Question 1

An heir of a person who dies receives title to the property of the decedent by reason of a gift.

Accepted Answer

A) True 
 B)False  False

Question 2

Marilyn brought her $300 silk dress to University Dry Cleaners to be cleaned.On the back of the ticket she received in exchange for the dress was written, "Liability limited to ten times the cost of cleaning." Marilyn's dress was lost and University now claims it owes her only $96.50, ten times the cost of cleaning.Is that true?

Accepted Answer

A) No, because Marilyn is not a bailor. 
B) No, because they are common carriers. 
C) No, because the limitation was not communicated to her. 
D) No, because the limitation is unconscionable. 
A) No, because Marilyn is not a bailor. 
B) No, because they are common carriers. 
C) No, because the limitation was not communicated to her. 
D) No, because the limitation is unconscionable. C

Question 3

Patent rights are considered to be personal property.

Accepted Answer

A) True 
 B)False  True

Question 4

Mark wants to give Susan his car.How can he effectively "deliver" it?

Accepted Answer

A) By giving Susan the keys. 
B) By giving her an indorsed title certificate. 
C) By making her take it for a period of time. 
D) By providing it under a bailment. 
E) Both (a) and (b) are correct. 
A) By giving Susan the keys. 
B) By giving her an indorsed title certificate. 
C) By making her take it for a period of time. 
D) By providing it under a bailment. 
E) Both (a) and (b) are correct.

Question 5

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 6

An example of property that is intangible is a:

Accepted Answer

A) song. 
B) computer. 
C) book. 
D) pencil. 
A) song. 
B) computer. 
C) book. 
D) pencil.

Question 7

Name and briefly describe the special features or extraordinary duties of five special types of bailments discussed in the textbook.

Accepted Answer

Five special types of bailments are or i

Question 8

Land and interests in land are considered "real property."

Accepted Answer

A) True 
 B)False

Question 9

Albert offers his nephew, Tom, his 1976 car which would only need about $1,000 in repairs to put it in running order.Tom has no right to reject the car.

Accepted Answer

A) True 
 B)False

Question 10

For an insurance applicant's misrepresentation to have legal consequences:

Accepted Answer

A) the insurer need not have relied on it as an inducement to enter the contract. 
B) the misrepresentation must be material. 
C) the applicant must have known it was false at the time the applicant made the statement. 
D) All of the above. 
A) the insurer need not have relied on it as an inducement to enter the contract. 
B) the misrepresentation must be material. 
C) the applicant must have known it was false at the time the applicant made the statement. 
D) All of the above.

Question 11

Warranties in insurance contracts:

Accepted Answer

A) are of great importance. 
B) may be expressly included in the contract, be clearly incorporated by reference, or be implied. 
C) may be used to avoid liability in all states, whether or not the breach of warranty is material. 
D) are becoming increasingly easy to use as a basis for an insurer to avoid liability on a policy when an insured breaches. 
A) are of great importance. 
B) may be expressly included in the contract, be clearly incorporated by reference, or be implied. 
C) may be used to avoid liability in all states, whether or not the breach of warranty is material. 
D) are becoming increasingly easy to use as a basis for an insurer to avoid liability on a policy when an insured breaches.

Question 12

Dr.Olson is a board-certified ophthalmologist who constructs some specially designed examining tables to use in looking at his patient's eyes.The tables are firmly attached to the floor of the space he rents for his office.If Dr.Olson decides to move his office, which of the following is correct?

Accepted Answer

A) The tables are fixtures that cannot be removed. 
B) The tables are trade fixtures. 
C) Dr.Olson may remove the tables if they can be removed without materially damaging the realty. 
D) Both (b) and (c) are correct. 
A) The tables are fixtures that cannot be removed. 
B) The tables are trade fixtures. 
C) Dr.Olson may remove the tables if they can be removed without materially damaging the realty. 
D) Both (b) and (c) are correct.

Question 13

Carol took her earrings off at Marcia's beauty shop and put them on the counter.She left the shop without remembering the earrings.Betty finds them and wants to keep them.Can she?

Accepted Answer

A) Yes, since she is a finder. 
B) Yes, she now is the true owner. 
C) No, since the earrings were personal property. 
D) No, Marcia would have the right to keep them as against anyone but Carol. 
A) Yes, since she is a finder. 
B) Yes, she now is the true owner. 
C) No, since the earrings were personal property. 
D) No, Marcia would have the right to keep them as against anyone but Carol.

Question 14

Property insurance may be either a valued policy or an open policy.

Accepted Answer

A) True 
 B)False

Question 15

The regulation of insurance has, under federal legislation, been left to the states.

Accepted Answer

A) True 
 B)False

Question 16

All bills of lading are negotiable and may be transferred like a check.

Accepted Answer

A) True 
 B)False

Question 17

The finder of lost property is entitled to possession of it, even against the true owner.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

Fire insurance policies are standardized in the United States, either by statute or by order of the state insurance departments, so coverage cannot be enlarged to cover any other perils.

Accepted Answer

A) True 
 B)False

Exam 48: Introduction to Property, Property Insurance, Bailments, and Documents of Title

An heir of a person who dies receives title to the property of the decedent by reason of a gift.

Patent rights are considered to be personal property.

Mark wants to give Susan his car.How can he effectively "deliver" it?

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.

An example of property that is intangible is a:

Name and briefly describe the special features or extraordinary duties of five special types of bailments discussed in the textbook.

Land and interests in land are considered "real property."

Albert offers his nephew, Tom, his 1976 car which would only need about $1,000 in repairs to put it in running order.Tom has no right to reject the car.

For an insurance applicant's misrepresentation to have legal consequences:

Warranties in insurance contracts:

Dr.Olson is a board-certified ophthalmologist who constructs some specially designed examining tables to use in looking at his patient's eyes.The tables are firmly attached to the floor of the space he rents for his office.If Dr.Olson decides to move his office, which of the following is correct?

Carol took her earrings off at Marcia's beauty shop and put them on the counter.She left the shop without remembering the earrings.Betty finds them and wants to keep them.Can she?

Property insurance may be either a valued policy or an open policy.

The regulation of insurance has, under federal legislation, been left to the states.

All bills of lading are negotiable and may be transferred like a check.

The finder of lost property is entitled to possession of it, even against the true owner.

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

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.

Fire insurance policies are standardized in the United States, either by statute or by order of the state insurance departments, so coverage cannot be enlarged to cover any other perils.

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

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

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