Question 1

A bailment is different from a gift because
A)a gift requires consideration, but a bailment does not.
B)a gift requires delivery, but a bailment does not.
C)in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee.
D)a gift is always a contract, but a bailment is generally not a contract.

Accepted Answer

In a bailment, possession of the property is transferred to the bailee, but ownership remains with the bailor. In contrast, with a gift, both possession and ownership must pass to the donee. Choices A, B, and D are incorrect statement about the differences between bailment and gift.

Question 2

Distinguish between a contract and a gift. Give an example of each.

Accepted Answer

The answer of Distinguish between a contract and a gift....

Question 3

Buck, fearing death from severe injuries suffered in a machinery accident, assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl, a friend, who gladly accepts. Buck ends up recovering from the injuries. Why must Pearl give the certificate of deposit back to Buck?
A)This type of gift is known as a gift causa mortis . It is a conditional gift which is conditioned on Buck actually dying. Because Buck recovered, the gift is automatically revoked.
B)This is an inter vivos gift because Buck was still alive when the gift was made. Any inter vivos gift is revocable because there is no consideration to make Buck's delivery of the certificate binding under contract law.
C)This is an inter vivos gift and due to state laws, gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute.
D)This gift is an ordinary gift, but it is revocable because we don't know if the certificate of deposit has matured or not.

Accepted Answer

The gift given by Buck to Pearl is a gift causa mortis, which is a conditional gift that only takes effect if Buck actually dies. Because Buck recovered from his injuries, the gift is automatically revoked, and Pearl must return the certificate of deposit to Buck.

Question 4

Sandra and Joe own a hobby farm as tenants in common. They also own a vacation home as joint tenants. What is the difference between the tenancy in common and joint tenancy?

Accepted Answer

The answer of Sandra and Joe own a hobby farm...

Question 5

Lacy set her textbook under her chair in her business law class and then forgot to take it with her when she left the classroom. A janitor later discovered the textbook and gave it to the Dean of the Business College. In this situation,
A)the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.
B)the college is a bailee by agreement because holding items in a lost and found box is generally part of the college-student agreement when the student enrolls for classes.
C)the college is responsible for the discovered textbook because in this situation, the college is subject to implied warranties unless the college has disclaimed such warranties in the student handbook.
D)this is a bailment for the sole benefit of the bailee.

Accepted Answer

The college becomes a constructive bailee when the janitor, an employee of the college, takes possession of Lacy's forgotten textbook, obligating the college to take care of the textbook and return it to Lacy. The college is liable for any harm to the textbook until it is returned.

Question 6

Bertha, from Chicago, traveled to San Francisco to attend a conference. Her sister, Martha, lives in San Francisco and consequently, Bertha made arrangements to spend a couple of days with her sister. The next morning sitting at the breakfast table, Bertha realizes that she packed a mismatched pair of shoes (one is black and the other is blue). Luckily, Martha wears the same size of shoes and lends Bertha a pair of black leather pumps. During the day, the shoes are damaged while Bertha is wearing them. Bertha's duty of care would be a duty of
A)extraordinary care, because this is a bailment for the sole benefit of the bailee.
B)ordinary care, because this is a bailment with both parties receiving mutual benefits.
C)only slight care, because this is a bailment for the sole benefit of the bailor.
D)none, as the sisters would share without condition.

Accepted Answer

In this scenario, Bertha borrowing shoes from Martha constitutes a bailment for the sole benefit of the bailee (Bertha), as only Bertha benefits from using Martha's shoes. Therefore, Bertha owes a duty of extraordinary care towards the borrowed property.

Question 7

The Rameys are selling their home. They did not set forth in the sales agreement whether the washer and dryer, the draperies, and a cherry corner cabinet that was in the dining room were to be included in the sale or whether they were planning to take these items with them. The buyers are claiming these items are fixtures and should stay with the house. The Rameys are claiming they are movable goods and they should not be part of the real estate that was sold. Define "fixtures," identify the tests used to determine whether an item is a fixture, and explain whether you think each of the contested items is a fixture and why or why not.

