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

When property is sold pursuant to a bailee's lien, the proceeds are first used to pay the bailee and to cover the costs of the sale, and then remaining proceeds go to the bailor.

[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 is true regarding Devin's statement at the hospital regarding Kendra taking the ticket?

A gift causa mortis is

In the text case of J&L Jewelry v. EPK Management, the plaintiff, J&L, sued EPK for breach of an implied bailment after thieves broke in and stole J&L's entire inventory of jewelry. The trial court dismissed J&L's complaint for failure to state a claim upon which relief could be granted. What was the result upon appeal?

Which of the following statements is false regarding ways in which people may acquire title to property?

Which of the following practices is NOT a means of acquiring ownership of property?

Instead of being stolen from the locker, assume that the gym is struck by lightning, and Roxie's cell phone is destroyed in a resulting fire. Who would be liable for the cost of the cell phone in this instance and why?

[Stolen Cell Phone] Roxie takes her brand new cell phone to the gym after work. She places it in a locker in the woman's locker room, which is not secured. There are signs conspicuously posted on both the door to the locker room and the wall above the lockers which say "Rent a lock at the front desk for $1.00. This gym is not responsible for items stolen from unlocked lockers." Roxie reads the sign, but not wanting to delay her workout, she decides to hide the phone under her clothes in the locker. She closes the locker, but leaves it unlocked as leaves the locker room to work out. An hour later she completes her workout and returns to the locker, only to find that her new phone has been stolen from the unlocked locker. She sues the gym for the value of the phone. -Who is liable for the loss of the cell phone?

[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. -Who is the legal owner of the wallet?

Lexie is an artist. Josh, an editor working for ABC Books, a publishing house that specializes in children's books, offers Lexie a contract to illustrate a children's book written by Phoebe. The contract states that ABC will pay Lexie $100 per drawing. Lexie agrees, and she signs a contract with ABC, which Josh signs on the company's behalf. The text and ideas are Phoebe's original work, but Lexie's drawings are result of her own creative view of Phoebe's story. When the book is complete and Lexie's contract is done, Lexie tries to sell the original copies of the drawings she created for Phoebe's book. She is immediately sued by ABC, on the grounds that ABC is the rightful owner of her drawings. Lexie claims that she acquired ownership of the drawings when she created them. Who is the legal owner of the drawings in this case?

Stocks, bonds, and other items that can be owned but cannot be seen or touched are examples of tangible property.

Fernando contracts with Michelle to purchase her lake property as long as she repairs the dock. This is an example of a(n) ________

In a proper property transfer by inter vivos gift, the idea that the gift must be physically or constructively presented by the donor to the donee is best categorized as:

A bill of lading is a document that is issued by a person engaged in the business of transporting goods that verifies what?

In a bailment for consideration that is for the mutual benefit of both parties, what fundamental duty (or duties) does the bailor have toward the bailee?

Parties to a bailment contract can limit or expand the liability of the bailee by contract.

Which of the following items would NOT require the transfer and registration of a certificate of title?

Which of the following statements is false regarding bailments?

[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. -What is the status of the bailment situation, or lack thereof, existing between Jason and Sabrina?

________ is property that does not exist in physical form, such as bank accounts, stocks and insurance policies.