Exam 48: The Nature of Property, Personal Property, and Bailments

[Heartache Hotel] Steve owns the Heartache Hotel, which is located in a trendy neighborhood in a major city. Because of the proximity of the hotel to a high-end retail shopping district, Steve provides a small hotel safe for guests to use to store valuables. At check-in, all guests receive a printed notice of the availability of the safe, which includes a printed disclaimer that explains that if a guest fails to take advantage of the safe, according to state law the hotel will not be liable for lost valuables. Further, because of its proximity to public transportation and multiple public parking facilities, the hotel does not provide parking facilities for its guests. Jason and Lisa book a room at the Heartache Hotel after a long day of shopping. They have a valuable 50" television in the trunk of their car, which is parked at a public garage next to, but not affiliated with or recommended by, the hotel. They also have about $10,000 worth of jewelry, which they bring into the hotel. At check-in, they are handed the notice about the hotel safe, but after reading it, Lisa decides to just hide the jewelry in the bottom of her suitcase. While Lisa and Jason are having a drink at the hotel bar, a thief breaks into their room and steals the jewelry. During the night, the television is also stolen from the trunk of their car. When Lisa and Jason discover their valuables are missing, they sue the hotel for negligence for the value of the stolen jewelry and television. -Will the hotel be liable for the value of the stolen television?

The ________ is the person who transfers possession of personality in a bailment situation.

[Disputed Ring] While working in the yard Megan found a beat up ring. Taylor, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Megan told her, "You can have this old thing if you would like." Taylor replied, "I really like it - Maybe it's a real diamond!" Megan laughingly told her that there was a one in a billion chance of that and that Megan was more likely to win the lottery. A few months later Taylor ran over to Megan's house and told Megan that the ring actually was a diamond worth thousands! Taylor gave Megan the ring to examine. Megan put it in her pocket and told Taylor that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Megan also told Taylor that Taylor failed legally to accept the gift because neither party knew its true value and that because Megan did not sign any document turning over title, it was impossible for legal ownership to pass. Taylor sues. -Which of the following statements is true regarding Megan's statement that Taylor could not have validly accepted the ring?

Which of the following statements is not a right of a bailee?

Jack is severely injured in an accident at work and believes he is going to die. He tells his friend and co-worker, Diane, that she can have his car after he is dead. However, Jack makes a full recovery. Because he did not die, his gift of the car to Diane will be automatically revoked.

In the "Case Nugget" Ziva Jewelry, Inc. v. Car Wash Headquarters, Inc., what was the main rule regarding bailee liability to come from this case?

The definition of real property is

[Shoe Store] Larry owns a store that sells a variety of men's accessories, including shoes, wallets, briefcases, and belts. While shopping in Larry's store, Ed placed his wallet on a shelf so he could look at a particular pair of shoes. When Ed walked away, he forgot to pick up the wallet and left the store without it. Another customer, Susan, noticed the wallet on the shelf a few minutes later. She hadn't seen Ed leave it there, and brought the wallet to Larry at the front counter. Larry thanked her and set the wallet aside, meaning to put it in the back office for safekeeping. However, before he could secure the wallet, Larry was distracted by a phone call. Another customer, Scott, saw the wallet on the counter, took it, and left the store. Once outside, Larry opened the wallet and looked through it. When Larry realized that the wallet contained nothing but two dollars and an expired library card, he tossed the wallet on the ground in disgust and walked away. Five minutes later, Olivia, a passerby, noticed the wallet on the ground. She decided to keep it for herself, so she picked up the wallet and took it home. -Which of the following is the most accurate classification of the wallet in the above scenario?

[Stolen Bicycle] Jason borrowed his friend Sabrina's bicycle. She told him that she was happy to let him to use it for free, but that she would appreciate him taking good care of it. Jason said nothing in reply. Jason lived in a high crime neighborhood, but he left the bicycle unlocked on his deck anyway. The next morning, he discovered that the bicycle had been stolen. Jason told Sabrina that he was very sorry about the bicycle. Sabrina told him that she expected him to pay for it. Jason refused on the basis that a thief took the bicycle. Jason told Sabrina that he believes he knows the identity of the thief and that since only Sabrina has the right to sue to recover the property, he has no further responsibility. -Jason stated that he owes Sabrina nothing and that only Sabrina has the right to take legal action against the thief. Which of the following statement is true regarding Jason's statement to Sabrina?

Property that is mislaid is different from lost property because the owner intentionally forgot where they placed the mislaid property.

Which of the following statements regarding commingled fungible goods is TRUE?

Moko is by his dying grandfather's bedside. His grandfather says "I do not have long to live I am afraid. Please take this pocket watch." This is a(n) ________

Assume that the hotel had provided a parking facility for its guests. To what standard of care would Steve be held for his guests' automobiles?

Karla enjoys snooping, especially through her neighbor's trash. She sneaks out and takes the neighbor's trash after they have gone to work, but before the trash collector comes. She goes through it to find confidential information regarding the neighbors but never tells anyone else or uses the information for any purpose. Can Karla become the legal owner of this property; and, why or why not? Also discuss whether you believe it is ethical for Karla to go through the neighbor's trash, and why or why not.

The definition of personal property is

[Disputed Ring] While working in the yard Megan found a beat up ring. Taylor, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Megan told her, "You can have this old thing if you would like." Taylor replied, "I really like it - Maybe it's a real diamond!" Megan laughingly told her that there was a one in a billion chance of that and that Megan was more likely to win the lottery. A few months later Taylor ran over to Megan's house and told Megan that the ring actually was a diamond worth thousands! Taylor gave Megan the ring to examine. Megan put it in her pocket and told Taylor that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Megan also told Taylor that Taylor failed legally to accept the gift because neither party knew its true value and that because Megan did not sign any document turning over title, it was impossible for legal ownership to pass. Taylor sues. -Which of the following terms best describes the type of gift, if any, at issue?

If an instrument contains the word "bearer" or "to the order of" it is considered negotiable. By law, a document of title may not be negotiable.

If a bailment is intended to benefit only the bailor, which of the following statements is accurate?

[Lottery Winnings] Devin, a hypochondriac with a very compulsive personality and habits, was having minor surgery to repair a bone spur on his foot. Just prior to his surgery, he purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of his lottery ticket numbers with him in his wallet. Devin's girlfriend, Kendra, went with him to the hospital. While in the waiting room, Devin said to her, "Kendra, I may not make it out of this bone spur surgery. Take my lottery ticket. If I don't make it, I hope you win and live it up; but please don't get another boyfriend." Kendra replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Devin came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Kendra watched the lottery drawing and discovered that Devin's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Devin saw her on television with her new boyfriend, John. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Devin says that the lottery money is his. -Which of the following best describes the outcome of Devin's statement that he made to Kendra regarding the lottery ticket prior to surgery?

Which of the following statements is true if a bailment is for the mutual benefit of both the bailee and the bailor?