Question 1

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 2

The most frequently used documents of title are the warehouse receipts issued by warehousers and the bills of lading issued by carriers.

Accepted Answer

A) True 
 B)False

Question 3

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 4

An insurable interest in property is a financial interest that justifies insuring such property.

Accepted Answer

A) True 
 B)False

Question 5

The basic principles of contract law apply to insurance policies.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

a. How do you distinguish between tangible and intangible property? 
b. How do you distinguish between real and personal property?

Accepted Answer

a. Tangible property exists in a physica

Question 9

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 10

Why are delivery and acceptance both necessary to have a valid gift? Explain.

Accepted Answer

Because a gift involves no consideration

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Sales of tangible personal property involve the transfer of title.

Accepted Answer

A) True 
 B)False

Question 14

Melissa cannot transfer control of the goods held by a bailee by transferring a document of title.

Accepted Answer

A) True 
 B)False

Question 15

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. 
E)  Transfer can occur by any of the above. 
A)  By deed. 
B)  By gift. 
C)  By will or descent. 
D)  By accession. 
E)  Transfer can occur by any of the above.

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

If property is lost (unintentionally lef

Question 18

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 19

A thief stole Harold's car and installed a tape deck in it. Later the police caught the thief and returned the car to Harold. Harold now owns the tape deck by accession.

Accepted Answer

A) True 
 B)False

Question 20

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.

Accepted Answer

All of the farmers own the grain by conf

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

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

The most frequently used documents of title are the warehouse receipts issued by warehousers and the bills of lading issued by carriers.

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

An insurable interest in property is a financial interest that justifies insuring such property.

The basic principles of contract law apply to insurance policies.

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

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.

a. How do you distinguish between tangible and intangible property? b. How do you distinguish between real and personal property?

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

Why are delivery and acceptance both necessary to have a valid gift? Explain.

Which of the following is tangible real property?

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

Sales of tangible personal property involve the transfer of title.

Melissa cannot transfer control of the goods held by a bailee by transferring a document of title.

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

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.

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

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

A thief stole Harold's car and installed a tape deck in it. Later the police caught the thief and returned the car to Harold. Harold now owns the tape deck by accession.

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.

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

Filters