Question 1

The basic principles of contract law apply to insurance policies.

Accepted Answer

A) True 
 B)False

Question 2

Mary cleaned her dorm room in the spring and left a pile of books in Sara's room.Mary told everybody that the books were a gift to Sara.Does Sara have to dispose of them?

Accepted Answer

A) Yes, because there was a present intent and delivery. 
B) Yes, because they are constructively in Sara's possession. 
C) No, because Sara did not accept the books. 
D) No, because there was no agreement between the two parties. 
A) Yes, because there was a present intent and delivery. 
B) Yes, because they are constructively in Sara's possession. 
C) No, because Sara did not accept the books. 
D) No, because there was no agreement between the two parties.

Question 3

An inter vivos gift is a gift:

Accepted Answer

A) of live animals. 
B) contingent upon the donee's surviving the donor. 
C) made by a donor during her lifetime. 
D) None of the above. 
A) of live animals. 
B) contingent upon the donee's surviving the donor. 
C) made by a donor during her lifetime. 
D) None of the above.

Question 4

A thief stole Harold's car and installed a DVD player in it.Later the police caught the thief and returned the car to Harold.Harold now owns the DVD player by accession.

Accepted Answer

A) True 
 B)False

Question 5

Sales of tangible personal property involve the transfer of title.

Accepted Answer

A) True 
 B)False

Question 6

What is the method by which title is acquired when an article of personal property that belongs to one person is joined to an article that belongs to another?

Accepted Answer

A) Gift. 
B) Will or descent. 
C) Purchase. 
D) Accession. 
A) Gift. 
B) Will or descent. 
C) Purchase. 
D) Accession.

Question 7

Harold says in the presence of three other people that he is giving his automobile to his nephew, and then hands the keys to the car to the nephew.Delivery of the auto has taken place.

Accepted Answer

A) True 
 B)False

Question 8

Property consists only of a physical thing, such as real estate or an automobile.

Accepted Answer

A) True 
 B)False

Question 9

Personal property so firmly attached to real property that an interest in it arises under real property law is known as a(n):

Accepted Answer

A) fixture. 
B) tangible property. 
C) intangible property. 
D) None of the above. 
A) fixture. 
B) tangible property. 
C) intangible property. 
D) None of the above.

Question 10

The delivery necessary for a gift may be accomplished constructively.

Accepted Answer

A) True 
 B)False

Question 11

To be effective, a gift requires delivery.

Accepted Answer

A) True 
 B)False

Question 12

Bailed property must be tangible.

Accepted Answer

A) True 
 B)False

Question 13

If Harold buys a tomato plant, he owns the tomatoes produced by the plant based on "confusion."

Accepted Answer

A) True 
 B)False

Question 14

An $80,000 fire insurance policy covers a building, which is valued at $100,000, and there is an 80% co-insurance clause.If the building is totally destroyed by fire, the policyholder will receive:

Accepted Answer

A) $80,000. 
B) $100,000. 
C) $20,000 
D) $64,000 
A) $80,000. 
B) $100,000. 
C) $20,000 
D) $64,000

Question 15

Which of the following is NOT personal property?

Accepted Answer

A) Trees that have been cut into logs. 
B) An air-conditioning system before it is installed in a house. 
C) Building materials. 
D) A 140-acre farm. 
A) Trees that have been cut into logs. 
B) An air-conditioning system before it is installed in a house. 
C) Building materials. 
D) A 140-acre farm.

Question 16

A gift causa mortis is a gift:

Accepted Answer

A) made by a donor after death in her will. 
B) that is conditional. 
C) made in the contemplation of the donor's imminent death. 
D) Both (b) and (c) are correct. 
E) Both (a) and (b) are correct. 
A) made by a donor after death in her will. 
B) that is conditional. 
C) made in the contemplation of the donor's imminent death. 
D) Both (b) and (c) are correct. 
E) Both (a) and (b) are correct.

Question 17

A lease for office space is considered to be personal property.

Accepted Answer

A) True 
 B)False

Question 18

Collin insures his building for $250,000.At the time of its total loss, the property is valued at $220,000.Under:

Accepted Answer

A) an open policy, Collin would recover $220,000. 
B) an open policy, Collin would recover $250,000. 
C) a valued policy, Collin would recover $220,000. 
D) Both (a) and (c). 
E) Both (b) and (c). 
A) an open policy, Collin would recover $220,000. 
B) an open policy, Collin would recover $250,000. 
C) a valued policy, Collin would recover $220,000. 
D) Both (a) and (c). 
E) Both (b) and (c).

Question 19

The UCC does not cover:

Accepted Answer

A) negotiable instruments. 
B) investment securities. 
C) sales of goods. 
D) gifts. 
A) negotiable instruments. 
B) investment securities. 
C) sales of goods. 
D) gifts.

Question 20

Melissa cannot transfer control of the goods held by a bailee by transferring a document of title.

Accepted Answer

A) True 
 B)False

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

The basic principles of contract law apply to insurance policies.

Mary cleaned her dorm room in the spring and left a pile of books in Sara's room.Mary told everybody that the books were a gift to Sara.Does Sara have to dispose of them?

An inter vivos gift is a gift:

A thief stole Harold's car and installed a DVD player in it.Later the police caught the thief and returned the car to Harold.Harold now owns the DVD player by accession.

Sales of tangible personal property involve the transfer of title.

What is the method by which title is acquired when an article of personal property that belongs to one person is joined to an article that belongs to another?

Harold says in the presence of three other people that he is giving his automobile to his nephew, and then hands the keys to the car to the nephew.Delivery of the auto has taken place.

Property consists only of a physical thing, such as real estate or an automobile.

Personal property so firmly attached to real property that an interest in it arises under real property law is known as a(n):

The delivery necessary for a gift may be accomplished constructively.

To be effective, a gift requires delivery.

Bailed property must be tangible.

If Harold buys a tomato plant, he owns the tomatoes produced by the plant based on "confusion."

An $80,000 fire insurance policy covers a building, which is valued at $100,000, and there is an 80% co-insurance clause.If the building is totally destroyed by fire, the policyholder will receive:

Which of the following is NOT personal property?

A gift causa mortis is a gift:

A lease for office space is considered to be personal property.

Collin insures his building for $250,000.At the time of its total loss, the property is valued at $220,000.Under:

The UCC does not cover:

Melissa cannot transfer control of the goods held by a bailee by transferring a document of title.

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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