Deck 17: Personal Property

Question 1

With respect to the obligations arising from ownership and possession of property,which of the following is a distinguishing characteristic of the requirement to take reasonable care?

A) It is non-applicable in arrangements that lack a formal contract.
B) It is applicable regardless of the absence of a contractual arrangement.
C) The damages are always payable to the owner by way of compensation.
D) It is the sole method for meeting the business needs of both parties.

Answer 1

B

Question 2

As security for its operating line of credit,EcoDesign Builders Inc.has given an assignment of rents for two of its apartment blocks to ImaBigBank.Why is the bank's registration of the assignment of rents considered economical?

A) It protects creditors whether the arrangement is contractual or not.
B) The law requires registration of property held in the possession of another.
C) It provides a shield for the creditor's rights to the pledged property.
D) The bank has a lack of intention to return possession to the owner.

Answer 2

C

Question 3

A court is hearing argument from plaintiff's counsel regarding a matter involving serious injury to a downhill skier.Counsel contends the cause of his client's injuries are rental skis outfitted with either defective or improperly secured bindings.With respect to responsibility for prevention of this mishap and damages for ensuing harms,which of the following will cause the onus of proof to shift to the bailor?

A) The bailor's fit or intended purpose warranty is extremely burdensome.
B) The standard of care in a bailment for value focuses on a bailor's misconduct.
C) Bailor's warranty for responsible manner of use has been established.
D) Bailee's reasonable manner of use of the skis has been established.

Answer 3

D

Question 4

When a business entrusts bailed goods to an employee,which of the following is the most relevant factor flowing from the pilfering of those goods by that employee?

A) The employer is subject to vicarious liability.
B) The employer is expected to take greater care than an ordinary person.
C) The employer's standard of care is higher for more valuable property.
D) The employer is subject to personal liability.

Question 5

ImaBigBank has extended an operating line of credit to Vandenbergers Bulbs Ltd.In exchange,Vandenbergers had to provide an assignment of the corporation's accounts receivable from its seasonal city garden contracts.Which of the following would a business law professor most likely say with respect to the bank's position?

A) It acquired ownership of the right to collect the assigned accounts.
B) It alone possesses the right to collect Vandenbergers' accounts.
C) It is using a very uneconomical method of protecting creditor rights to pledged property.
D) It acquired possession of an assignment without obtaining right of ownership.

Question 6

Geoffrey made arrangements for storage of his houseboat for the winter at BoatsRStored4U Inc.Prior to the storage company arriving to transport the boat to the storage lot,which of the following questions should Geoffrey be most clear on?

A) When should he provide proof of ownership and valuation?
B) What will happen if BoatsRStored4U abandons the boat?
C) Who will bear risk and need to purchase insurance?
D) Will the boat return in the same condition in which he delivered it?

Question 7

What is it that most often drives the decision to create a temporary split of ownership and possession with respect to personal property?

A) Both parties have a right to be compensated in any event.
B) The arrangement meets the business needs of both parties.
C) Both parties will have to bear a proportionate risk of a loss.
D) The owner of the property bears ultimate responsibility.

Question 8

If a bailment is without reward and for the benefit of the person possessing the property,which of the following is most likely to result?

A) The bailor's standard of care will be high.
B) The bailee's standard of care will be low.
C) The bailor's standard of care will be very high.
D) The bailee's standard of care will be very high.

Question 9

A defect that no one in the distribution chain could reasonably have foreseen would most likely be described by a business law professor using which of the following legal terms?

A) languishing defect
B) passive defect
C) latent defect
D) patent defect

Question 10

In order for a lessor to maximize its ability to minimize its exposure for damage caused to a leased vehicle in the lessee's possession,which of the following should be included in the standard form contract?

A) a benefit of relationship clause to ensure reciprocal benefit to the lessor
B) the bailee identified as the party to be paid in the event of loss for insurance
C) an ordinary diligence exclusion clause to limit liability for ordinary neglect
D) the bailor named as the party to be paid in the event of loss for insurance

Question 11

The requirement that a business offering bailment for value appropriately store perishable items placed in its possession is reflective of which of the following?

