Question 1

An heir of a person who dies receives title to the property of the decedent by reason of a gift.

Accepted Answer

A) True 
 B)False  False

Question 2

The transfer of personal property involves formalities not required in the transfer of real property.

Accepted Answer

A) True 
 B)False  False

Question 3

Margaret told Bill she would give him her tickets to an upcoming concert.Later she changed her mind and decided to go to the concert after all.Can Bill require Margaret to give him the tickets?

Accepted Answer

A) No, because there was no intent to make a present gift 
B) No, because there was no delivery 
C) No, because there was no acceptance 
D) All of these are correct. 
A) No, because there was no intent to make a present gift 
B) No, because there was no delivery 
C) No, because there was no acceptance 
D) All of these are correct. D

Question 4

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 5

Why are delivery and acceptance both necessary to a valid gift? Explain.

Accepted Answer

Because a gift involves no consideration

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A common carrier is under a duty to serve the public to the limits of its capacity.

Accepted Answer

A) True 
 B)False

Question 8

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 9

A lease for office space is considered to be personal property.

Accepted Answer

A) True 
 B)False

Question 10

The finder of lost property is considered to be the owner as against everyone except the true owner by reason of:

Accepted Answer

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

Question 11

The Swails have an 80 percent co-insurance policy on their $100,000 home.Explain what this means.If they have an 80 percent co-insurance clause, a policy for $80,000, and suffer a covered loss of $40,000, how much will the insurer pay? If they have an 80 percent co-insurance clause, a $60,000 policy, and suffer a loss of 25% of their property, how much will the insurer pay?

Accepted Answer

Co-insurance is a common arrangement in

Question 12

In insurance contracts, warranties:

Accepted Answer

A) are of little importance. 
B) must be expressly included in the insurance contract. 
C) only apply to the insurer, not the insured. 
D) operate as conditions that must exist before the contract is effective or before the insurer's promise to pay is enforceable. 
A) are of little importance. 
B) must be expressly included in the insurance contract. 
C) only apply to the insurer, not the insured. 
D) operate as conditions that must exist before the contract is effective or before the insurer's promise to pay is enforceable.

Question 13

What is the method by which title to new property is acquired when an article of personal property that belongs to one person has a natural increase?

Accepted Answer

A) Gift 
B) Will or descent 
C) Purchase 
D) Accession 
A) Gift 
B) Will or descent 
C) Purchase 
D) Accession

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Estoppel means that a person is prevented by his own conduct from asserting a position inconsistent with such conduct, on which another person justifiably relied.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Darlene rents an car for her business trip.What is the relationship between Darlene and the car rental company?

Accepted Answer

A) A bailment for the sole benefit of the bailor 
B) A bailment for the sole benefit of the bailee 
C) A bailment for mutual benefit 
D) Pledgee and pledgor 
A) A bailment for the sole benefit of the bailor 
B) A bailment for the sole benefit of the bailee 
C) A bailment for mutual benefit 
D) Pledgee and pledgor

Question 19

A bailee is required to return the identical goods bailed, in the same condition as when the bailee received them.

Accepted Answer

A) True 
 B)False

Question 20

Mark finds a camera on a park bench at Disneyland.Mark cannot keep the camera, because it is mislaid property.

Accepted Answer

A) True 
 B)False

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

An heir of a person who dies receives title to the property of the decedent by reason of a gift.

The transfer of personal property involves formalities not required in the transfer of real property.

Margaret told Bill she would give him her tickets to an upcoming concert.Later she changed her mind and decided to go to the concert after all.Can Bill require Margaret to give him the tickets?

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

Why are delivery and acceptance both necessary to a valid gift? Explain.

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

A common carrier is under a duty to serve the public to the limits of its capacity.

Sales of copyrights and patents are governed by:

A lease for office space is considered to be personal property.

The finder of lost property is considered to be the owner as against everyone except the true owner by reason of:

In insurance contracts, warranties:

What is the method by which title to new property is acquired when an article of personal property that belongs to one person has a natural increase?

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

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

Estoppel means that a person is prevented by his own conduct from asserting a position inconsistent with such conduct, on which another person justifiably relied.

A bailee's duty of care:

Darlene rents an car for her business trip.What is the relationship between Darlene and the car rental company?

A bailee is required to return the identical goods bailed, in the same condition as when the bailee received them.

Mark finds a camera on a park bench at Disneyland.Mark cannot keep the camera, because it is mislaid property.

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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