Question 1

A(n)________ is an increase in the value of personal property because it is added to or improved by natural or manufactured means.

Accepted Answer

A)  arraignment 
B)  accession 
C)  lien 
D)  bailment 
A)  arraignment 
B)  accession 
C)  lien 
D)  bailment

Question 2

Which of the following is true of mislaid property with regard to the person who finds it?

Accepted Answer

A)  The finder becomes the owner of the property. 
B)  The finder has the right to share it with the original owner. 
C)  The finder is not entitled to possess the property. 
D)  The finder is absolved of any responsibility of the mislaid property. 
A)  The finder becomes the owner of the property. 
B)  The finder has the right to share it with the original owner. 
C)  The finder is not entitled to possess the property. 
D)  The finder is absolved of any responsibility of the mislaid property.

Question 3

What does the Uniform Transfers to Minors Act establish?

Accepted Answer

A)  rights for what a minor is allowed in case of inheritances without involving custodians 
B)  rights for what a minor can accept from an adult 
C)  procedures for adults to make gifts of money and securities to minors 
D)  procedures for making gifts of money and securities between minors 
A)  rights for what a minor is allowed in case of inheritances without involving custodians 
B)  rights for what a minor can accept from an adult 
C)  procedures for adults to make gifts of money and securities to minors 
D)  procedures for making gifts of money and securities between minors

Question 4

Differentiate tangible and intangible property with an example.

Accepted Answer

Tangible property is something that can

Question 5

Peter borrowed Carl's car,as his own car had broken down,and he needed to go to the city,urgently.While in the city he parked the car in a clearway zone,from where it was towed away by the authorities.In such a bailment agreement,Peter is negligent of ________.

Accepted Answer

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

Question 6

Property that an owner has discarded with the intent to relinquish his or her rights in it is known as ________ property.

Accepted Answer

A)  real 
B)  lost 
C)  mislaid 
D)  abandoned 
A)  real 
B)  lost 
C)  mislaid 
D)  abandoned

Question 7

Which of the following statements is true of collision insurance?

Accepted Answer

A)  It covers the insured's vehicle against damages caused by another vehicle. 
B)  It covers damages and losses the injured causes to third parties. 
C)  It gives protection from car thefts, natural calamities, vandalism, and riots. 
D)  It protects the driver and passengers of a vehicle who are injured by an uninsured motorist. 
A)  It covers the insured's vehicle against damages caused by another vehicle. 
B)  It covers damages and losses the injured causes to third parties. 
C)  It gives protection from car thefts, natural calamities, vandalism, and riots. 
D)  It protects the driver and passengers of a vehicle who are injured by an uninsured motorist.

Question 8

What is the difference between an insurance broker and an insurance agent?

Accepted Answer

A)  An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies. 
B)  An agent requires a commission payment after the deal is made, while a broker requires the service charge to be paid before the deal is made. 
C)  An agent represents the insured, while a broker represents the company. 
D)  An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract. 
A)  An insurance agent works exclusively for one company, while an insurance broker works for a number of insurance companies. 
B)  An agent requires a commission payment after the deal is made, while a broker requires the service charge to be paid before the deal is made. 
C)  An agent represents the insured, while a broker represents the company. 
D)  An agent is authorized to sell insurance directly, while a broker can only mediate an insurance contract.

Question 9

A transaction in which an owner transfers his or her personal property to another to be held,stored,or delivered,or for some other purpose is known as a(n)________.

Accepted Answer

A)  arraignment 
B)  easement 
C)  bailment 
D)  accession 
A)  arraignment 
B)  easement 
C)  bailment 
D)  accession

Question 10

Property is considered mislaid property if it is taken away from the owner without his or her knowledge.

Accepted Answer

A) True 
 B)False

Question 11

A personal articles floater provides insurance that cover specific valuable items.

Accepted Answer

A) True 
 B)False

Question 12

Explain coinsurance clause in insurance policies with an example.

Accepted Answer

A coinsurance clause,or copay clause,req

Question 13

A finder of abandoned property obtains possession but not the title.

Accepted Answer

A) True 
 B)False

Question 14

Property is considered ________ property when its owner negligently,carelessly,or inadvertently leaves it somewhere.

