Question 1

Which of the following is true of lost property?

Accepted Answer

A)  The finder obtains title to the property against the owner. 
B)  The finder has no legal obligation to return the property to its rightful owner. 
C)  The property should be equally shared between the finder and the true owner. 
D)  The finder obtains title to the property over everyone except the true owner. 
A)  The finder obtains title to the property against the owner. 
B)  The finder has no legal obligation to return the property to its rightful owner. 
C)  The property should be equally shared between the finder and the true owner. 
D)  The finder obtains title to the property over everyone except the true owner. D

Question 2

Both personal property and real property can be bailed.

Accepted Answer

A) True 
 B)False  False

Question 3

Explain gift causa mortis with an example.

Accepted Answer

A gift causa mortis is a gift made in contemplation of death.A gift causa mortis is established when (1)the donor makes a gift in anticipation of approaching death from some existing sickness or peril and (2)the donor dies from such sickness or peril without having revoked the gift.A gift causa mortis can be revoked by the donor up until the time he or she dies.A gift causa mortis takes precedence over a prior conflicting will.For instance,Cody is scheduled to have a major operation soon.He gives his expensive watch to his friend Mike before going into surgery.Cody asks Mike to have the watch in the event of his death.If Cody gets cured in the surgery,he can recover the watch from Mike.This is an example of gift causa mortis.

Question 4

A(n)________ is a document of title issued by a common carrier stating that the bailor has title to the bailed goods.

Accepted Answer

A)  bill of lading 
B)  accession 
C)  delivery order 
D)  freight forwarder 
A)  bill of lading 
B)  accession 
C)  delivery order 
D)  freight forwarder

Question 5

Discuss the difference between comprehensive insurance and liability insurance.

Accepted Answer

Comprehensive insurance is property insu

Question 6

Which of the following is true about fixtures?

Accepted Answer

A)  They are categorized as real property. 
B)  They are easily portable. 
C)  They are typically removed prior to a sale. 
D)  They can only have one owner at a time. 
A)  They are categorized as real property. 
B)  They are easily portable. 
C)  They are typically removed prior to a sale. 
D)  They can only have one owner at a time.

Question 7

Under the common law,innkeepers owe a ________ regarding loss caused to the personal property of transient guests.

Accepted Answer

A)  duty of negligible care 
B)  duty of slight care 
C)  duty of strict liability 
D)  duty of ordinary care 
A)  duty of negligible care 
B)  duty of slight care 
C)  duty of strict liability 
D)  duty of ordinary care

Question 8

Collision insurance covers damage and loss that the insured causes to third parties.

Accepted Answer

A) True 
 B)False

Question 9

Intangible property is not considered personal property.

Accepted Answer

A) True 
 B)False

Question 10

________ occurs if two or more persons commingle fungible goods.

Accepted Answer

A)  Confusion 
B)  Accession 
C)  Bailment 
D)  Easement 
A)  Confusion 
B)  Accession 
C)  Bailment 
D)  Easement

Question 11

A deductible clause provides that an insured must pay a percentage of an insured loss.

Accepted Answer

A) True 
 B)False

Question 12

Explain the accession method of acquiring ownership with an example.

Accepted Answer

Accession occurs when the value of perso

Question 13

When John Lacey's car was stolen,he lodged a complaint with the police.After a while,the police were able to trace the car to a professional auto thief and return it to John.When John got his car back,he realized that the thief had installed a new engine,changed the upholstery,and put in a new stereo player in his car.Which of the following is true with regard to the new engine,upholstery,and stereo player the thief installed in John's car?

Accepted Answer

A)  These improvements have to be returned to the thief. 
B)  These improvements now rightfully belong to John. 
C)  The improvements have to be paid for by John if he wants to retain them. 
D)  The improvements will be confiscated by the police. 
A)  These improvements have to be returned to the thief. 
B)  These improvements now rightfully belong to John. 
C)  The improvements have to be paid for by John if he wants to retain them. 
D)  The improvements will be confiscated by the police.

Question 14

Which of the following duty is owed by the parties in a mutual benefit bailment?

Accepted Answer

A)  duty of great care 
B)  duty of slight care 
C)  duty of ordinary care 
D)  duty of utmost care 
A)  duty of great care 
B)  duty of slight care 
C)  duty of ordinary care 
D)  duty of utmost care

Question 15

An insurance contract can be enforced even if the insured does not have an insurable interest in the property being insured.

Accepted Answer

A) True 
 B)False

Question 16

Roger Ray runs a motel in a rented property and sublets a part of its garage to the owner of a nearby fuel station.Three months later,the motel catches fire from a fuel leak in the garage and Roger's motel suffers severe damages.If Roger owns a standard fire insurance policy for years,the insurer can use the ________ to refuse covering the damage caused by the fire.

Accepted Answer

A)  deductible clause 
B)  exclusions from coverage clause 
C)  incontestability clause 
D)  copay clause 
A)  deductible clause 
B)  exclusions from coverage clause 
C)  incontestability clause 
D)  copay clause

Question 17

For a bailment to be effective,the bailee must knowingly accept the personal property.

Accepted Answer

A) True 
 B)False

Question 18

Disability insurance provides monthly income to an insured that is disabled and cannot work.

Accepted Answer

A) True 
 B)False

Question 19

Jerry owns a farmhouse with plenty of cattle.One of the cows on the farm gives birth.Which of the following methods of acquiring ownership justifies Jerry's ownership of the newborn calf?

Accepted Answer

A)  confusion 
B)  possession 
C)  accession 
D)  inheritance 
A)  confusion 
B)  possession 
C)  accession 
D)  inheritance

Question 20

Which of the following is considered a constructive delivery of a gift?

Accepted Answer

A)  giving the key to a safe-deposit box where the gift is kept 
B)  paying for the total value of the good being gifted in cash 
C)  contracting a third-party to deliver goods to the donee 
D)  gifting someone in person to ensure acceptance of the gift 
A)  giving the key to a safe-deposit box where the gift is kept 
B)  paying for the total value of the good being gifted in cash 
C)  contracting a third-party to deliver goods to the donee 
D)  gifting someone in person to ensure acceptance of the gift

Exam 37: Personal Property, Bailment, and Insurance

Which of the following is true of lost property?

Both personal property and real property can be bailed.

Explain gift causa mortis with an example.

A(n)________ is a document of title issued by a common carrier stating that the bailor has title to the bailed goods.

Discuss the difference between comprehensive insurance and liability insurance.

Which of the following is true about fixtures?

Under the common law,innkeepers owe a ________ regarding loss caused to the personal property of transient guests.

Collision insurance covers damage and loss that the insured causes to third parties.

Intangible property is not considered personal property.

________ occurs if two or more persons commingle fungible goods.

A deductible clause provides that an insured must pay a percentage of an insured loss.

Explain the accession method of acquiring ownership with an example.

Which of the following duty is owed by the parties in a mutual benefit bailment?

An insurance contract can be enforced even if the insured does not have an insurable interest in the property being insured.

For a bailment to be effective,the bailee must knowingly accept the personal property.

Disability insurance provides monthly income to an insured that is disabled and cannot work.

Jerry owns a farmhouse with plenty of cattle.One of the cows on the farm gives birth.Which of the following methods of acquiring ownership justifies Jerry's ownership of the newborn calf?

Which of the following is considered a constructive delivery of a gift?

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