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

Question 1

Ownership of property is referred to as "title".

Answer 1

True

Question 2

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

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

Answer 2

B

Question 3

Stocks, bonds, and other items that can be owned but cannot be seen or touched are examples of tangible property.

Answer 3

False

Question 4

If an instrument contains the word "bearer" or "to the order of" it is considered negotiable. By law, a document of title may not be negotiable.

Question 5

A promise to make a gift is generally enforceable.

Question 6

Property that is mislaid is different from lost property because the owner intentionally forgot where they placed the mislaid property.

Question 7

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.

Question 8

There are four elements necessary for a gift: delivery, donative intent, acceptance, and monetary valuation.

Question 9

A bailment of personal property is a relationship that arises when one party, the ________, transfers possession of personalty to another, the ________, to be used by the bailee in an agreed-on manner for an agreed-on time period.

A) giver; taker
B) posseor; posesee.
C) donor; holder
D) bailor; bailee
E) donor; donee

Question 10

In the Case Opener, Sellers v. United States is discussed to illustrate the example of a potential for bailment relationships between prison inmates and prison authorities. What was the Seventh Circuit's main holding in this case?

A) The court ruled that inmates forfeit all property rights - including the right to enter into a bailment agreement - upon entry to prison.
B) The court ruled that while inmates have limited property rights, an inmates do not have the right to expect a prison guard to safeguard their belongings.
C) The court held that although inmates cannot enter into bailment agreements, prison guards have a duty to reasonably secure inmates' belongings, including locking inmates' cells when they are unoccupied.
D) The court held that once a prisoner establishes a bailment relationship with a prison guard, if that property is lost or stolen, the government can be held liable for conversion of the property that was subject to the bailment.
E) The court held that because there are restrictions placed on what property inmates can possess in prison, prison officials are immune from litigation if an inmate's property is lost or stolen.

Question 11

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.

Question 12

Gifts are causa mortis if they are given in contemplation of one's immediate death.

Question 13

A gift causa mortis is

A) a gift that is made in contemplation of one's immediate death.
B) a gift that occurs through a will.
C) a gift that is made by a person during his or her lifetime.
D) a gift that must got through probate before it can be distributed.
E) a gift that has been abandoned by its owner because it has never been properly delivered.

Question 14

Parties to a bailment contract can limit or expand the liability of the bailee by contract.

Question 15

A person becomes the owner of abandoned property by finding and possessing it.

Question 16

In the text case, Campbell v. Robinson, Campbell, the plaintiff, sued the defendant, his former fiancé Robinson, claiming that she wrongfully refused to return an engagement ring when the marriage was cancelled. The defendant claimed that she was entitled to keep the ring because Campbell was at fault for calling off the marriage. Further, Robinson claimed that Campbell told her to keep the ring, even after the engagement was called off, a claim that Campbell denied. The trial court ruled in favor of the defendant, and Campbell appealed. Which of the following outcomes was the result of the appeal in the case?

A) The original verdict was affirmed, and the defendant was entitled to keep the ring because the termination of the engagement was the plaintiff's fault.
B) The original verdict was affirmed and the defendant was entitled to keep the ring because it was an inter vivos gift, and there had been delivery, donative intent, and acceptance of the gift when she initially received it.
C) The original verdict was affirmed in part, reversed in part, and remanded for a new trial because a jury question was presented as to whether the plaintiff made an absolute gift of the ring to the defendant after the termination of the engagement, and errors on the jury charge and verdict form prejudiced the plaintiff.
D) The original verdict was affirmed in part and reversed in part, because under principles of equity, the plaintiff was entitled to keep the ring, but only if she paid the defendant half of its value and that if she refused to do so, the ring would be sold and the proceeds split between the parties.
E) The original verdict was reversed, because the ring was a conditional gift, and when the engagement was terminated, the defendant was required to return the ring.

Question 17

Jack is severely injured in an accident at work and believes he is going to die. He tells his friend and co-worker, Diane, that she can have his car after he is dead. However, Jack makes a full recovery. Because he did not die, his gift of the car to Diane will be automatically revoked.

Question 18

A writing is required for a bailment that will not be completed within 6 months, according to the statute of frauds.

Question 19

The bailee has the right to be compensated according to the terms of the bailment, unless the bailment is gratuitous.

Question 20

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.

