Question 1

Bruce tells his son,"You can have my 1990 truck,but if your grades fall,I'm taking it back." Bruce:

Accepted Answer

A)  has made no gift. 
B)  has made a "revocable gift," which is effective as a gift as long as the stated condition is met. 
C)  intended to transfer ownership. 
D)  has made a constructive gift. 
A)  has made no gift. 
B)  has made a "revocable gift," which is effective as a gift as long as the stated condition is met. 
C)  intended to transfer ownership. 
D)  has made a constructive gift. A

Question 2

Farmer Fred is leasing pasture land from Wealthy Warren.Farmer Fred is working the soil to turn the pasture land into land that will be able to grow crops.As Farmer Fred is preparing the field,he discovers a treasure chest full of gold and silver coins.The coins are all dated before 1810.A finder of treasure trove under common law:

Accepted Answer

A)  was entitled to keep the treasure trove. 
B)  was required to turn the property over to the owner. Here, under common law, Farmer Fred is required to turn the treasure trove over to Wealthy Warren. 
C)  was required to turn the treasure trove over to the State. 
D)  was required to turn the treasure trove over to the federal government who will give the treasure trove to the closest Native American reservation. 
A)  was entitled to keep the treasure trove. 
B)  was required to turn the property over to the owner. Here, under common law, Farmer Fred is required to turn the treasure trove over to Wealthy Warren. 
C)  was required to turn the treasure trove over to the State. 
D)  was required to turn the treasure trove over to the federal government who will give the treasure trove to the closest Native American reservation. A

Question 3

Hanna intends to give her granddaughter,Melodee,her antique hat pin.This heirloom has been kept under lock and key in the wall vault in the library of Hanna's house in Virginia.The hat pin is currently the only item in the vault.When Hanna is visiting Melodee in Connecticut,Hanna gives Melodee the only key to the vault.Melodee is grateful for the present and excitedly accepts.In this situation has there been a completed gift?

Accepted Answer

A)  No. There has been no physical delivery of the hat pin. 
B)  Yes. There has been physical delivery of the hat pin. 
C)  No. There has only been constructive delivery of the hat pin. 
D)  Yes. There has been constructive delivery of the hat pin. 
A)  No. There has been no physical delivery of the hat pin. 
B)  Yes. There has been physical delivery of the hat pin. 
C)  No. There has only been constructive delivery of the hat pin. 
D)  Yes. There has been constructive delivery of the hat pin. D

Question 4

Buck,fearing death from severe injuries suffered in a machinery accident,assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl,a friend,who gladly accepts.Buck ends up recovering from the injuries.Why must Pearl give the certificate of deposit back to Buck?

Accepted Answer

A)  This type of gift is known as a gift causa mortis. It is a conditional gift which is conditioned on Buck's actually dying. Because Buck recovered, the gift is automatically revoked. 
B)  This is an inter vivos gift because Buck was still alive when the gift was made. Any inter vivos gift is revocable because there is no consideration to make Buck's delivery of the certificate binding under contract law. 
C)  This is an inter vivos gift and due to state laws, gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute. 
D)  This gift is an ordinary gift, but it is revocable because we don't know if the certificate of deposit has matured or not. 
A)  This type of gift is known as a gift causa mortis. It is a conditional gift which is conditioned on Buck's actually dying. Because Buck recovered, the gift is automatically revoked. 
B)  This is an inter vivos gift because Buck was still alive when the gift was made. Any inter vivos gift is revocable because there is no consideration to make Buck's delivery of the certificate binding under contract law. 
C)  This is an inter vivos gift and due to state laws, gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute. 
D)  This gift is an ordinary gift, but it is revocable because we don't know if the certificate of deposit has matured or not.

Question 5

Mitch takes his two best suits to Quality Cleaners and receives a ticket as a receipt.Quality tells Mitch his suits will be cleaned and will be ready to be picked up on Monday.Another customer overhears the exchange and early on Monday goes to Quality,convinces the worker he is Mitch but that he has lost his receipt.He identifies and retrieves the suits,which happen to fit him perfectly,too.Quality Cleaners:

Accepted Answer

A)  is strictly liable to Mitch for the suits. 
B)  is liable to Mitch only if Mitch can prove Quality was grossly negligent. 
C)  has no liability unless Mitch proves Quality did not use ordinary care. 
D)  will avoid liability if the receipt contained an exculpatory clause excluding gross negligence. 
A)  is strictly liable to Mitch for the suits. 
B)  is liable to Mitch only if Mitch can prove Quality was grossly negligent. 
C)  has no liability unless Mitch proves Quality did not use ordinary care. 
D)  will avoid liability if the receipt contained an exculpatory clause excluding gross negligence.

