Question 1

A bailment was created for the parties' mutual benefit.This means that the bailee must use ordinary care with the property.

Accepted Answer

A) True 
 B)False  True

Question 2

Ali took a seat at a booth at Midway Diner.Between the salt and pepper shakers,Ali noticed something glittering.It was a diamond ring.The ring is

Accepted Answer

A) abandoned property. 
B) an accession. 
C) mislaid property. 
D) treasure trove. 
A) abandoned property. 
B) an accession. 
C) mislaid property. 
D) treasure trove. C

Question 3

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon.This is

Accepted Answer

A) a testamentary gift. 
B) an inter vivos gift. 
C) an executed gift. 
D) a gift causa mortis. 
A) a testamentary gift. 
B) an inter vivos gift. 
C) an executed gift. 
D) a gift causa mortis. D

Question 4

Ed wants to give Howard his old car,but Howard says he doesn't want it.Howard later reconsiders and tells Ed he does want the car.His previous repudiation means there is no gift,and Howard has no rights in the car.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?

Accepted Answer

A) accession 
B) bailment 
C) an inter vivos gift 
D) a mutual-benefit bailment 
A) accession 
B) bailment 
C) an inter vivos gift 
D) a mutual-benefit bailment

Question 6

Jimmy stole Dave's motorcycle and completely revamped the engine and changed the body.These accessions were very expensive,but Jimmy was completely satisfied with the results,intending to sell the motorcycle for a huge profit.If the motorcycle is recovered from Jimmy,Dave must pay Jimmy for the improvements.

Accepted Answer

A) True 
 B)False

Question 7

Select the correct answer:

Accepted Answer

A) Rosie rents a locker at the airport, and she puts a bag in the locker.Rosie keeps the locker key.In this case, the bag has been delivered to and accepted by the airport.The airport is a bailee. 
B) Hill rents a boat to Dan. The boat is located at a lake 30 miles away. Hill gives Dan keys to the boat. Dan drives to the lake and takes possession of the boat. In this case, the boat has been delivered to and accepted by Dan, and Dan is a bailee. 
C) Unknown to Lon, Jeff left a bike at Lon's house. Lon has not found the bike and he is not likely to find it because Jeff left the bike under the front porch. In this case, Lon is a bailee of the bike. 
D) Ken parked a car in a self-service lot and Ken kept the keys. The parking lot is a bailee. 
A) Rosie rents a locker at the airport, and she puts a bag in the locker.Rosie keeps the locker key.In this case, the bag has been delivered to and accepted by the airport.The airport is a bailee. 
B) Hill rents a boat to Dan. The boat is located at a lake 30 miles away. Hill gives Dan keys to the boat. Dan drives to the lake and takes possession of the boat. In this case, the boat has been delivered to and accepted by Dan, and Dan is a bailee. 
C) Unknown to Lon, Jeff left a bike at Lon's house. Lon has not found the bike and he is not likely to find it because Jeff left the bike under the front porch. In this case, Lon is a bailee of the bike. 
D) Ken parked a car in a self-service lot and Ken kept the keys. The parking lot is a bailee.

Question 8

Bertha,from Chicago,traveled to San Francisco to attend a conference.Her sister,Martha,lives in San Francisco and consequently,Bertha made arrangements to spend a couple of days with her sister.The next morning sitting at the breakfast table,Bertha realizes that she packed a mismatched pair of shoes (one is black and the other is blue).Luckily,Martha wears the same size of shoes and lends Bertha a pair of black leather pumps.During the day,the shoes are damaged while Bertha is wearing the shoes.Bertha's duty of care would be a duty of

Accepted Answer

A) extraordinary care, because this is a bailment for the sole benefit of the bailee. 
B) ordinary care, because this is a bailment with both parties receiving mutual benefits. 
C) only slight care, because this is a bailment for the sole benefit of the bailor. 
D) none, as the sisters would share without condition. 
A) extraordinary care, because this is a bailment for the sole benefit of the bailee. 
B) ordinary care, because this is a bailment with both parties receiving mutual benefits. 
C) only slight care, because this is a bailment for the sole benefit of the bailor. 
D) none, as the sisters would share without condition.

