Question 1

An easement is not considered to be real property.

Accepted Answer

A) True 
 B)False

Question 2

Another term for personal property is:

Accepted Answer

A) patent. 
B) chattel. 
C) realty. 
D) fixtures. 
A) patent. 
B) chattel. 
C) realty. 
D) fixtures.

Question 3

Marilyn brought her $300 silk dress to University Dry Cleaners to be cleaned.On the back of the ticket she received in exchange for the dress was written, "liability limited to five times the cost of cleaning." Marilyn's dress was lost and University now claims it owes her only $45, five times the cost of cleaning.Is that true?

Accepted Answer

A) No, because Marilyn is not a bailor. 
B) No, because the cleaner is not a common carrier. 
C) No, because the limitation was not communicated to her before she bailed the property. 
D) Yes, because the cleaner had the right to limit its liability to a reasonable amount. 
A) No, because Marilyn is not a bailor. 
B) No, because the cleaner is not a common carrier. 
C) No, because the limitation was not communicated to her before she bailed the property. 
D) Yes, because the cleaner had the right to limit its liability to a reasonable amount.

Question 4

Lynne took her earrings off at Marcia's beauty parlor and put them on the counter.She left the shop without remembering the earrings.Betty finds them and wants to keep them.Can she?

Accepted Answer

A) Yes, since she is a finder 
B) Yes, she now is the true owner 
C) No, since the earrings were personal property 
D) No, Marcia would have first claim if the true owner is not discovered 
A) Yes, since she is a finder 
B) Yes, she now is the true owner 
C) No, since the earrings were personal property 
D) No, Marcia would have first claim if the true owner is not discovered

Question 5

Which of the following is characteristic of a bailment?

Accepted Answer

A) There is a separation of ownership and possession 
B) A bailment must be a contract 
C) It must last for an indefinite time 
D) All of these 
A) There is a separation of ownership and possession 
B) A bailment must be a contract 
C) It must last for an indefinite time 
D) All of these

Question 6

Terry's loan of his lawnmower to his neighbor cannot be a bailment if Terry receives no compensation for the use.

Accepted Answer

A) True 
 B)False

Question 7

A thief stole Martin's car and installed a tape deck in it.Later the police caught the thief and returned the car to
Martin.Martin now owns the tape deck by accession.

Accepted Answer

A) True 
 B)False

Question 8

An example of a bailment for the bailor's sole benefit is when Sherri, without compensation, lends her Cappuccino maker to Ed for Ed's party.

Accepted Answer

A) True 
 B)False

Question 9

If Harold buys a tomato plant, he owns the tomatoes produced by the plant based on "confusion."

Accepted Answer

A) True 
 B)False

Question 10

The McCarran-Ferguson Act, enacted in 1945, left the regulation of insurance to the states.

Accepted Answer

A) True 
 B)False

Question 11

A bailee has the exclusive right to possess the property for the term of the bailment.

Accepted Answer

A) True 
 B)False

Question 12

A warehouse receipt:

Accepted Answer

A) is not a document of title. 
B) is a receipt issued by a person engaged in the business of storing goods for hire. 
C) grants a lien enabling a warehouser to sell goods only at a public sale. 
D) All of these. 
A) is not a document of title. 
B) is a receipt issued by a person engaged in the business of storing goods for hire. 
C) grants a lien enabling a warehouser to sell goods only at a public sale. 
D) All of these.

Question 13

Patent rights are considered to be personal property.

Accepted Answer

A) True 
 B)False

Question 14

A carrier or warehouser who receives goods from a thief and later delivers them to a person to whom the thief ordered them to be delivered is liable to the true owner of the goods.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Although Trina has paid her annual insurance premium, her insurance company sends her a written notification that it is cancelling her policy, which should have had four more months of coverage.The insurer need do nothing more to effect the cancellation.

Accepted Answer

A) True 
 B)False

Question 17

Temporary insurance coverage prior to the issuance of the actual policy may be obtained by use of a(n):

Accepted Answer

A) premium agreement. 
B) coinsurance clause. 
C) option clause. 
D) binder. 
A) premium agreement. 
B) coinsurance clause. 
C) option clause. 
D) binder.

Question 18

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 19

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 20

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.

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

An easement is not considered to be real property.

Another term for personal property is:

Lynne took her earrings off at Marcia's beauty parlor and put them on the counter.She left the shop without remembering the earrings.Betty finds them and wants to keep them.Can she?

Which of the following is characteristic of a bailment?

Terry's loan of his lawnmower to his neighbor cannot be a bailment if Terry receives no compensation for the use.

A thief stole Martin's car and installed a tape deck in it.Later the police caught the thief and returned the car to Martin.Martin now owns the tape deck by accession.

An example of a bailment for the bailor's sole benefit is when Sherri, without compensation, lends her Cappuccino maker to Ed for Ed's party.

If Harold buys a tomato plant, he owns the tomatoes produced by the plant based on "confusion."

The McCarran-Ferguson Act, enacted in 1945, left the regulation of insurance to the states.

A bailee has the exclusive right to possess the property for the term of the bailment.

A warehouse receipt:

Patent rights are considered to be personal property.

A carrier or warehouser who receives goods from a thief and later delivers them to a person to whom the thief ordered them to be delivered is liable to the true owner of the goods.

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

Although Trina has paid her annual insurance premium, her insurance company sends her a written notification that it is cancelling her policy, which should have had four more months of coverage.The insurer need do nothing more to effect the cancellation.

Temporary insurance coverage prior to the issuance of the actual policy may be obtained by use of a(n):

An insurable interest in property must exist:

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

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:

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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