Question 1

A promise to make a gift is generally enforceable.

Accepted Answer

A) True 
 B)False

Question 2

Describe how e-commerce has inspired improvements in Internet postal technology.

Accepted Answer

E-businesses can use Internet postal tec

Question 3

Which of the following is true if it is determined that harm befell bailed property due to an "act of God"?

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. 
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.

Question 4

Which of the following is true regarding the person to benefit from a bailment?

Accepted Answer

A)  A bailment may benefit a bailor. 
B)  A bailment may benefit a bailee. 
C)  A bailment may benefit either a bailor or a bailee, or both. 
D)  A bailment may benefit a bailee only if an employer-employee relationship is involved. 
E)  A bailment may benefit a bailee only if the bailee owed a preexisting debt to the bailor. 
A)  A bailment may benefit a bailor. 
B)  A bailment may benefit a bailee. 
C)  A bailment may benefit either a bailor or a bailee, or both. 
D)  A bailment may benefit a bailee only if an employer-employee relationship is involved. 
E)  A bailment may benefit a bailee only if the bailee owed a preexisting debt to the bailor.

Question 5

Which of the following is false regarding ways in which people may acquire title to property?

Accepted Answer

A)  If a person creates a piece of property for himself or herself, then he or she owns that property only so long as it is registered through either the patent or copyright process. 
B)  When a person is paid to create property for someone else, the property is owned by the person who paid for its creation. 
C)  A means of acquiring ownership is by court order. 
D)  In a bankruptcy case the court may award ownership of certain property to a creditor. 
E)  A person may acquire ownership through confusion. 
A)  If a person creates a piece of property for himself or herself, then he or she owns that property only so long as it is registered through either the patent or copyright process. 
B)  When a person is paid to create property for someone else, the property is owned by the person who paid for its creation. 
C)  A means of acquiring ownership is by court order. 
D)  In a bankruptcy case the court may award ownership of certain property to a creditor. 
E)  A person may acquire ownership through confusion.

Question 6

"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 is true regarding rightful ownership of the lottery money?

Accepted Answer

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

Question 7

Fixtures are treated like ______ property.

Accepted Answer

A)  Real 
B)  Personal 
C)  Valued 
D)  Appraised 
E)  Substantive 
A)  Real 
B)  Personal 
C)  Valued 
D)  Appraised 
E)  Substantive

Question 8

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

Accepted Answer

A)  The bailee must at his or her own expense maintain the property. 
B)  The bailee must take reasonable care of the bailed property. 
C)  The bailee must use the bailed property only as stipulated in the bailment agreement. 
D)  The bailee must not alter the bailed property in any unauthorized manner. 
E)  The bailee must return the bailed property in good condition at the end of the bailment. 
A)  The bailee must at his or her own expense maintain the property. 
B)  The bailee must take reasonable care of the bailed property. 
C)  The bailee must use the bailed property only as stipulated in the bailment agreement. 
D)  The bailee must not alter the bailed property in any unauthorized manner. 
E)  The bailee must return the bailed property in good condition at the end of the bailment.

Question 9

"Disputed Ring." While working in the yard Tina found a beat up ring. Becca, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Tina also told Becca that Becca failed legally to accept the gift because neither party knew its true value and that because Tina did not sign any document turning over title, it was impossible for legal ownership to pass. Becca sues.
-Which of the following is true regarding Tina's statement that she was entitled to the ring because she would not have given it to Becca if she had known the true value?

Accepted Answer

A)  Tina is entitled to ownership of the ring if she can prove that she did not realize its true value. 
B)  Tina is entitled to ownership of the ring only if she can prove that she did not realize its true value, and also that there was a difference of at least $1,000 between what she believed the value to be and its true value. 
C)  Tina is entitled to ownership of the ring only if a jury determines that she was not negligent in failing to recognize its value. 
D)  Tina is not entitled to ownership of the ring because she admitted that there was at least some chance (one in a billion) that it was a genuine diamond. 
E)  Being ignorant of the value of the ring does not entitle Tina to ownership of it. 
A)  Tina is entitled to ownership of the ring if she can prove that she did not realize its true value. 
B)  Tina is entitled to ownership of the ring only if she can prove that she did not realize its true value, and also that there was a difference of at least $1,000 between what she believed the value to be and its true value. 
C)  Tina is entitled to ownership of the ring only if a jury determines that she was not negligent in failing to recognize its value. 
D)  Tina is not entitled to ownership of the ring because she admitted that there was at least some chance (one in a billion) that it was a genuine diamond. 
E)  Being ignorant of the value of the ring does not entitle Tina to ownership of it.

