Question 1

Lost property legally has the same status as mislaid property.

Accepted Answer

A) True 
 B)False  False

Question 2

Some states allow innkeepers to avoid strict liability for their guests' personal property by providing them with a safe in which they may keep their valuables.

Accepted Answer

A) True 
 B)False  True

Question 3

Unless a bailment is gratuitous, the bailee has the right to be compensated in accordance with the terms of the bailment.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is property that the true owner has unknowingly or accidentally dropped or left somewhere?

Accepted Answer

A)  Lost 
B)  Mislaid 
C)  Discarded 
D)  Abandoned 
E)  Terminated 
A)  Lost 
B)  Mislaid 
C)  Discarded 
D)  Abandoned 
E)  Terminated

Question 5

Which of the following is a type of document of title issued by a person engaged in the business of transporting goods that verifies receipt of goods for shipment?

Accepted Answer

A)  Warehouse receipt 
B)  Delivery order 
C)  Receipt order 
D)  Negotiable receipt 
E)  Bill of lading 
A)  Warehouse receipt 
B)  Delivery order 
C)  Receipt order 
D)  Negotiable receipt 
E)  Bill of lading

Question 6

Which of the following was the result on appeal in the case of Stephen Labatt Porter v. Black Warrior Farms L.L.C., the case in the text involving whether a gift was made when prior to going on a cruise, a mother sent money to her son for investment, said in a letter to him that he should keep the money if anything happened to her, returned from the cruise, and died at a later date?

Accepted Answer

A)  The court ruled that a gift causa mortis was made because she died before requesting the return of the money and that the money therefore belonged to the son. 
B)  The court ruled that a gift causa mortis was made because the mother intended that the son keep the money if anything happened to her before or after the trip and that the money therefore belonged to the son. 
C)  The court ruled that a valid inter vivos gift was made because the mother never requested the return of the money and that the money therefore belonged to the son. 
D)  The court ruled than a valid inter vivos gift was made because the mother meant for the son to invest the money for her, retaining it if she died, and that the money therefore belonged to the son. 
E)  The court ruled that neither a valid causa mortis nor a valid inter vivos gift was made and that the funds were properly deducted from any distribution to the son or his heirs. 
A)  The court ruled that a gift causa mortis was made because she died before requesting the return of the money and that the money therefore belonged to the son. 
B)  The court ruled that a gift causa mortis was made because the mother intended that the son keep the money if anything happened to her before or after the trip and that the money therefore belonged to the son. 
C)  The court ruled that a valid inter vivos gift was made because the mother never requested the return of the money and that the money therefore belonged to the son. 
D)  The court ruled than a valid inter vivos gift was made because the mother meant for the son to invest the money for her, retaining it if she died, and that the money therefore belonged to the son. 
E)  The court ruled that neither a valid causa mortis nor a valid inter vivos gift was made and that the funds were properly deducted from any distribution to the son or his heirs.

Question 7

Which of the following is true regarding gifts and the imposition of conditions?

Accepted Answer

A)  Gifts may be conditional. 
B)  Gifts may not be conditional. 
C)  Gifts may be conditional only if a condition precedent is involved. 
D)  Gifts may be conditional only if consideration is present. 
E)  Gifts may be conditional only if one of the parties is related by blood or marriage. 
A)  Gifts may be conditional. 
B)  Gifts may not be conditional. 
C)  Gifts may be conditional only if a condition precedent is involved. 
D)  Gifts may be conditional only if consideration is present. 
E)  Gifts may be conditional only if one of the parties is related by blood or marriage.

Question 8

Which of the following is a way in which a gift differs from a purchase as a way of transferring ownership?

Accepted Answer

A)  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. 
B)  No consideration is needed for a gift. 
C)  No written contract is needed for a gift whereas it is needed for a purchase. 
D)  No certificate of title is needed for a gift whereas it is needed for a purchase. 
E)  Intent to permanently transfer title is irrelevant when gifts are concerned. 
A)  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. 
B)  No consideration is needed for a gift. 
C)  No written contract is needed for a gift whereas it is needed for a purchase. 
D)  No certificate of title is needed for a gift whereas it is needed for a purchase. 
E)  Intent to permanently transfer title is irrelevant when gifts are concerned.

Question 9

"Lottery Winnings." Frank, a hypochondriac who was also very compulsive, was having minor surgery to repair a bone spur on his foot. He had just purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of the numbers of his lottery tickets with him in his billfold. Frank's girlfriend, Bubbles, went with him to the hospital. While in the waiting room, Frank said to her, "Bubbles, I may not make it out of this bone spur surgery. Take my lottery ticket. If I don't make it, I hope you win and live it up; but please don't get another boyfriend." Bubbles replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Frank came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Bubbles watched the lottery drawing and discovered that Frank's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Frank saw her on television with her new boyfriend, George. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Frank says that the lottery money is his.
-Which of the following describes the statement Frank made to Bubbles prior to surgery regarding the lottery ticket?

