Question 1

In which of the following processes is the title of goods not transferred?

Accepted Answer

A)  an adverse possession 
B)  a bailment 
C)  a sale 
D)  an acquisition 
A)  an adverse possession 
B)  a bailment 
C)  a sale 
D)  an acquisition

Question 2

Explain how the innkeepers' statutes limit the liability of innkeepers.

Accepted Answer

Under the common law,innkeepers owe a du

Question 3

Which of the following is true of ownership titles when confusion occurs?

Accepted Answer

A)  Title to the goods can never be shared between the owners involved. 
B)  Title to goods commingled without permission goes to the innocent party. 
C)  Title to goods cannot be acquired by confusion. 
D)  Title to goods can only be acquired if goods were commingled by accident. 
A)  Title to the goods can never be shared between the owners involved. 
B)  Title to goods commingled without permission goes to the innocent party. 
C)  Title to goods cannot be acquired by confusion. 
D)  Title to goods can only be acquired if goods were commingled by accident.

Question 4

________ is a means for persons and businesses to protect themselves against the risk of loss.

Accepted Answer

A)  Abatement 
B)  Ademption 
C)  Insurance 
D)  Easement 
A)  Abatement 
B)  Ademption 
C)  Insurance 
D)  Easement

Question 5

A ________ is a gratuitous bailment that arises when the bailee is requested to care for the bailor's property as a favor.

Accepted Answer

A)  bailment for the partial benefit of the bailee 
B)  mutual benefit bailment 
C)  bailment for the sole benefit of the bailee 
D)  bailment for the sole benefit of the bailor 
A)  bailment for the partial benefit of the bailee 
B)  mutual benefit bailment 
C)  bailment for the sole benefit of the bailee 
D)  bailment for the sole benefit of the bailor

Question 6

Personal property that is permanently affixed to land or buildings is called a fixture.

Accepted Answer

A) True 
 B)False

Question 7

The ________ refers to the duty of the insurer to protect the insured against lawsuits or legal proceedings that involve a claim within the coverage of the insurance policy.

Accepted Answer

A)  duty of strict liability 
B)  duty to pay 
C)  duty of reasonable care 
D)  duty to defend 
A)  duty of strict liability 
B)  duty to pay 
C)  duty of reasonable care 
D)  duty to defend

Question 8

Trans Cargos is a transportation service company that offers shipment services for businesses.The company receives an order from a consignor to ship a consignment from one city to another.During its transportation in a cargo truck,the consignment gets destroyed due to a hurricane.Which of the following is true about the liability of the destroyed goods?

Accepted Answer

A)  Trans Cargos is entirely responsible for the destroyed goods. 
B)  Trans Cargos is liable to pay half the value of the destroyed goods. 
C)  Trans Cargos is not liable to the consignor for the destroyed goods. 
D)  Trans Cargos is liable to pay a minimum guarantee payment to the consignor. 
A)  Trans Cargos is entirely responsible for the destroyed goods. 
B)  Trans Cargos is liable to pay half the value of the destroyed goods. 
C)  Trans Cargos is not liable to the consignor for the destroyed goods. 
D)  Trans Cargos is liable to pay a minimum guarantee payment to the consignor.

Question 9

Explain the duties of insured and insurer in an insurance contract.

Accepted Answer

The parties to an insurance contract are

Question 10

Able Adams has a number of rare paintings at home that he inherited from his paternal family,many of whom were patrons and collectors of the arts.Able knows that the value of these paintings makes them likely targets of theft and he needs to insure these items specifically by using a ________.

Accepted Answer

A)  homeowner's policy 
B)  standard fire insurance 
C)  personal articles floater 
D)  personal liability coverage 
A)  homeowner's policy 
B)  standard fire insurance 
C)  personal articles floater 
D)  personal liability coverage

Question 11

Which of the following is true of liability insurance?

Accepted Answer

A)  It protects the insured's vehicle from theft and damages due to natural calamities. 
B)  It protects the driver and passengers of a vehicle who are injured by an uninsured motorist. 
C)  It covers the damages caused by the insured to third parties. 
D)  It covers the insured's vehicle against damages from causes other than collision. 
A)  It protects the insured's vehicle from theft and damages due to natural calamities. 
B)  It protects the driver and passengers of a vehicle who are injured by an uninsured motorist. 
C)  It covers the damages caused by the insured to third parties. 
D)  It covers the insured's vehicle against damages from causes other than collision.

Question 12

A manufacturer that purchases raw materials and produces a finished product owns that product.