Question 21

The definition of personal property is

A) land and anything attached to the land.
B) property that is not attached to the land or is moveable.
C) property that has a value in excess of $10,000.
D) personal objects that are attachable to land.
E) any property deemed by state statute as personal property.

Question 22

Melia's grandmother gave Melia a diamond ring that had been passed down in the family for generations. This is an example of a(n) ________.

A) inter vivos gift
B) sustainable gift
C) in rem gift
D) conditional gifts
E) causa mortis gifts

Question 23

Fasha was using her computer at the library in a study room. When she was done with her computer, she put it on the floor to clear the desk to work on another project. She leaves without taking the computer with her. This type of property is known as ________.

A) lost property
B) mislaid property
C) discarded property
D) disregarded property
E) unintended consequence property

Question 24

The definition of real property is

A) land and anything permanently attached.
B) property that is moveable.
C) property that has a value in excess of $10,000.
D) personal property and fixtures attached to land.
E) any property deemed by state statute as real property.

Question 25

Fernando contracts with Michelle to purchase her lake property as long as she repairs the dock. This is an example of a(n) ________

A) implied contract
B) conditional contract
C) improper contract
D) collusive contract

Question 26

Colleen has decided that she no longer wants her sofa and puts it on the curb. Velma can pick up the couch and keep it because it is considered ________ property.

A) misplaced
B) disregarded
C) discarded
D) abandoned
E) disposed

Question 27

When does title to property pass from one party to another?

A) When the parties intend for title to pass from one party to another.
B) When a contract is executed between the parties.
C) When physical possession of the property is obtained by the donee.
D) Twenty-four hours after possession of the property is obtained by the donee.
E) Three days after a contract is signed and executed by both parties.

Question 28

Which of the following statements does not describe a duty of a bailee?

A) The bailee must maintain the property at his or her own expense.
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 29

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

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 30

________ is property that can be identified by the senses; it can be seen or touched.

A) Tangible property
B) Perceptive property
C) Fungible property
D) Intangible property
E) Apparent property

Question 31

Under Italian law, instances of usucapione are characterized by ________

A) a physical possession and a mental intention to possess property.
B) owners of property must possess the property for no less than 20 years before full ownership can occur.
C) owners must possess the property for no less than 10 years before full ownership can occur.
D) immovable property including anything attached to the ground, such as trees, buildings, homes, and arenas.
E) persons having legal possession equivalent to that of the owner but only for a certain length of time.

Question 32

________ are treated like real property.

A) Fixtures
B) Personal property
C) Supplemental property
D) Animals
E) Bank accounts

Question 33

Mirrors and ceiling fans that are attached to the land are known as a(n):

A) appurtenance
B) easement
C) addition
D) supplemental property
E) fixtures

Question 34

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

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 35

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

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 created.
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 36

Waldon is walking out of class and his backpack is open. His calculator dropped out of his backpack. What type of property is this if Ilian finds it?

A) Lost property
B) Mislaid property
C) Disregarded property
D) Abandoned property
E) Unintentional property

Question 37

________ is property that does not exist in physical form, such as bank accounts, stocks and insurance policies.

A) Tangible property
B) Intangible property
C) Discernable property
D) Actual property
E) Manifest property

Question 38

What is the difference between a purchase of property from a gift of property?

A) All property needs a title to be transferred
B) No consideration is needed for a gift.
C) All forms of property except for gifts must be in writing.
D) For gifts to be effective, there must be written intent.
E) There is no transfer requirement for gifts.

Question 39

Moko is by his dying grandfather's bedside. His grandfather says "I do not have long to live I am afraid. Please take this pocket watch." This is a(n) ________

A) inter vivos gift
B) sustainable gift
C) in rem gift
D) terminal gift
E) causa mortis gift

Question 40

In a bailment for consideration that is for the mutual benefit of both parties, what fundamental duty (or duties) does the bailor have toward the bailee?

A) Only the duty of compensation and reimbursement.
B) The duty of compensation and reimbursement, and the duty to warn the bailee of known defects or any that could have been discovered through reasonable investigation.
C) Only the duty to provide the bailee with property free from hidden defects that could harm the bailee.
D) Only the duty of compensation.
E) The duty of compensation and reimbursement, the duty to provide the bailee with property free from hidden defects that could harm the bailee, and the duty to keep accurate records of the transaction.

Question 41

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

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.

Question 42

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?

