Question 1

A friendly fire is one that is contained to an intended place, such as a fireplace, stove, or barbecue grill.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

Which of the following statements is not true of insurance policies?

Accepted Answer

A)  The basic principles of contract law apply to insurance policies. 
B)  Insurance companies tend to standardize their policies. 
C)  Some states forbid standardization of insurance policies. 
D)  All of these. 
A)  The basic principles of contract law apply to insurance policies. 
B)  Insurance companies tend to standardize their policies. 
C)  Some states forbid standardization of insurance policies. 
D)  All of these.

Question 5

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 6

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 7

The UCC does not cover:

Accepted Answer

A)  negotiable instruments. 
B)  investment securities. 
C)  sales of goods. 
D)  gifts. 
A)  negotiable instruments. 
B)  investment securities. 
C)  sales of goods. 
D)  gifts.

Question 8

Which of the following is tangible real property?

Accepted Answer

A)  Corn harvested and stored in a grain bin. 
B)  The mortgage on an office building. 
C)  A copyright. 
D)  The freight elevator in an office building. 
A)  Corn harvested and stored in a grain bin. 
B)  The mortgage on an office building. 
C)  A copyright. 
D)  The freight elevator in an office building.

Question 9

A type of insurance in which the insured and the insurer share a risk of loss due to fire is:

Accepted Answer

A)  co-insurance. 
B)  non-forfeiture insurance. 
C)  no-fault insurance. 
D)  reinsurance. 
A)  co-insurance. 
B)  non-forfeiture insurance. 
C)  no-fault insurance. 
D)  reinsurance.

Question 10

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 11

The fixture test of purpose or use applies only if the item:

Accepted Answer

A)  is affixed to the realty in some way. 
B)  can be removed without material injury to the realty. 
C)  is affixed to the realty in some way and also  can be removed without material injury to the realty. 
D)  is distinct from the realty but could be affixed to it. 
A)  is affixed to the realty in some way. 
B)  can be removed without material injury to the realty. 
C)  is affixed to the realty in some way and also  can be removed without material injury to the realty. 
D)  is distinct from the realty but could be affixed to it.

Question 12

A bailment may be made of either real or personal property.

Accepted Answer

A) True 
 B)False

Question 13

Explain the difference between lost, mislaid, and abandoned property and who has rights to it.

Accepted Answer

If property is lost (unintentionally lef

Question 14

A lease for office space is considered to be personal property.

Accepted Answer

A) True 
 B)False

Question 15

Sales of tangible personal property involve the transfer of title.

Accepted Answer

A) True 
 B)False

Question 16

The regulation of insurance has been left to the states.

Accepted Answer

A) True 
 B)False

Question 17

Don asked Karen to marry him and gave her a 1\2-carat diamond engagement ring. Three months later, Karen broke the engagement because she decided she was not ready for marriage yet. According to most courts, Don may:

Accepted Answer

A)  not recover the ring because it was a gift. 
B)  recover the ring because he did not break the engagement and the gift was conditional. 
C)  not recover the ring even if the marriage does not take place because gifts cannot be conditional. 
D)  not recover the ring unless the reason the marriage was called off was Karen's death. 
A)  not recover the ring because it was a gift. 
B)  recover the ring because he did not break the engagement and the gift was conditional. 
C)  not recover the ring even if the marriage does not take place because gifts cannot be conditional. 
D)  not recover the ring unless the reason the marriage was called off was Karen's death.

Question 18

Insurance companies have been successful in limiting the authority of local selling agents to bind the company through waiver or estoppel.

Accepted Answer

A) True 
 B)False

Question 19

The anthropology department of Towers University is doing an excavation on property that belongs to the Browns. If, in the process of excavation, the university finds some valuable lost items, they will belong to the Browns and not to the university.

Accepted Answer

A) True 
 B)False

Question 20

Which of these elements determine the existence of a bailment?

Accepted Answer

A)  A separation of ownership and possession of the property. 
B)  A duty on the party in possession to redeliver the identical property to the owner or to dispose of it according to the owner's directions. 
C)  Neither of these. 
D)  Both a  separation of ownership and possession of the property  and also a  duty on the party in possession to redeliver the identical property to the owner or to dispose of it according to the owner's directions. 
A)  A separation of ownership and possession of the property. 
B)  A duty on the party in possession to redeliver the identical property to the owner or to dispose of it according to the owner's directions. 
C)  Neither of these. 
D)  Both a  separation of ownership and possession of the property  and also a  duty on the party in possession to redeliver the identical property to the owner or to dispose of it according to the owner's directions.

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

A friendly fire is one that is contained to an intended place, such as a fireplace, stove, or barbecue grill.

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.

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.

Which of the following statements is not true of insurance policies?

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

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

The UCC does not cover:

Which of the following is tangible real property?

A type of insurance in which the insured and the insurer share a risk of loss due to fire is:

Intangible real property includes all of the following except:

The fixture test of purpose or use applies only if the item:

A bailment may be made of either real or personal property.

Explain the difference between lost, mislaid, and abandoned property and who has rights to it.

A lease for office space is considered to be personal property.

Sales of tangible personal property involve the transfer of title.

The regulation of insurance has been left to the states.

Don asked Karen to marry him and gave her a 1\2-carat diamond engagement ring. Three months later, Karen broke the engagement because she decided she was not ready for marriage yet. According to most courts, Don may:

Insurance companies have been successful in limiting the authority of local selling agents to bind the company through waiver or estoppel.

The anthropology department of Towers University is doing an excavation on property that belongs to the Browns. If, in the process of excavation, the university finds some valuable lost items, they will belong to the Browns and not to the university.

Which of these elements determine the existence of a bailment?

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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