Question 10

"Disputed Ring." While working in the yard Tina found a beat up ring. Becca, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Tina also told Becca that Becca failed legally to accept the gift because neither party knew its true value and that because Tina did not sign any document turning over title, it was impossible for legal ownership to pass. Becca sues.
-Which of the following is true regarding Tina's statement that Becca could not have validly accepted the ring?

Accepted Answer

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

Question 11

Which of the following is a set of rights and interests in relation to others with reference to a tangible or intangible object?

Accepted Answer

A)  Interests 
B)  Property 
C)  Transfers 
D)  Business 
E)  Commerce 
A)  Interests 
B)  Property 
C)  Transfers 
D)  Business 
E)  Commerce

Question 12

"Stolen Bicycle." Donnie borrowed the bicycle of his friend Karen. She told him that she was happy for him to use it for free, but she would appreciate him taking good care of it. Donnie said nothing in reply. Although Donnie lived in a high crime neighborhood, he left the bicycle unlocked on his deck. The next morning, he discovered that the bicycle had been stolen. Donnie told Karen that he was very sorry about the bicycle. Karen told him that she expected him to pay for it. Donnie refused on the basis that a thief took the bicycle. Donnie told Karen that he believes he knows the identity of the thief and that since only Karen has the right to sue to recover the property, he has no further responsibility.
-Which of the following is true regarding Donnie's statements that he owes Karen nothing and that only Karen has the right to take legal action against the thief?

Accepted Answer

A)  He is correct. 
B)  He is correct that he has no liability to Karen, but incorrect that only Karen may take legal action against the thief. 
C)  He is incorrect that he has no liability to Karen, but correct that only Karen may take legal action against the thief. 
D)  Only if he can identify the thief beyond a reasonable doubt is he correct that he has no further duties to Karen because only Karen has the right to take legal action against the thief at that point. 
E)  He is incorrect because he has the right to take legal action against the thief, and Donnie's conduct indicates that he has legal liability to Karen. 
A)  He is correct. 
B)  He is correct that he has no liability to Karen, but incorrect that only Karen may take legal action against the thief. 
C)  He is incorrect that he has no liability to Karen, but correct that only Karen may take legal action against the thief. 
D)  Only if he can identify the thief beyond a reasonable doubt is he correct that he has no further duties to Karen because only Karen has the right to take legal action against the thief at that point. 
E)  He is incorrect because he has the right to take legal action against the thief, and Donnie's conduct indicates that he has legal liability to Karen.

Question 13

Which of the following is a term for gifts made during someone's lifetime, not in contemplation of death?

Accepted Answer

A)  Inter vivos gifts 
B)  Sustainable gifts 
C)  In rem gifts 
D)  Probable gifts 
E)  Causa mortis gifts 
A)  Inter vivos gifts 
B)  Sustainable gifts 
C)  In rem gifts 
D)  Probable gifts 
E)  Causa mortis gifts

Question 14

When property is sold pursuant to a bailee's lien, the proceeds are first used to pay the bailee and to cover the costs of the sale, and then remaining proceeds go to the bailor.

Accepted Answer

A) True 
 B)False

Question 15

Bank accounts, stocks, and insurance policies are examples of which of the following types of property?

Accepted Answer

A)  Tangible 
B)  Intangible 
C)  Substantive 
D)  Unsubstantive 
E)  Manifest 
A)  Tangible 
B)  Intangible 
C)  Substantive 
D)  Unsubstantive 
E)  Manifest

Question 16

Which of the following is property that is initially movable but then becomes attached to land?

Accepted Answer

A)  Appliances 
B)  Appurtenances 
C)  Equipment 
D)  Easements 
E)  Fixtures 
A)  Appliances 
B)  Appurtenances 
C)  Equipment 
D)  Easements 
E)  Fixtures

Question 17

In order to enforce a right to sell property that is subject to a bailment when the bailor does not pay an agreed upon price, a bailee is given a[n] _____.

Accepted Answer

A)  Bailee's lien 
B)  Bailor's lien 
C)  Bailment document 
D)  Lien document 
E)  Enforcement lien 
A)  Bailee's lien 
B)  Bailor's lien 
C)  Bailment document 
D)  Lien document 
E)  Enforcement lien

Question 18

Which of the following is true regarding lost property?