Question 6

Jody loaned her neighbor,Phil,her snow blower.Phil set it near his driveway,and later accidently ran over and destroyed it.In a suit to recover damages,Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

Accepted Answer

A) True 
 B)False

Question 7

If one party makes accessions without agreement and the improvements can be "undone" without damaging the property,the improver must undo them.

Accepted Answer

A) True 
 B)False

Question 8

A bailment is different from a gift because:

Accepted Answer

A)  a gift requires consideration, but a bailment does not. 
B)  a gift requires delivery, but a bailment does not. 
C)  in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee. 
D)  a gift is always a contract, but a bailment is generally not a contract. 
A)  a gift requires consideration, but a bailment does not. 
B)  a gift requires delivery, but a bailment does not. 
C)  in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee. 
D)  a gift is always a contract, but a bailment is generally not a contract.

Question 9

Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?

Accepted Answer

A)  Accession. 
B)  Bailment. 
C)  An inter vivos gift. 
D)  A mutual-benefit bailment. 
A)  Accession. 
B)  Bailment. 
C)  An inter vivos gift. 
D)  A mutual-benefit bailment.

Question 10

Jeannie carelessly packed her grandmother's antique glassware and had it shipped to her 30-year-old daughter,Abby,via Common Freight Carriers.When the china arrived at Abby's house,most of the pieces were broken.As between Jeannie and Common Freight Carriers,who will bear the loss?

Accepted Answer

A)  Under the Carmack Amendment, Jeannie is liable for the loss if Common Freight Carriers shows it was not negligent and that the loss was caused by Jeannie's failure to wrap and pack the glassware properly. 
B)  Under the Carmack Amendment, Common Freight Carriers is liable. A common carrier is strictly liable. 
C)  Under the Carmack Amendment, Common Freight Carriers is liable because of its negligence in not inspecting Jeannie's packing job. 
D)  Liability is governed by state statute and will depend on which state law will control. 
A)  Under the Carmack Amendment, Jeannie is liable for the loss if Common Freight Carriers shows it was not negligent and that the loss was caused by Jeannie's failure to wrap and pack the glassware properly. 
B)  Under the Carmack Amendment, Common Freight Carriers is liable. A common carrier is strictly liable. 
C)  Under the Carmack Amendment, Common Freight Carriers is liable because of its negligence in not inspecting Jeannie's packing job. 
D)  Liability is governed by state statute and will depend on which state law will control.

Question 11

Lacy sets her textbook under her chair in her business law class and then forgets to take it with her when she leaves the classroom.A janitor later discovers the textbook and gives it to the Dean of the Business College.In this situation:

Accepted Answer

A)  the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property. 
B)  the college is a bailee by agreement because holding items in a lost and found box is generally part of the college-student agreement when the student enrolls for classes. 
C)  the college is responsible for the discovered textbook because in this situation, the college is subject to implied warranties unless the college has disclaimed such warranties in the student handbook. 
D)  this is a bailment for the sole benefit of the bailee. 
A)  the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property. 
B)  the college is a bailee by agreement because holding items in a lost and found box is generally part of the college-student agreement when the student enrolls for classes. 
C)  the college is responsible for the discovered textbook because in this situation, the college is subject to implied warranties unless the college has disclaimed such warranties in the student handbook. 
D)  this is a bailment for the sole benefit of the bailee.

Question 12

Ed wants to give Howard his old car,but Howard says he doesn't want it.Howard later reconsiders and tells Ed he does want the car.His previous repudiation means there is no gift,and Howard has no rights in the car.

Accepted Answer

A) True 
 B)False

Question 13

An estray statute:

Accepted Answer

A)  governs the ownership of livestock that have strayed from the rest of the herd. 
B)  is a federal statute that governs the rights of ownership of found property. 
C)  is both of the above. 
D)  is neither of the above. 
A)  governs the ownership of livestock that have strayed from the rest of the herd. 
B)  is a federal statute that governs the rights of ownership of found property. 
C)  is both of the above. 
D)  is neither of the above.

Question 14

While shopping at the mall,Everett's wallet fell out of his pocket.Jon found the wallet.The wallet is abandoned property and Jon may keep it.

Accepted Answer

A) True 
 B)False

Question 15

Bill was shopping at the mall.As he was walking to Tonne's Department Store,his wallet fell out of his pants.While trying on a new suit,Bill left his leather jacket in the change room.Sue found Bill's wallet.Arnie,a sales associate,found his coat.What kind of found property is Bill's wallet? What kind of property is his jacket? What rights do Sue and Arnie have in the found property?

Accepted Answer

Lost property is something accidentally

Question 16

A bailee always has a right:

Accepted Answer

A)  to possession of the bailed property. Anyone who interferes with this right is liable to the bailee. Even the bailor himself is liable for wrongful interference with the bailee's possession. 
B)  to use the bailed property. 
C)  to compensation. 
D)  All of the answers are correct. 
A)  to possession of the bailed property. Anyone who interferes with this right is liable to the bailee. Even the bailor himself is liable for wrongful interference with the bailee's possession. 
B)  to use the bailed property. 
C)  to compensation. 
D)  All of the answers are correct.

