Question 1

Which of the following is true of ownership rights of an abandoned property?

Accepted Answer

A)  The finder and owner must share ownership of the property. 
B)  The finder acquires title to the property, even against its original owner. 
C)  The owner can reclaim his or her property completely from the finder. 
D)  The owner of the premises where property is abandoned is entitled to possession but does not acquire title. 
A)  The finder and owner must share ownership of the property. 
B)  The finder acquires title to the property, even against its original owner. 
C)  The owner can reclaim his or her property completely from the finder. 
D)  The owner of the premises where property is abandoned is entitled to possession but does not acquire title.

Question 2

________ is a requirement that a person who purchases insurance have a personal stake in the insured item or person.

Accepted Answer

A)  Delivery of possession 
B)  Endorsement 
C)  Adverse possessory interest 
D)  Insurable interest 
A)  Delivery of possession 
B)  Endorsement 
C)  Adverse possessory interest 
D)  Insurable interest

Question 3

Helen has a $40,000 automobile collision policy with a $750 deductible.If her car is involved in an accident costing $15,000 in damages,________ is the amount she will have to pay to receive coverage for the damages from the insurer.

Accepted Answer

A)  $750 
B)  $39,250 
C)  $40,000 
D)  $14,250 
A)  $750 
B)  $39,250 
C)  $40,000 
D)  $14,250

Question 4

Which of the following is true of the suicide clause in a life insurance policy?

Accepted Answer

A)  The beneficiary can claim the proceeds if the insured commits suicide within a certain period and not after that. 
B)  The suicide clause assigns no validity period on the life insurance policy. 
C)  The beneficiary can claim the proceeds only if the insured commits suicide after the validity period set forth by the insurer. 
D)  The beneficiary cannot claim the insurance proceeds if the insured commits suicide after the validity period set forth by the insurer. 
A)  The beneficiary can claim the proceeds if the insured commits suicide within a certain period and not after that. 
B)  The suicide clause assigns no validity period on the life insurance policy. 
C)  The beneficiary can claim the proceeds only if the insured commits suicide after the validity period set forth by the insurer. 
D)  The beneficiary cannot claim the insurance proceeds if the insured commits suicide after the validity period set forth by the insurer.

Question 5

Which of the following methods of acquiring ownership is least in use today?

Accepted Answer

A)  purchase 
B)  capture 
C)  gift 
D)  production 
A)  purchase 
B)  capture 
C)  gift 
D)  production

Question 6

Which of the following best describes bailment at will?

Accepted Answer

A)  bailment for a period of one year 
B)  bailment for a period not less than two years 
C)  bailment that cannot be terminated by the bailor 
D)  bailment without a fixed term 
A)  bailment for a period of one year 
B)  bailment for a period not less than two years 
C)  bailment that cannot be terminated by the bailor 
D)  bailment without a fixed term

Question 7

A(n)________ is a clause in an insurance policy that provides that insurance proceeds are payable only after the insured has paid a specified amount toward the damage or loss.

Accepted Answer

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

Question 8

A(n)________ is a document that modifies an insurance policy and becomes part of the insurance policy.

Accepted Answer

A)  endorsement 
B)  easement 
C)  injunction 
D)  convention 
A)  endorsement 
B)  easement 
C)  injunction 
D)  convention

Question 9

The Rosberg family had asked their neighbors,the Lowells,to feed their cat while they were away on a vacation.The Lowells fed the cat as they had been asked to but eventually,the cat ran away and never returned.Which of the following is true in this case of bailment agreement?

Accepted Answer

A)  The Lowells are solely liable for the loss of the cat. 
B)  The Lowells are not liable for the loss of the cat. 
C)  The Lowells are partially liable for the loss of the cat. 
D)  The Lowells can be sued for negligence of duty. 
A)  The Lowells are solely liable for the loss of the cat. 
B)  The Lowells are not liable for the loss of the cat. 
C)  The Lowells are partially liable for the loss of the cat. 
D)  The Lowells can be sued for negligence of duty.

Question 10

Purchase is the least common method of acquiring title to personal property in today's world.

Accepted Answer

A) True 
 B)False

Question 11

A bailment does not involve transferring title to the goods to the bailee.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of insurance policy?

Accepted Answer

A)  It is not possible to cancel an insurance policy until the date of maturity. 
B)  It can be obtained even if one has no insurable interest in that property. 
C)  It remains in effect even during the overdue grace period. 
D)  It cannot be modified once issued. 
A)  It is not possible to cancel an insurance policy until the date of maturity. 
B)  It can be obtained even if one has no insurable interest in that property. 
C)  It remains in effect even during the overdue grace period. 
D)  It cannot be modified once issued.

