Question 1

Rob steals a damaged, broken bike that is parked, unlocked, in a bike rack. He repairs, paints, and replaces parts on the bike until it is like new. The original owner, Sue, then claims it. The bike belongs to​
A) ​Rob and Sue as co-owners.
B) ​Rob because he improved it substantially.
C) ​the state under an estray statute.
D) ​Sue because Rob stole it.

Accepted Answer

Rob did not have the legal right to take Sue's bike, even though it was unlocked and damaged. Therefore, Sue is the rightful owner of the bike, regardless of any improvements made by Rob.

Question 2

Ester sells stock in Fast Food Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is​
A) ​incomplete delivery.
B) ​constructive delivery.
C) ​accession.
D) ​conversion.

Accepted Answer

This is constructive delivery, as Ester has given Gayle access to the certificates, even though she has not physically delivered them.

Question 3

Neal allows Owen to store his trailer on Neal's property for $20 a month while Owen is out of town on a job for Plain States Construction, his employer. The bailor is​
A) ​Neal.
B) ​Owen.
C) ​Plain States.
D) ​the trailer.

Accepted Answer

The bailor is the person who delivers the property to another for some purpose, in this case, Owen, who is storing his trailer on Neal's property.

Question 4

Dick buys a fishing license and goes fishing. He catches a rainbow trout, cleans it, cooks it, and eats it. Dick's acquisition of the trout is by​
A) ​possession.
B) ​accession.
C) ​preparation.
D) ​production.

Accepted Answer

Dick's acquisition of the trout is by possession because he physically caught and took control of the fish.

Question 5

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift​
A) ​inter vivos.
B) ​causa mortis.
C) ​by accession.
D) ​by production.

Accepted Answer

An inter vivos gift is a gift given during the lifetime of the person making the gift (also known as the donor). In this scenario, Angela is giving the horse to Brianna while still alive, and Brianna is accepting the gift, making it an inter vivos gift.

Question 6

Perry gives Rachel a phone as a gift. Rachel develops a new app for the phone, obtains intellectual property protection, and forms QuikApps, LLC, to sell it. Rachel's acquisition of the app is by​
A) ​possession.
B) ​a bailment.
C) ​gift.
D) ​production.

Accepted Answer

Rachel's acquisition of the app is by production because she developed the app herself, which means she created it through her own efforts and skills.

Question 7

Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is​
A) ​accession.
B) ​confusion.
C) ​conversion.
D) ​a bailment.

Accepted Answer

This situation describes "confusion," where goods are mixed together such that they cannot be distinguished from each other.

Question 8

Belle finds a tablet on the counter at Café Latte. She takes it to a police station where she is told that if it is not claimed by a certain time, she can obtain title to it. This is acquiring possession by​
A) ​an estray statute.
B) ​gift.
C) ​confusion.
D) ​production.

Accepted Answer

"Acquiring possession by an estray statute" refers to the legal principle that allows individuals who find lost or abandoned property to claim ownership of it after a certain period of time has passed, as regulated by local laws. This seems to be the case with Belle finding the tablet at Café Latte and being told that she can obtain title to it if it is not claimed by a certain time at the police station.

Question 9

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by​
A) ​James.
B) ​Kay's.
C) ​Lani.
D) ​the state.

Accepted Answer

The possession of the diamond ring does not transfer ownership to James. Lani is still considered the rightful owner of the ring, therefore the title is possessed by Lani.

Question 10

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is​
A) ​a bailment.
B) ​a gift.
C) ​confusion.
D) ​abandoned property.

Accepted Answer

Enrico has left his vehicle with Gordo's Auto Service for a specific purpose (an oil change) and expects to get it back after the service is completed. This is a bailment, which is a legal relationship where one person (the bailor) delivers personal property to another person (the bailee) for a specific purpose. The bailee has a duty to take reasonable care of the property while it is in their possession and to return it to the bailor when the purpose of the bailment is fulfilled.

