Question 1

Mislaid property and lost property legally have the same status.

Accepted Answer

A) True 
 B)False  False

Question 2

As the owner of the realty on which Ed left his wallet,what are Larry's property rights as they relate to Ed's wallet?

Accepted Answer

A) Larry has no rights to the wallet and is obligated to either find Ed and return it or turn the wallet over to the proper authorities. 
B) Larry has the right to hold Ed's wallet until Ed returns to the store to claim it,but may not sell it or otherwise transfer it to another person. 
C) Larry has the right to give the wallet to another person as a gift,but may not receive consideration in return for the transfer. 
D) Larry has the right to keep the wallet for his own personal use,as he is the owner of the realty on which Ed left the wallet. 
E) Larry has the right to sell the wallet immediately,because he is a merchant of goods of that kind. 
A) Larry has no rights to the wallet and is obligated to either find Ed and return it or turn the wallet over to the proper authorities. 
B) Larry has the right to hold Ed's wallet until Ed returns to the store to claim it,but may not sell it or otherwise transfer it to another person. 
C) Larry has the right to give the wallet to another person as a gift,but may not receive consideration in return for the transfer. 
D) Larry has the right to keep the wallet for his own personal use,as he is the owner of the realty on which Ed left the wallet. 
E) Larry has the right to sell the wallet immediately,because he is a merchant of goods of that kind. B

Question 3

Lexie is an artist.Josh,an editor working for ABC Books,a publishing house that specializes in children's books,offers Lexie a contract to illustrate a children's book written by Phoebe.The contract states that ABC will pay Lexie $100 per drawing.Lexie agrees,and she signs a contract with ABC,which Josh signs on the company's behalf.The text and ideas are Phoebe's original work,but Lexie's drawings are result of her own creative view of Phoebe's story.When the book is complete and Lexie's contract is done,Lexie tries to sell the original copies of the drawings she created for Phoebe's book.She is immediately sued by ABC,on the grounds that ABC is the rightful owner of her drawings.Lexie claims that she acquired ownership of the drawings when she created them.Who is the legal owner of the drawings in this case?

Accepted Answer

A) Lexie,because she is the person that created the drawings. 
B) Phoebe,because it was her idea and story that inspired the subject of the drawings. 
C) ABC Books,because they paid Lexie to create the drawings for the book. 
D) Josh,because he recruited Lexis and signed the contract on behalf of ABC Books. 
E) Lexie and ABC Books are equal owners of the drawings. 
A) Lexie,because she is the person that created the drawings. 
B) Phoebe,because it was her idea and story that inspired the subject of the drawings. 
C) ABC Books,because they paid Lexie to create the drawings for the book. 
D) Josh,because he recruited Lexis and signed the contract on behalf of ABC Books. 
E) Lexie and ABC Books are equal owners of the drawings. C

Question 4

Madison agreed to sell her used car to Trey for $1,000.Madison told Trey to come and pick up the car so that the transfer would be complete.However,Trey insists that simply picking up the car is not enough to legally transfer ownership.Who is correct - Madison or Trey,and why? What is needed to legally transfer ownership of Madison's car to Trey?

Accepted Answer

Trey is correct.While acceptance is enou

Question 5

Which of the following statements is true regarding rightful ownership of the lottery money?

Accepted Answer

A) The gift was not automatically revoked on his recovery;therefore,because Devin did not revoke the gift prior to Kendra cashing the ticket,he has no rights to any funds. 
B) Devin's gift was automatically revoked when he recovered,and the lottery ticket and any proceeds are validly his. 
C) Devin has the right to all funds only because Kendra has a new boyfriend. 
D) Devin has no rights because once he gave the tickets to Kendra,he gave up all his rights to them. 
E) Although the gift was not automatically revoked on his recovery,Devin has the right to revoke the gift and recover the lottery proceeds. 
A) The gift was not automatically revoked on his recovery;therefore,because Devin did not revoke the gift prior to Kendra cashing the ticket,he has no rights to any funds. 
B) Devin's gift was automatically revoked when he recovered,and the lottery ticket and any proceeds are validly his. 
C) Devin has the right to all funds only because Kendra has a new boyfriend. 
D) Devin has no rights because once he gave the tickets to Kendra,he gave up all his rights to them. 
E) Although the gift was not automatically revoked on his recovery,Devin has the right to revoke the gift and recover the lottery proceeds.

Question 6

Which of the following statements regarding commingled fungible goods is TRUE?