A) special terms limiting liability set out in the parties' contract
B) standard of care based on who benefits from the bailment
C) special regulations that set out the standard of care
D) standard of care based on the nature of the property

Question 12

If a corporate lawyer was asked to describe a feature distinguishing bailment from a contract of purchase and sale,how is he most likely to respond?

A) Most commercial contracts are bailments requiring payment for use of property.
B) Most bailments are gratuitous, requiring no payment for use of property.
C) A bailor retains ownership upon transfer of possession to the bailee.
D) A bailment is typically short term while contracts cover a longer term.

Question 13

Which of the following denotes the most common cause for a bailor incurring liability with respect to goods provided under a contractual bailment?

A) breach of bailor's warranty to provide a bailed chattel fit for its intended use
B) the injury of a bailor while using or operating a bailed chattel
C) breach of the bailor's duty of care regarding provision of adequate instruction for use
D) the injury of a bailee's employee while using or operating a bailed chattel

Question 14

In circumstances involving a bailment of value,which of the following is an aspect that would normally be described in a contract for services?

A) the parties' remedies for failure to perform
B) the price to be paid by the bailee for bailment
C) the bailor's remedies for collecting storage charges
D) the services to be provided for the bailor

Question 15

Which of the following is the focus of the standard of care required of a gratuitous bailor?

A) preservation of ownership
B) proof of ownership
C) personal misconduct
D) applicable legislation

Question 16

Which of the following exemplifies possession without ownership?

A) granting a trademark registration to an applicant
B) granting a licence for use of a bio-waste technology
C) registration of a transfer of a freehold interest in land
D) registration of a company's truck under its business name

Question 17

A higher expectation placed on a business offering a specific type of bailment is typically reflective of which of the following?

A) special circumstances in the transaction
B) the expertise of the business offering bailment for reward
C) the limits on liability placed by the business offering bailment
D) specific nature and value of the property

Question 18

The value of the consideration paid to keep a costly but very adequate policy in good standing will most likely provide strong support for which of the following?

A) failure to protect the creditor's rights to the pledged property
B) the right to be compensated for occurrence of an insured event
C) entitlement based on strict use and simple registration of the policy
D) the courts' need to balance value of tangible and intangible property

Question 19

In law,the term "choses in action" is synonymous with which of the following?

A) tangible property
B) pledged property
C) intangible property
D) non-portable items

Question 20

Remmie owns the associated rights to property,the buildings and everything affixed to them located on that property,and the property itself.If a lawyer and he were reviewing Remmie's assets,how is this particular asset likely to be classified?

A) chattel property
B) intangible property
C) real property
D) tangible property

Question 21

Which of the following is a valid criticism of the use of contractual clauses to limit bailment liability?

A) There is a social cost of courts having to inject business with ethical standards.
B) Courts will consider the contract price relative to losses to determine enforceability.
C) Courts apply different standards to commercial and consumer contracts.
D) They are vulnerable to various common law challenges.

Question 22

Under what circumstances do the rights and responsibilities relating to a storage bailment apply?

A) when standard charge terms limit liability
B) when the property has been returned in the same condition as delivered
C) when the bailor retains possession of the keys
D) when the arrangement meets the definition of a bailment

Question 23

Shawna received a factory recall notice from her GM dealership.She accepted the dealership's offer to drive her to work when she brings the car to it for the service recall.When Shawna hands the dealership her car keys,which of the following is a certain result?

A) agreement on price for the service in advance
B) an incidental storage bailment
C) a very high standard of care
D) dealership's loss of right to retain property for payment

Question 24

Which of the following is the most significant effect of the responsibility of the standard of care placed on common carriers with respect to the property they carry?

A) Defences relate mainly to events within a carrier's control.
B) A bailor is required to prove fault.
C) Defences mainly relate to circumstances of the carrier.
D) Carrier liability for mishap is severely limited.

Question 25

Which of the following would a business law professor most likely identify as an attractive way for a business to acquire the use of equipment for a specified period of time?

A) financing lease
B) term lease
C) operating lease
D) chattel lease

Question 26

Which of the following is a distinguishing characteristic of a commercial chattel lease?

