Deck 21: Personal Property and Bailments

Question 1

A gift requires intent to transfer title and delivery.

Answer 1

True

Question 2

At common law, a tenancy by entirety or a tenancy by the entireties is created when property is transferred to both husband and wife.

Answer 2

True

Question 3

A custodian who holds money for the benefit of a minor under the Uniform Gifts to Minors Act may choose to use the money to send the minor to summer camp.

Answer 3

True

Question 4

The finder of lost property is usually entitled to a judicially-determined reward for finding and caring for the property until the rightful owner reclaims it.

Question 5

Personal property is lost when an owner does not know where it is located but intends to retain title or ownership to it.

Question 6

Unclaimed property is often transferred to the government under the concept of escheat.

Question 7

An incorporeal hereditament is the relationship that arises when one person delivers possession of personal property to another under an agreement, express or implied, by which the latter is under a duty to return the property or to deliver it or dispose of it as agreed.

Question 8

Most courts consider an engagement ring to be a conditional gift.

Question 9

Joint tenancy and tenancy in common both feature the right of survivorship.

Question 10

Property includes the rights of any person to possess, use, enjoy, and dispose of a thing or object of value.

Question 11

The Uniform Anatomical Gift Act permits persons sixteen (16) years of age or older to make gifts of their bodies or any parts thereof.

Question 12

The legal concept of property is limited to tangible physical objects.

Question 13

An ordinary gift made between two living persons is an inter vivos gift.

Question 14

After fully complying with the procedures of the Uniform Gifts to Minors Act, a donor is entitled to take back the donated property at any time before the minor donee reaches the age of 18.

Question 15

In common usage today, there is no distinction between real and personal property.

Question 16

A tenancy in common is a form of ownership by two or more persons.

Question 17

The intent to make a gift requires an intent to transfer title at that time.

Question 18

In states that follow the community property tradition, property acquired after the marriage belongs solely to the party who acquired it.

Question 19

If while trespassing a hunter kills game, the game belongs to that hunter.

Question 20

Title to abandoned property may be acquired by the first person who obtains possession and control of it.

Question 21

With regard to a bailment, a valid delivery and acceptance need not require that the bailee be aware that goods have been placed within the bailee's exclusive possession or control.

Question 22

A third person to whom a joint tenant's interest is transferred becomes a:

A)joint tenant.
B)cotenant.
C)tenant in common.
D)tenant by the entirety.

Question 23

When a person rents space in a locker or building under an agreement that gives the renter the exclusive right to use that space, the placing of goods by the renter in that space creates a bailment.

Question 24

Sylvia and Morris were married and owned their home as tenants by the entirety. When Morris died, his will said that he left his half of his home to his brother Tim. Sylvia objects to this. The ownership of the home:

A)belongs solely to Sylvia by survivorship.
B)is now a joint tenancy between Sylvia and Tim.
C)is now a tenancy in common between Sylvia and Tim.
D)belongs to Sylvia and the state, in equal and divisible shares.

Question 25

To establish a gift, the party claiming to be the donee must prove:

A)delivery only.
B)intent only.
C)intent and a promise to deliver.
D)intent and delivery.

Question 26

Property held by a bailee may be used by the bailee without the permission of the bailor.

Question 27

Tom established a bank account for his daughter Mary under the Uniform Gifts to Minors Act. Tom named himself the custodian. Later, Tom had a serious disagreement with Mary and ordered the bank to transfer the money in that account to a similar account maintained in the same bank for Tom's son Ed. The bank must:

A)comply with Tom's order, because the custodian controls the account.
B)refuse Tom's order, because this would clearly not be for the benefit of Mary.
C)comply with Tom's order, because Uniform Gifts to Minors accounts are not final.
D)comply with Tom's order if Mary is at least 18 years of age at the time in question.

Question 28

A person becomes a(n) __________ at the moment of taking possession of abandoned personal property.

A)bailor
B)bailee
C)constructive bailee
D)owner

Question 29

When a bailment is made to further a business interest, but no fee is involved, the bailment is a gratuitous bailment.

Question 30

Barry and Eldridge owned Blueacre as tenants in common. Eldridge died. Blueacre is owned:

A)solely by Barry because of the survivorship feature.
B)jointly by Barry and the state because of escheat.
C)by Barry and Eldridge's heirs.
D)solely by Eldridge's heirs.

Question 31

A gift causa mortis is revoked if:

A)the donor does not die.
B)the donor revokes the gift before dying
C)the donee dies before the donor.
D)all of the above.

Question 32

The standard of care for bailments is reasonable care under the circumstances.

Question 33

Generally, a bailment agreement need not contain all the elements of a contract.

Question 34

Which of the following forms of cotenancy does not have right of survivorship?

A)joint tenancy
B)tenancy by entirety
C)tenancy in common
D)community property

Question 35

In order for a bailment to be valid, the bailor must be the owner of the subject property.