Accepted Answer

The answer of The Rameys are selling their home. They...

Question 8

Hanna intends to give her granddaughter, Melodee, her antique hat pin. This heirloom has been kept under lock and key in the wall vault in the library of Hanna's house in Virginia. The hat pin is currently the only item in the vault. When Hanna is visiting Melodee in Connecticut, Hanna gives Melodee the only key to the vault. Melodee is grateful for the present and excitedly accepts. In this situation has there been a completed gift?
A)No. There has been no physical delivery of the hat pin.
B)Yes. There has been physical delivery of the hat pin.
C)No. There has only been constructive delivery of the hat pin.
D)Yes. There has been constructive delivery of the hat pin.

Accepted Answer

In this scenario, there has been a constructive delivery of the hat pin. Constructive delivery occurs when the physical handing over of the item is impractical, but something representing the item (like the key to the vault where the item is securely kept) is delivered instead. Since Hanna gave Melodee the key to the vault where the hat pin is stored, this act constitutes constructive delivery of the hat pin, completing the gift.

Question 9

Select the correct answer:
A)Rosie rents a locker at the airport, and she puts a bag in the locker. Rosie keeps the locker key. In this case, the bag has been delivered to and accepted by the airport. The airport is a bailee.
B)Hill rents a boat to Dan. The boat is located at a lake 30 miles away. Hill gives Dan keys to the boat. Dan drives to the lake and takes possession of the boat. In this case, the boat has been delivered to and accepted by Dan, and Dan is a bailee.
C)Unknown to Lon, Jeff left a bike at Lon's house. Lon has not found the bike, and he is not likely to find it because Jeff left the bike under the front porch. In this case, Lon is a bailee of the bike.
D)Ken parked a car in a self-service lot, and Ken kept the keys. The parking lot is a bailee.

Accepted Answer

In B, the boat has been delivered to and accepted by Dan when he takes possession of it with the keys given by Hill, making Dan a bailee. In the other options, the elements of delivery and acceptance necessary for a bailment relationship are not clearly met.

Question 10

Beth owned an original U.S. flag. She had previously loaned the flag to Ross, a lawyer, so that he could display the flag on the wall behind his office desk. One day while visiting Ross in his office and admiring the flag, Beth said to Ross, "You are so fond of that flag, I would like you to have it!" Ross responded with a gracious "thank you." In this situation
A)Beth has not made a valid, binding gift of the flag because gifts are never binding and can always be revoked by the donor.
B)Beth has not made a valid, binding gift of the flag because the donor must deliver the property to the donee, which was not done here.
C)Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for Ross's legal services.
D)Beth has made a valid, binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag.

Accepted Answer

The essential elements of a valid gift are present in this situation- there is an intention on the part of the donor to transfer present ownership of the property to the donee, and there is acceptance by the donee. The fact that Beth had loaned the flag to Ross previously does not negate the validity of her gift. Additionally, there is no indication that the gift was given in exchange for Ross's legal services, so choice C is incorrect. Finally, while gifts can sometimes be revoked, that is not the case here since there is no evidence that Beth intended to revoke the gift at any point. Therefore, choice A is incorrect.

Question 11

The city of Richmond needs land owned by the Neelans to expand a middle school. The Neelans do not want to sell. Discuss what course of action the city can take and the basis for this action.

Accepted Answer

The answer of The city of Richmond needs land owned...

Question 12

Discuss whether or not the following common transactions are bailments and if so, who the bailor/bailee is, and what type of bailment is involved. 
a.Renting storage space in Farmer's Frank's huge barn to keep your classic car out of the snow and ice of winter. The rental agreement provides for $100/month rent and Farmer Frank has the only access to the barn. 
b.Hiring a moving company to move your belongings to a new residence. 
c. Loaning your lawn mower to your neighbor. 
 d.Parking your car in a "park and lock" parking lot.