A) 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.
B) 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.
C) The motion to dismiss was affirmed, because a bailment agreement must be in writing and signed by both parties in order to be upheld.
D) 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.
E) 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.

Question 43

A bill of lading is a document that is issued by a person engaged in the business of transporting goods that verifies what?

A) Receipt of the goods for shipment.
B) That the goods are insured.
C) That the goods are properly marked for shipping.
D) That the bank has released the goods to ship.
E) That customs forms are completed.

Question 44

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

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 45

If a bailment is intended to benefit only the bailor, which of the following statements is accurate?

A) The bailee is liable for harm to the bailed property arising out of either 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 46

Which of the following statements is NOT true regarding common carriers?

A) Common carriers are licensed to provide transportation services to the public.
B) Common carriers provide transportation services only to a select group.
C) Common carriers are subject to regulation by government agencies.
D) Common carriers may be limited in scope of services they provide by geographic region.
E) Common carriers may be limited in scope of services they provide by type of goods carried.

Question 47

Which of the following statements is false regarding bailments?

A) A bailment may be gratuitous.
B) A bailment may be for consideration.
C) A bailment agreement must be contained in a written agreement.
D) The parties to a bailment contract can limit or expand the liability of the bailee by contract.
E) The standard of care varies depending on who benefits from the bailment.

Question 48

Which of the following statements describes the applicable standard used in determining the liability of a common carrier when harm befalls property that is the subject of a bailment placed in the care of the carrier?

A) The carrier is liable only if ordinary or gross negligence can be proven.
B) The carrier is liable only if gross negligence can be proven.
C) The carrier is liable only if it can be proven that the carrier acted in a reckless manner.
D) The carrier is generally strictly liable for harm to the bailed property.
E) Because of the doctrine of assumption of risk, the carrier is not liable for harm to the bailed property.

Question 49

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

A) A tractor owned by a farmer and stored in her barn.
B) A barn constructed on the land after the land was initially purchased by the farmer.
C) 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.
D) The free-standing appliances in the farmer's kitchen, such as the refrigerator.
E) The intangible elements connected with and owned by the farmer, such as the value of her equipment and the equity in the property.

Question 50

Documents of title are governed by ________, which may be issued in conjunction with the bailment, when a bailment is for the purpose of transportation or storage of goods.

A) Article II of the Constitution
B) Article VII of the Uniform Commercial Code
C) state law
D) federal law
E) the state or federal courts depending on the goods

Question 51

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] ________.

A) Bailee's lien
B) Bailor's lien
C) Bill of lading
D) Lien document
E) Enforcement lien

Question 52

A ________ of personal property is a relationship that arises when one party transfers possession of personality to another to be used in an agreed-upon manner for an agreed-upon time period.

A) Bailment
B) Transfer
C) Loan
D) Release
E) Lease

Question 53

In the "Case Nugget", Ziva Jeweler, Inc. v. Car Wash Headquarters, Inc., what was the decision rendered by the Supreme Court of Alabama, as related to the plaintiffs assertion that the carwash employees failed to safeguard jewelry in the trunk of a vehicle that was being cleaned?

A) The carwash was held liable for the stolen jewelry inside the trunk of the vehicle.
B) There was no evidence that the car wash knew or should have reasonably foreseen that it was taking responsibility for over $850,000 worth of jewelry.
C) The Supreme Court overturned the prior decision that the bailee was responsible for the loss of contents.
D) The carwash was held liable for both the stolen vehicle and the contents in the vehicle.
E) Since bailment had been established, as ruled by the trial court, the carwash was fully liable for the stolen jewelry.

Question 54

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

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 55

In the "Case Nugget," Ziva Jewelry Inc., v. Car Wash Headquarters Inc., the plaintiff left his car and keys with a car wash employee and a thief drove off with the car, abandoning it unharmed after stealing jewelry valued at over $800,000 from the car's trunk. What was the final holding of the court in this case?

A) That the car wash was liable to the plaintiff because the car wash accepted responsibility as a bailee.
B) That the car wash was not liable to the plaintiff because the car wash employees had no notice they were taking responsibility for the jewelry.
C) That the car wash and the plaintiff would be required to split the loss.
D) That the car wash was liable to the plaintiff for the loss because the car wash had not issued a valid disclaimer.
E) That it would be unconscionable to hold the car wash liable for the loss.

Question 56

Who does a bailment benefit?

