Question 1

What is the difference between a chose in action and a chose in possession?

Accepted Answer

A) A chose in action always pertains to land, but a chose in possession does not. 
B) A chose in action is a living thing, such as a plant, whereas a chose in possession is a non-living thing, like a diamond or a book. 
C) A chose in action can only be enjoyed through legal proceedings, whereas a chose in possession can be enjoyed through physical possession. 
D) Canadian law recognizes choses in possession but not choses in action. 
E) A chose in action is a thing that can be moved, while a chose in possession is a thing that must remain in one place. 
A) A chose in action always pertains to land, but a chose in possession does not. 
B) A chose in action is a living thing, such as a plant, whereas a chose in possession is a non-living thing, like a diamond or a book. 
C) A chose in action can only be enjoyed through legal proceedings, whereas a chose in possession can be enjoyed through physical possession. 
D) Canadian law recognizes choses in possession but not choses in action. 
E) A chose in action is a thing that can be moved, while a chose in possession is a thing that must remain in one place.

Question 2

Eleni owns and operates a restaurant.During the winter months, it is inappropriate for diners to bring their coats with them to their table.Eleni therefore provides a place for coats to be placed or hung.Does that arrangement necessarily involve a bailment? Is some other arrangement possible? What is the significance of classifying the arrangement as a bailment, rather than something else? Explain your answer, and identify any additional facts that are required before the question can be conclusively answered.

Accepted Answer

This question requires students to disti

Question 3

Aziz abandoned a bicycle by the side of the road with the intention of never seeing it again.Brian saw the bike a short time later and took possession of it with the intention of keeping it.When he was not riding it, Brian regularly left the bike on the sidewalk in front of his apartment building.One night while he slept, Celeste took the bike, with the intention of keeping it for herself.A week later, however, Dharma grabbed the bike from out of Celeste's hands.When she complained, Dharma said that since she had stolen the bike, she had no rights in it. Which of the following statements is TRUE?

Accepted Answer

A) The bike is still owned by Aziz. 
B) Brian has the best right to the bike. 
C) Dharma has a better right to the bike than Celeste. 
D) Aziz has a better right to the bike than Celeste. 
E) Since none of the other parties paid for the bike, Aziz is entitled to recover ownership rights if he relies upon the maxim of nemo dat quod non habet. 
A) The bike is still owned by Aziz. 
B) Brian has the best right to the bike. 
C) Dharma has a better right to the bike than Celeste. 
D) Aziz has a better right to the bike than Celeste. 
E) Since none of the other parties paid for the bike, Aziz is entitled to recover ownership rights if he relies upon the maxim of nemo dat quod non habet.

Question 4

Pavel found a ring that Jacinta had lost.Does a true bailment exist while the ring is in Pavel's possession? Explain your answer.

Accepted Answer

A true bailment is premised upon three c

Question 5

A person may have an insurable interest in a piece of property without owning that property.

Accepted Answer

A) True 
 B)False

Question 6

Honoria recently tried to buy first party insurance with respect to a diamond ring she did not own.The insurance company refused to sell a policy to her on the basis that she did not have an insurable interest.Explain the insurance company's decision in more detail and identify the policy reason why a person who does not have an insurable interest cannot buy a insurance policy.

Accepted Answer

Property insurance is based on the conce

Question 7

Which of the following things does Hannah own?

Accepted Answer

A) A bicycle that she bought last year but abandoned by the side of a road yesterday. 
B) A coat that she received as a gift from her former friend, George, who now insists that, since the friendship is over, ownership must return to him. 
C) A set of kitchen cupboards that she purchased and installed in an apartment that she rents. 
D) A litter of puppies that was created when her Great Dane, Jake, became friendly with a large poodle who lives next door. 
E) A fox that runs wild on a piece of land that she owns. 
A) A bicycle that she bought last year but abandoned by the side of a road yesterday. 
B) A coat that she received as a gift from her former friend, George, who now insists that, since the friendship is over, ownership must return to him. 
C) A set of kitchen cupboards that she purchased and installed in an apartment that she rents. 
D) A litter of puppies that was created when her Great Dane, Jake, became friendly with a large poodle who lives next door. 
E) A fox that runs wild on a piece of land that she owns.

Question 8

Just before the Labour Day weekend, Aimee's husband gave her a diamond ring as a gift.Aimee did not want to bring something so precious to the lake for the weekend, but she also did not want to simply leave it at home.When her friend, Gladys, offered to keep the ring in her safe for three days, Aimee agreed, but only after Gladys accepted $100 as payment.Unfortunately, thieves broke into Gladys' house that night, cracked the safe, and stole the ring.Aimee has sued Gladys.Which of the following statements is most likely to be TRUE?

