Question 1

The element that distinguishes a contract from a gift is

Accepted Answer

A) performance of the offeror's or donor's promise. 
B) the element of consideration which is present in a contract,but not in a gift. 
C) whether or not the offeree or donee accepts the offer. 
D) whether or not the subject of the gift or contract is illegal. 
A) performance of the offeror's or donor's promise. 
B) the element of consideration which is present in a contract,but not in a gift. 
C) whether or not the offeree or donee accepts the offer. 
D) whether or not the subject of the gift or contract is illegal. B

Question 2

Dersett Trucking hauls granite for the major granite companies in Minnesota.Dersett Trucking does not make its trucking services available to the general public.Dersett Trucking is a contract carrier and does not incur strict liability.

Accepted Answer

A) True 
 B)False  True

Question 3

Ali took a seat at a booth at Midway Diner.Between the salt and pepper shakers,Ali noticed something glittering.It was a diamond ring.The ring is

Accepted Answer

A) abandoned property. 
B) an accession. 
C) mislaid property. 
D) treasure trove. 
A) abandoned property. 
B) an accession. 
C) mislaid property. 
D) treasure trove. C

Question 4

Distinguish between a contract and a gift.Give an example of each.

Accepted Answer

The factor that distinguishes a contract

Question 5

While shopping at the mall,Everett's wallet fell out of his pocket.Jon found the wallet.The wallet is abandoned property and Jon may keep it.

Accepted Answer

A) True 
 B)False

Question 6

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon.This is a(n)

Accepted Answer

A) testamentary gift. 
B) inter vivos gift. 
C) executed gift. 
D) gift causa mortis. 
A) testamentary gift. 
B) inter vivos gift. 
C) executed gift. 
D) gift causa mortis.

Question 7

In the Tannenbaum v.New York Dry Cleaning,Inc.case,

Accepted Answer

A) there was a bailment for hire,and the fact that the bailee was unable to return the bailed item except in a damaged condition created an irrebuttable presumption that the damage to the item was attributable to the bailee's negligence. 
B) the court stated that a company cannot,under New York law,use an exculpatory clause to relieve itself from liability for the consequences of its own negligence. 
C) the court found that the claimant was not bound by the terms of the dry cleaning company's limitation clause because,even if it applied to the situation before the court,the claimant had not read the clause nor had he assented to its terms. 
D) the court found that the claimant was negligent in not reading the limitation clause on the back of his claim ticket,so he could not recover the cost of his shirt. 
A) there was a bailment for hire,and the fact that the bailee was unable to return the bailed item except in a damaged condition created an irrebuttable presumption that the damage to the item was attributable to the bailee's negligence. 
B) the court stated that a company cannot,under New York law,use an exculpatory clause to relieve itself from liability for the consequences of its own negligence. 
C) the court found that the claimant was not bound by the terms of the dry cleaning company's limitation clause because,even if it applied to the situation before the court,the claimant had not read the clause nor had he assented to its terms. 
D) the court found that the claimant was negligent in not reading the limitation clause on the back of his claim ticket,so he could not recover the cost of his shirt.

Question 8

Buck,fearing death from severe injuries suffered in a machinery accident,assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl,a friend,who gladly accepts.Buck ends up recovering from the injuries.Why must Pearl give the certificate of deposit back to Buck?

Accepted Answer

A) This type of gift is known as a gift causa mortis.It is a conditional gift which is conditioned on Buck actually dying.Because Buck recovered,the gift is automatically revoked. 
B) This is an inter vivos gift because Buck was still alive when the gift was made.Any inter vivos gift is revocable because there is no consideration to make Buck's delivery of the certificate binding under contract law. 
C) This is an inter vivos gift and due to state laws,gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute. 
D) This gift is an ordinary gift,but it is revocable because we don't know if the certificate of deposit has matured or not. 
A) This type of gift is known as a gift causa mortis.It is a conditional gift which is conditioned on Buck actually dying.Because Buck recovered,the gift is automatically revoked. 
B) This is an inter vivos gift because Buck was still alive when the gift was made.Any inter vivos gift is revocable because there is no consideration to make Buck's delivery of the certificate binding under contract law. 
C) This is an inter vivos gift and due to state laws,gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute. 
D) This gift is an ordinary gift,but it is revocable because we don't know if the certificate of deposit has matured or not.

