Question 1

If Clark buys a tomato plant, he owns the tomatoes produced by the plant based on "confusion."

Accepted Answer

A) True 
 B)False  False

Question 2

A gift causa mortis is a gift:

Accepted Answer

A)  made by a donor after death in her will. 
B)  that is conditional. 
C)  made in the contemplation of the donor's imminent death. 
D)  T hat is both conditional and  made in the contemplation of the donor's imminent death 
E)  T hat is both conditional and  made by a donor after death in her will. 
A)  made by a donor after death in her will. 
B)  that is conditional. 
C)  made in the contemplation of the donor's imminent death. 
D)  T hat is both conditional and  made in the contemplation of the donor's imminent death 
E)  T hat is both conditional and  made by a donor after death in her will. D

Question 3

Albert offers his nephew, Tom, his 2001 car which would only need about $1,000 in repairs to put it in running order. Tom has no right to reject the car.

Accepted Answer

A) True 
 B)False  False

Question 4

Mark wants to give Susan his car. How can he effectively "deliver" it?

Accepted Answer

A)  By giving Susan the keys. 
B)  By giving her an indorsed title certificate. 
C)  By making her take it for a period of time. 
D)  By giving her a bill of sale for it. 
E)  By giving her an indorsed title certificate or by  giving Susan the keys. 
A)  By giving Susan the keys. 
B)  By giving her an indorsed title certificate. 
C)  By making her take it for a period of time. 
D)  By giving her a bill of sale for it. 
E)  By giving her an indorsed title certificate or by  giving Susan the keys.

Question 5

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 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

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 8

When goods have been commingled, it is sometimes possible to get title by confusion.

Accepted Answer

A) True 
 B)False

Question 9

Insurance protects a business from:

Accepted Answer

A)  tort liability. 
B)  strict liability. 
C)  negligence. 
D)  damage from natural causes. 
E)  All of these are protected. 
A)  tort liability. 
B)  strict liability. 
C)  negligence. 
D)  damage from natural causes. 
E)  All of these are protected.

Question 10

Bailed property must be tangible.

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

Intangible property does not exist in a physical form.

Accepted Answer

A) True 
 B)False

Question 13

The transfer of personal property involves formalities not required in the transfer of real property.

Accepted Answer

A) True 
 B)False

Question 14

Defenses of the insurer include:

Accepted Answer

A)  misrepresentation. 
B)  judgment pro rata. 
C)  concealment. 
D)  Both misrepresentation  and concealment. 
E)  Both judgment  pro rata.  and concealment. 
A)  misrepresentation. 
B)  judgment pro rata. 
C)  concealment. 
D)  Both misrepresentation  and concealment. 
E)  Both judgment  pro rata.  and concealment.

Question 15

A negotiable electronic document of title running to the order of a named person or to bearer is negotiated by delivery, which means voluntary transfer of control.

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

Another term for personal property is:

Accepted Answer

A)  patent. 
B)  chattel. 
C)  realty. 
D)  fixtures. 
A)  patent. 
B)  chattel. 
C)  realty. 
D)  fixtures.

Question 18

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

Accepted Answer

A)  misrepresentation. 
B)  concealment. 
C)  waiver. 
D)  fidelity. 
A)  misrepresentation. 
B)  concealment. 
C)  waiver. 
D)  fidelity.

Question 19

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 20

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.

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

If Clark buys a tomato plant, he owns the tomatoes produced by the plant based on "confusion."

A gift causa mortis is a gift:

Albert offers his nephew, Tom, his 2001 car which would only need about $1,000 in repairs to put it in running order. Tom has no right to reject the car.

Mark wants to give Susan his car. How can he effectively "deliver" it?

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:

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

An example of property that is intangible is a:

When goods have been commingled, it is sometimes possible to get title by confusion.

Insurance protects a business from:

Bailed property must be tangible.

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?

Intangible property does not exist in a physical form.

The transfer of personal property involves formalities not required in the transfer of real property.

Defenses of the insurer include:

A negotiable electronic document of title running to the order of a named person or to bearer is negotiated by delivery, which means voluntary transfer of control.

Another term for personal property is:

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

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

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

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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