Accepted Answer

A) Aimee cannot possibly win unless she has evidence to prove that Gladys acted negligently. 
B) Gladys is liable because the bailment creates a guarantee. 
C) As long as Aimee can prove that Gladys accepted $100 for her efforts, the court will treat Gladys as an insurer. 
D) Gladys will benefit from the rule that lowers the standard of care between friends and family, even though she received a small payment from Aimee. 
E) Even if the burden of proof shifts, Gladys will not be held liable if she persuades the court that she was not to blame for the loss. 
A) Aimee cannot possibly win unless she has evidence to prove that Gladys acted negligently. 
B) Gladys is liable because the bailment creates a guarantee. 
C) As long as Aimee can prove that Gladys accepted $100 for her efforts, the court will treat Gladys as an insurer. 
D) Gladys will benefit from the rule that lowers the standard of care between friends and family, even though she received a small payment from Aimee. 
E) Even if the burden of proof shifts, Gladys will not be held liable if she persuades the court that she was not to blame for the loss.

Question 9

Sandor bought property insurance from Athena Insurance Corp five years ago.A dispute has arisen between the parties regarding the duty of utmost good faith.That most likely means that

Accepted Answer

A) the policy may be invalid if Sandor was not entirely candid with the insurer when he bought the policy. 
B) special rules apply because the policy was purchased with respect to sacred religious objects. 
C) Athena Insurance Corp denies that it received a cheque for the payment of Sandor's annual premium. 
D) Sandor is not entitled to receive a benefit for loss that did not occur. 
E) Athena Insurance Corp is not really an insurance company. 
A) the policy may be invalid if Sandor was not entirely candid with the insurer when he bought the policy. 
B) special rules apply because the policy was purchased with respect to sacred religious objects. 
C) Athena Insurance Corp denies that it received a cheque for the payment of Sandor's annual premium. 
D) Sandor is not entitled to receive a benefit for loss that did not occur. 
E) Athena Insurance Corp is not really an insurance company.

Question 10

Which of the following statements is TRUE with respect to sub-bailments?

Accepted Answer

A) Because of the doctrine of privity, it is possible to have a sub-bailment, but not a sub-sub-bailment. 
B) A sub-bailment must be contractual in origin. 
C) A sub-bailment can occur with the bailor's implied or express consent. 
D) A sub-bailee is always considered an insurer for the purposes of the standard of care. 
E) Every person who is a bailor must also be a bailee. 
A) Because of the doctrine of privity, it is possible to have a sub-bailment, but not a sub-sub-bailment. 
B) A sub-bailment must be contractual in origin. 
C) A sub-bailment can occur with the bailor's implied or express consent. 
D) A sub-bailee is always considered an insurer for the purposes of the standard of care. 
E) Every person who is a bailor must also be a bailee.

Question 11

As a result of a bailment, Mitsu has possession of widget that belongs to Chuck.What factors will a court consider in deciding the content of the standard of care that Mitsu must meet while she has possession of the widget?

Accepted Answer

Generally speaking, a bailee is not requ

Question 12

Zelig owns a widget worth $25 000.He purchased property insurance from Superior Insurance Co.The widget was irreparably damaged as a result of an accident that was caused by Zoe.Zoe has a liability insurance policy from Erie Insurance Co.Which of the following statements is most likely to be TRUE?

Accepted Answer

A) Zelig cannot claim a benefit from Superior Insurance Co unless Zoe caused the accident in a way that exposed her to liability in tort. 
B) If it is required to pay a benefit of $25 000 to Zelig, Superior Insurance Co can claim the same amount of money from Erie Insurance Co even if Zoe could not be held liable to Zelig for damaging the widget. 
C) If Superior Insurance Co sues Zoe, it will do so on the basis of the concept of contribution. 
D) The concept of subrogation means that if Zelig successfully sues Zoe in tort, she will be able to claim a benefit from Superior Insurance Co. 
E) If Superior Insurance Co pays a benefit to Zelig, it will be entitled to exercise subrogated rights against Zoe. 
A) Zelig cannot claim a benefit from Superior Insurance Co unless Zoe caused the accident in a way that exposed her to liability in tort. 
B) If it is required to pay a benefit of $25 000 to Zelig, Superior Insurance Co can claim the same amount of money from Erie Insurance Co even if Zoe could not be held liable to Zelig for damaging the widget. 
C) If Superior Insurance Co sues Zoe, it will do so on the basis of the concept of contribution. 
D) The concept of subrogation means that if Zelig successfully sues Zoe in tort, she will be able to claim a benefit from Superior Insurance Co. 
E) If Superior Insurance Co pays a benefit to Zelig, it will be entitled to exercise subrogated rights against Zoe.

Question 13

Which of the following statements is TRUE with respect to statutory liens that apply in the context of bailments?