Question 13

A gift that is made in contemplation of death is known as a(n)________.

Accepted Answer

A)  profit-à-prendre 
B)  estate pour autre vie 
C)  gift inter vicos 
D)  gift causa mortis 
A)  profit-à-prendre 
B)  estate pour autre vie 
C)  gift inter vicos 
D)  gift causa mortis

Question 14

What happens to the life insurance proceeds upon the death of the insured who has not named a beneficiary?

Accepted Answer

A)  The proceeds are given to the state. 
B)  The proceeds remain with the insurer for the full-term of the insurance. 
C)  The proceeds are given to charitable organizations. 
D)  The proceeds go to the insured's estate. 
A)  The proceeds are given to the state. 
B)  The proceeds remain with the insurer for the full-term of the insurance. 
C)  The proceeds are given to charitable organizations. 
D)  The proceeds go to the insured's estate.

Question 15

Which of the following best describes a warehouse receipt?

Accepted Answer

A)  A receipt received by a warehouse after the bailor has retrieved the bailed goods and payment has been made. 
B)  A document of title issued by a warehouse company stating that the bailor has title to the bailed goods. 
C)  An inventory list provided to the warehouse company by the bailor for the bailed goods. 
D)  A certificate of authenticity issued to a warehouse stating that it is certified to hold goods. 
A)  A receipt received by a warehouse after the bailor has retrieved the bailed goods and payment has been made. 
B)  A document of title issued by a warehouse company stating that the bailor has title to the bailed goods. 
C)  An inventory list provided to the warehouse company by the bailor for the bailed goods. 
D)  A certificate of authenticity issued to a warehouse stating that it is certified to hold goods.

Question 16

If no beneficiary is named in a life insurance,the proceeds go the federal government.

Accepted Answer

A) True 
 B)False

Question 17

Peter borrowed Carl's car,as his own car had broken down,and he needed to go to the city,urgently.Carl,a close friend of Peter,did not charge any fee from Peter for using the car.What kind of agreement existed between Peter and Carl over the car?

Accepted Answer

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

Question 18

Common carriers are liable for the loss of goods caused by natural disasters.

Accepted Answer

A) True 
 B)False

Question 19

For a gift to be effective,the donor need not necessarily have a donative intent.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a similarity between real and personal property?

Accepted Answer

A)  both properties can include intangible properties 
B)  both properties are movable properties 
C)  both properties can be owned concurrently by two or more persons 
D)  both properties can be removed by a seller prior to a sale of the property 
A)  both properties can include intangible properties 
B)  both properties are movable properties 
C)  both properties can be owned concurrently by two or more persons 
D)  both properties can be removed by a seller prior to a sale of the property

Exam 37: Personal Property, Bailment, and Insurance

Which of the following is true of ownership rights of an abandoned property?

________ is a requirement that a person who purchases insurance have a personal stake in the insured item or person.

Helen has a $40,000 automobile collision policy with a $750 deductible.If her car is involved in an accident costing $15,000 in damages,________ is the amount she will have to pay to receive coverage for the damages from the insurer.

Which of the following is true of the suicide clause in a life insurance policy?

Which of the following methods of acquiring ownership is least in use today?

Which of the following best describes bailment at will?

A(n)________ is a clause in an insurance policy that provides that insurance proceeds are payable only after the insured has paid a specified amount toward the damage or loss.

A(n)________ is a document that modifies an insurance policy and becomes part of the insurance policy.

The Rosberg family had asked their neighbors,the Lowells,to feed their cat while they were away on a vacation.The Lowells fed the cat as they had been asked to but eventually,the cat ran away and never returned.Which of the following is true in this case of bailment agreement?

Purchase is the least common method of acquiring title to personal property in today's world.

A bailment does not involve transferring title to the goods to the bailee.

Which of the following statements is true of insurance policy?

A gift that is made in contemplation of death is known as a(n)________.

What happens to the life insurance proceeds upon the death of the insured who has not named a beneficiary?

Which of the following best describes a warehouse receipt?

If no beneficiary is named in a life insurance,the proceeds go the federal government.

Peter borrowed Carl's car,as his own car had broken down,and he needed to go to the city,urgently.Carl,a close friend of Peter,did not charge any fee from Peter for using the car.What kind of agreement existed between Peter and Carl over the car?

Common carriers are liable for the loss of goods caused by natural disasters.

For a gift to be effective,the donor need not necessarily have a donative intent.

Which of the following is a similarity between real and personal property?

Legal Heritage and the Digital Age

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Intentional Torts and Negligence

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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

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Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

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Investor Protection, E-Securities, and Wall Street Reform

Antitrust Law and Unfair Trade Practices

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