Question 1

Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston. Subject to a bailment is
A)Emily.
B)Emily's luggage.
C)Emily's ticketed seat on the flight.
D)none of the choices.

Accepted Answer

A bailment is a legal relationship in which one person (the bailee) takes possession of personal property belonging to another person (the bailor) with the understanding that the property will be returned. In this case, Emily is the bailor and her luggage is the personal property being checked at the ticket counter. Therefore, Emily's luggage is subject to a bailment.

Question 2

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is
A)a bailment.
B)accession.
C)a gift.
D)abandoned property.

Accepted Answer

This is a bailment because Nancy is temporarily entrusting her car to Octavio for safekeeping while she is away.

Question 3

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town on a job for Plain States Construction,his employer. The bailor is
A)Ben.
B)Cody.
C)Plain States.
D)no one.

Accepted Answer

Cody is the bailor because he is the one who owns the trailer and is entrusting it to Ben for storage.

Question 4

Ester sells stock in Fast Food Franchise 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 because Ester provided Gayle with access to the stock certificates through the key to the safety-deposit box. While physical delivery did not take place, the key constitutes constructive delivery.

Question 5

In contemplation of death during risky surgery,Donnelly,a guitarist,gives his guitars to Cathy. The surgery is successful,and Donnelly 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 6

Inadvertently,Rocko leaves his backpack at Suki's Sushi when he stops for lunch and an hour of Facebook. The backpack is
A)abandoned property.
B)bailed property.
C)lost property.
D)mislaid property.

Accepted Answer

The backpack is considered mislaid property because Rocko unintentionally left it behind at a specific location (Suki's Sushi) with the intention of returning to retrieve it.

Question 7

Derrick buys a hunting license and goes hunting. He shoots a deer,cleans it,and takes it back to his truck. He takes the deer to town and has the meat processed. Derrick's acquisition of the deer is by
A)possession.
B)a bailment.
C)gift.
D)production.

Accepted Answer

Derrick acquired the deer by physically possessing it after shooting and cleaning it. He did not receive it as a gift or as a bailment from another person, and he did not produce the deer himself.

Question 8

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

The answer of Lauren owns a 1967 Ford Mustang,which Mike...

Question 9

Pearl gives Raphael a smartphone as a gift. Raphael develops a new app for the phone. She obtains intellectual property protection,and forms QuikApps,LLC,to make and market the app. Raphael's acquisition of the app is by
A)possession.
B)accession.
C)purchase.
D)production.

Accepted Answer

Raphael developed the app herself, which means she acquired it through production.

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 is entrusting his vehicle to Gordo's Auto Service for a specific purpose (oil change), which is a bailment.

Question 11

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, as Yogi has loaned his laptop to Zoey for temporary use and retains ownership of the laptop.

Question 12

Bram finds a tablet on the counter at Caffe Café. He takes the tablet to a police station. A police officer tells Bram that if the tablet is not claimed by a certain time,Bram can obtain title to it. This is acquiring possession by
A)an estray statute.
B)a bailment.
C)confusion.
D)production.

Accepted Answer

Acquiring possession through an estray statute is when a finder obtains title to lost or abandoned property if the true owner does not claim it within a certain period of time. In this case, the police officer mentioned a certain time frame for the tablet to be claimed, which indicates the use of an estray statute.

Question 13

Garth 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 Garth did not include the gift in his will, it is not legally binding and therefore not considered a gift.

Question 14

GR8 Vision,Inc.,hires Haul-Way Company to transport fifty large-screen HDTVs from GR8's warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The bailee is
A)GR8 Vision.
B)Haul-Way.
C)Ideal Electronics.
D)no one.

Accepted Answer

The bailee is the person or company who receives the property to be transported or stored, and in this case, it is Haul-Way Company who is responsible for transporting the TVs. GR8 Vision is the bailor, who is temporarily giving possession of the TVs to Haul-Way for transportation. Ideal Electronics is the receiver of the TVs but not the bailee. Therefore, option B is the correct answer. Option D is incorrect because there is always a bailee when goods are being transported or stored.

Question 15

Gabrielle buys silver and jade 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 passage states that Gabrielle buys silver and jade to make jewelry. This implies that she acquires the materials by purchasing them, indicating that purchasing personal property is the most common way to acquire it.

Question 16

Rhett works at Scarlett's Service Station. After work,in the station's restroom,Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed by
A)Rhett.
B)Scarlett's.
C)Thalia.
D)the state.

Accepted Answer

The ring belongs to Thalia, as she is the rightful owner and has the title to the ring. Rhett finding the ring does not automatically transfer ownership to him or Scarlett's Service Station. The state also does not have any claim to the ring in this scenario.

Question 17

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

Confusion occurs when fungible goods (goods that are interchangeable with other identical goods) are commingled to the extent that the individual owner's share cannot be distinguished. In this scenario, Nero and Omar's natural gas cannot be distinguished from each other. Accession is the process of adding value to property through labor or materials, conversion is the wrongful exercise of power or control over another's property, and a bailment is a transfer of possession of personal property from one person to another for a specific purpose. None of these apply to the scenario described.

Question 18

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 made during the giver's lifetime and without consideration. In this scenario, Angela is alive when she gives Brianna the quarter horse, and there is no indication that Brianna is accepting the gift in contemplation of Angela's imminent death. Therefore, it is considered an inter vivos gift.

Question 19

Gretel,an inventor,has tools in her workshop,including hammers,a table saw,and drills. She has a patent on her most recent invention,a kitchen gas grill. She licenses the patent to Housewares,Inc. Her tangible personal property includes
A)the tools.
B)the license.
C)the patent.
D)all of the choices.

Accepted Answer

Tangible personal property refers to physical items that can be touched or moved, such as the tools in Gretel's workshop. The license and patent are intangible assets.

Question 20

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 considered valid, the donor must have the intention of making a gift, which is called donative intent. If Paca is declared mentally incompetent, it may be argued that she did not have the necessary donative intent to make such a gift, and therefore the transfer of assets to Quelita would not be effective. Acceptance by the donee, constructive delivery and relinquishment of control are also important elements of a valid gift, but without the necessary donative intent, they may not be sufficient to establish that a gift has been made.

Quiz 41: Personal Property and Bailments

Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston. Subject to a bailment is

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is

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

Ester sells stock in Fast Food Franchise 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

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

Inadvertently,Rocko leaves his backpack at Suki's Sushi when he stops for lunch and an hour of Facebook. The backpack is

Derrick buys a hunting license and goes hunting. He shoots a deer,cleans it,and takes it back to his truck. He takes the deer to town and has the meat processed. Derrick's acquisition of the deer is by

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

Pearl gives Raphael a smartphone as a gift. Raphael develops a new app for the phone. She obtains intellectual property protection,and forms QuikApps,LLC,to make and market the app. Raphael's acquisition of the app is by

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

Yogi loans his laptop to Zoey. This is

Bram finds a tablet on the counter at Caffe Café. He takes the tablet to a police station. A police officer tells Bram that if the tablet is not claimed by a certain time,Bram can obtain title to it. This is acquiring possession by

Garth 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

GR8 Vision,Inc.,hires Haul-Way Company to transport fifty large-screen HDTVs from GR8's warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The bailee is

Gabrielle buys silver and jade 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

Rhett works at Scarlett's Service Station. After work,in the station's restroom,Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed 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

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

Gretel,an inventor,has tools in her workshop,including hammers,a table saw,and drills. She has a patent on her most recent invention,a kitchen gas grill. She licenses the patent to Housewares,Inc. Her tangible personal property includes

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