Question 1

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 2

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 3

Mark finds a camera on 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 4

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 5

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

Accepted Answer

A) misrepresentation. 
B) concealment. 
C) waiver. 
D) fidelity. 
A) misrepresentation. 
B) concealment. 
C) waiver. 
D) fidelity.

Question 6

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

Accepted Answer

A) By deed. 
B) By gift. 
C) By will or descent. 
D) By accession. 
E) Transfer can occur by any of the above. 
A) By deed. 
B) By gift. 
C) By will or descent. 
D) By accession. 
E) Transfer can occur by any of the above.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

A furnace would often be classified as a "fixture."

Accepted Answer

A) True 
 B)False

Question 10

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 11

Robert steals a truckload of electronic equipment and stores it in Eastside Warehouse.After five weeks,Robert instructs Eastside to make the goods available to Charles for pickup.Even if Eastside acts reasonably and in good faith,it will be liable to the true owner of the goods if it allows Charles to take the goods.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Patent rights are considered to be personal property.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Albert offers his nephew,Tom,his 2001 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 16

Accession means the right of the owner of property to any increase in it.

Accepted Answer

A) True 
 B)False

Question 17

Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers.A few months later,the grain elevator declares bankruptcy.Who owns the grain? Can Farmer Brown get his grain back?

Accepted Answer

a.Tangible property exists in a physical

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

All but which of the following hold an insurable interest?

Accepted Answer

A) Shareholders in a closely held corporation to the extent of their interest in the corporation's property. 
B) A lessee of property. 
C) A seller with a purchase money security interest. 
D) A buyer of a truck, whether or not the buyer had knowledge of the fact that the truck was stolen by the seller. 
A) Shareholders in a closely held corporation to the extent of their interest in the corporation's property. 
B) A lessee of property. 
C) A seller with a purchase money security interest. 
D) A buyer of a truck, whether or not the buyer had knowledge of the fact that the truck was stolen by the seller.

Question 20

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.

Exam 47: Introduction to Property, property Insurance, Bailments, and Documents of Title

Which of the following statements is true of insurance policies?

An example of property that is intangible is a:

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

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

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

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

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

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

A furnace would often be classified as a "fixture."

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.

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

Patent rights are considered to be personal property.

An inter vivos gift is a gift:

Albert offers his nephew,Tom,his 2001 car which would only need about $1,000 in repairs to put it in running order.Tom has no right to reject the car.

Accession means the right of the owner of property to any increase in it.

Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers.A few months later,the grain elevator declares bankruptcy.Who owns the grain? Can Farmer Brown get his grain back?

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

All but which of the following hold an insurable interest?

Warranties in insurance contracts:

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 and 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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