Accepted Answer

A)  A gift causa mortis. 
B)  A gift inter vivos. 
C)  A gift inter mortis. 
D)  A gift causa vivos. 
E)  It was meaningless because of the condition of death placed on the gift. 
A)  A gift causa mortis. 
B)  A gift inter vivos. 
C)  A gift inter mortis. 
D)  A gift causa vivos. 
E)  It was meaningless because of the condition of death placed on the gift.

Question 10

Contracts that are drafted so that one person's obligations under the contract do not arise until the happening of a certain event are called ______ contracts.

Accepted Answer

A)  Invalid 
B)  Conditional 
C)  Preventable 
D)  Temporary 
E)  Convertible 
A)  Invalid 
B)  Conditional 
C)  Preventable 
D)  Temporary 
E)  Convertible

Question 11

A person who finds abandoned property becomes its owner.

Accepted Answer

A) True 
 B)False

Question 12

The ______ is the person who receives transfer of possession of property in a bailment situation.

Accepted Answer

A)  Transferor 
B)  Transferee 
C)  Novator 
D)  Bailor 
E)  Bailee 
A)  Transferor 
B)  Transferee 
C)  Novator 
D)  Bailor 
E)  Bailee

Question 13

Which of the following was the result in Omni Holding and Development Corp. v. C )A.G. Investments Inc., the case in the text involving whether the plaintiff abandoned personal property following the court's order that it remove itself from the property?

Accepted Answer

A)  That because no affirmative statement, either orally or in writing, was made expressing the plaintiff's intent to abandon the property, it would not be considered abandoned. 
B)  That because no affirmative written statement expressing the plaintiff's intent to abandon the property was made, it would not be considered abandoned. 
C)  That the plaintiff had sufficient time to remove the property once the court issued its writ of possession, the property was considered abandoned. 
D)  That regardless of the intent of the plaintiff, the property was considered abandoned based on the amount of money the plaintiff owed to the defendant. 
A)  That because no affirmative statement, either orally or in writing, was made expressing the plaintiff's intent to abandon the property, it would not be considered abandoned. 
B)  That because no affirmative written statement expressing the plaintiff's intent to abandon the property was made, it would not be considered abandoned. 
C)  That the plaintiff had sufficient time to remove the property once the court issued its writ of possession, the property was considered abandoned. 
D)  That regardless of the intent of the plaintiff, the property was considered abandoned based on the amount of money the plaintiff owed to the defendant.

Question 14

List and describe the three types of documents of title governing bailments.

Accepted Answer

The three types of documents of title go

Question 15

By law, a document of title may not be negotiable.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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

Question 17

When does title to property pass?

Accepted Answer

A)  When the parties intend. 
B)  When a contract is made. 
C)  When physical possession is obtained. 
D)  Twenty-four hours after possession is obtained. 
E)  Three days after a contract is signed. 
A)  When the parties intend. 
B)  When a contract is made. 
C)  When physical possession is obtained. 
D)  Twenty-four hours after possession is obtained. 
E)  Three days after a contract is signed.

Question 18

Which of the following is true if a bailment is for the mutual benefit of both the bailee and the bailor?

Accepted Answer

A)  The bailee is liable for harm to the bailed property arising out of the bailee's ordinary or gross negligence. 
B)  The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence. 
C)  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. 
D)  The bailee is strictly liable for harm to the bailed property. 
E)  The bailee is not liable for harm to the bailed property because of the doctrine of assumption of the risk. 
A)  The bailee is liable for harm to the bailed property arising out of the bailee's ordinary or gross negligence. 
B)  The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence. 
C)  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. 
D)  The bailee is strictly liable for harm to the bailed property. 
E)  The bailee is not liable for harm to the bailed property because of the doctrine of assumption of the risk.

Question 19

Ownership of property is referred to as "title."

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

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

Lost property legally has the same status as mislaid property.

Some states allow innkeepers to avoid strict liability for their guests' personal property by providing them with a safe in which they may keep their valuables.

Unless a bailment is gratuitous, the bailee has the right to be compensated in accordance with the terms of the bailment.

Which of the following is property that the true owner has unknowingly or accidentally dropped or left somewhere?

Which of the following is a type of document of title issued by a person engaged in the business of transporting goods that verifies receipt of goods for shipment?

Which of the following is true regarding gifts and the imposition of conditions?

Which of the following is a way in which a gift differs from a purchase as a way of transferring ownership?

Contracts that are drafted so that one person's obligations under the contract do not arise until the happening of a certain event are called ______ contracts.

A person who finds abandoned property becomes its owner.

The ______ is the person who receives transfer of possession of property in a bailment situation.

Which of the following was the result in Omni Holding and Development Corp. v. C )A.G. Investments Inc., the case in the text involving whether the plaintiff abandoned personal property following the court's order that it remove itself from the property?

List and describe the three types of documents of title governing bailments.

By law, a document of title may not be negotiable.

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

When does title to property pass?

Which of the following is true if a bailment is for the mutual benefit of both the bailee and the bailor?

Ownership of property is referred to as "title."

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

An Introduction to Dynamic Business Law

Business Ethics

The US Legal 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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