Question 1

Raja gave a widget to Northwest Storage.Under the terms of the parties' contract,Northwest Storage was required to safely store the widget from October to April,and to then return it to Raja.The widget was in excellent condition when Raja delivered it to Northwest Storage,but it was badly damaged upon its return.A court has held that,on the facts,the burden of proof will be shifted.What does that mean? Which party will the court's decision favour? What is the policy justification for shifting the burden of proof?

Accepted Answer

The answer of Raja gave a widget to Northwest Storage.Under...

Question 2

"Property law,like nature,abhors a vacuum.Consequently,property rights that are lost by one party are always acquired by another party." Is this statement true? Explain your answer by using examples.

Accepted Answer

The answer of "Property law,like nature,abhors a vacuum.Consequently,property rights that...

Question 3

As a result of a bailment,Mitsu has possession of widget that belongs to Chuck.What factors will a court consider in deciding the content of the standard of care that Mitsu must meet while she has possession of the widget?

Accepted Answer

The answer of As a result of a bailment,Mitsu has...

Question 4

What is subrogation? What is indemnification? How are these two concepts related?

Accepted Answer

The answer of What is subrogation? What is indemnification? How...

Question 5

Explain the meaning and relevance of "inherent vice."

Accepted Answer

The answer of Explain the meaning and relevance of "inherent...

Question 6

Eleni owns and operates a restaurant.During the winter months,it is inappropriate for diners to bring their coats with them to their table.Eleni therefore provides a place for coats to be placed or hung.Does that arrangement necessarily involve a bailment? Is some other arrangement possible? What is the significance of classifying the arrangement as a bailment,rather than something else? Explain your answer,and identify any additional facts that are required before the question can be conclusively answered.

Accepted Answer

The answer of Eleni owns and operates a restaurant.During the...

Question 7

Erin owns and operates a computer design business that employs 20 people.She recently purchased business interruption insurance and key person insurance.What was her likely purpose in doing so?

Accepted Answer

The answer of Erin owns and operates a computer design...

Question 8

Hedda purchased a combine for her farm worth $80 000,but she could only afford to insure it for $40 000.The insurance has a co-insurance clause requiring coverage for 80% of the value,or $64 000 (meaning Hedda had only purchased 62.5% of the required coverage).An accident causes damage to the combine worth $20,000.How much can Hedda recover?

Accepted Answer

Hedda only purchased 62.5% of the required coverage, which means the insurance company will only pay out 62.5% of any damages. The damages are worth $20,000, so she can only recover 62.5% of $20,000 which is $12,500.

Question 9

Pavel found a ring that Jacinta had lost.Does a true bailment exist while the ring is in Pavel's possession? Explain your answer.

Accepted Answer

The answer of Pavel found a ring that Jacinta had...

Question 10

Katarina is interested in the possibility of establishing a business that delivers goods.She has heard,however,that as a matter of risk management,she should avoid becoming a "common carrier." What is a common carrier? What special risks are associated with being a common carrier? What is the policy justification for those risks?

Accepted Answer

The answer of Katarina is interested in the possibility of...

Question 11

Bonzi found a necklace while staying in a hotel that is owned by Alpha Corp.To whom does the necklace belong? Explain your answer,and identify any additional facts that are required before the issue can be fully resolved.

Accepted Answer

The answer of Bonzi found a necklace while staying in...

Question 12

Surinder rented a boat from Aqua Inc.Is the parties' relationship better described as a sale or as a bailment? Explain your answer.

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The answer of Surinder rented a boat from Aqua Inc.Is...

Question 13

Honoria recently tried to buy first party insurance with respect to a diamond ring she did not own.The insurance company refused to sell a policy to her on the basis that she did not have an insurable interest.Explain the insurance company's decision in more detail and identify the policy reason why a person who does not have an insurable interest cannot buy a insurance policy.

Accepted Answer

The answer of Honoria recently tried to buy first party...

Question 14

"The acquisition of personal property always involves the intention of at least two people." Is this statement true? Explain your answer by using examples.

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The answer of "The acquisition of personal property always involves...

Question 15

Identify and briefly explain three reasons why property insurance very often does not provide full indemnification,in the sense that it does not provide the insured with enough money to buy a replacement for a lost or destroyed piece of property.

Accepted Answer

The answer of Identify and briefly explain three reasons why...

Question 16

Kieran owns a factory that burns down because Jefferson is negligent.Kieran is fully insured and is limited to indemnification.Which of the following is true?

Accepted Answer

Even though Kieran is fully insured and limited to indemnification, the insurance company may have the right to seek reimbursement from Jefferson for the damages caused by his negligence. This is called subrogation, and it allows the insurer to step into the shoes of the insured and recover the amount paid to them. Therefore, option D is the correct choice. Option A is incorrect because Kieran's indemnification limits his ability to sue Jefferson directly. Option B is incorrect because Kieran's insurance policy will ensure that he is covered. Option C is incorrect because Jefferson's liability is not automatically waived because of Kieran's insurance. Finally, E is incorrect because the question does not provide any information regarding a co-insurance clause.

Question 17

Thekla's tailor shop offers alterations to clothing that customers have already purchased.During a busy season,without telling any of their customers,they begin sending half of the work to Inga's tailor shop in order to ensure they can complete the work.A customer complains that his suit has been ruined because it was improperly altered.The suit had been sent to Inga's shop.Which of the following is true?

Accepted Answer

Thekla's shop can sue Inga's shop because they have a contractual relationship, and Inga's shop may have breached their duty of care in altering the suit.

Question 18

Thomas owns a manufacturing system worth $200 000.He purchased $90 000 worth of property insurance from Prairie Insurance Co.That policy contains a co-insurance clause that requires 90 percent coverage.A fire recently damaged Thomas's manufacturing system.How much is Prairie Insurance Co required to pay to him if the fire damage is assessed at $100 000? What if it is assessed at $200 000?

Accepted Answer

The answer of Thomas owns a manufacturing system worth $200...

Quiz 17: Personal Property: Bailment and Insurance