Deck 45: Personal Property and Bailments

Question 1

On the completion of a bailment, the bailee may dispose of the property at will.

Answer 1

False

Question 2

Simply finding property and holding onto it gives the finder all legal rights in it.

Answer 2

False

Question 3

Many bailments do not include all of the elements of a contract.

Answer 3

True

Question 4

A finder of mislaid property obtains title to the goods.

Question 5

Digital goods, including virtual goods, are personal property with real value.

Question 6

The distinction between real and personal property is important because how property is acquired is determined by its classification.

Question 7

The law defines a person's rights and interests in anything with an ascertainable value that is subject to ownership.

Question 8

The gift of a large portion of a person's assets can indicate fraud.

Question 9

Accession occurs when someone acquires title to a valuable piece of personal property by assuming a position of power.

Question 10

Establishing ownership rights is more complicated for personal property than for real property.

Question 11

Consideration is one of the necessary elements for an effective gift.

Question 12

When accession occurs with a property owner's consent, there is not likely to be a dispute about who owns the property.

Question 13

Personal property can be converted into real property by being permanently attached to it.

Question 14

Estray statutes encourage the return of found property to its owner by making is possible for the finder to acquire title to it.

Question 15

If confusion of property occurs as a result of the act of some third party, the owners of the goods share ownership in order of seniority.

Question 16

The concept of personal property can expand to take account new types of ownership rights and interests.

Question 17

A promise to make a gift tomorrow or next year is a gift .

Question 18

A finder of mislaid property has no obligation to return the property to the true owner.

Question 19

The delivery of documents that represent the rights to property can be sufficient to transfer that property to the recipient.

Question 20

Sometimes, a person can become an owner of personal property merely by possessing it.

Question 21

In many states, hotel operators are not liable for any loss or damage to their guests' personal property, provided this limit is brought to the guests' attention .

Question 22

A bailment cannot arise without the bailor's voluntary delivery of the property to the bailee.

Question 23

With respect to bailed goods, common carriers are absolutely-strictly-liable .

Question 24

Property would have little value if

A)virtually all property were digital.
B)the law did not define the rights of property owners.
C)property could be delivered to another without a transfer of title.
D)the preservation of property was the primary reason for government.

Question 25

A bailee has a right to the reimbursement of costs incurred in keeping the bailed property, even in a gratuitous bailment.

Question 26

Norah owns a phone, a tablet, and a patent on an app. Norah's intangible property includes

A)the phone.
B)the tablet.
C)the patent.
D)all of the choices.

Question 27

If the bailed property has been lost, a court will presume that the bailee was negligent, which he or she can rebut by showing an exercise of due care.

Question 28

Ordinary bailments are distinguished according to which party receives a benefit from the bailment.

Question 29

Either physical or constructive delivery can result in the bailee's exclusive possession and control over bailed property.

Question 30

The legally protected rights and interests that a person has in anything of established value subject to ownership is

A)accession.
B)commonwealth.
C)property.
D)a bailee's lien.

Question 31

Although a written agreement is not required for a bailment of less than a year, because the Statute of Frauds does not apply, it is a good idea to have one.

Question 32

In a bailment for the sole benefit of the bailee , the bailee will be liable for even the slightest negligence in caring for the bailed property.

Question 33

In a bailment for the mutual benefit of the bailee and the bailor, the bailee need not exercise reasonable care in storing items or holding property.

Question 34

In a bailment for the sole benefit of the bailor , the bailee need not exercise even a slight degree of care in preserving the bailed property.

Question 35

A bailee has no right to limit his or her liability for loss or damage to the bailed goods because it would contravene public policy.

Question 36

Because a warehouse company is a professional bailee, it is expected to exercise a high degree of care to preserve and protect bailed goods.

Question 37

Failure to give up possession at the time the bailment ends could result in an action for conversion or negligence.

Question 38

A transfer of personal property without an agreement for its return or disposal is not a bailment.

Question 39

Fiji, an independent contractor and technical writer, has a computer in her office. She has a copyright on her most recent work, Guide to Coding . Her tangible personal property includes

A)the computer.
B)the copyright.
C)the coding.
D)all of the choices.