Accepted Answer

A)  lost 
B)  real 
C)  vanished 
D)  mislaid 
A)  lost 
B)  real 
C)  vanished 
D)  mislaid

Question 15

________ is a method of acquiring ownership,when a manufacturer purchases raw materials and then manufactures a finished good.

Accepted Answer

A)  Gifting 
B)  Producing 
C)  Capturing 
D)  Leasing 
A)  Gifting 
B)  Producing 
C)  Capturing 
D)  Leasing

Question 16

Under the common law,an innkeeper owes no liability regarding loss caused to the personal property of transient guests.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true of a personal articles floater?

Accepted Answer

A)  The insured can insure specific body parts using this policy. 
B)  The coverage includes insurance of intangible properties. 
C)  The coverage does not include loss or damage cause during travel. 
D)  The coverage includes specific valuable items. 
A)  The insured can insure specific body parts using this policy. 
B)  The coverage includes insurance of intangible properties. 
C)  The coverage does not include loss or damage cause during travel. 
D)  The coverage includes specific valuable items.

Question 18

What is the copay clause in an insurance policy?

Accepted Answer

A)  a clause in a life insurance contract that provides no coverage if the insured commits suicide before a stipulated date 
B)  a clause in an insurance policy that expressly stipulates the risks that are not covered by the insurance policy 
C)  a clause that prevents insurers from contesting statements made by insureds in applications after the passage of a stipulated number of years 
D)  a clause that requires the insured to pay a percentage of an insured loss along with the remainder being paid by the insurer 
A)  a clause in a life insurance contract that provides no coverage if the insured commits suicide before a stipulated date 
B)  a clause in an insurance policy that expressly stipulates the risks that are not covered by the insurance policy 
C)  a clause that prevents insurers from contesting statements made by insureds in applications after the passage of a stipulated number of years 
D)  a clause that requires the insured to pay a percentage of an insured loss along with the remainder being paid by the insurer

Question 19

A warehouse company can sell the stored goods of the bailor if the charges are not paid on time.

Accepted Answer

A) True 
 B)False

Question 20

Tangible property such as automobiles,furniture,and equipment,and intangible property such as securities,patents,and copyrights are collectively referred to as ________.

Accepted Answer

A)  real property 
B)  immovable property 
C)  personal property 
D)  fixtures 
A)  real property 
B)  immovable property 
C)  personal property 
D)  fixtures

Exam 37: Personal Property, Bailment, and Insurance

A(n)________ is an increase in the value of personal property because it is added to or improved by natural or manufactured means.

Which of the following is true of mislaid property with regard to the person who finds it?

What does the Uniform Transfers to Minors Act establish?

Differentiate tangible and intangible property with an example.

Peter borrowed Carl's car,as his own car had broken down,and he needed to go to the city,urgently.While in the city he parked the car in a clearway zone,from where it was towed away by the authorities.In such a bailment agreement,Peter is negligent of ________.

Property that an owner has discarded with the intent to relinquish his or her rights in it is known as ________ property.

Which of the following statements is true of collision insurance?

What is the difference between an insurance broker and an insurance agent?

A transaction in which an owner transfers his or her personal property to another to be held,stored,or delivered,or for some other purpose is known as a(n)________.

Property is considered mislaid property if it is taken away from the owner without his or her knowledge.

A personal articles floater provides insurance that cover specific valuable items.

Explain coinsurance clause in insurance policies with an example.

A finder of abandoned property obtains possession but not the title.

Property is considered ________ property when its owner negligently,carelessly,or inadvertently leaves it somewhere.

________ is a method of acquiring ownership,when a manufacturer purchases raw materials and then manufactures a finished good.

Under the common law,an innkeeper owes no liability regarding loss caused to the personal property of transient guests.

Which of the following statements is true of a personal articles floater?

What is the copay clause in an insurance policy?

A warehouse company can sell the stored goods of the bailor if the charges are not paid on time.

Tangible property such as automobiles,furniture,and equipment,and intangible property such as securities,patents,and copyrights are collectively referred to as ________.

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

International and World Trade Law

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