A) The bailor only.
B) The bailee only.
C) A bailment may benefit either a bailor or a bailee, or both.
D) A donor beneficiary.
E) A debtor.

Question 57

In a bailment situation, the person who receives transfer of possession of property is the ________.

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

Question 58

In the "Case Nugget" Ziva Jewelry, Inc. v. Car Wash Headquarters, Inc., what was the main rule regarding bailee liability to come from this case?

A) A bailee is only liable for unknown property if that property is valued at over $100,000.
B) Knowledge of possession of property is irrelevant when establishing bailee liability.
C) Only bailees in a commercial setting can be liable for property they do not know they possess.
D) A bailee can only be liable for property she knows she possesses.
E) A bailee can be liable for property, even if he is not aware that he is in possession of it.

Question 59

Which of the following statements is true regarding lost property?

A) In most states, the finder of lost property has title against all others, including the person who lost the property.
B) In most states, the finder of lost property has title against all others except the person who lost the property.
C) In most states, the finder of lost property has no title against others and must turn over the property 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 attempting to claim ownership.
E) In most states, the finder of lost property has against all others except the person who lost the property, but that right only arises if the finder of the property can establish that she spent an amount of at least one-fifth of the fair market value of the property attempting to locate the owner.

Question 60

The ________ is the person who transfers possession of personality in a bailment situation.

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

Question 61

[Stolen Bicycle] Jason borrowed his friend Sabrina's bicycle. She told him that she was happy to let him to use it for free, but that she would appreciate him taking good care of it. Jason said nothing in reply. Jason lived in a high crime neighborhood, but he left the bicycle unlocked on his deck anyway. The next morning, he discovered that the bicycle had been stolen. Jason told Sabrina that he was very sorry about the bicycle. Sabrina told him that she expected him to pay for it. Jason refused on the basis that a thief took the bicycle. Jason told Sabrina that he believes he knows the identity of the thief and that since only Sabrina has the right to sue to recover the property, he has no further responsibility.
What is the status of the bailment situation, or lack thereof, existing between Jason and Sabrina?

A) It was a gratuitous bailment.
B) It was a bailment for consideration.
C) It was a temporary bailment.
D) It was a constructive bailment.
E) There was no bailment because no consideration was provided.

Question 62

At common law, who were held to the same strict-liability standard of care for their guests' property as common carriers?

A) innkeepers
B) delivery drivers
C) personal carriers
D) private carriers
E) shippers

Question 63

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?

A) ABC Books, because they paid Lexie to create the drawings for the book.
B) Lexie, because she is the person that created the drawings.
C) Phoebe, because it was her idea and story that inspired the subject of the drawings.
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.

Question 64

[Disputed Ring] While working in the yard Megan found a beat up ring. Taylor, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Megan told her, "You can have this old thing if you would like." Taylor replied, "I really like it - Maybe it's a real diamond!" Megan laughingly told her that there was a one in a billion chance of that and that Megan was more likely to win the lottery. A few months later Taylor ran over to Megan's house and told Megan that the ring actually was a diamond worth thousands! Taylor gave Megan the ring to examine. Megan put it in her pocket and told Taylor 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. Megan also told Taylor that Taylor failed legally to accept the gift because neither party knew its true value and that because Megan did not sign any document turning over title, it was impossible for legal ownership to pass. Taylor sues.
Which of the following statements is true regarding Megan's statement that Taylor could not have validly accepted the ring?

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) 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.
C) Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance.
D) Megan is correct that Taylor could not have validly accepted the ring when she did not understand its true value.
E) Megan is incorrect, and Taylor validly accepted the ring as a gift.

Question 65

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

A) 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.
B) 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.
C) Fungible goods that are intentionally commingled by a third party may only be separated and distributed via a court order.
D) 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.
E) 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.

Question 66

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

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.

Question 67

[Shoe Store] Larry owns a store that sells a variety of men's accessories, including shoes, wallets, briefcases, and belts. While shopping in Larry's store, Ed placed his wallet on a shelf so he could look at a particular pair of shoes. When Ed walked away, he forgot to pick up the wallet and left the store without it. Another customer, Susan, noticed the wallet on the shelf a few minutes later. She hadn't seen Ed leave it there, and brought the wallet to Larry at the front counter. Larry thanked her and set the wallet aside, meaning to put it in the back office for safekeeping. However, before he could secure the wallet, Larry was distracted by a phone call. Another customer, Scott, saw the wallet on the counter, took it, and left the store. Once outside, Larry opened the wallet and looked through it. When Larry realized that the wallet contained nothing but two dollars and an expired library card, he tossed the wallet on the ground in disgust and walked away. Five minutes later, Olivia, a passerby, noticed the wallet on the ground. She decided to keep it for herself, so she picked up the wallet and took it home.
Who is the legal owner of the wallet?

