Question 1

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 2

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 3

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 4

If property is mislaid, the finder of the property will have a superior claim to possession of the property against everyone except the true owner.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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.

Question 8

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 9

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 10

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.

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

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 13

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.

Question 14

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 15

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 16

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 17

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 18

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 19

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 20

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.

Exam 43: Personal Property and Bailment

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

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.

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

If property is mislaid, the finder of the property will have a superior claim to possession of the property against everyone except the true owner.

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.

Which of the following would NOT be considered personal property?

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

The element that distinguishes a contract from a gift is

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.

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

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

Introduction to Law

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International Law

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Introduction to Contracts

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Introduction to Sales

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