A) It is regulated by consumer protection legislation.
B) It is regulated by general law of contract.
C) Rules are implied through legislation.
D) Rules come mainly from statute law.

Question 27

Colleen booked two weeks' lodging with a bed and breakfast beginning June 30.What is the legal term used to describe the individual taking the booking?

A) lodgekeeper
B) hostelry
C) innkeeper
D) hotelier

Question 28

Under which of the following circumstances is it most likely that the obligation to make payments is tied to the suitability and performance of equipment?

A) bailment for value
B) financing lease
C) chattel lease
D) two-party leasing arrangement

Question 29

Which of the following is a characteristic of a common carrier bailment arrangement where possession of the goods rests with the bailee?

A) right to sell property on non-payment
B) owner is required to prove fault
C) a presumption of carrier's liability
D) agreed value of any ensuring repairs

Question 30

Which of the following is a difference between a warehouseman's lien and a common carrier's lien?

A) Warehousemen represent themselves to the public as storekeepers for reward.
B) Warehousemen have a common law lien right with the right to sell property.
C) Common carrier contracts are typically covered by federal legislation.
D) Common carriers have a common law lien right without the right to sell property.

Question 31

In circumstances involving an outstanding payment for repair and subsequent storage of a sailboat,which of the following is most likely to be the result?

A) limited defence mainly relating to circumstances
B) severe limitation of bailee's liability
C) retained possession and sale by right of lien if needed
D) bailor's expectation of receipt of property in good repair

Question 32

In bailment transactions,which of the following is most prominent?

A) proof and protection of ownership
B) preservation of economic value
C) transfer of risk
D) retention of risk

Question 33

What is the primary source of the requirement that a lessor's property be reasonably fit for its intended use?

A) commercial chattel leases
B) implied statutory term
C) implied common law term
D) general law of contract

Question 34

Which of the following is the most significant aspect of a bailment contract?

A) It provides remedies for failure to perform obligations.
B) It reduces serious defects affecting contractual formation or performance.
C) It limits the liability that common law rules of bailment create.
D) It avoids legal complications for damage or loss of bailed property.

Question 35

What is the named used to describe the individual who has the right to enforce a lien over property until such time as storage fees have been paid?

A) warehouseman
B) financier
C) storagekeeper
D) skilled storagekeeper

Question 36

Which of the following distinguishes a commercial bailment contract from a consumer bailment contract?

A) the limitation of standard forms to consumer contracts
B) seriousness of defect affecting formation of a contract
C) the court's inclination to apply differing standards to each
D) seriousness of defect preventing performance of a contract

Question 37

How is ownership of intellectual property acquired?

A) creation, licence, or transfer
B) purchase, manufacture, or trading
C) creation, registration, or purchase
D) licence, manufacture, or transfer

Question 38

Which of the following is a distinguishing characteristic of the legislated ability of innkeepers to post liability limits in their establishments?

A) It gives shared control over guest's property through their occupation of their rooms.
B) Standard form contracts are a common feature used by innkeepers to transfer risk of liability.
C) It is lost due to innkeeper's negligent or deliberate act or deposit of the property for safekeeping.
D) Gives an innkeeper a common law lien against the guest's property in its possession.

Question 39

Which of the following is the result of a commercial customer's limited means of monitoring a storage facility's treatment of the property given to it for storage?

A) Liability is excluded completely or limited to a very small amount.
B) The bailee must provide consent for storage at an alternative location.
C) The law imposes a high level of accountability for treatment of the bailor's property.
D) The law imposes a high level of accountability for treatment of the bailee's property.

Question 40

Which of the following is a valid criticism of a three-party financing lease arrangement?

A) It shields the financier from normal lessor's obligations relating to the property.
B) It imposes a high level of accountability for the property on the dealer.
C) It imposes a high level of accountability on the financier.
D) The property must be purchased outright at the end of the lease.

Question 41

A key aspect of a bailment contract is often limitation of the liability that the common law rules of bailment create.

Question 42

The burden placed on a common carrier to care for the goods of the bailor is determined by the concept of benefit of the relationship.If the bailment benefits the bailor exclusively,the common carrier is required to exercise slight care and is liable only for gross neglect.