A) Ed
B) Larry
C) Susan
D) Scott
E) Olivia

Question 68

[Lottery Winnings] Devin, a hypochondriac with a very compulsive personality and habits, was having minor surgery to repair a bone spur on his foot. Just prior to his surgery, he purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of his lottery ticket numbers with him in his wallet. Devin's girlfriend, Kendra, went with him to the hospital. While in the waiting room, Devin said to her, "Kendra, 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." Kendra replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Devin came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Kendra watched the lottery drawing and discovered that Devin's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Devin saw her on television with her new boyfriend, John. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Devin says that the lottery money is his.
Which of the following best describes the outcome of Devin's statement that he made to Kendra regarding the lottery ticket prior to surgery?

A) Devin's statement created a gift causa mortis of the lottery ticket.
B) Devin's statement created a gift inter vivos of the lottery ticket.
C) Devin's statement created a gift inter mortis of the lottery ticket.
D) Devin's statement created a gift causa vivos of the lottery ticket.
E) Devin's statement was meaningless because of the condition of death placed on the gift.

Question 69

In a proper property transfer by inter vivos gift, the idea that the gift must be physically or constructively presented by the donor to the donee is best categorized as:

A) Consideration
B) Delivery
C) Donative Intent
D) Acceptance
E) Ownership

Question 70

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

A) He is correct on all counts.
B) He is correct that he has no liability to Sabrina, but incorrect that only Sabrina may take legal action against the thief.
C) He is incorrect that he has no liability to Sabrina, but correct that only Sabrina 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 Sabrina, because only Sabrina 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 Jason's conduct indicates that he has legal liability to Sabrina.

Question 71

[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?

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

Question 72

Which of the following practices is NOT a means of acquiring ownership of property?

A) Possession
B) Confusion
C) Voluntary transfer
D) Evolution
E) Creation

Question 73

[Shoe Store] Larry owns a store that sells a variety of men's accessories, including shoes, wallets, briefcases, and belts. While shopping in Larry's store, Ed placed his wallet on a shelf so he could look at a particular pair of shoes. When Ed walked away, he forgot to pick up the wallet and left the store without it. Another customer, Susan, noticed the wallet on the shelf a few minutes later. She hadn't seen Ed leave it there, and brought the wallet to Larry at the front counter. Larry thanked her and set the wallet aside, meaning to put it in the back office for safekeeping. However, before he could secure the wallet, Larry was distracted by a phone call. Another customer, Scott, saw the wallet on the counter, took it, and left the store. Once outside, Larry opened the wallet and looked through it. When Larry realized that the wallet contained nothing but two dollars and an expired library card, he tossed the wallet on the ground in disgust and walked away. Five minutes later, Olivia, a passerby, noticed the wallet on the ground. She decided to keep it for herself, so she picked up the wallet and took it home.
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?

A) Larry has the right to give the wallet to another person as a gift, but may not receive consideration in return for the transfer.
B) 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.
C) 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.
D) Larry has the right to sell the wallet immediately, because he is a merchant of goods of that kind.
E) 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.

Question 74

[Shoe Store] Larry owns a store that sells a variety of men's accessories, including shoes, wallets, briefcases, and belts. While shopping in Larry's store, Ed placed his wallet on a shelf so he could look at a particular pair of shoes. When Ed walked away, he forgot to pick up the wallet and left the store without it. Another customer, Susan, noticed the wallet on the shelf a few minutes later. She hadn't seen Ed leave it there, and brought the wallet to Larry at the front counter. Larry thanked her and set the wallet aside, meaning to put it in the back office for safekeeping. However, before he could secure the wallet, Larry was distracted by a phone call. Another customer, Scott, saw the wallet on the counter, took it, and left the store. Once outside, Larry opened the wallet and looked through it. When Larry realized that the wallet contained nothing but two dollars and an expired library card, he tossed the wallet on the ground in disgust and walked away. Five minutes later, Olivia, a passerby, noticed the wallet on the ground. She decided to keep it for herself, so she picked up the wallet and took it home.
Which of the following is the most accurate classification of the wallet in the above scenario?