Accepted Answer

The answer of Discuss whether or not the following common...

Question 13

Which of the following would NOT be considered personal property?
A)collection of vinyl record albums
B)field of soybeans
C)antique quilt
D)None of these are correct.

Accepted Answer

A field of soybeans would be considered real property, as it is a piece of land with growing crops that are typically considered part of the land itself rather than separate personal property. The other options listed are all examples of personal property.

Question 14

Bruce tells his son, "You can have my 1990 truck, but if your grades fall, I'm taking it back." Bruce
A)has made no gift.
B)has made a "revocable gift," which is effective as a gift as long as the stated condition is met.
C)intended to transfer ownership.
D)has made a constructive gift.

Accepted Answer

The answer of Bruce tells his son, "You can have...

Question 15

Mitch takes his two best suits to Quality Cleaners and receives a ticket as a receipt. Quality tells Mitch his suits will be cleaned and will be ready to be picked up on Monday. Another customer overhears the exchange and early on Monday goes to Quality, convinces the worker he is Mitch but that he has lost his receipt. He identifies and retrieves the suits, which happen to fit him perfectly too. Quality Cleaners
A)is strictly liable to Mitch for the suits.
B)is liable to Mitch only if Mitch can prove Quality was grossly negligent.
C)has no liability unless Mitch proves Quality did not use ordinary care.
D)will avoid liability if the receipt contained an exculpatory clause excluding gross negligence.

Accepted Answer

Quality Cleaners had a duty to return the suits to the rightful owner, which was Mitch. The fact that another customer was able to falsely claim to be Mitch and retrieve the suits does not absolve Quality Cleaners of their responsibility. Therefore, Quality Cleaners is strictly liable to Mitch for the loss of his suits.

Question 16

Discuss the tenant's and the landlord's basic duties under a landlord-tenant relationship.

Accepted Answer

The answer of Discuss the tenant's and the landlord's basic...

Question 17

The element that distinguishes a contract from a gift is
A)performance of the offeror's or donor's promise.
B)the element of consideration which is present in a contract, but not in a gift.
C)whether or not the offeree or donee accepts the offer.
D)whether or not the subject of the gift or contract is illegal.

Accepted Answer

The element of consideration, which is the exchange of something of value between the parties, is present in a contract but not in a gift. In a gift, the giver voluntarily transfers ownership of the property to the recipient without receiving anything of value in return. In a contract, both parties must give and receive something of value for the agreement to be legally binding. Without consideration, a promise is not legally enforceable as a contract. The other options are not the distinguishing factor between a gift and a contract.

Question 18

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon. This is a(n)
A)testamentary gift.
B)inter vivos gift.
C)executed gift.
D)gift causa mortis .

Accepted Answer

The gift of the pocket watch to Nurse Nadene was made in contemplation of George's imminent death, and therefore it qualifies as a gift causa mortis.

Quiz 25: Property

A bailment is different from a gift because

Distinguish between a contract and a gift. Give an example of each.

Sandra and Joe own a hobby farm as tenants in common. They also own a vacation home as joint tenants. What is the difference between the tenancy in common and joint tenancy?

Lacy set her textbook under her chair in her business law class and then forgot to take it with her when she left the classroom. A janitor later discovered the textbook and gave it to the Dean of the Business College. In this situation,

Select the correct answer:

The city of Richmond needs land owned by the Neelans to expand a middle school. The Neelans do not want to sell. Discuss what course of action the city can take and the basis for this action.

Which of the following would NOT be considered personal property?

Bruce tells his son, "You can have my 1990 truck, but if your grades fall, I'm taking it back." Bruce

Discuss the tenant's and the landlord's basic duties under a landlord-tenant relationship.

The element that distinguishes a contract from a gift is

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon. This is a(n)