Question 1

Sid borrows Tony's paint sprayer to paint his house.Uma allows Vic to store his posthole digger in her shed.The party with a right to use the bailed property is
A)neither Sid nor Uma.
B)Sid and Uma.
C)Sid only.
D)Uma only.

Accepted Answer

Sid has the right to use the bailed property because he is the one who borrowed it.

Question 2

Quint rents a riding mower from Rent-All,Inc.Quint leaves the mower in a remote location overnight.When he returns to retrieve it,it is gone.Liability for the loss most likely rests with
A)Quint and Rent-All.
B)Quint only.
C)Rent-All only.
D)neither Quint nor Rent-All.

Accepted Answer

Quint is responsible for the loss of the riding mower because he left it in a remote location overnight, which goes against the rental agreement with Rent-All, Inc. Quint had the duty to take care of the mower and return it in the same condition as when he rented it. Therefore, liability for the loss most likely rests with Quint only. Rent-All, Inc. is not responsible for Quint's negligence in leaving the mower unattended.

Question 3

Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S.Marines Corps.Ned agrees.This is a bail?ment for
A)neither party's benefit.
B)the parties' mutual benefit.
C)the sole benefit of the bailee.
D)the sole benefit of the bailor.

Accepted Answer

This is a bailment for the sole benefit of the bailor (Mona), as Ned is doing her a favor by allowing her to store her furniture without receiving any benefit in return.

Question 4

Beta Company arranges to have Carrier Corporation,a common carrier,transport fifty HDTVs from New York to California.Dan is Carrier's driver.Carrier will not be liable to Beta for failing to deliver the TVs on time if
A)authori?ties are stopping and searching all trucks entering California.
B)Carrier's dispatcher mistakenly delays Dan's departure.
C)Carrier's truck is broken into and the TVs are stolen.
D)Dan has to wait two days in Denver for the truck to be repaired.

Accepted Answer

Carrier cannot be held liable for delays caused by external factors such as authorities stopping and searching all trucks entering California.

Question 5

Helen owns heavy construction equipment and the tools to service it,as well as office furniture,including computers.Ilya owns a number of pat?ents,trademarks that identify the products made under those patents,and stock in the company that sells those products.Personal property in?cludes the items owned by
A)Helen and Ilya.
B)Helen only.
C)Ilya only.
D)neither Helen nor Ilya.

Accepted Answer

Personal property includes any movable property owned by an individual, such as vehicles, equipment, furniture, patents, trademarks, and stocks. Both Helen and Ilya own movable property, so the best choice is A.

Question 6

Chita owns the land on which Downwind Farm is situated,plus the farmhouse,barn,and other structures permanently attached to the land.Chita's brother Elmo owns everything else on the farm-implements,seed,and so on.The real property is owned by
A)Chita and Elmo.
B)Chita only.
C)Downwind Farm.
D)Elmo only.

Accepted Answer

Real property refers to land and any structures permanently attached to it. In this case, Chita owns the land and the structures permanently attached to it (the farmhouse, barn, etc.), making her the owner of the real property. Elmo only owns the moveable property (implements, seed, etc.), which is not considered real property. Therefore, the best choice is B.

Question 7

Jill loans her laptop to Kyle.This is a bailment for
A)neither party's benefit.
B)the parties' mutual benefit.
C)the sole benefit of the bailee.
D)the sole benefit of the bailor.

Accepted Answer

This is a bailment for the sole benefit of the bailee (Kyle), as he is the one receiving the benefit of using the laptop without any benefit to Jill.

Question 8

Baksheesh owns a house.In the house,on a tile floor is a throw rug.Most likely to meet the definition of a fixture is
A)the house.
B)the throw rug.
C)the tile floor.
D)none of these choices.

Accepted Answer

A fixture refers to something that is permanently affixed to a property and becomes part of the property. In this case, the tile floor is permanent and attached to the property, while the throw rug can be easily moved and does not permanently attach to the property. Therefore, the tile floor is most likely to meet the definition of a fixture.

Question 9

Inadvertently,Morris leaves his backpack at NuWay Launderers when he stops to pick up his clothes.The backpack is
A)abandoned property.
B)gifted property.
C)lost property.
D)mislaid property.

