Exam 16: Personal Property: Bailment and Insurance

Bonzi found a necklace while staying in a hotel that is owned by Alpha Corp.To whom does the necklace belong? Explain your answer, and identify any additional facts that are required before the issue can be fully resolved.

Veda owned a diamond necklace.She entered into an insurance contract for coverage of the necklace.Under the terms of that contract, she was required to pay $500 per month.After Veda paid the premium for two months, the necklace was stolen.Her insurance policy covers loss by theft and the insurance company admits that it must pay a benefit to her.That policy, however, contains a "deductible." This means that the benefit that Veda is entitled to receive from the insurance company will be reduced by the amount that she actually paid as premiums: $1000.

Meena gave a widget to Speedy Fixit Inc for repairs.She assumed, without much thought that the repairs would be done by Speedy itself.In fact, Speedy sent the widget to Niagara Repairs Ltd to have the work done.The widget was lost while it was in the possession of Niagara.If Meena agreed to a sub-bailment, she may be allowed to subsequently sue Niagara for the loss.

If property is lost or damaged during a bailment, the burden of proof may shift.Which of the following statements is TRUE with respect to that rule?

Alan purchased a piece of land from Zirka.He used a cheque to pay for the price.Which of the following statements is TRUE?

Chinthaka received a widget from Melissa.A true bailment was created if

Explain the meaning and relevance of "inherent vice."

Anna wanted goods moved from Vancouver to Halifax.For that purpose, she gave them to Boris, who operates an independent trucking business.When Boris reached Winnipeg, his truck broke down.To fulfill his contract with Anna, he gave possession of the goods to Carl, with instructions to deliver them to Halifax.The goods were destroyed while they were in Carl's possession.Which of the following statements is TRUE?

Which of the following statements is TRUE with respect to property insurance?

As used in the text, the word "chattel"

The concept of indemnification

Darcy received a widget from Rachel under a bailment.The widget was damaged while it was in his possession.As a result, Rachel has sued Darcy.Which of the following statements is TRUE with respect to Darcy's liability?

Which of the following statements is most likely to be TRUE?

Taj borrowed a widget from Dhanna.Even though the relationship was a bailment, rather than a sale, both Taj and Dhanna may be required to exercise "reasonable care" in some sense.

What is subrogation? What is indemnification? How are these two concepts related?

The concept of an insurable interest

Boyd lost a diamond ring in the lobby of a hotel.Carmel, a guest at the hotel, found it.Both Carmel and the hotel claim the right to possess the ring.If Boyd cannot be located, a court would probably favour Carmel over the hotel.

Rose and Caradoc were romantically involved for several years.During that time, she gave a necklace to him.The couple then had a terrible fight and broke up.Because he no longer wanted anything to do with Rose, Caradoc threw the necklace into a garbage can that was located in the main hall of a railway station.That station is owned by the Regional Transport Authority (RTA), but members of the public are always welcome.Francis saw the necklace in the garbage and took it home with him.All four parties (Francis, Rose, Caradoc, and the RTA) now claim the right to possession of the necklace.Which of the following statements is most likely TRUE?

Trans-Geo Inc is a business that operates in a number of different ways.Most commonly, however, it moves goods for customers from one part of the country to another.It will not necessarily be classified as a common carrier when it does so.

The distinction between real property and personal property consists of the fact that real property can never be physically picked up and moved from place to place, and personal property can always be physically picked up and moved from place to place.