Accepted Answer

A) If a party who is responsible for the commingling of fungible goods cannot prove what percentage of the fungible goods he or she contributed,the commingled goods will be divided equally among all contributing parties,regardless of the original contributions of each party. 
B) If one of the parties responsible for the comingling of fungible goods,and that person cannot prove what percentage of the commingled goods he or she contributed,the holder of the goods at the time gains property rights over the commingled goods. 
C) Fungible goods that are intentionally commingled by a third party may only be separated and distributed via a court order. 
D) If goods are commingled because of the actions of a third party,the third party has the right to determine how the commingled goods will be distributed to each contributing party. 
E) If two people accidentally commingle their fungible goods,or if the goods are commingled because of the actions of a third party,each party in entitled to the percentage of the fungible goods that he or she contributed. 
A) If a party who is responsible for the commingling of fungible goods cannot prove what percentage of the fungible goods he or she contributed,the commingled goods will be divided equally among all contributing parties,regardless of the original contributions of each party. 
B) If one of the parties responsible for the comingling of fungible goods,and that person cannot prove what percentage of the commingled goods he or she contributed,the holder of the goods at the time gains property rights over the commingled goods. 
C) Fungible goods that are intentionally commingled by a third party may only be separated and distributed via a court order. 
D) If goods are commingled because of the actions of a third party,the third party has the right to determine how the commingled goods will be distributed to each contributing party. 
E) If two people accidentally commingle their fungible goods,or if the goods are commingled because of the actions of a third party,each party in entitled to the percentage of the fungible goods that he or she contributed.

Question 7

Which of the following items would NOT require the transfer and registration of a certificate of title?

Accepted Answer

A) A fishing boat 
B) A commercial moving van 
C) A high-end mountain bike 
D) A privately-owned jet plane 
E) A personal car 
A) A fishing boat 
B) A commercial moving van 
C) A high-end mountain bike 
D) A privately-owned jet plane 
E) A personal car

Question 8

Which of the following statements is true regarding the nature of bailments?

Accepted Answer

A) Bailments may be express but not implied. 
B) Bailments that are not express may be enforced as implied bailments only if a gratuitous bailment is involved. 
C) Bailments may be implied but not express. 
D) Bailments that are not express may be enforced as implied bailments only if a mutual benefit bailment is involved. 
E) Bailments may be implied or express. 
A) Bailments may be express but not implied. 
B) Bailments that are not express may be enforced as implied bailments only if a gratuitous bailment is involved. 
C) Bailments may be implied but not express. 
D) Bailments that are not express may be enforced as implied bailments only if a mutual benefit bailment is involved. 
E) Bailments may be implied or express.

Question 9

In the text case of J&L Jewelry v.EPK Management,the plaintiff,J&L,sued EPK for breach of an implied bailment after thieves broke in and stole J&L's entire inventory of jewelry.The trial court dismissed J&L's complaint for failure to state a claim upon which relief could be granted.What was the result upon appeal?

Accepted Answer

A) The motion to dismiss was reversed and the case remanded for a new trial,on the grounds that EPK had a duty to protect J&L's merchandise when the mall was closed for the night. 
B) The motion to dismiss was affirmed,because a bailment agreement must be in writing and signed by both parties in order to be upheld. 
C) The motion to dismiss was affirmed in part,reversed in part,on the grounds that while an implied bailment was created,the bailment for the benefit of the bailor and not the bailee,and liability was a matter best determined by a jury. 
D) The motion to dismiss was affirmed,because the retail space license agreement created a licensee relationship,not a tenancy,and J&L failed to sufficiently allege a constructive bailment. 
E) The motion to dismissed was reversed,because EPK's refusal to allow J&L access to the building after closing hours created an implied bailment and shifted liability for J&L's merchandise to EPK. 
A) The motion to dismiss was reversed and the case remanded for a new trial,on the grounds that EPK had a duty to protect J&L's merchandise when the mall was closed for the night. 
B) The motion to dismiss was affirmed,because a bailment agreement must be in writing and signed by both parties in order to be upheld. 
C) The motion to dismiss was affirmed in part,reversed in part,on the grounds that while an implied bailment was created,the bailment for the benefit of the bailor and not the bailee,and liability was a matter best determined by a jury. 
D) The motion to dismiss was affirmed,because the retail space license agreement created a licensee relationship,not a tenancy,and J&L failed to sufficiently allege a constructive bailment. 
E) The motion to dismissed was reversed,because EPK's refusal to allow J&L access to the building after closing hours created an implied bailment and shifted liability for J&L's merchandise to EPK.