Accepted Answer

A) The legislation provides a lien to every type of bailee, as long as the bailment is not gratuitous. 
B) A statutory lien always provides a right to retain possession, but not a right of sale. 
C) Statutory liens are restricted to "common callings," such as innkeepers and common carriers. 
D) If goods are sold under a statutory lien, any money not required to discharge the debt is paid to the bailor. 
E) Statutory liens are effective regardless of who has possession of the relevant property. 
A) The legislation provides a lien to every type of bailee, as long as the bailment is not gratuitous. 
B) A statutory lien always provides a right to retain possession, but not a right of sale. 
C) Statutory liens are restricted to "common callings," such as innkeepers and common carriers. 
D) If goods are sold under a statutory lien, any money not required to discharge the debt is paid to the bailor. 
E) Statutory liens are effective regardless of who has possession of the relevant property.

Question 14

Acme Moving Inc contractually agreed to move Jed's property from Vancouver to Halifax.When the property arrived in Halifax, it was badly damaged.Jed has sued Acme, claiming compensation for his loss.Acme believes, however, that it has an effective defence to that claim.Jed disagrees.Which of the following statements is most likely to be TRUE?

Accepted Answer

A) The defence of "inherent vice" will apply only if Jed's property was something like heroin that is illegal to possess. 
B) Because of the potential for abuse, Acme may rely upon a contractual clause that reduces liability, but not a contractual clause that entirely eliminates liability. 
C) Acme may be held liable eve if Jed's property was damaged by an act of God. 
D) The concept of "shipper's fault" means that Acme cannot escape liability if it deliberately damaged Jed's property. 
E) Acme cannot possibly avoid liability on the basis of a defence because, for policy reasons, companies in its position are absolutely liable for any damage that they cause. 
A) The defence of "inherent vice" will apply only if Jed's property was something like heroin that is illegal to possess. 
B) Because of the potential for abuse, Acme may rely upon a contractual clause that reduces liability, but not a contractual clause that entirely eliminates liability. 
C) Acme may be held liable eve if Jed's property was damaged by an act of God. 
D) The concept of "shipper's fault" means that Acme cannot escape liability if it deliberately damaged Jed's property. 
E) Acme cannot possibly avoid liability on the basis of a defence because, for policy reasons, companies in its position are absolutely liable for any damage that they cause.

Question 15

The phrase "nemo dat quod non habet "

Accepted Answer

A) applies to real property, but not to personal property. 
B) is generally ineffective with respect to money. 
C) applies only in equity. 
D) is a concept that arises only in insurance law. 
E) means that a person who has possession of property under a bailment must use reasonable care. 
A) applies to real property, but not to personal property. 
B) is generally ineffective with respect to money. 
C) applies only in equity. 
D) is a concept that arises only in insurance law. 
E) means that a person who has possession of property under a bailment must use reasonable care.

What is the difference between a chose in action and a chose in possession?

Pavel found a ring that Jacinta had lost.Does a true bailment exist while the ring is in Pavel's possession? Explain your answer.

A person may have an insurable interest in a piece of property without owning that property.

Which of the following things does Hannah own?

Sandor bought property insurance from Athena Insurance Corp five years ago.A dispute has arisen between the parties regarding the duty of utmost good faith.That most likely means that

Which of the following statements is TRUE with respect to sub-bailments?

As a result of a bailment, Mitsu has possession of widget that belongs to Chuck.What factors will a court consider in deciding the content of the standard of care that Mitsu must meet while she has possession of the widget?

Zelig owns a widget worth $25 000.He purchased property insurance from Superior Insurance Co.The widget was irreparably damaged as a result of an accident that was caused by Zoe.Zoe has a liability insurance policy from Erie Insurance Co.Which of the following statements is most likely to be TRUE?

Which of the following statements is TRUE with respect to statutory liens that apply in the context of bailments?

The phrase "nemo dat quod non habet "

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Online: Special Contracts: Negotiable Instruments

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Exam 16: Personal Property: Bailment and Insurance

What is the difference between a chose in action and a chose in possession?

Pavel found a ring that Jacinta had lost.Does a true bailment exist while the ring is in Pavel's possession? Explain your answer.

A person may have an insurable interest in a piece of property without owning that property.

Which of the following things does Hannah own?

Sandor bought property insurance from Athena Insurance Corp five years ago.A dispute has arisen between the parties regarding the duty of utmost good faith.That most likely means that

Which of the following statements is TRUE with respect to sub-bailments?

As a result of a bailment, Mitsu has possession of widget that belongs to Chuck.What factors will a court consider in deciding the content of the standard of care that Mitsu must meet while she has possession of the widget?

Zelig owns a widget worth $25 000.He purchased property insurance from Superior Insurance Co.The widget was irreparably damaged as a result of an accident that was caused by Zoe.Zoe has a liability insurance policy from Erie Insurance Co.Which of the following statements is most likely to be TRUE?

Which of the following statements is TRUE with respect to statutory liens that apply in the context of bailments?

The phrase "nemo dat quod non habet "

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Online: Special Contracts: Negotiable Instruments

Filters