Question 11

In contemplation of death during risky surgery, Ben, a guitarist, gives his guitars to Cathy. The surgery is successful, and Ben does not die. The gift of the guitars is​
A) ​not revoked because it was a gift causa mortis.
B) ​not revoked because it was a gift inter vivos.
C) ​revoked because it was a gift causa mortis.
D) ​revoked because it was a gift inter vivos.

Accepted Answer

A gift causa mortis is a gift made in contemplation of imminent death. If the donor survives, the gift is automatically revoked.

Question 12

Gina buys silver to make jewelry. The finished products are sold to Hand Crafts, a shop that sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to​
A) ​purchase it.
B) ​add value to it.
C) ​make it.
D) ​receive it as a gift.

Accepted Answer

The question is asking about the most common way to acquire personal property, and purchasing is the most common way for individuals to obtain personal property. While adding value and making something can also result in acquiring personal property, these methods are typically less common than simply purchasing the item. Receiving something as a gift is also a method of acquiring personal property, but it is not as common as purchasing. Therefore, the best choice is A.

Question 13

Inadvertently, Ralph leaves his backpack at Sushi Café when he stops for lunch. The backpack is​
A) ​abandoned property.
B) ​bailed property.
C) ​lost property.
D) ​mislaid property.

Accepted Answer

Mislaid property refers to items that are intentionally placed somewhere but then forgotten. Ralph left his backpack at the café, which fits this definition.

Question 14

Gary tells his daughter Heidi that she can have his restored 1932 Ford Coupé when he dies, but he does not add this to his will. This is​
A) ​a gift causa mortis.
B) ​a gift inter vivos.
C) ​a gift by accession.
D) ​not a gift.

Accepted Answer

Since Gary did not add the promise to his will, it is not considered a legally binding gift.

Question 15

​Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no
A) ​acceptance by the donee.
B) ​constructive delivery.
C) ​donative intent.
D) ​relinquishment of control.

Accepted Answer

In order for a gift to be effective, the donor must have donative intent, meaning that they intended to give the gift without receiving anything in return. Additionally, the donor must relinquish control over the gift, transferring both legal and physical possession to the donee. In this scenario, if Paca is declared mentally incompetent, there may be questions about whether she had the capacity to have donative intent, and whether she truly understood and intended to transfer her assets to Quelita. Furthermore, if she transfers the assets to Quelita "for safekeeping," she may not be relinquishing control over the assets, as she may still expect Quelita to return them to her or act solely on her instructions. Without both donative intent and relinquishment of control, the gift would not be effective, and a court may decide that the transfer was not valid. Constructive delivery and acceptance by the donee are important elements of gift giving but not as relevant to this scenario.

Question 16

Mallory's brother Nate gives her a leather working kit. She uses it to make a saddle. Her acquisition of the saddle is by​
A) ​gift.
B) ​accession.
C) ​confusion.
D) ​production.

Accepted Answer

Mallory's acquisition of the saddle is by production because she used the leather working kit to create the saddle herself.

Question 17

Miranda delivers her bridesmaid's dress to Nina for alterations. Nina promises that the dress will be ready within five business days. Miranda agrees to pay the charge when she picks up the dress. This is​
A) ​an implied bailment.
B) ​an involuntary bailment.
C) ​an express bailment.
D) ​not a bailment.

Accepted Answer

This is an express bailment because there is an agreement between Miranda and Nina regarding the delivery of the dress and Nina's promise to alter it within a specific time frame. The fact that Miranda will pay for the services upon pick up also indicates an express agreement between the parties.

Question 18

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is​
A) ​accession.
B) ​acquisition.
C) ​conversion.
D) ​a bailment.

Accepted Answer

Accession refers to the addition of value to property through labor or new materials, which is what Mike did by customizing and detailing the car.

Question 19

Yogi loans his laptop to Zoey. This is​
A) ​a bailment.
B) ​acquiring ownership by possession.
C) ​a gift.
D) ​accession.

Accepted Answer

This is a bailment because Yogi still owns the laptop but has entrusted it to Zoey for a specific purpose and amount of time.