Accepted Answer

A)  In most states the finder of lost property has title to the lost good against all including the person who lost the property. 
B)  In most states the finder of lost property has title to the lost good against all except the person who lost the property. 
C)  In most states the finder of lost property has no title to the lost good because the good is to be turned over to the police department for later sale if the true owner cannot be located. 
D)  In all states the finder of property has an obligation to put a notice in the local paper looking for the true owner before the finder of the property can claim ownership. 
E)  In most states the finder of lost property has title to the lost good against all except the person who lost the property, but that right only arises after the finder of the property can establish that the finder spent at least one-fifth of the fair market value of the property in locating the owner. 
A)  In most states the finder of lost property has title to the lost good against all including the person who lost the property. 
B)  In most states the finder of lost property has title to the lost good against all except the person who lost the property. 
C)  In most states the finder of lost property has no title to the lost good because the good is to be turned over to the police department for later sale if the true owner cannot be located. 
D)  In all states the finder of property has an obligation to put a notice in the local paper looking for the true owner before the finder of the property can claim ownership. 
E)  In most states the finder of lost property has title to the lost good against all except the person who lost the property, but that right only arises after the finder of the property can establish that the finder spent at least one-fifth of the fair market value of the property in locating the owner.

Question 19

"Disputed Ring." While working in the yard Tina found a beat up ring. Becca, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Tina also told Becca that Becca failed legally to accept the gift because neither party knew its true value and that because Tina did not sign any document turning over title, it was impossible for legal ownership to pass. Becca sues.
-Which of the following describes the type of gift, if any, at issue?

Accepted Answer

A)  A gift causa mortis 
B)  A gift inter vivos 
C)  A gift inter mortis 
D)  A gift causa vivos 
E)  There was no gift because Tina did not realize the ring's value. 
A)  A gift causa mortis 
B)  A gift inter vivos 
C)  A gift inter mortis 
D)  A gift causa vivos 
E)  There was no gift because Tina did not realize the ring's value.

Question 20

"Stolen Bicycle." Donnie borrowed the bicycle of his friend Karen. She told him that she was happy for him to use it for free, but she would appreciate him taking good care of it. Donnie said nothing in reply. Although Donnie lived in a high crime neighborhood, he left the bicycle unlocked on his deck. The next morning, he discovered that the bicycle had been stolen. Donnie told Karen that he was very sorry about the bicycle. Karen told him that she expected him to pay for it. Donnie refused on the basis that a thief took the bicycle. Donnie told Karen that he believes he knows the identity of the thief and that since only Karen has the right to sue to recover the property, he has no further responsibility.
-Which of the following is true regarding Donnie's obligation to Karen?

Accepted Answer

A)  He is liable for the theft of the bicycle arising out of his ordinary or gross negligence. 
B)  He is liable for the theft of the bicycle arising out of his gross negligence. 
C)  He is liable for the theft of the bailed property caused by even the slightest lack of due care on his part. 
D)  He is strictly liable for the theft of the bicycle. 
E)  He is not liable for the theft of the bicycle because of the doctrine of assumption of the risk. 
A)  He is liable for the theft of the bicycle arising out of his ordinary or gross negligence. 
B)  He is liable for the theft of the bicycle arising out of his gross negligence. 
C)  He is liable for the theft of the bailed property caused by even the slightest lack of due care on his part. 
D)  He is strictly liable for the theft of the bicycle. 
E)  He is not liable for the theft of the bicycle because of the doctrine of assumption of the risk.

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

A promise to make a gift is generally enforceable.

Describe how e-commerce has inspired improvements in Internet postal technology.

Which of the following is true if it is determined that harm befell bailed property due to an "act of God"?

Which of the following is true regarding the person to benefit from a bailment?

Which of the following is false regarding ways in which people may acquire title to property?

Fixtures are treated like ______ property.

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

Which of the following is a set of rights and interests in relation to others with reference to a tangible or intangible object?

Which of the following is a term for gifts made during someone's lifetime, not in contemplation of death?

When property is sold pursuant to a bailee's lien, the proceeds are first used to pay the bailee and to cover the costs of the sale, and then remaining proceeds go to the bailor.

Bank accounts, stocks, and insurance policies are examples of which of the following types of property?

Which of the following is property that is initially movable but then becomes attached to land?

In order to enforce a right to sell property that is subject to a bailment when the bailor does not pay an agreed upon price, a bailee is given a[n] _____.

Which of the following is true regarding lost property?

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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