Question 9

Bruce tells his son,"You can have my 1990 truck,but if your grades fall,I'm taking it back." Bruce

Accepted Answer

A) has made no gift. 
B) has made a "revocable gift," which is effective as a gift as long as the stated condition is met. 
C) intended to transfer ownership. 
D) has made a constructive gift. 
A) has made no gift. 
B) has made a "revocable gift," which is effective as a gift as long as the stated condition is met. 
C) intended to transfer ownership. 
D) has made a constructive gift.

Question 10

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California.As a bailee,Charles is automatically entitled to use Tuan's car while Tuan is away.

Accepted Answer

A) True 
 B)False

Question 11

Bertha,from Chicago,traveled to San Francisco to attend a conference.Her sister,Martha,lives in San Francisco and consequently,Bertha made arrangements to spend a couple of days with her sister.The next morning sitting at the breakfast table,Bertha realizes that she packed a mismatched pair of shoes (one is black and the other is blue).Luckily,Martha wears the same size of shoes and lends Bertha a pair of black leather pumps.During the day,the shoes are damaged while Bertha is wearing them.Bertha's duty of care would be a duty of

Accepted Answer

A) extraordinary care,because this is a bailment for the sole benefit of the bailee. 
B) ordinary care,because this is a bailment with both parties receiving mutual benefits. 
C) only slight care,because this is a bailment for the sole benefit of the bailor. 
D) none,as the sisters would share without condition. 
A) extraordinary care,because this is a bailment for the sole benefit of the bailee. 
B) ordinary care,because this is a bailment with both parties receiving mutual benefits. 
C) only slight care,because this is a bailment for the sole benefit of the bailor. 
D) none,as the sisters would share without condition.

Question 12

Mitch takes his two best suits to Quality Cleaners and receives a ticket as a receipt.Quality tells Mitch his suits will be cleaned and will be ready to be picked up on Monday.Another customer overhears the exchange and early on Monday goes to Quality,convinces the worker he is Mitch but that he has lost his receipt.He identifies and retrieves the suits,which happen to fit him perfectly too.Quality Cleaners

Accepted Answer

A) is strictly liable to Mitch for the suits. 
B) is liable to Mitch only if Mitch can prove Quality was grossly negligent. 
C) has no liability unless Mitch proves Quality did not use ordinary care. 
D) will avoid liability if the receipt contained an exculpatory clause excluding gross negligence. 
A) is strictly liable to Mitch for the suits. 
B) is liable to Mitch only if Mitch can prove Quality was grossly negligent. 
C) has no liability unless Mitch proves Quality did not use ordinary care. 
D) will avoid liability if the receipt contained an exculpatory clause excluding gross negligence.

Question 13

Select the correct answer:

Accepted Answer

A) Rosie rents a locker at the airport,and she puts a bag in the locker.Rosie keeps the locker key.In this case,the bag has been delivered to and accepted by the airport.The airport is a bailee. 
B) Hill rents a boat to Dan.The boat is located at a lake 30 miles away.Hill gives Dan keys to the boat.Dan drives to the lake and takes possession of the boat.In this case,the boat has been delivered to and accepted by Dan,and Dan is a bailee. 
C) Unknown to Lon,Jeff left a bike at Lon's house.Lon has not found the bike,and he is not likely to find it because Jeff left the bike under the front porch.In this case,Lon is a bailee of the bike. 
D) Ken parked a car in a self-service lot,and Ken kept the keys.The parking lot is a bailee. 
A) Rosie rents a locker at the airport,and she puts a bag in the locker.Rosie keeps the locker key.In this case,the bag has been delivered to and accepted by the airport.The airport is a bailee. 
B) Hill rents a boat to Dan.The boat is located at a lake 30 miles away.Hill gives Dan keys to the boat.Dan drives to the lake and takes possession of the boat.In this case,the boat has been delivered to and accepted by Dan,and Dan is a bailee. 
C) Unknown to Lon,Jeff left a bike at Lon's house.Lon has not found the bike,and he is not likely to find it because Jeff left the bike under the front porch.In this case,Lon is a bailee of the bike. 
D) Ken parked a car in a self-service lot,and Ken kept the keys.The parking lot is a bailee.

Question 14

After a meeting with his advisor to register for a class at State University,Ron forgot his calculator in the dean's outer office.Theresa,another student,found the calculator.The calculator is treasure trove and Theresa may keep it.

Accepted Answer

A) True 
 B)False

Question 15

Mega Corporation,the bailor,negotiates a bailment agreement with Huge Corporation,the bailee.Huge Corporation insists that an exculpatory clause be included in the terms and conditions of the bailment agreement.Later,Huge Corporation negligently (ordinary negligence,not gross negligence)damages the property that is the subject of the bailment.Most courts will allow Huge Corp.to stand behind its exculpatory clause and deny liability.

