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

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:

Clara receives a telephone call from her Aunt Mary in which Mary says she has decided to give Clara her pet python as a gift. Clara may refuse to accept the gift.

Bailments for the bailee's sole benefit are usually limited to the gratuitous loan of personal property for use by the bailee.

Robert steals a truckload of electronic equipment and stores it in Eastside Warehouse. After five weeks, Robert instructs Eastside to make the goods available to Charles for pickup. Even if Eastside acts reasonably and in good faith, it will be liable to the true owner of the goods if it allows Charles to take the goods.

All but which of the following hold an insurable interest?

An example of a bailment for the bailor's sole benefit is when Sherri, without compensation, lends her Cappuccino maker to Ed for Ed's party.

Mary cleaned her dorm room in the spring and left a pile of books in Sara's room. Mary told everybody that the books were a gift to Sara. Does Sara have to dispose of them?

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

Which of the following is NOT personal property?

A bill of lading serves as:

How does the liability of a common carrier differ from that of an ordinary bailee with regard to property that is lost or damaged while in possession of the carrier?

Accession means the right of the owner of property to any increase in it.

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

Carol took her earrings off at Marcia's beauty shop and put them on the counter. She left the shop without remembering the earrings. Betty finds them and wants to keep them. Can she?

Larry leaves his hat under the seat at the movie theater. Is this a bailment?

The finder of lost property is entitled to possession of it, even against the true owner.

Showplace insures its $160,000 building with two insurers: with Hometown Insurance for $60,000 and with National Insurance for $120,000. The building suffers a fire loss of $75,000. From whom and for how much can Showplace collect?

Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers. A few months later, the grain elevator declares bankruptcy. Who owns the grain? Can Farmer Brown get his grain back? Explain.

A gift causa mortis is a gift:

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?