Question 1

A type of insurance in which the insured and the insurer share a risk of loss due to fire is:

Accepted Answer

A) co-insurance. 
B) non-forfeiture insurance. 
C) no-fault insurance. 
D) reinsurance. 
A) co-insurance. 
B) non-forfeiture insurance. 
C) no-fault insurance. 
D) reinsurance.

Question 2

Coinsurance is common in property insurance as a means of sharing risk between the insurer and insured.

Accepted Answer

A) True 
 B)False

Question 3

The rights of a holder of a negotiable document of title to whom it has been duly negotiated include:

Accepted Answer

A) title to the document. 
B) title to the goods. 
C) all rights accruing under the law of agency or estoppel. 
D) All of the above. 
A) title to the document. 
B) title to the goods. 
C) all rights accruing under the law of agency or estoppel. 
D) All of the above.

Question 4

Which of the following statements is true of insurance policies?

Accepted Answer

A) The basic principles of contract law apply to insurance policies. 
B) Insurance companies tend to standardize their policies. 
C) Some states forbid standardization of insurance policies. 
D) All of the above. 
E) (a) and (b), but not (c). 
A) The basic principles of contract law apply to insurance policies. 
B) Insurance companies tend to standardize their policies. 
C) Some states forbid standardization of insurance policies. 
D) All of the above. 
E) (a) and (b), but not (c).

Question 5

In the United States, property occupies a unique status because of the protection expressly granted to it by the Fourth Amendment to the Constitution, which provides that "No person shall be ...deprived of life, liberty, or property without due process of law."

Accepted Answer

A) True 
 B)False

Question 6

A furnace is often classified as a "fixture."

Accepted Answer

A) True 
 B)False

Question 7

At the end of a bailment, a bailee may correctly deliver the bailed property to a third party (other than the bailor) in certain cases.

Accepted Answer

A) True 
 B)False

Question 8

Defenses of the insurer include:

Accepted Answer

A) misrepresentation. 
B) judgment pro rata. 
C) concealment. 
D) Both (a) and (c) are correct. 
E) Both (b) and (c) are correct. 
A) misrepresentation. 
B) judgment pro rata. 
C) concealment. 
D) Both (a) and (c) are correct. 
E) Both (b) and (c) are correct.

Question 9

When goods have been commingled, it is sometimes possible to get title by confusion.

Accepted Answer

A) True 
 B)False

Question 10

The fixture test of purpose or use applies only if the item:

Accepted Answer

A) is affixed to the realty in some way. 
B) can be removed without material injury to the realty. 
C) Both (a) and (b). 
D) is distinct from the realty but could be affixed to it. 
A) is affixed to the realty in some way. 
B) can be removed without material injury to the realty. 
C) Both (a) and (b). 
D) is distinct from the realty but could be affixed to it.

Question 11

No warranties are given out by the person who negotiates or transfers a document of title.

Accepted Answer

A) True 
 B)False

Question 12

Transfer of title to personal property can occur by which of the following ways?

Accepted Answer

A) By sale. 
B) By gift. 
C) By will or descent. 
D) By accession. 
E) All of the above. 
A) By sale. 
B) By gift. 
C) By will or descent. 
D) By accession. 
E) All of the above.

Question 13

Which of the following is a requirement of a valid gift?

Accepted Answer

A) An adult donor. 
B) Payment of money. 
C) A writing. 
D) Delivery. 
A) An adult donor. 
B) Payment of money. 
C) A writing. 
D) Delivery.

Question 14

Property may be classified as:

Accepted Answer

A) tangible and intangible. 
B) real or personal. 
C) physical and imaginary. 
D) Both (a) and (b). 
A) tangible and intangible. 
B) real or personal. 
C) physical and imaginary. 
D) Both (a) and (b).

Question 15

Bailments for the bailee's sole benefit are usually limited to the gratuitous loan of personal property for use by the bailee.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is/are the criteria for a common carrier?

Accepted Answer

A) The carriage must be part of its business. 
B) The carriage must be for remuneration. 
C) The carrier must represent to the general public that it is willing to serve the public in the transportation of property. 
D) All of the above. 
A) The carriage must be part of its business. 
B) The carriage must be for remuneration. 
C) The carrier must represent to the general public that it is willing to serve the public in the transportation of property. 
D) All of the above.

Question 17

Larry leaves his hat under the seat at the movie theater.Is this a bailment?

Accepted Answer

A) No, because the theater manager does not have physical possession of the goods. 
B) No, because Larry did not pay the theater to keep his hat. 
C) Yes, if the theater manager finds it. 
D) Yes, since the theater controls the building. 
A) No, because the theater manager does not have physical possession of the goods. 
B) No, because Larry did not pay the theater to keep his hat. 
C) Yes, if the theater manager finds it. 
D) Yes, since the theater controls the building.

Question 18

The holder of a negotiable document of title to whom the document has been duly negotiated has legal title to the goods covered by the document.

Accepted Answer

A) True 
 B)False

Question 19

Mark finds a camera under a park bench at Disneyland.Mark can keep the camera if the true owner cannot be found, because it is lost property.

Accepted Answer

A) True 
 B)False

Question 20

If Jim, Ken, and Lee each deposit 10,000 bushels of wheat in a grain elevator, they would own one-third of the mixture by:

Accepted Answer

A) accession. 
B) adverse possession. 
C) prescription. 
D) confusion. 
A) accession. 
B) adverse possession. 
C) prescription. 
D) confusion.

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

A type of insurance in which the insured and the insurer share a risk of loss due to fire is:

Coinsurance is common in property insurance as a means of sharing risk between the insurer and insured.

The rights of a holder of a negotiable document of title to whom it has been duly negotiated include:

Which of the following statements is true of insurance policies?

In the United States, property occupies a unique status because of the protection expressly granted to it by the Fourth Amendment to the Constitution, which provides that "No person shall be ...deprived of life, liberty, or property without due process of law."

A furnace is often classified as a "fixture."

At the end of a bailment, a bailee may correctly deliver the bailed property to a third party (other than the bailor) in certain cases.

Defenses of the insurer include:

When goods have been commingled, it is sometimes possible to get title by confusion.

The fixture test of purpose or use applies only if the item:

No warranties are given out by the person who negotiates or transfers a document of title.

Transfer of title to personal property can occur by which of the following ways?

Which of the following is a requirement of a valid gift?

Property may be classified as:

Bailments for the bailee's sole benefit are usually limited to the gratuitous loan of personal property for use by the bailee.

Which of the following is/are the criteria for a common carrier?

Larry leaves his hat under the seat at the movie theater.Is this a bailment?

The holder of a negotiable document of title to whom the document has been duly negotiated has legal title to the goods covered by the document.

Mark finds a camera under a park bench at Disneyland.Mark can keep the camera if the true owner cannot be found, because it is lost property.

If Jim, Ken, and Lee each deposit 10,000 bushels of wheat in a grain elevator, they would own one-third of the mixture by:

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

Filters