A) Abandoned property
B) Lost property
C) Mislaid property
D) Stolen property
E) Missing property

Question 75

[Disputed Ring] While working in the yard Megan found a beat up ring. Taylor, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Megan told her, "You can have this old thing if you would like." Taylor replied, "I really like it - Maybe it's a real diamond!" Megan laughingly told her that there was a one in a billion chance of that and that Megan was more likely to win the lottery. A few months later Taylor ran over to Megan's house and told Megan that the ring actually was a diamond worth thousands! Taylor gave Megan the ring to examine. Megan put it in her pocket and told Taylor 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. Megan also told Taylor that Taylor failed legally to accept the gift because neither party knew its true value and that because Megan did not sign any document turning over title, it was impossible for legal ownership to pass. Taylor sues.
Which of the following terms best describes the type of gift, if any, at issue?

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 Megan did not realize the ring's value.

Question 76

[Disputed Ring] While working in the yard Megan found a beat up ring. Taylor, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Megan told her, "You can have this old thing if you would like." Taylor replied, "I really like it - Maybe it's a real diamond!" Megan laughingly told her that there was a one in a billion chance of that and that Megan was more likely to win the lottery. A few months later Taylor ran over to Megan's house and told Megan that the ring actually was a diamond worth thousands! Taylor gave Megan the ring to examine. Megan put it in her pocket and told Taylor 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. Megan also told Taylor that Taylor failed legally to accept the gift because neither party knew its true value and that because Megan did not sign any document turning over title, it was impossible for legal ownership to pass. Taylor sues.
Megan stated that she was entitled to the ring because she would not have given it to Taylor if she had known the true value. Which of the following is true regarding this statement?

A) Megan is entitled to ownership of the ring if she can prove that she did not realize its true value.
B) Megan 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) Megan is entitled to ownership of the ring only if a jury determines that she was not negligent in failing to recognize its value.
D) Megan 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 Megan to ownership of it.

Question 77

[Lottery Winnings] Devin, a hypochondriac with a very compulsive personality and habits, was having minor surgery to repair a bone spur on his foot. Just prior to his surgery, he purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of his lottery ticket numbers with him in his wallet. Devin's girlfriend, Kendra, went with him to the hospital. While in the waiting room, Devin said to her, "Kendra, 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." Kendra replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Devin came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Kendra watched the lottery drawing and discovered that Devin's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Devin saw her on television with her new boyfriend, John. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Devin says that the lottery money is his.
Which of the following statements is true regarding rightful ownership of the lottery money?

A) Devin'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, Devin has the right to revoke the gift and recover the lottery proceeds.
C) 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.
D) Devin has the right to all funds only because Kendra has a new boyfriend.
E) Devin has no rights because once he gave the tickets to Kendra, he gave up all his rights to them.

Question 78

A good for which one unit of the good is essentially the same as every other unit of the good is known as a(n) ________

A) infungible good
B) fungible good
C) identifiable good
D) minimalist good
E) allocated good

Question 79

[Lottery Winnings] Devin, a hypochondriac with a very compulsive personality and habits, was having minor surgery to repair a bone spur on his foot. Just prior to his surgery, he purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of his lottery ticket numbers with him in his wallet. Devin's girlfriend, Kendra, went with him to the hospital. While in the waiting room, Devin said to her, "Kendra, 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." Kendra replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Devin came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Kendra watched the lottery drawing and discovered that Devin's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Devin saw her on television with her new boyfriend, John. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Devin says that the lottery money is his.
Which of the following is true regarding Devin's statement at the hospital regarding Kendra taking the ticket?

A) Once Kendra accepted the ticket, a valid gift was made which could not be revoked.
B) Because there was no certainty that Devin would die, there was no valid inter vivos or causa mortis gift.
C) The gift was irrevocable based on the condition that Kendra never had another boyfriend; otherwise, she had to give the ticket and any resulting cash back to Devin.
D) The gift was irrevocable based on the condition that Kendra never had another boyfriend; but because the gift was of the ticket itself and not the potential winnings, once the ticket was converted into cash, the gift became fully irrevocable and the condition no longer applied.
E) Because he did not die and recovered from the surgery, his gift to Kendra was automatically revoked.

Question 80

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

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