Question 10

In some states,Innkeepers can avoid strict liability for the personal property of their guests by providing a safe in which guests may store their valuables.

Accepted Answer

A) True 
 B)False

Question 11

When property that is subject to a bailment is damaged due to an "act of God," which of the following is true?

Accepted Answer

A) The bailee is not liable for harm to the bailed property. 
B) The bailee is strictly liable for harm to the bailed property. 
C) The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence. 
D) The bailee is liable for harm to the bailed property arising out of the bailee's ordinary or gross negligence. 
E) The bailee is liable for harm to the bailed property caused by even the slightest lack of due care on the part of the bailee. 
A) The bailee is not liable for harm to the bailed property. 
B) The bailee is strictly liable for harm to the bailed property. 
C) The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence. 
D) The bailee is liable for harm to the bailed property arising out of the bailee's ordinary or gross negligence. 
E) The bailee is liable for harm to the bailed property caused by even the slightest lack of due care on the part of the bailee.

Question 12

[Stolen Cell Phone] Roxie takes her brand new cell phone to the gym after work.She places it in a locker in the woman's locker room,which is not secured.There are signs conspicuously posted on both the door to the locker room and the wall above the lockers which say "Rent a lock at the front desk for $1.00.This gym is not responsible for items stolen from unlocked lockers." Roxie reads the sign,but not wanting to delay her workout,she decides to hide the phone under her clothes in the locker.She closes the locker,but leaves it unlocked as leaves the locker room to work out.An hour later she completes her workout and returns to the locker,only to find that her new phone has been stolen from the unlocked locker.She sues the gym for the value of the phone.
-Who is liable for the loss of the cell phone?

Accepted Answer

A) Roxie and the gym are equally liable because both parties were at fault for failing to secure the phone. 
B) The thief who took the cell phone,provided he or she can be found and identified by authorities. 
C) The gym,because when Roxie made use of the lockers provided by the gym,an implied bailment was created. 
D) Roxie,because she left the phone in an unlocked locker in an unsecured room. 
E) The parent company of the gym,because they are the ones who set the policy not to automatically provide locks to all gym patrons. 
A) Roxie and the gym are equally liable because both parties were at fault for failing to secure the phone. 
B) The thief who took the cell phone,provided he or she can be found and identified by authorities. 
C) The gym,because when Roxie made use of the lockers provided by the gym,an implied bailment was created. 
D) Roxie,because she left the phone in an unlocked locker in an unsecured room. 
E) The parent company of the gym,because they are the ones who set the policy not to automatically provide locks to all gym patrons.

Question 13

Which of the following items would best be characterized as a "fixture?"

Accepted Answer

A) The free-standing appliances in the farmer's kitchen,such as the refrigerator. 
B) The intangible elements connected with and owned by the farmer,such as the value of her equipment and the equity in the property. 
C) A tractor owned by a farmer and stored in her barn. 
D) A camper that was originally used for cross-country travel,but which is now permanently attached to a cement foundation on the farmer's land. 
E) A barn constructed on the land after the land was initially purchased by the farmer. 
A) The free-standing appliances in the farmer's kitchen,such as the refrigerator. 
B) The intangible elements connected with and owned by the farmer,such as the value of her equipment and the equity in the property. 
C) A tractor owned by a farmer and stored in her barn. 
D) A camper that was originally used for cross-country travel,but which is now permanently attached to a cement foundation on the farmer's land. 
E) A barn constructed on the land after the land was initially purchased by the farmer.

Question 14

If a bailment is intended to benefit only the bailor,the bailee is liable to the bailor for any damage to the property,even in cases of accidental or unintentional damage.

Accepted Answer

A) True 
 B)False

Question 15

A gift differs from a purchase as a way of transferring ownership in which of the following ways?

Accepted Answer

A) No written contract is needed for a gift whereas it is needed for a purchase. 
B) No consideration is needed for a gift. 
C) No certificate of title is needed for a gift whereas it is needed for a purchase. 
D) Once delivered a gift may be taken back by the person who gave the gift whereas that is not true when an item is purchased. 
E) Intent to permanently transfer title is irrelevant when gifts are concerned. 
A) No written contract is needed for a gift whereas it is needed for a purchase. 
B) No consideration is needed for a gift. 
C) No certificate of title is needed for a gift whereas it is needed for a purchase. 
D) Once delivered a gift may be taken back by the person who gave the gift whereas that is not true when an item is purchased. 
E) Intent to permanently transfer title is irrelevant when gifts are concerned.