Question 43

A warehouseman's general responsibility toward its customers' property is to treat it as a skilled storekeeper would deal with its own property,which imposes a standard of reasonableness encompassing responsibility for most foreseeable risks.

Question 44

Because Remmie's stuccoing business is experiencing unusual demand for its services,Remmie has decided to lease an additional truck and pressure washer as opposed to having the business purchase them outright at this time.The lease for the pressure washer is two months and would typically be described as an operating lease.

Question 45

In law,intellectual types of property are known as choses in action.

Question 46

While a financing lease will likely provide a lessor with the right to purchase the equipment at the end of the lease,a mechanic's lien covering the same equipment would entitle the mechanic to retain possession of the property until payment for the repair is received.Failure to pay for the repair altogether will entitle the mechanic to sell the equipment at fair value,satisfy its outstanding account with the proceeds,and to forward any excess balance of funds remaining to the bailor.

Question 47

The practical distinction that exists between carriers and innkeepers relates to the carrier's shared control over the property entrusted to it and the innkeeper's total control over property of its guests,acquired through their occupancy of rooms.

Question 48

A bailee who specializes in a certain type of bailment is expected to exercise ordinary diligence,but greater care than an ordinary person.

Question 49

Remmie has leased scaffolding,to be used in his home stuccoing business,for five months from the local rent-all store.Remmie's possession of the scaffolding during the five-month period will be subject to any limitations contained in the lease agreement for the bailed property.

Question 50

WeMove4U Inc.is a transport company that operates in Alberta and Saskatchewan.The company has recently adopted a new standard charge agreement that severely limits its liability in the event of mishap with bailed property.By pointing out this clause to its customers,WeMove4U is shifting the burden for damage or loss to the bailor,who should purchase adequate insurance coverage.

Question 51

The function of a clause in a warehouseman's contract containing a description of the extent to which the bailee is liable for damage is to signal which party should buy insurance on the item being stored.

Question 52

Ross sold his house and went travelling for two months.While he was away,he placed his furniture and other belongings in storage with Kitt's Storage Inc.In these circumstances,Ross is a bailee and Kitt's is a bailor.

Question 53

In contractual bailments,bailors warrant that the goods used by their bailees are fit for the purpose for which they are bailed.

Question 54

Tangible property is comprised of personal property,the value of which come from legal rights.

Question 55

All property,other than land and what is attached to land,that can be identified by its mobility is known as personal property.

Question 56

Remmie has leased a commercial pressure washer and a truck for use in his stuccoing business.His lawyer has advised Remmie that,because there is no legislation dealing with commercial chattel leases,Remmie's leasing arrangements are governed mainly by rules originating from the general law of contract.

Question 57

Marcella delivered her suits to the drycleaners and arranged for them to be available for pick-up three days later.In this bailment for value,Marcella is a bailor and the drycleaner is a bailee.

Question 58

The risks relating to personal property concern proof and protection of ownership,rights to possession,and the preservation of economic value.

Question 59

Insurance coverage is bought through the payment of premiums and is described in the insurance policy.

Question 60

Intangible property is comprised of personal property,the value of which come from its physical form.

Question 61

A bailee performing repairs has a right to a lien against property for value of repairs made to it.Identify one example of a legislated legal source of that lien right and provide a brief discussion of a bailee's legislated lien right in these circumstances.

Question 62

Describe bailment and discuss its key issues.

Question 63

Identify the common types of bailment.

Question 64

With respect to a bailment for value,identify the aspects that a contractual services agreement would normally include a description of.

Question 65

Joelle owns and possesses unencumbered property.Describe how Joelle is entitled to deal with her property and identify and briefly describe the options available to her in that regard.

Question 66

Identify the risks relating to personal property.

Question 67

Identify the elements that are applied to determine the liability of bailees.

Question 68

Explain what a court will be require in order to determine who is responsible for damaged goods and for how much.

Question 69

Identify the issues typically addressed in a commercial chattel lease.

Question 70

Remedies for failure to perform obligations arising in a bailment relationship originate in two contexts.Discuss.