Question 1

Alexander loans Miko his baking dish so she can make lasagna for dinner tonight for her family.What kind of bailment is this?

Accepted Answer

A) bailor benefit bailment 
B) bailee benefit bailment 
C) constructive bailment 
D) mutual benefit bailment 
A) bailor benefit bailment 
B) bailee benefit bailment 
C) constructive bailment 
D) mutual benefit bailment

Question 2

Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?

Accepted Answer

A) accession 
B) bailment 
C) an inter vivos gift 
D) a mutual-benefit bailment 
A) accession 
B) bailment 
C) an inter vivos gift 
D) a mutual-benefit bailment

Question 3

Beth owned an original U.S.flag.She had previously loaned the flag to Ross,a lawyer,so that he could display the flag on the wall behind his office desk.One day while visiting Ross in his office and admiring the flag,Beth said to Ross,"You are so fond of that flag,I would like you to have it!" Ross responded with a gracious "thank you." In this situation

Accepted Answer

A) Beth has not made a valid,binding gift of the flag because gifts are never binding and can always be revoked by the donor. 
B) Beth has not made a valid,binding gift of the flag because the donor must deliver the property to the donee,which was not done here. 
C) Beth has made a valid,binding gift if Beth agreed to give the flag in exchange for Ross's legal services. 
D) Beth has made a valid,binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag. 
A) Beth has not made a valid,binding gift of the flag because gifts are never binding and can always be revoked by the donor. 
B) Beth has not made a valid,binding gift of the flag because the donor must deliver the property to the donee,which was not done here. 
C) Beth has made a valid,binding gift if Beth agreed to give the flag in exchange for Ross's legal services. 
D) Beth has made a valid,binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag.

Question 4

Which of the following is/are generally subject to a standard of strict liability for bailed goods?

Accepted Answer

A) contract carriers and common carriers 
B) common carriers and innkeepers 
C) common carriers 
D) contract carriers 
A) contract carriers and common carriers 
B) common carriers and innkeepers 
C) common carriers 
D) contract carriers

Question 5

Farmer Fred is leasing pasture land from Wealthy Warren.Farmer Fred is working the soil to turn the pasture land into land that will be able to grow crops.As Farmer Fred is preparing the field,he discovers a treasure chest full of gold and silver coins.The coins are all dated before 1810.A finder of treasure trove under common law,

Accepted Answer

A) is entitled to keep the treasure trove. 
B) is required to turn the property over to the owner.Here,under common law,Farmer Fred is required to turn the treasure trove over to Wealthy Warren. 
C) is required to turn the treasure trove over to the State. 
D) is required to turn the treasure trove over to the federal government who will give the treasure trove to the closest Native American reservation. 
A) is entitled to keep the treasure trove. 
B) is required to turn the property over to the owner.Here,under common law,Farmer Fred is required to turn the treasure trove over to Wealthy Warren. 
C) is required to turn the treasure trove over to the State. 
D) is required to turn the treasure trove over to the federal government who will give the treasure trove to the closest Native American reservation.

Question 6

Jeannie carelessly packed her grandmother's antique glassware and had it shipped to her 30-year-old daughter,Abby,via Common Freight Carriers.When the china arrived at Abby's house,most of the pieces were broken.As between Jeannie and Common Freight Carriers,who will bear the loss?

Accepted Answer

A) Under the Carmack Amendment,Jeannie is liable for the loss if Common Freight Carriers shows it was not negligent and that the loss was caused by Jeannie's failure to wrap and pack the glassware properly. 
B) Under the Carmack Amendment,Common Freight Carriers is liable.A common carrier is strictly liable. 
C) Under the Carmack Amendment,Common Freight Carriers is liable because of its negligence in not inspecting Jeannie's packing job. 
D) Liability is governed by state statute and will depend on which state law will control. 
A) Under the Carmack Amendment,Jeannie is liable for the loss if Common Freight Carriers shows it was not negligent and that the loss was caused by Jeannie's failure to wrap and pack the glassware properly. 
B) Under the Carmack Amendment,Common Freight Carriers is liable.A common carrier is strictly liable. 
C) Under the Carmack Amendment,Common Freight Carriers is liable because of its negligence in not inspecting Jeannie's packing job. 
D) Liability is governed by state statute and will depend on which state law will control.

Question 7

In January,Erwin told David,his nephew,that he would give him a car when he graduates from college.David graduated in May.If Erwin refuses to give David a car,David can sue him for breach of an inter vivos gift.

Accepted Answer

A) True 
 B)False

Question 8

Stephen wants to give his niece,Dawn,a piece of jewelry as a gift.Stephen gives Tracy,his agent,the bracelet to take to Dawn.The delivery element of making a gift has been completed.