Question 16

Which of the following statements is not a right of a bailee?

Accepted Answer

A) The right to retain the bailed property until payment is received. 
B) The right to alter the property in order to accomplish the reason for which the bailment was created. 
C) The right to possess the bailed property during the term of the bailment. 
D) The right to receive compensation for the bailment unless the bailment is gratuitous. 
E) The right to use the property in a manner consistent with the terms and purpose of the bailment. 
A) The right to retain the bailed property until payment is received. 
B) The right to alter the property in order to accomplish the reason for which the bailment was created. 
C) The right to possess the bailed property during the term of the bailment. 
D) The right to receive compensation for the bailment unless the bailment is gratuitous. 
E) The right to use the property in a manner consistent with the terms and purpose of the bailment.

Question 17

In recent years,the expansion of e-commerce has inspired improvements in Internet postal technology.Explain how these improvements can benefit both small businesses and online buyers and sellers of goods,and the potential effect of improved postal technology on litigation over lost packages.

Accepted Answer

Small business owners are now able to us

Question 18

Which of the following statements is true regarding Megan's statement that Taylor could not have validly accepted the ring?

Accepted Answer

A) If the ring is valued at $500 or over,then Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance. 
B) Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance. 
C) Megan is correct that Taylor could not have validly accepted the ring when she did not understand its true value. 
D) If the ring is valued at $1,000 or over,then Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance. 
E) Megan is incorrect,and Taylor validly accepted the ring as a gift. 
A) If the ring is valued at $500 or over,then Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance. 
B) Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance. 
C) Megan is correct that Taylor could not have validly accepted the ring when she did not understand its true value. 
D) If the ring is valued at $1,000 or over,then Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance. 
E) Megan is incorrect,and Taylor validly accepted the ring as a gift.

Question 19

Which of the following statements is false under Italian Property Law?

Accepted Answer

A) For movable property,the potential owner must possess the property for no less than 10 years before full ownership can occur. 
B) Registration is not required for any movable property. 
C) There is a difference between physical possession and a mental intention to possess. 
D) For immovable property,the potential owner must possess the property for no less than 20 years before full ownership can occur. 
E) Immovable property includes anything attached to the ground,such as trees,buildings,homes,and arenas. 
A) For movable property,the potential owner must possess the property for no less than 10 years before full ownership can occur. 
B) Registration is not required for any movable property. 
C) There is a difference between physical possession and a mental intention to possess. 
D) For immovable property,the potential owner must possess the property for no less than 20 years before full ownership can occur. 
E) Immovable property includes anything attached to the ground,such as trees,buildings,homes,and arenas.

Question 20

Certain ,governed by Article VII of the Uniform Commercial Code,may be issued in conjunction with the bailment when a bailment is for the purpose of transportation or storage of goods.

Accepted Answer

A) Proofs of title 
B) Evidence of title 
C) Agreements of title 
D) Illustrations of title 
E) Documents of title 
A) Proofs of title 
B) Evidence of title 
C) Agreements of title 
D) Illustrations of title 
E) Documents of title

Exam 48: The Nature of Property, personal Property, and Bailments

Mislaid property and lost property legally have the same status.

As the owner of the realty on which Ed left his wallet,what are Larry's property rights as they relate to Ed's wallet?

Which of the following statements is true regarding rightful ownership of the lottery money?

Which of the following statements regarding commingled fungible goods is TRUE?

Which of the following items would NOT require the transfer and registration of a certificate of title?

Which of the following statements is true regarding the nature of bailments?

In some states,Innkeepers can avoid strict liability for the personal property of their guests by providing a safe in which guests may store their valuables.

When property that is subject to a bailment is damaged due to an "act of God," which of the following is true?

Which of the following items would best be characterized as a "fixture?"

If a bailment is intended to benefit only the bailor,the bailee is liable to the bailor for any damage to the property,even in cases of accidental or unintentional damage.

A gift differs from a purchase as a way of transferring ownership in which of the following ways?

Which of the following statements is not a right of a bailee?

In recent years,the expansion of e-commerce has inspired improvements in Internet postal technology.Explain how these improvements can benefit both small businesses and online buyers and sellers of goods,and the potential effect of improved postal technology on litigation over lost packages.

Which of the following statements is true regarding Megan's statement that Taylor could not have validly accepted the ring?

Which of the following statements is false under Italian Property Law?

Certain ,governed by Article VII of the Uniform Commercial Code,may be issued in conjunction with the bailment when a bailment is for the purpose of transportation or storage of goods.

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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