Question 40

With respect to property, the law defines the right to

A)sell or dispose of it, but not prevent trespass onto it.
B)prevent trespass onto it, but not to sell or dispose of it.
C)sell or dispose of it, and prevent trespass onto it.
D)none of the choices.

Question 41

Robin stores her grain at a facility owned and operated by Silo Inc. At the end of the storage period, Silo must

A)return the exact same grain originally stored.
B)return the same grain or grain of the same type, grade, and quantity.
C)retain the grain.
D)none of the choices.

Question 42

Inadvertently, Brie loses her textbook during an afternoon in City Park. She eventually gives up any attempt to find it. The textbook will then most likely be considered

A)abandoned property.
B)converted property.
C)lost property.
D)mislaid property.

Question 43

Angie voluntarily transfers her prize-winning horse Beaux to Cady without consideration. Provided all of the requirements are met, this is acquisition of property by

A)conversion.
B)accession.
C)possession.
D)gift.

Question 44

Slim owns cattle, a pick-up truck, and stock in Range Corporation, which owns and operates the Big R Ranch. Capable of being involved in a bailment is

A)the cattle, the truck, and the stock.
B)the Big R Ranch.
C)Slim.
D)all of the choices.

Question 45

Buto buys a bus ticket at a window in the City Bus Depot before checking his backpack and boarding a bus. In this situation, the subject to a bailment is

A)Buto.
B)the backpack.
C)a seat on the bus.
D)none of the choices.

Question 46

While hiking on Mountain Trail, Ness's camera falls from his pocket. He fails to notice its loss for a mile, and is then unable to find it. Ole finds the camera. Pau tries to take it from Ole. The party who can assert the best title to the camera is

A)Ness.
B)Ole.
C)Pau.
D)none of the choices.

Question 47

While moving to a new apartment, Vance discards a sofa near the entrance to his old residence, with no intention of recovering it. The sofa is

A)abandoned property.
B)converted property.
C)lost property.
D)mislaid property.

Question 48

After agreeing to rent a car from Drive-Around Inc., Eden is given the keys to one of the agency's cars by Fess, a Drive-Around employee. With respect to the bailed property, this is

A)a physical delivery.
B)a constructive delivery.
C)an involuntary delivery.
D)not a delivery.

Question 49

To become a bailment, a delivery of property from one person to another must

A)involve personal property.
B)include a transfer of title.
C)follow an exchange of consideration.
D)be subject to a written agreement.

Question 50

Mary goes hunting during elk season. While trespassing on Nate's rural land, she shoots an elk. This elk is the property of

A)Mary.
B)Nate.
C)the state.
D)none of the choices.

Question 51

Ada owns Blueberry Farm. Ada's only daughter Cherry owns the adjacent Delicious Apple Orchard. Ada makes a gift of the farm to Evert, a short-term employee. This gift may lack the required element of

A)acceptance.
B)delivery.
C)donative intent.
D)dominion.

Question 52

After shopping at a Cut-Price store, Dyan finds a fitness watch in her bag of purchases that she knows she did not pay for. If Dyan fails to return the watch to the store or to pay for it, she will have committed

A)accession.
B)confusion.
C)conversion.
D)production.

Question 53

Before entering the dining room in Café Peru, Diego checks his coat in the lobby with a valet employed by the restaurant. In the coat's pocket is an iPhone. A bailment may exist between the restaurant and its customer for

A)the coat only.
B)the phone only.
C)the coat and the phone.
D)neither the coat nor the phone.

Question 54

Kay and Lease-Away Inc. enter into a bailment involving the delivery of a moving van to Kay for her use. Unless stated otherwise, the agreement assumes that Kay will

A)return the van.
B)return the van or its equivalent.
C)retain the van.
D)none of the choices.

Question 55

Sara owns a ring. She asks Tomas, a jeweler, to add a diamond to it. Adding the diamond will increase the value of the ring. This is

A)accession.
B)acquisition.
C)conversion.
D)validation.

Question 56

Earlene buys a fishing license and goes fishing. She catches a trout, cleans it, cooks it, and eats it. Earlene's acquisition of the trout is by

A)possession.
B)accession.
C)confusion.
D)production.