Accepted Answer

A) True 
 B)False

Question 9

In which of the following scenarios has a gift been made?

Accepted Answer

A) Alice takes her vacuum cleaner to the repair shop to be fixed.The owner tells her he won't be able to get to the repair for two weeks."OK," says Alice."Keep it until then and then go ahead with the repair." 
B) Tim knows that Noah likes his collection of Spiderman comics.He tells Noah,"Even though my comics are worth $500,you can have them for $100." Noah agrees and pays Tim the reduced price. 
C) Grandpa chuckles as Jessica admires his pocket watch."Go on,put it in your own pocket,Jessica," he tells her."You can have it." Jessica thanks her grandpa and happily tucks the watch into her pocket. 
D) Edith tells her friend,Mateo,that he may have her antique Victrola record player after she passes away.Mateo gratefully thanks Edith for her kindness. 
A) Alice takes her vacuum cleaner to the repair shop to be fixed.The owner tells her he won't be able to get to the repair for two weeks."OK," says Alice."Keep it until then and then go ahead with the repair." 
B) Tim knows that Noah likes his collection of Spiderman comics.He tells Noah,"Even though my comics are worth $500,you can have them for $100." Noah agrees and pays Tim the reduced price. 
C) Grandpa chuckles as Jessica admires his pocket watch."Go on,put it in your own pocket,Jessica," he tells her."You can have it." Jessica thanks her grandpa and happily tucks the watch into her pocket. 
D) Edith tells her friend,Mateo,that he may have her antique Victrola record player after she passes away.Mateo gratefully thanks Edith for her kindness.

Question 10

Sarah works for a company that has offered a promotion if she is willing to relocate.Sarah accepts the position and puts her house on the market right away.She sells her house the first day that the realtor holds an open house.The buyer agrees to pay cash for the full purchase price of the house.Sarah is thrilled,except that it means that she will have to put her furniture in storage until she finds another house in her new city.She enters into a written contract with Safe Storage,Inc.The agreement includes a clause excusing Safe Storage,Inc.from any liability for loss or damage,even if the loss or damage results from Safe Storage's negligent acts.Because of Self Storage's negligence,a fire destroys the warehouse and all of its contents,including Sarah's household goods and furniture.Sarah claims that Safe Storage,Inc.is liable for the full value of the contents,which is approximately $10,000.Is Sarah correct?

Accepted Answer

A) Yes,because storage warehouses are strictly liable for loss or damage,regardless of fault and regardless of exculpatory clauses. 
B) No,because there was equal bargaining power between Sarah and Safe Storage,Inc. 
C) Yes,because exculpatory clauses are illegal and never enforceable. 
D) Probably,because often a court will reject an exculpatory clause against a bailor who is a consumer. 
A) Yes,because storage warehouses are strictly liable for loss or damage,regardless of fault and regardless of exculpatory clauses. 
B) No,because there was equal bargaining power between Sarah and Safe Storage,Inc. 
C) Yes,because exculpatory clauses are illegal and never enforceable. 
D) Probably,because often a court will reject an exculpatory clause against a bailor who is a consumer.

Question 11

Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant.Even though no employee of the restaurant is present,the provision of the cloakroom makes Jerry think it will be safe.In this situation,the restaurant is the bailor of Jerry's coat.

Accepted Answer

A) True 
 B)False

Question 12

Most of the goods contained in a freight train (a common carrier)were destroyed when a tornado wrecked the train.The carrier was sued for damages by all the shippers that had merchandise on the train.Is the carrier strictly liable for the damage done to the goods by the tornado?

Accepted Answer

Generally,common carriers are strictly l

Question 13

Ed wants to give Howard his old car,but Howard says he doesn't want it.Howard later reconsiders and tells Ed he does want the car.His previous repudiation means there is no gift,and Howard has no rights in the car.

Accepted Answer

A) True 
 B)False

Question 14

Jody loaned her neighbor,Phil,her snow blower.Phil set it near his driveway and later accidentally ran over and destroyed it.In a suit to recover damages,Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

Accepted Answer

A) True 
 B)False

Question 15

Griffith Manufacturing ships 40 crates of goods by Trusty Shipping,a common carrier.Trusty offers Griffith a shipping rate of $725 for a limited liability of $5,000 or a rate of $975 for full liability for any harm to the goods.Griffith chooses the $725 rate.In transit,Trusty's driver has an accident during an ice storm and all of Griffith's goods are destroyed,causing a loss of $12,000.If Griffith sues Trusty,

Accepted Answer

A) Trusty will be liable for only $5,000 because a common carrier is allowed to limit its liability by contract. 
B) Trusty will be liable for the full $12,000 because common carriers have strict liability. 
C) Trusty will automatically be liable for the full $12,000 under the Carmack Amendment. 
D) Trusty is subject to normal bailment rules and can escape liability for any damage to the goods by proving that it exercised due care of the property and that the loss was caused by an act of God. 
A) Trusty will be liable for only $5,000 because a common carrier is allowed to limit its liability by contract. 
B) Trusty will be liable for the full $12,000 because common carriers have strict liability. 
C) Trusty will automatically be liable for the full $12,000 under the Carmack Amendment. 
D) Trusty is subject to normal bailment rules and can escape liability for any damage to the goods by proving that it exercised due care of the property and that the loss was caused by an act of God.

