Question 1

A person, other than a collecting bank or other intermediary, who negotiates a document of title for value:

Accepted Answer

A)  warrants to her immediate purchaser that the document is genuine. 
B)  warrants to all who later take the document that it is genuine. 
C)  warrants that nothing impairs the document's validity or worth. 
D)  makes no warranties. 
A)  warrants to her immediate purchaser that the document is genuine. 
B)  warrants to all who later take the document that it is genuine. 
C)  warrants that nothing impairs the document's validity or worth. 
D)  makes no warranties.

Question 2

If Jim, Ken, and Lee each deposit 10,000 bushels of wheat in a grain elevator, they would own one-third of the remaining mixture by:

Accepted Answer

A)  accession. 
B)  adverse possession. 
C)  prescription. 
D)  confusion. 
A)  accession. 
B)  adverse possession. 
C)  prescription. 
D)  confusion.

Question 3

Darinel insures a $150,000 building with Morales Insurance Co. for $50,000 and with Washington Insurance Co. for $100,000. The building is partially destroyed by fire, causing $25,000 in damages. Darinel will be able to collect:

Accepted Answer

A)  one-third of the damages from Morales Insurance Co. 
B)  one-half of the damages from Morales Insurance Co. 
C)  from neither Morales nor Washington since it was fraudulent to purchase policies covering the same property from two different insurance companies. 
D)  $25,000 from either Morales or Washington Insurance Co., but cannot collect from both insurers. 
A)  one-third of the damages from Morales Insurance Co. 
B)  one-half of the damages from Morales Insurance Co. 
C)  from neither Morales nor Washington since it was fraudulent to purchase policies covering the same property from two different insurance companies. 
D)  $25,000 from either Morales or Washington Insurance Co., but cannot collect from both insurers.

Question 4

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

Accepted Answer

A)  misrepresentation. 
B)  concealment. 
C)  waiver. 
D)  fidelity. 
A)  misrepresentation. 
B)  concealment. 
C)  waiver. 
D)  fidelity.

Question 5

An insurable interest in property must exist:

Accepted Answer

A)  at the time the insurance policy is obtained. 
B)  at the time the loss occurs. 
C)  from the time the policy is obtained to the time the loss occurs without interruption. 
D)  for only one person at a time in a particular property. 
A)  at the time the insurance policy is obtained. 
B)  at the time the loss occurs. 
C)  from the time the policy is obtained to the time the loss occurs without interruption. 
D)  for only one person at a time in a particular property.

Question 6

Sales of copyrights and patents are governed by:

Accepted Answer

A)  the UCC. 
B)  common law. 
C)  federal statute. 
D)  real estate law. 
A)  the UCC. 
B)  common law. 
C)  federal statute. 
D)  real estate law.

Question 7

Taylor Corp. rents a warehouse where it conducts a small manufacturing operation. As a condition of its lease, it pays a fire insurance premium. Taylor needs more room and rents larger quarters. Taylor then subleases its old warehouse to Mack. Taylor also assigns its already-paid insurance policy to Mack. This action is:

Accepted Answer

A)  appropriate, so long as Taylor and Mack agree to it. 
B)  appropriate, so long as the landlord agrees to it. 
C)  not binding on the insurer. 
D)  totally within the rights of Taylor, who already paid the premium. 
A)  appropriate, so long as Taylor and Mack agree to it. 
B)  appropriate, so long as the landlord agrees to it. 
C)  not binding on the insurer. 
D)  totally within the rights of Taylor, who already paid the premium.

Question 8

A bailment may be made of either real or personal property.

Accepted Answer

A) True 
 B)False

Question 9

A negotiable electronic document of title:

Accepted Answer

A)  is not possible, since a document of title must be in tangible form. 
B)  running to the order of a named person must be indorsed in order to negotiate it. 
C)  may be delivered by voluntarily transferring control rather than by voluntarily transferring possession. 
D)  is tracked by a system of control created and set forth in Revised Article 7 of the UCC. 
A)  is not possible, since a document of title must be in tangible form. 
B)  running to the order of a named person must be indorsed in order to negotiate it. 
C)  may be delivered by voluntarily transferring control rather than by voluntarily transferring possession. 
D)  is tracked by a system of control created and set forth in Revised Article 7 of the UCC.

