for the dress was written,"liability limited to five times the cost of cleaning." Marilyn's dress was lost and University now claims it owes her only $50,five times the cost of cleaning.Is that true?

Accepted Answer

The limitation of liability was not communicated to Marilyn before she gave her dress to University Dry Cleaners. Therefore, the cleaner cannot invoke the clause limiting their liability to only $50.

Question 10

Lynne took her earrings off at Marcia's beauty parlor and put them on the counter.She left the shop without remembering the earrings.Betty finds them and wants to keep them.Can she?

Accepted Answer

Since the earrings were left at a business establishment, Marcia would have the first claim to them if the true owner is not discovered. Betty does not have the right to keep them without attempting to return them to the owner or turning them over to Marcia.

Question 11

In determining whether an item is a fixture,which of the following will be considered?

Accepted Answer

All of these factors may be considered in determining whether an item is a fixture. The method of attachment to the building or land, the potential for harm to the building upon removal, and the typical inclusion of such an item in a property of that type are all relevant factors.

Question 12

A gift causa mortis is contingent upon:

Accepted Answer

A gift causa mortis is made in anticipation of the donor's imminent death, and is contingent upon the donee surviving the donor. If the donee dies before the donor, the gift is revoked. Therefore, the correct choice is A, which states that the gift is contingent upon the donee's surviving the donor.

Question 13

Explain the difference between lost,mislaid,and abandoned property and who has rights to it.

Accepted Answer

The answer of Explain the difference between lost,mislaid,and abandoned property...

Question 14

Mary cleaned her dorm room in the spring and left a pile of books in Sara's room.Mary told everybody that the books were a gift to Sara.Does Sara have to dispose of them?

Accepted Answer

Sara does not have to dispose of the books because she did not accept them. Acceptance is a necessary element for a gift to be legally binding.

Question 15

A person,other than a collecting bank or other intermediary,who negotiates a document of title for value:

Accepted Answer

A person who negotiates a document of title for value warrants to her immediate purchaser that the document is genuine, ensuring the authenticity of the document at the time of negotiation.

Question 16

An insurable interest in property must exist:

Accepted Answer

Insurable interest in property insurance must exist at the time of the loss to ensure that the insured has a legitimate interest in the preservation of the property and stands to suffer a financial loss if the property is damaged or destroyed.

Question 17

Mark wants to give Susan his car.He can effectively "deliver" it by:

Accepted Answer

The most effective way for Mark to "deliver" his car to Susan is by giving her the keys. This physically transfers ownership of the car and allows her to use it without any further actions needed from Mark. Giving a written statement or telling his wife does not transfer ownership, and letting Susan drive it can be seen as a temporary use rather than a transfer of ownership.

Question 18

Darinel insures a $150,000 building with Morales Insurance Co.for $50,000 and with Washington Insurance Co.for $100,000.The building is partially destroyed by fire,causing $25,000 in damages.Darinel will be able to collect:

Accepted Answer

Darinel can collect one-third of the damages from Morales Insurance Co. because Morales covers one-third of the total insurance ($50,000 out of $150,000).

Question 19

Which of the following is not a function of a bill of lading?

Accepted Answer

A bill of lading serves as a receipt for goods, is evidence of the contract of carriage, and serves as a document of title. However, it does not serve as evidence that the goods specified in the bill of lading are stored in the insured building of the issuer.

Question 20

Skylar rents a car for her business trip.What is the relationship between Skylar and the car rental company?

Accepted Answer

In this situation, Skylar is renting a car for her own benefit (as she needs it for her business trip) and is also paying the car rental company for their services. This denotes a bailment for mutual benefit, where both parties are benefiting from the transaction.

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