Question 36

__________ property means land and things embedded in the land.

A)Real
B)Personal
C)Intangible
D)Tangible

Question 37

If a maintenance employee at a hotel finds a pocketbook with $500 in cash while cleaning an empty guest room, the employee:

A)is entitled to keep the property, because the employee has the legal status of a "finder."
B)must give the property to the manager of the hotel to be kept for the owner.
C)must place an advertisement in a local newspaper, and if the property is not claimed within seven (7) business days, the employee is entitled to keep it.
D)can retain possession of the property until the owner establishes ownership.

Question 38

The person who turns over the possession of bailed property is the bailor, and the person who accepts possession is the bailee.

Question 39

An ordinary bailment can arise without an agreement between the parties.

Question 40

A bailee's lien gives the bailee the right to keep possession of the bailed property until reasonable charges for storage and/or repairs are paid.

Question 41

When a bailor sues the bailee for damages to the bailed property, who has the burden of proving fault and that such fault was the proximate cause of the bailor's loss?

A)the person in possession of the property
B)the bailor
C)the bailee
D)the jury

Question 42

Vacarro gave her son Mark a car on the day Mark left for college. Vacarro told Mark that she expected him to use the car for school purposes and to earn good grades. Mark flunked out of college in his second semester. Vacarro sued to regain title to the car on the ground that the gift was conditional on Mark's earning good grades and remaining in college. Will Vacarro win the case?

Question 43

Joan brought her car into Ace Service Station for a tune-up. After tuning up the car, Ace (the owner of the service station) decided to visit his mother. Ace drove Joan's car. Ace was following all safety precautions when a negligent driver without insurance struck Joan's car. Joan sued Ace for the damages to her car. The probable result is:

A)Ace will win, since he was taking reasonable care of the bailed goods.
B)Ace will win, since the bailee has the right to use the bailed goods.
C)Joan will win, since the harm was sustained during the bailee's unauthorized use of the property.
D)Joan will win, since bailees are absolutely liable for bailed goods in their possession and control.

Question 44

Nelson took her computer to ABC Computer for repairs. ABC repaired the computer at a cost of $350 and informed Nelson that her computer was ready. Before Nelson came to pick up her computer, ABC was burglarized and Nelson's computer was taken. ABC had a commonly-used alarm system that was operating properly on the night of the burglary, and all the doors and windows were properly secured. Nelson sued ABC for the cost of the computer. ABC denied any liability and counterclaimed for the $350 in repairs. Who will win?

Question 45

Humberto called his friend John and asked him to come over immediately because Humberto had suffered a stroke and might be dying. In their telephone conversation, Humberto advised John that he wanted to give John his gold watch. Immediately after their telephone conversation, Humberto wrote out a will that left his share in Blackacre to John. Blackacre was the marital home of Humberto and Connie, who owned the home as tenants by the entirety. Humberto died before John arrived at Blackacre. John claims the watch and a share in the home. Connie contests both matters. Decide.

Question 46

Bailments may be:

A)created orally or through a writing.
B)created for either real or personal property.
C)created for nonpossessory personal property.
D)made only after delivery to the bailor is accomplished.

Question 47

Once a bailment is established and the goods are returned in damaged condition:

A)the bailee is strictly liable for the loss.
B)the bailor has established an irrefutable case of liability on the part of the bailee.
C)the bailor has established a prima facie case of liability on the part of the bailee.
D)the bailor cannot collect on any insurance that the bailor maintains on the property; instead, the bailor's sole remedy is to pursue a breach of bailment action against the bailee.

Question 48

A bailee's __________ gives the bailee the right to maintain possession of the bailed property until reasonable storage and/or repair charges are paid.

A)reversionary interest
B)lien
C)remainder interest
D)mortgage

Question 49

A bailment:

A)cannot be based on an oral agreement.
B)can involve real or personal property.
C)requires that title be passed to the bailee.
D)transfers possession to the bailee.

Question 50

The legal relation that arises when one person delivers possession of personal property to another under an express or implied agreement to return the property at a later date is called a:

A)tenancy agreement.
B)bailment.
C)rental agreement.
D)trust arrangement.

Question 51

Which of the following is not a classification of ordinary bailments?

A)for the sole benefit of the bailor
B)for the sole benefit of the bailee
C)for the sole benefit of the third party beneficiary
D)for the mutual benefit of the bailor and the bailee

Question 52

Warren brought his television in for repairs. After Warren left the store, gunmen came in to rob the proprietor. As they ran out, Warren's television was knocked over and destroyed. Warren demanded that the proprietor of the store compensate him for the fair market value of the television. The bailee:

A)is liable, since the goods were not returned to Warren in proper condition.
B)is liable, since the bailee did not prevent the gunmen from damaging the television.
C)is not liable, since this was a mutual-benefit bailment.
D)is not liable, since the damage was caused by the act of a third party.

Question 53

A bailee's interest in the bailed property can be characterized as:

A)ownership.
B)a fractional proprietary interest.
C)possession.
D)constructive ownership.