Question 1

Property insurance may be either a valued policy or an open policy.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is/are the criteria for a common carrier?

Accepted Answer

A)  The carriage must be part of its business. 
B)  The carriage must be for remuneration. 
C)  The carrier must represent to the general public that it is willing to serve the public in the transportation of property. 
D)  All of these are criteria. 
A)  The carriage must be part of its business. 
B)  The carriage must be for remuneration. 
C)  The carrier must represent to the general public that it is willing to serve the public in the transportation of property. 
D)  All of these are criteria.

Question 3

An example of property that is intangible is a:

Accepted Answer

A)  song. 
B)  computer. 
C)  book. 
D)  pencil. 
A)  song. 
B)  computer. 
C)  book. 
D)  pencil.

Question 4

At the end of a bailment, a bailee may correctly deliver the bailed property to a third party (other than the bailor) in certain cases.

Accepted Answer

A) True 
 B)False

Question 5

Personal property so firmly attached to real property that an interest in it arises under real property law is known as a(n):

Accepted Answer

A)  fixture. 
B)  tangible property. 
C)  intangible property. 
D)  allonge. 
A)  fixture. 
B)  tangible property. 
C)  intangible property. 
D)  allonge.

Question 6

A $40,000 fire insurance policy covers a building, which is valued at $50,000, and there is an 80% co-insurance clause. If the building is totally destroyed by fire, the policyholder will receive:

Accepted Answer

A)  $50,000. 
B)  $40,000. 
C)  $32,000 
D)  $8,000 
A)  $50,000. 
B)  $40,000. 
C)  $32,000 
D)  $8,000

Question 7

If Jim, Ken, and Lee each deposit 10,000 bushels of wheat in a grain elevator, they would own one-third of the mixture by:

Accepted Answer

A)  accession. 
B)  adverse possession. 
C)  prescription. 
D)  confusion. 
A)  accession. 
B)  adverse possession. 
C)  prescription. 
D)  confusion.

Question 8

Dr. Olson is a board-certified ophthalmologist who constructs some specially designed examining tables to use in looking at his patient's eyes. The tables are firmly attached to the floor of the space he rents for his office. If Dr. Olson decides to move his office, which of the following is correct?

Accepted Answer

A)  The tables are fixtures that cannot be removed. 
B)  The tables are trade fixtures. 
C)  Dr. Olson may remove the tables if they can be removed without materially damaging the realty. 
D)  The tables are trade fixture and that  Dr. Olson may remove the tables if they can be removed without materially damaging the realty. 
A)  The tables are fixtures that cannot be removed. 
B)  The tables are trade fixtures. 
C)  Dr. Olson may remove the tables if they can be removed without materially damaging the realty. 
D)  The tables are trade fixture and that  Dr. Olson may remove the tables if they can be removed without materially damaging the realty.

Question 9

Isabelle put a box of books in the bedroom of her roommate. The roommate now owns the books, because they are presumed to be a gift.

Accepted Answer

A) True 
 B)False

Question 10

All bills of lading are negotiable and may be transferred like a check.

Accepted Answer

A) True 
 B)False

Question 11

Harvey's Car Rental rents Darlene an intermediate-size car at $159 per week for her business trip. What is the relationship between Harvey's and Darlene?

Accepted Answer

A)  A bailment for mutual benefit. 
B)  A bailment for the sole benefit of the bailee. 
C)  A bailment for the sole benefit of the bailor. 
D)  The temporary transfer of title to Darlene. 
A)  A bailment for mutual benefit. 
B)  A bailment for the sole benefit of the bailee. 
C)  A bailment for the sole benefit of the bailor. 
D)  The temporary transfer of title to Darlene.

Question 12

Which of the following is a requirement of a valid gift?

Accepted Answer

A)  An adult donor. 
B)  Payment of money. 
C)  A writing. 
D)  Delivery. 
A)  An adult donor. 
B)  Payment of money. 
C)  A writing. 
D)  Delivery.

Question 13

Transfer of title to personal property can occur by all but which of the following ways?

Accepted Answer

A)  By deed. 
B)  By gift. 
C)  By will or descent. 
D)  By accession. 
A)  By deed. 
B)  By gift. 
C)  By will or descent. 
D)  By accession.

Question 14

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

Question 15

Coinsurance is common in property insurance as a means of sharing risk between the insurer and insured.

Accepted Answer

A) True 
 B)False

Question 16

Bailed property must be tangible.

Accepted Answer

A) True 
 B)False

Question 17

Intangible real property includes all of the following except:

Accepted Answer

A)  leases. 
B)  fixtures. 
C)  easements. 
D)  None of these. All real property is tangible. 
A)  leases. 
B)  fixtures. 
C)  easements. 
D)  None of these. All real property is tangible.

Question 18

The holder of a negotiable document of title to whom the document has been duly negotiated has legal title to the goods covered by the document.

Accepted Answer

A) True 
 B)False

Question 19

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 20

All but which of the following hold an insurable interest?

Accepted Answer

A)  Shareholders in a closely held corporation to the extent of their interest in the corporation's property. 
B)  A lessee of property. 
C)  A seller with a purchase money security interest. 
D)  A buyer of a truck, whether or not the buyer had knowledge of the fact that the truck was stolen by the seller. 
A)  Shareholders in a closely held corporation to the extent of their interest in the corporation's property. 
B)  A lessee of property. 
C)  A seller with a purchase money security interest. 
D)  A buyer of a truck, whether or not the buyer had knowledge of the fact that the truck was stolen by the seller.

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

Property insurance may be either a valued policy or an open policy.

Which of the following is/are the criteria for a common carrier?

An example of property that is intangible is a:

At the end of a bailment, a bailee may correctly deliver the bailed property to a third party (other than the bailor) in certain cases.

Personal property so firmly attached to real property that an interest in it arises under real property law is known as a(n):

A $40,000 fire insurance policy covers a building, which is valued at $50,000, and there is an 80% co-insurance clause. If the building is totally destroyed by fire, the policyholder will receive:

If Jim, Ken, and Lee each deposit 10,000 bushels of wheat in a grain elevator, they would own one-third of the mixture by:

Isabelle put a box of books in the bedroom of her roommate. The roommate now owns the books, because they are presumed to be a gift.

All bills of lading are negotiable and may be transferred like a check.

Harvey's Car Rental rents Darlene an intermediate-size car at $159 per week for her business trip. What is the relationship between Harvey's and Darlene?

Which of the following is a requirement of a valid gift?

Transfer of title to personal property can occur by all but which of the following ways?

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

Coinsurance is common in property insurance as a means of sharing risk between the insurer and insured.

Bailed property must be tangible.

Intangible real property includes all of the following except:

The holder of a negotiable document of title to whom the document has been duly negotiated has legal title to the goods covered by the document.

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

All but which of the following hold an insurable interest?

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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