Question 16

A bailment is different from a gift because

Accepted Answer

A) a gift requires consideration,but a bailment does not. 
B) a gift requires delivery,but a bailment does not. 
C) in a bailment,only possession of the property is transferred to the bailee,whereas with a gift,both possession and ownership must pass to the donee. 
D) a gift is always a contract,but a bailment is generally not a contract. 
A) a gift requires consideration,but a bailment does not. 
B) a gift requires delivery,but a bailment does not. 
C) in a bailment,only possession of the property is transferred to the bailee,whereas with a gift,both possession and ownership must pass to the donee. 
D) a gift is always a contract,but a bailment is generally not a contract.

Question 17

The difference between an inter vivos gift and a gift causa mortis is that the inter vivos gift is made during the donor's lifetime and a gift causa mortis is a gift made after the donor's lifetime by the donor's estate.

Accepted Answer

A) True 
 B)False

Question 18

Discuss whether or not the following common transactions are bailments and if so,who the bailor/bailee is,and what type of bailment is involved.
A)Renting storage space in Farmer's Frank's huge barn to keep your classic car out of the snow and ice of winter.The rental agreement provides for $100/month rent and Farmer Frank has the only access to the barn.
B)Hiring a moving company to move your belongings to a new residence.
C)Loaning your lawn mower to your neighbor.
D)Parking your car in a "park and lock" parking lot.

Accepted Answer

A bailment involves transferring possess

Question 19

Bill was shopping at the mall.As he was walking to Tonne's Department Store,his wallet fell out of his pants.While trying on a new suit,Bill left his leather jacket in the change room.Sue found Bill's wallet.Arnie,a sales associate,found his coat.What kind of found property is Bill's wallet? What kind of property is his jacket? What rights do Sue and Arnie have in the found property?

Accepted Answer

Lost property is something accidentally

Question 20

Which of the following would NOT be considered personal property?

Accepted Answer

A) collection of vinyl record albums 
B) field of soybeans 
C) antique quilt 
D) None of these are correct. 
A) collection of vinyl record albums 
B) field of soybeans 
C) antique quilt 
D) None of these are correct.

Exam 43: Personal Property and Bailment

Alexander loans Miko his baking dish so she can make lasagna for dinner tonight for her family.What kind of bailment is this?

Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?

Which of the following is/are generally subject to a standard of strict liability for bailed goods?

Jeannie carelessly packed her grandmother's antique glassware and had it shipped to her 30-year-old daughter,Abby,via Common Freight Carriers.When the china arrived at Abby's house,most of the pieces were broken.As between Jeannie and Common Freight Carriers,who will bear the loss?

In January,Erwin told David,his nephew,that he would give him a car when he graduates from college.David graduated in May.If Erwin refuses to give David a car,David can sue him for breach of an inter vivos gift.

Stephen wants to give his niece,Dawn,a piece of jewelry as a gift.Stephen gives Tracy,his agent,the bracelet to take to Dawn.The delivery element of making a gift has been completed.

In which of the following scenarios has a gift been made?

Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant.Even though no employee of the restaurant is present,the provision of the cloakroom makes Jerry think it will be safe.In this situation,the restaurant is the bailor of Jerry's coat.

Most of the goods contained in a freight train (a common carrier)were destroyed when a tornado wrecked the train.The carrier was sued for damages by all the shippers that had merchandise on the train.Is the carrier strictly liable for the damage done to the goods by the tornado?

Ed wants to give Howard his old car,but Howard says he doesn't want it.Howard later reconsiders and tells Ed he does want the car.His previous repudiation means there is no gift,and Howard has no rights in the car.

Jody loaned her neighbor,Phil,her snow blower.Phil set it near his driveway and later accidentally ran over and destroyed it.In a suit to recover damages,Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

A bailment is different from a gift because

The difference between an inter vivos gift and a gift causa mortis is that the inter vivos gift is made during the donor's lifetime and a gift causa mortis is a gift made after the donor's lifetime by the donor's estate.

Which of the following would NOT be considered personal property?

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

Filters