Question 9

The element that distinguishes a contract from a gift is

Accepted Answer

A) performance of the offeror's or donor's promise. 
B) the element of consideration which is present in a contract, but not in a gift. 
C) whether or not the offeree or donee accepts the offer. 
D) whether or not the subject of the gift or contract is illegal. 
A) performance of the offeror's or donor's promise. 
B) the element of consideration which is present in a contract, but not in a gift. 
C) whether or not the offeree or donee accepts the offer. 
D) whether or not the subject of the gift or contract is illegal.

Question 10

Beth owned an original United States flag.She had previously loaned the flag to Ross,a lawyer,so that he could display the flag on the wall behind his office desk.One day while visiting Ross in his office and admiring the flag,Beth said to Ross,"You are so fond of that flag,I would like you to have it!" Ross responded with a gracious "thank you." In this situation

Accepted Answer

A) Beth has not made a valid, binding gift of the flag because gifts are never binding and can always be revoked by the donor. 
B) Beth has not made a valid, binding gift of the flag because the donor must deliver the property to the donee, which was not done here. 
C) Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for Ross's legal services. 
D) Beth has made a valid, binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag. 
A) Beth has not made a valid, binding gift of the flag because gifts are never binding and can always be revoked by the donor. 
B) Beth has not made a valid, binding gift of the flag because the donor must deliver the property to the donee, which was not done here. 
C) Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for Ross's legal services. 
D) Beth has made a valid, binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag.

Question 11

Dersett Trucking hauls granite for the major granite companies in Minnesota.Dersett Trucking does not make its trucking services available to the general public.Dersett Trucking is a contract carrier and does not incur strict liability.

Accepted Answer

A) True 
 B)False

Question 12

Mega Corporation,the bailor,negotiates a bailment agreement with Huge Corporation,the bailee.Huge Corporation insists that an exculpatory clause be included in the terms and conditions of the bailment agreement.Later,Huge Corporation negligently (ordinary negligence,not gross negligence)damages the property which is the subject of the bailment.Most courts will allow Huge Corp.to stand behind its exculpatory clause and deny liability.

Accepted Answer

A) True 
 B)False

Question 13

Distinguish between a contract and a gift.Give an example of each.

Accepted Answer

The factor that distinguishes a contract

Question 14

Hanna intends to give her granddaughter,Melodee,her antique hat pin.This heirloom has been kept under lock and key in the wall vault in the library of Hanna's house in Virginia.The hat pin is currently the only item in the vault.When Hanna is visiting Melodee in Connecticut,Hanna gives Melodee the only key to the vault.Melodee is grateful for the present and excitedly accepts.In this situation has there been a completed gift?

Accepted Answer

A) No.There has been no physical delivery of the hat pin. 
B) Yes. There has been physical delivery of the hat pin. 
C) No. There has only been constructive delivery of the hat pin. 
D) Yes. There has been constructive delivery of the hat pin. 
A) No.There has been no physical delivery of the hat pin. 
B) Yes. There has been physical delivery of the hat pin. 
C) No. There has only been constructive delivery of the hat pin. 
D) Yes. There has been constructive delivery of the hat pin.

Question 15

After a meeting with his advisor to register for a class at State University,Ron forgot his calculator in the dean's outer office.Theresa,another student,found the calculator.The calculator is treasure trove and Theresa may keep it.

Accepted Answer

A) True 
 B)False

Question 16

Jody loaned her neighbor,Phil,her snow blower.Phil set it near his driveway,and later accidentally ran over and destroyed it.In a suit to recover damages,Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

Accepted Answer

A) True 
 B)False

Question 17

While shopping at the mall,Everett's wallet fell out of his pocket.Jon found the wallet.The wallet is abandoned property and Jon may keep it.