Question 57

Before going on a business trip, Gina leaves the key to her apartment with Henri. She checks her suitcase at the airport, and boards the plane. A bailment is created when Gina

A)delivers the key to Henri.
B)checks her suitcase.
C)boards the plane.
D)all of the choices.

Question 58

One of the elements of a bailment is

A)tangible , not intangible , items.
B)non-exclusive possession of the bailed property by the bailee.
C)an agreement for the return or disposal of the bailed property.
D)conversion of the bailed property by the bailee.

Question 59

Sheila finds Tim's briefcase in her office after Tim leaves following their meeting. This is

A)a physical bailment.
B)a voluntary bailment.
C)an involuntary bailment.
D)not a bailment.

Question 60

The identify of the party who receives a benefit from an ordinary bailment dictates

A)the rights and liabilities of both parties.
B)the return or disposal of the bailed property at the end of the bailment.
C)the extent of the bailment period.
D)none of the choices.

Question 61

A court may use the identity of the party who receives a benefit from an ordinary bailment to determine, with respect to the bailed property, the standard of

A)negligence to be applied to the deal.
B)proof required to show loss or damage.
C)care required of the bailee.
D)quality expected by the bailee.

Question 62

A large sign at the entrance to Fitness Club states in bold red letters that "the club is not responsible for any loss due to theft." Most likely, with respect to limiting the club's liability, this sign is

A)effective.
B)not effective because it is against public policy.
C)not effective because it is an exculpatory cause.
D)not effective because an ordinary bailee cannot limit his or her liability.

Question 63

Arnold wants to give Beth a pearl necklace that he has in his safe deposit box at Capital Bank. The bank is closed for a holiday. Arnold gives Beth a key to the box and tells her to go to the bank after the holiday and take the necklace. Beth does this. The next day, Arnold dies unexpectedly. His heirs want the necklace. Can Beth keep the necklace? Explain.

Question 64

Cartage Inc. agrees to pick up two truckloads of housewares for Discount Corporation and store the contents to be delivered later. After Cartage unloads the goods at its storage facility, some of them disappear from the loading dock. A court will presume that

A)Cartage was negligent.
B)Discount was negligent.
C)the goods were stolen through no fault of Cartage.
D)the warehouse is in a high-crime area.

Question 65

Leo borrows Mae's car to drive Nina to the airport. Considering the purpose of the bailment, Leo has the right to

A)compensation from Nina.
B)reimbursement from Mae for any parking costs.
C)use the bailed property.
D)none of the choices.

Question 66

Repair Service Inc. agrees to fix a harvester for Soybean Acres. Repair tows the harvester to its storage yard, to be returned after the work is done. Repair's obligation to deliver the equipment to Soybean is excused if the harvester is

A)any of the choices.
B)lost through no fault of Repair.
C)stolen through no fault of Repair.
D)claimed by a third party with a superior claim.

Question 67

In a bailment, in some circumstances, the dollar amount of liability for any loss or damage to bailed goods can be limited by

A)common carriers.
B)warehouse companies.
C)ordinary bailees.
D)all of the choices.

Question 68

On Demi's authorization, Engine Work Inc. repairs her car. She refuses to pay for the job. Engine Work can

A)keep the car and place a lien on it until Demi pays.
B)undo the repair and keep the car.
C)use the car for any purpose.
D)all of the choices.

Question 69

Hotel operators can limit their liability for any loss or damage to their guests' personal property

A)in many states, by providing a safe for their guests' valuables.
B)under state statutes that limit the liability for articles not kept in a safe.
C)in the absence of negligence.
D)all of the choices.

Question 70

Earth Farm arranges to have Fresh Express Inc., a common carrier, transport a load of almonds. Fresh Express will be liable for any loss or damage to the almonds

A)under any circumstances.
B)unless the carrier exercised reasonable care.
C)unless the loss or damage is caused by a natural disaster.
D)under no circumstances.

Question 71

Gene leaves her Honda Fit with In-Town Motors for routine maintenance. On its return, the interior of the car is greasy and the exterior is scratched and dented. Who suffers the loss and why?

Question 72

In a bailment, strictly liable for any loss or damage to bailed goods are

A)common carriers.
B)warehouse companies.
C)ordinary bailees.
D)all of the choices.