Accepted Answer

The backpack is considered mislaid property because Morris unintentionally left it behind at a specific location with the intention of returning to retrieve it.

Question 10

Jennifer finds a full duffel bag that she believes may be subject to an es?tray statute.Estray statutes apply to
A)abandoned property.
B)bailed property.
C)lost property.
D)mislaid property.

Accepted Answer

Estray statutes typically apply to lost property, allowing finders to claim ownership if the original owner does not reclaim it within a certain period.

Question 11

Floyd tells his daughter Glenda that she can have his Harley Davidson when he dies,but he does not add this to his will.This is
A)a valid gift causa mortis.
B)a valid gift inter vivos.
C)a valid gift testamentary.
D)not a valid gift.

Accepted Answer

Since Floyd did not add the gift to his will, it is not a valid gift as it has not been executed according to the formalities required for testamentary gifts. Additionally, it cannot be a gift inter vivos as Floyd did not transfer ownership of the Harley immediately and it cannot be a gift causa mortis as it was not made in contemplation of his impending death.

Question 12

Kade and Lila each press certain quantities of olive oil to sell to Mediterranean Products,Inc.,and agree to share storage costs until Mediterranean can take delivery.The oil is commingled so that Kade's cannot be distinguished from Lila's.This is
A)accession.
B)confusion.
C)conversion.
D)dominion.

Accepted Answer

This situation describes "confusion," where the goods of two or more owners are mixed together such that they cannot be distinguished or separated.

Question 13

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

Bailment is the transfer of possession of personal property from one person (the bailor) to another person (the bailee) who then holds the property for a certain purpose and is expected to return the property to the bailor. In this case, Emily has transferred possession of her luggage to Flyaway Airlines (the bailee) for the purpose of transporting it to her destination. Therefore, Emily's luggage is subject to a bailment. Emily, her ticketed seat, and the flight itself are not subject to a bailment as they are not personal property being held for a certain purpose.

Question 14

Idaho Farms mistakenly puts its potatoes in Jackson Co-op's storage bin,which already contains Kelly Spud Farm's potatoes.It is impossible to tell which potatoes originally belonged to which party.This is
A)a bailment.
B)accession.
C)confusion.
D)production.

Accepted Answer

The situation described is confusion, which is a legal term used when it is impossible to distinguish between two separate items or quantities of property that have been mixed together. Therefore, it cannot be classified as bailment, accession, or production.

Question 15

Ansel owns Bar-B Ranch.Ansel's only son Cy owns Double-D Ranch in the same county.Ansel gives 90 percent of the Bar-B to Etta,a short-term employee.This gift
A)may lack the required element of "donative intent."
B)may lack the required element of "donor's acknowledgement."
C)may lack the required element of "heir's acquiescence."
D)meets all of the requirements for an effective gift.

Accepted Answer

Donative intent is a required element for a gift to be effective, which means there must be an intention to give the property as a gift or make a transfer of ownership. Ansel giving 90 percent of Bar-B Ranch to Etta, who is a short-term employee, may lack this required element of donative intent, as there could be a lack of evidence or intention to make such a gift.

Question 16

Fanny buys clay to throw pottery,which is glazed and fired in a kiln.The finished products are sold to Gifte Shoppe,which sells these items and others to customers who often present them as gifts.The most common way to acquire personal property is to
A)buy it.
B)commingle it.
C)produce it.
D)receive it as a gift.

Accepted Answer

In the given scenario, Fanny is buying clay to make pottery, which she later sells to Gift Shoppe. This suggests that the most common way to acquire personal property in this case is through buying it.

Question 17

Tab stores video equipment with U-Store-It,Inc.,under a contract that excuses the warehouser from liability for any damage.A fire due to U-Store-It's negligence destroys the equipment.The loss is most likely to be imposed on
A)neither Tab nor U-Store-It.
B)Tab and U-Store-It.
C)Tab only.
D)U-Store-It only.

Accepted Answer

The contract between Tab and U-Store-It excuses the latter from liability in case of damage. However, if the fire was caused by U-Store-It's negligence, the exemption clause may be unenforceable, and U-Store-It may be liable for the loss of equipment. Therefore, the loss is most likely to be imposed on U-Store-It only.