Accepted Answer

A) True 
 B)False

Question 16

Jimmy stole Dave's motorcycle and completely revamped the engine and changed the body.These accessions were very expensive,but Jimmy was completely satisfied with the results,intending to sell the motorcycle for a huge profit.If the motorcycle is recovered from Jimmy,Dave must pay Jimmy for the improvements.

Accepted Answer

A) True 
 B)False

Question 17

While digging in his backyard to plant a pear tree,Jonah discovers a bag of gold coins -- all of which were minted in the 1800s.The bag of coins would most likely be considered

Accepted Answer

A) lost property. 
B) mislaid property. 
C) treasure trove. 
D) abandoned property. 
A) lost property. 
B) mislaid property. 
C) treasure trove. 
D) abandoned property.

Question 18

Hanna intends to give her granddaughter,Melodee,her antique hat pin.This heirloom has been kept under lock and key in the wall vault in the library of Hanna's house in Virginia.The hat pin is currently the only item in the vault.When Hanna is visiting Melodee in Connecticut,Hanna gives Melodee the only key to the vault.Melodee is grateful for the present and excitedly accepts.In this situation has there been a completed gift?

Accepted Answer

A) No.There has been no physical delivery of the hat pin. 
B) Yes.There has been physical delivery of the hat pin. 
C) No.There has only been constructive delivery of the hat pin. 
D) Yes.There has been constructive delivery of the hat pin. 
A) No.There has been no physical delivery of the hat pin. 
B) Yes.There has been physical delivery of the hat pin. 
C) No.There has only been constructive delivery of the hat pin. 
D) Yes.There has been constructive delivery of the hat pin.

Question 19

If one party makes accessions without agreement and the improvements can be "undone" without damaging the property,the improver must undo them.

Accepted Answer

A) True 
 B)False

Question 20

Jared owns 100 acres of woodland.One day,he and Margie are hiking through Jared's woods and Margie finds a gold ring.The true owner is never discovered.Which of the following statements about this situation is correct?

Accepted Answer

A) Because the ring was found on Jared's property,he is probably entitled to keep it. 
B) Margie found the ring,and since the true owner is unknown the ring now belongs to her. 
C) By law,Margie needs to return the ring to the spot where she found it,just in case the true owner returns for it. 
D) The ring must be sold and the profit split evenly between Jared and Margie. 
A) Because the ring was found on Jared's property,he is probably entitled to keep it. 
B) Margie found the ring,and since the true owner is unknown the ring now belongs to her. 
C) By law,Margie needs to return the ring to the spot where she found it,just in case the true owner returns for it. 
D) The ring must be sold and the profit split evenly between Jared and Margie.

Exam 43: Personal Property and Bailment

The element that distinguishes a contract from a gift is

Dersett Trucking hauls granite for the major granite companies in Minnesota.Dersett Trucking does not make its trucking services available to the general public.Dersett Trucking is a contract carrier and does not incur strict liability.

Ali took a seat at a booth at Midway Diner.Between the salt and pepper shakers,Ali noticed something glittering.It was a diamond ring.The ring is

Distinguish between a contract and a gift.Give an example of each.

While shopping at the mall,Everett's wallet fell out of his pocket.Jon found the wallet.The wallet is abandoned property and Jon may keep it.

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon.This is a(n)

In the Tannenbaum v.New York Dry Cleaning,Inc.case,

Buck,fearing death from severe injuries suffered in a machinery accident,assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl,a friend,who gladly accepts.Buck ends up recovering from the injuries.Why must Pearl give the certificate of deposit back to Buck?

Bruce tells his son,"You can have my 1990 truck,but if your grades fall,I'm taking it back." Bruce

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California.As a bailee,Charles is automatically entitled to use Tuan's car while Tuan is away.

Select the correct answer:

After a meeting with his advisor to register for a class at State University,Ron forgot his calculator in the dean's outer office.Theresa,another student,found the calculator.The calculator is treasure trove and Theresa may keep it.

While digging in his backyard to plant a pear tree,Jonah discovers a bag of gold coins -- all of which were minted in the 1800s.The bag of coins would most likely be considered

If one party makes accessions without agreement and the improvements can be "undone" without damaging the property,the improver must undo them.

Jared owns 100 acres of woodland.One day,he and Margie are hiking through Jared's woods and Margie finds a gold ring.The true owner is never discovered.Which of the following statements about this situation is correct?

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Planning for the Future: Wills, Trusts and Insurance

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