Question 20

Nan asks Otto if she can store her car in his garage while she serves in the U.S. Army. He agrees. This is​
A) ​a bailment.
B) ​accession.
C) ​a gift.
D) ​abandoned property.

Accepted Answer

This situation is a bailment because Nan is entrusting her property (car) to Otto for safekeeping while she is away serving in the army. Otto has a duty to take reasonable care of the car while it is in his possession.

Quiz 48: Personal Property and Bailments

Rob steals a damaged, broken bike that is parked, unlocked, in a bike rack. He repairs, paints, and replaces parts on the bike until it is like new. The original owner, Sue, then claims it. The bike belongs to​

Ester sells stock in Fast Food Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is​

Neal allows Owen to store his trailer on Neal's property for $20 a month while Owen is out of town on a job for Plain States Construction, his employer. The bailor is​

Dick buys a fishing license and goes fishing. He catches a rainbow trout, cleans it, cooks it, and eats it. Dick's acquisition of the trout is by​

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift​

Perry gives Rachel a phone as a gift. Rachel develops a new app for the phone, obtains intellectual property protection, and forms QuikApps, LLC, to sell it. Rachel's acquisition of the app is by​

Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is​

Belle finds a tablet on the counter at Café Latte. She takes it to a police station where she is told that if it is not claimed by a certain time, she can obtain title to it. This is acquiring possession by​

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by​

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is​

In contemplation of death during risky surgery, Ben, a guitarist, gives his guitars to Cathy. The surgery is successful, and Ben does not die. The gift of the guitars is​

Gina buys silver to make jewelry. The finished products are sold to Hand Crafts, a shop that sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to​

Inadvertently, Ralph leaves his backpack at Sushi Café when he stops for lunch. The backpack is​

Gary tells his daughter Heidi that she can have his restored 1932 Ford Coupé when he dies, but he does not add this to his will. This is​

​Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no

Mallory's brother Nate gives her a leather working kit. She uses it to make a saddle. Her acquisition of the saddle is by​

Miranda delivers her bridesmaid's dress to Nina for alterations. Nina promises that the dress will be ready within five business days. Miranda agrees to pay the charge when she picks up the dress. This is​

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is​

Yogi loans his laptop to Zoey. This is​

Nan asks Otto if she can store her car in his garage while she serves in the U.S. Army. He agrees. This is​

Rob steals a damaged, broken bike that is parked, unlocked, in a bike rack. He repairs, paints, and replaces parts on the bike until it is like new. The original owner, Sue, then claims it. The bike belongs to

Ester sells stock in Fast Food Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is

Neal allows Owen to store his trailer on Neal's property for $20 a month while Owen is out of town on a job for Plain States Construction, his employer. The bailor is

Dick buys a fishing license and goes fishing. He catches a rainbow trout, cleans it, cooks it, and eats it. Dick's acquisition of the trout is by

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift

Perry gives Rachel a phone as a gift. Rachel develops a new app for the phone, obtains intellectual property protection, and forms QuikApps, LLC, to sell it. Rachel's acquisition of the app is by

Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is

Belle finds a tablet on the counter at Café Latte. She takes it to a police station where she is told that if it is not claimed by a certain time, she can obtain title to it. This is acquiring possession by

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by

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

In contemplation of death during risky surgery, Ben, a guitarist, gives his guitars to Cathy. The surgery is successful, and Ben does not die. The gift of the guitars is

Gina buys silver to make jewelry. The finished products are sold to Hand Crafts, a shop that sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to

Inadvertently, Ralph leaves his backpack at Sushi Café when he stops for lunch. The backpack is

Gary tells his daughter Heidi that she can have his restored 1932 Ford Coupé when he dies, but he does not add this to his will. This is

Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no

Mallory's brother Nate gives her a leather working kit. She uses it to make a saddle. Her acquisition of the saddle is by

Miranda delivers her bridesmaid's dress to Nina for alterations. Nina promises that the dress will be ready within five business days. Miranda agrees to pay the charge when she picks up the dress. This is

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is

Yogi loans his laptop to Zoey. This is

Nan asks Otto if she can store her car in his garage while she serves in the U.S. Army. He agrees. This is