Accepted Answer

A) True 
 B)False

Question 18

Personal property means all property EXCEPT

Accepted Answer

A) soil, plants, and trees removed from the land. 
B) minerals and crops removed from the land. 
C) land and all things permanently attached to the land. 
D) intangible property. 
A) soil, plants, and trees removed from the land. 
B) minerals and crops removed from the land. 
C) land and all things permanently attached to the land. 
D) intangible property.

Question 19

Jeannie carelessly packed her grandmother's antique glassware and had it shipped to her 30-year-old daughter,Abby,via Common Freight Carriers.When the china arrived at Abby's house,most of the pieces were broken.As between Jeannie and Common Freight Carriers,who will bear the loss?

Accepted Answer

A) Under the Carmack Amendment, Jeannie is liable for the loss if Common Freight Carriers shows it was not negligent and that the loss was caused by Jeannie's failure to wrap and pack the glassware properly. 
B) Under the Carmack Amendment, Common Freight Carriers is liable. A common carrier is strictly liable. 
C) Under the Carmack Amendment, Common Freight Carriers is liable because of its negligence in not inspecting Jeannie's packing job. 
D) Liability is governed by state statute and will depend on which state law will control. 
A) Under the Carmack Amendment, Jeannie is liable for the loss if Common Freight Carriers shows it was not negligent and that the loss was caused by Jeannie's failure to wrap and pack the glassware properly. 
B) Under the Carmack Amendment, Common Freight Carriers is liable. A common carrier is strictly liable. 
C) Under the Carmack Amendment, Common Freight Carriers is liable because of its negligence in not inspecting Jeannie's packing job. 
D) Liability is governed by state statute and will depend on which state law will control.

Question 20

Most of the goods contained in a freight train (a common carrier)were destroyed when a tornado wrecked the train.The carrier was sued for damages by all the shippers that had merchandise on the train.Is the carrier strictly liable for the damage done to the goods by the tornado?

Accepted Answer

Generally common carriers are strictly l

Exam 43: Personal Property and Bailment

A bailment was created for the parties' mutual benefit.This means that the bailee must use ordinary care with the property.

Ali took a seat at a booth at Midway Diner.Between the salt and pepper shakers,Ali noticed something glittering.It was a diamond ring.The ring is

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon.This is

Ed wants to give Howard his old car,but Howard says he doesn't want it.Howard later reconsiders and tells Ed he does want the car.His previous repudiation means there is no gift,and Howard has no rights in the car.

Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?

Select the correct answer:

The element that distinguishes a contract from a gift is

Dersett Trucking hauls granite for the major granite companies in Minnesota.Dersett Trucking does not make its trucking services available to the general public.Dersett Trucking is a contract carrier and does not incur strict liability.

Distinguish between a contract and a gift.Give an example of each.

After a meeting with his advisor to register for a class at State University,Ron forgot his calculator in the dean's outer office.Theresa,another student,found the calculator.The calculator is treasure trove and Theresa may keep it.

Jody loaned her neighbor,Phil,her snow blower.Phil set it near his driveway,and later accidentally ran over and destroyed it.In a suit to recover damages,Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

While shopping at the mall,Everett's wallet fell out of his pocket.Jon found the wallet.The wallet is abandoned property and Jon may keep it.

Personal property means all property EXCEPT

Jeannie carelessly packed her grandmother's antique glassware and had it shipped to her 30-year-old daughter,Abby,via Common Freight Carriers.When the china arrived at Abby's house,most of the pieces were broken.As between Jeannie and Common Freight Carriers,who will bear the loss?

Most of the goods contained in a freight train (a common carrier)were destroyed when a tornado wrecked the train.The carrier was sued for damages by all the shippers that had merchandise on the train.Is the carrier strictly liable for the damage done to the goods by the tornado?

Introduction to Law

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International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Cyberlaw and Privacy

Introduction to Contracts

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Consideration

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Capacity and Consent

Written Contracts

Third Parties

Performance, Breach and Discharge

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

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Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants' Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: LLCs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

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