Accepted Answer

A) True 
 B)False

Question 13

________ is a form of property insurance that insures an automobile from loss or damage due to causes other than collision.

Accepted Answer

A)  Omnibus insurance 
B)  Comprehensive insurance 
C)  Coinsurance 
D)  No-fault automobile insurance 
A)  Omnibus insurance 
B)  Comprehensive insurance 
C)  Coinsurance 
D)  No-fault automobile insurance

Question 14

In the case of a mutual benefit bailment,the bailee owes a duty of reasonable care to protect the bailed goods.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of a bailment?

Accepted Answer

A)  Only personal property can be used in a bailment. 
B)  Intangible property cannot be used in a bailment. 
C)  Only physical deliveries can become a bailment. 
D)  All bailments must be expressed in writing to be effective. 
A)  Only personal property can be used in a bailment. 
B)  Intangible property cannot be used in a bailment. 
C)  Only physical deliveries can become a bailment. 
D)  All bailments must be expressed in writing to be effective.

Question 16

How does a bailment solely benefit the bailee?

Accepted Answer

A bailment for the sole benefit of the b

Question 17

Which of the following is a difference between a deductible clause and coinsurance clause in insurance policies?

Accepted Answer

A)  Deductible clause requires the insured to pay a specified amount before the proceeds are payable, while coinsurance clause requires the insured to pay a part of an insured loss. 
B)  Deductible clauses require the insured to pay a part of the insured loss, while coinsurance clauses prevent insurers from being liable if the applicant conceals material information. 
C)  Deductible clauses stipulate the risks that are not covered by the insurance policy, while coinsurance clauses require paying a specified amount to get the insurance proceeds. 
D)  Deductible clauses require the insured to pay a part of the insured loss, while coinsurance clauses require paying a specified amount to get the insurance proceeds. 
A)  Deductible clause requires the insured to pay a specified amount before the proceeds are payable, while coinsurance clause requires the insured to pay a part of an insured loss. 
B)  Deductible clauses require the insured to pay a part of the insured loss, while coinsurance clauses prevent insurers from being liable if the applicant conceals material information. 
C)  Deductible clauses stipulate the risks that are not covered by the insurance policy, while coinsurance clauses require paying a specified amount to get the insurance proceeds. 
D)  Deductible clauses require the insured to pay a part of the insured loss, while coinsurance clauses require paying a specified amount to get the insurance proceeds.

Question 18

Explain bailment with an example.

Accepted Answer

A bailment occurs when the owner of pers

Question 19

A carrier has a lien on the goods in its possession covered by a bill of lading for necessary charges and expenses.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the difference between mislaid and abandoned property.

Accepted Answer

Property is considered mislaid property

Exam 37: Personal Property, Bailment, and Insurance

In which of the following processes is the title of goods not transferred?

Explain how the innkeepers' statutes limit the liability of innkeepers.

Which of the following is true of ownership titles when confusion occurs?

________ is a means for persons and businesses to protect themselves against the risk of loss.

A ________ is a gratuitous bailment that arises when the bailee is requested to care for the bailor's property as a favor.

Personal property that is permanently affixed to land or buildings is called a fixture.

The ________ refers to the duty of the insurer to protect the insured against lawsuits or legal proceedings that involve a claim within the coverage of the insurance policy.

Explain the duties of insured and insurer in an insurance contract.

Able Adams has a number of rare paintings at home that he inherited from his paternal family,many of whom were patrons and collectors of the arts.Able knows that the value of these paintings makes them likely targets of theft and he needs to insure these items specifically by using a ________.

Which of the following is true of liability insurance?

A manufacturer that purchases raw materials and produces a finished product owns that product.

________ is a form of property insurance that insures an automobile from loss or damage due to causes other than collision.

In the case of a mutual benefit bailment,the bailee owes a duty of reasonable care to protect the bailed goods.

Which of the following is true of a bailment?

How does a bailment solely benefit the bailee?

Which of the following is a difference between a deductible clause and coinsurance clause in insurance policies?

Explain bailment with an example.

A carrier has a lien on the goods in its possession covered by a bill of lading for necessary charges and expenses.

Discuss the difference between mislaid and abandoned property.

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

Agency law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection, E-Securities, and Wall Street Reform

Antitrust Law and Unfair Trade Practices

Consumer Safety and Environmental Protection

Labor, Worker Protection, and Immigration Laws

Equal Opportunity in Employment

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Duties and Liability

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