Question 10

In determining whether an item is a fixture, which of the following will be considered?

Accepted Answer

A)  How it is attached to the building or land 
B)  Whether the item can be removed without harm to the building 
C)  Whether the item is usually included in that type of real estate 
D)  All of these factors may be considered. 
A)  How it is attached to the building or land 
B)  Whether the item can be removed without harm to the building 
C)  Whether the item is usually included in that type of real estate 
D)  All of these factors may be considered.

Question 11

A bailee's duty of care:

Accepted Answer

A)  is always the degree of care necessary to prevent any loss or injury to the bailed goods. 
B)  varies depending on the nature of the bailment relationship and the character of the bailed property. 
C)  Both of these. 
D)  Neither of these. 
A)  is always the degree of care necessary to prevent any loss or injury to the bailed goods. 
B)  varies depending on the nature of the bailment relationship and the character of the bailed property. 
C)  Both of these. 
D)  Neither of these.

Question 12

The anthropology department of Towers University is doing an excavation on property that belongs to Farmer Brown. If in the process of excavation the university finds some valuable lost items, they will belong to Farmer Brown and not to the university.

Accepted Answer

A) True 
 B)False

Question 13

Mixing identical goods from different owners is:

Accepted Answer

A)  confusion. 
B)  accession. 
C)  possession. 
D)  gift. 
A)  confusion. 
B)  accession. 
C)  possession. 
D)  gift.

Question 14

To prevent the use of the insurance policy for wagering purposes, the person who is to be indemnified under the contract must have:

Accepted Answer

A)  good faith. 
B)  an insurable interest. 
C)  a binder. 
D)  a coinsurance clause. 
A)  good faith. 
B)  an insurable interest. 
C)  a binder. 
D)  a coinsurance clause.

Question 15

The basic principles of contract law apply to insurance policies.

Accepted Answer

A) True 
 B)False

Question 16

A document of title symbolizes ownership of the goods it describes; its transfer transfers the ownership or control of the goods without necessitating the physical transfer of the goods themselves.

Accepted Answer

A) True 
 B)False

Question 17

The Uniform Commercial Code covers all the issues involving ownership and transfer of title to personal property.

Accepted Answer

A) True 
 B)False

Question 18

The same item may not be the object of both tangible and intangible property rights.

Accepted Answer

A) True 
 B)False

Question 19

The UCC does not cover:

Accepted Answer

A)  transfer of negotiable instruments. 
B)  investment securities. 
C)  sales of goods. 
D)  sales of copyrights. 
A)  transfer of negotiable instruments. 
B)  investment securities. 
C)  sales of goods. 
D)  sales of copyrights.

Question 20

Property insurance policies are frequently written for periods of at least five years.

Accepted Answer

A) True 
 B)False

Exam 47: Introduction to Property, Property Insurance, Bailments, and Documents of Title

A person, other than a collecting bank or other intermediary, who negotiates a document of title for value:

If Jim, Ken, and Lee each deposit 10,000 bushels of wheat in a grain elevator, they would own one-third of the remaining mixture by:

Darinel insures a $150,000 building with Morales Insurance Co. for $50,000 and with Washington Insurance Co. for $100,000. The building is partially destroyed by fire, causing $25,000 in damages. Darinel will be able to collect:

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

An insurable interest in property must exist:

Sales of copyrights and patents are governed by:

A bailment may be made of either real or personal property.

A negotiable electronic document of title:

In determining whether an item is a fixture, which of the following will be considered?

A bailee's duty of care:

The anthropology department of Towers University is doing an excavation on property that belongs to Farmer Brown. If in the process of excavation the university finds some valuable lost items, they will belong to Farmer Brown and not to the university.

Mixing identical goods from different owners is:

To prevent the use of the insurance policy for wagering purposes, the person who is to be indemnified under the contract must have:

The basic principles of contract law apply to insurance policies.

A document of title symbolizes ownership of the goods it describes; its transfer transfers the ownership or control of the goods without necessitating the physical transfer of the goods themselves.

The Uniform Commercial Code covers all the issues involving ownership and transfer of title to personal property.

The same item may not be the object of both tangible and intangible property rights.

The UCC does not cover:

Property insurance policies are frequently written for periods of at least five years.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

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