Question 18

Bob rents a golf cart at Country Club Golf Course.The brakes are worn,and while Bob is driving the cart,they fail.The cart crashes into a tree,and Bob is injured.Country Club could have discovered,with rea?sonable diligence,that the brakes were worn.Liability for Bob's injuries most likely rests with
A)Bob and Country Club.
B)Bob only.
C)Country Club only.
D)neither Bob nor Country Club.

Accepted Answer

The liability for Bob's injuries most likely rests with Country Club only because they had a duty to exercise reasonable care in maintaining their golf carts and discovering any issues such as worn brakes. Since they could have discovered the issue with reasonable diligence, they could be held liable for Bob's injuries. Bob would not be liable as he was an innocent party driving the golf cart and did not contribute to the failure of the brakes.

Question 19

Rocco gives Sequoia a computer as a gift.Using the computer,Sequoia develops a new computer game,for which she obtains intellectual property protection,and forms Titan Games,LLC,to make and market the game.Sequoia's ac?quisition of the game is by
A)gift.
B)accession.
C)confusion.
D)production.

Accepted Answer

Sequoia's acquisition of the game is by production because she developed the game herself using the computer.

Question 20

Delacroix discovers a boat adrift,and retrieves and anchors it.The boat features a number on its side and other evidence pointing to its owner,Elvira.This is
A)an involuntary bailment.
B)a voluntary bailment.
C)an express bailment.
D)no bailment.

Accepted Answer

An involuntary bailment occurs when someone finds lost or abandoned property and takes possession of it, as Delacroix did with the boat.

Quiz 49: Personal Property and Bailments

Sid borrows Tony's paint sprayer to paint his house.Uma allows Vic to store his posthole digger in her shed.The party with a right to use the bailed property is

Quint rents a riding mower from Rent-All,Inc.Quint leaves the mower in a remote location overnight.When he returns to retrieve it,it is gone.Liability for the loss most likely rests with

Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S.Marines Corps.Ned agrees.This is a bail?ment for

Beta Company arranges to have Carrier Corporation,a common carrier,transport fifty HDTVs from New York to California.Dan is Carrier's driver.Carrier will not be liable to Beta for failing to deliver the TVs on time if

Chita owns the land on which Downwind Farm is situated,plus the farmhouse,barn,and other structures permanently attached to the land.Chita's brother Elmo owns everything else on the farm-implements,seed,and so on.The real property is owned by

Jill loans her laptop to Kyle.This is a bailment for

Baksheesh owns a house.In the house,on a tile floor is a throw rug.Most likely to meet the definition of a fixture is

Inadvertently,Morris leaves his backpack at NuWay Launderers when he stops to pick up his clothes.The backpack is

Jennifer finds a full duffel bag that she believes may be subject to an es?tray statute.Estray statutes apply to

Floyd tells his daughter Glenda that she can have his Harley Davidson when he dies,but he does not add this to his will.This is

Kade and Lila each press certain quantities of olive oil to sell to Mediterranean Products,Inc.,and agree to share storage costs until Mediterranean can take delivery.The oil is commingled so that Kade's cannot be distinguished from Lila's.This is

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

Idaho Farms mistakenly puts its potatoes in Jackson Co-op's storage bin,which already contains Kelly Spud Farm's potatoes.It is impossible to tell which potatoes originally belonged to which party.This is

Ansel owns Bar-B Ranch.Ansel's only son Cy owns Double-D Ranch in the same county.Ansel gives 90 percent of the Bar-B to Etta,a short-term employee.This gift

Fanny buys clay to throw pottery,which is glazed and fired in a kiln.The finished products are sold to Gifte Shoppe,which sells these items and others to customers who often present them as gifts.The most common way to acquire personal property is to

Tab stores video equipment with U-Store-It,Inc.,under a contract that excuses the warehouser from liability for any damage.A fire due to U-Store-It's negligence destroys the equipment.The loss is most likely to be imposed on

Rocco gives Sequoia a computer as a gift.Using the computer,Sequoia develops a new computer game,for which she obtains intellectual property protection,and forms Titan Games,LLC,to make and market the game.Sequoia's ac?quisition of the game is by

Delacroix discovers a boat adrift,and retrieves and anchors it.The boat features a number on its side and other evidence pointing to its owner,Elvira.This is