Question 17

In order to constitute a valid gift:

Accepted Answer

A)  the donor must intend to transfer ownership of property immediately. 
B)  the donee must accept the gift. 
C)  the donor must deliver the gift property to the donee. 
D)  All of the above are necessary for a valid gift. 
A)  the donor must intend to transfer ownership of property immediately. 
B)  the donee must accept the gift. 
C)  the donor must deliver the gift property to the donee. 
D)  All of the above are necessary for a valid gift.

Question 18

If property is mislaid,the finder of the property will have a superior claim to possession of the property against everyone except the true owner.

Accepted Answer

A) True 
 B)False

Question 19

Beth owned an original United States flag.She had previously loaned the flag to Ross,a lawyer,so that he could display the flag on the wall behind his office desk.One day while visiting Ross in his office and admiring the flag,Beth said to Ross,"You are so fond of that flag,I would like you to have it!" Ross responded with a gracious "thank you." In this situation:

Accepted Answer

A)  Beth has not made a valid, binding gift of the flag because gifts are never binding and can always be revoked by the donor. 
B)  Beth has not made a valid, binding gift of the flag because the donor must deliver the property to the donee, which was not done here. 
C)  Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for Ross's legal services. 
D)  Beth has made a valid, binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag. 
A)  Beth has not made a valid, binding gift of the flag because gifts are never binding and can always be revoked by the donor. 
B)  Beth has not made a valid, binding gift of the flag because the donor must deliver the property to the donee, which was not done here. 
C)  Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for Ross's legal services. 
D)  Beth has made a valid, binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag.

Question 20

Mega Corporation,the bailor,negotiates a bailment agreement with Huge Corporation,the bailee.Huge Corporation insists that an exculpatory clause be included in the terms and conditions of the bailment agreement.Later,Huge Corporation negligently (ordinary negligence,not gross negligence)damages the property which is the subject of the bailment.Most courts will allow Huge Corp.to stand behind its exculpatory clause and deny liability.

Accepted Answer

A) True 
 B)False

Exam 44: Personal Property And Bailment

Bruce tells his son,"You can have my 1990 truck,but if your grades fall,I'm taking it back." Bruce:

Buck,fearing death from severe injuries suffered in a machinery accident,assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl,a friend,who gladly accepts.Buck ends up recovering from the injuries.Why must Pearl give the certificate of deposit back to Buck?

Jody loaned her neighbor,Phil,her snow blower.Phil set it near his driveway,and later accidently ran over and destroyed it.In a suit to recover damages,Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

If one party makes accessions without agreement and the improvements can be "undone" without damaging the property,the improver must undo them.

A bailment is different from a gift because:

Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?

Jeannie carelessly packed her grandmother's antique glassware and had it shipped to her 30-year-old daughter,Abby,via Common Freight Carriers.When the china arrived at Abby's house,most of the pieces were broken.As between Jeannie and Common Freight Carriers,who will bear the loss?

Lacy sets her textbook under her chair in her business law class and then forgets to take it with her when she leaves the classroom.A janitor later discovers the textbook and gives it to the Dean of the Business College.In this situation:

Ed wants to give Howard his old car,but Howard says he doesn't want it.Howard later reconsiders and tells Ed he does want the car.His previous repudiation means there is no gift,and Howard has no rights in the car.

An estray statute:

While shopping at the mall,Everett's wallet fell out of his pocket.Jon found the wallet.The wallet is abandoned property and Jon may keep it.

A bailee always has a right:

In order to constitute a valid gift:

If property is mislaid,the finder of the property will have a superior claim to possession of the property against everyone except the true owner.

Introduction To Law

Business Ethics And Social Responsibility

Dispute Resolution

Common Law,Statutory Law,And Administrative Law

Constitutional Law

Intentional Torts And Business Torts

Negligence And Strict Liability

Crime

International Law

Introduction To Contracts

Agreement

Consideration

Legality

Capacity And Consent

Written Contracts

Third Parties

Performance And Discharge

Remedies

Practical Contracts

Introduction To Sales

Ownership And Risk

Warranties And Product Liability

Performance And Remedies

Secured Transactions

Creating A Negotiable Instrument

Liability For Negotiable Instruments

Accountants' Liability

Agency Law

Employment Law

Labor Law

Starting A Business

Partnerships

Life And Death Of A Corporation

Corporate Management

Shareholders

Securities Regulation

Bankruptcy

Antitrust

Consumer Law

Environmental Law

Cyberlaw

Intellectual Property

Real Property And Tenant-landlord Law

Planning For The Future: Wills,Trusts,And Insurance

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