Exam 17: Personal Property: Bailment and Insurance

Adrienne wanted to place her jewels,which were valued at $100 000,in safe storage while she was on vacation.For that purpose,she gave them to Saul,a jeweler.Since Saul did not actually have safekeeping facilities,he gave Adrienne's jewels to Jeannie.Since Jeannie did not have safekeeping facilities either,she simply placed the jewels in her desk drawer.The jewels were stolen from that drawer by an unknown thief.The evidence indicates that Saul knew that Jeannie did not have proper safekeeping facilities.Adrienne had the jewels fully insured against loss or theft under a policy that she purchased from Rideau Insurance Co.Saul has liability insurance that he bought from Wellington Insurance Ltd,but Jeannie does not have any insurance.The evidence indicates that both Saul and Jeannie acted carelessly.Which of the following statements is most likely TRUE?

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.

Chasya rented a widget from Alec.During the rental period,the widget was involved in an accident.Which of the following statements is TRUE?

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

The word "chattel," as used in the text,

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?

Hedda purchased a combine for her farm worth $80 000,but she could only afford to insure it for $40 000.The insurance has a co-insurance clause requiring coverage for 80% of the value,or $64 000 (meaning Hedda had only purchased 62.5% of the required coverage).An accident causes damage to the combine worth $20,000.How much can Hedda recover?

A court has determined that Geo-Trans Ltd is a common carrier.Because of that special status,the Canada Transport Commission will prevent Geo-Trans Ltd from inserting any exclusion clauses into the contracts that it uses with its customers.

Aimee has just received a diamond ring from her husband as a gift.She is worried that while she is at her cottage for the weekend,someone might steal it.She asks her friend,Gladys,to put the ring in her safe,saying that she would give Gladys $100 to hold it for three days.On the weekend,Gladys' house is robbed and the ring is taken.Which of the following is true?

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?

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 TRUE?

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.

The concept of indemnification

Which of the following statements is TRUE?

A bailment relationship was created between Vijay and Amanda.It was intended to last for two weeks.That period has expired.Amanda now claims that she is entitled to exercise a lien.Which of the following statements is TRUE?

The phrase "nemo dat quod non habet "

Thekla's tailor shop offers alterations to clothing that customers have already purchased.During a busy season,without telling any of their customers,they begin sending half of the work to Inga's tailor shop in order to ensure they can complete the work.A customer complains that his suit has been ruined because it was improperly altered.The suit had been sent to Inga's shop.Which of the following is true?

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

Kalinda parked her car on Dev's land.In deciding whether the parties have created a licence,rather than a bailment,a court would look exclusively at the price (if any)that Dev charged Kalinda.If the price was above market value,a bailment was created.Otherwise,a licence was created.