Deck 29: Personal Property and Bailments

Question 1

In a bailment, the person who transfers the property is called the bailee.

Answer 1

False
Explanation: The person who transfers the property is called the bailor.

Question 2

In a bailment, neither the bailor nor the bailee intends that title to the property should pass.

Answer 2

True
Explanation: In a bailment, neither the bailor nor the bailee intends that title to the property should pass. The bailee has an obligation to return the same property to the bailor, or to the bailor's designee, at a later time. A bailment transfers control of the property, so a bailment does not occur when the person in possession of the property has no control over it.

Question 3

Lending one's car to a friend would be an example of a mutual benefit bailment.

Answer 3

False
Explanation: When personal property is transferred to a bailee with the intent that both parties will benefit, a mutual-benefit bailment results. Lending your car to your friend is most likely a gratuitous bailment.

Question 4

If a child's income from interest and dividends is less than $1,500, it cannot be taxed.

Question 5

A gift causa mortis can never be taken back by the donor.

Question 6

The gift of an engagement ring is a conditional gift given in contemplation of marriage.

Question 7

In a bailment for the sole benefit of the bailor, any ordinary and expected expense incurred in the use of another's property must be borne by the bailee.

Question 8

A bailment is the transfer of possession and control of personal property to another with the intent that the same property will be returned later.

Question 9

A transient guest at a hotel is a guest whose length of stay is fixed.

Question 10

Manuel is seriously ill and gives Juanita his diamond ring to remember him by. When Manuel recovers, he cannot obtain the return of the ring from Juanita.

Question 11

Those in possession of stolen property can convey good title to others by giving them that property as a gift.

Question 12

Tangible personal property is property that has substance and can be touched.

Question 13

Cindy and Isa own property as joint tenants. If Cindy dies, Isa acquires ownership of Cindy's interest in the property.

Question 14

A consignment contract is a type of mutual benefit bailment in which the consignor entrusts goods to the consignee for the purpose of selling them.

Question 15

An example of chattel would be a stock certificate.

Question 16

Escheat is a type of fraud.

Question 17

Gaston finds a book in the middle of the street. Gaston must leave the book at the nearest police station so the true owner may return and recover the book.

Question 18

When personal property is owned solely by one person, it is said to be owned in co-tenancy.

Question 19

Gratuitous bailments occur when property is transferred to another person without either party giving or asking for payment of any kind.

Question 20

John and Marsha park their car in the BigCinema parking lot. They have created a bailment with BigCinema.

Question 21

Paulina rented a room at the Desert Inn Hotel and left her diamond ring on the dresser in her room when she went to dinner. When she returned, the ring was gone. Paulina discovered that the room door did not automatically lock when she closed it; instead it required her to use her key. Is Desert Inn liable for her loss?

A) Yes, since innkeepers are insurers of their guest's property.
B) No, since Paulina was negligent in determining that her room door was not locked.
C) Yes, since innkeepers are in a bailment relationship regarding guest's property.
D) No, since Paulina must inquire about Desert Inn's security system.

Question 22

Elaine asked Meredith if she could borrow Meredith's iPhone to text her mom pictures of an awards ceremony. Meredith gave Elaine the iPhone and asked for nothing in return for this favor. This transaction was most likely a:

A) bailment for the sole benefit of the bailor.
B) mutuum.
C) mutual-benefit bailment.
D) bailment for the sole benefit of the bailee.

Question 23

Polonius registered for five nights at Cloud Hotel at $200 per night. Cloud requested Polonius' credit card number when he registered. When Polonius went to a restaurant, his credit card was denied, since it was at the authorized credit limit. Why was Polonius' credit card limit likely reached by registering at Cloud Hotel?

A) Cloud charged the card the full amount of his stay.
B) Cloud charged the card $1,200 with the 20% overage allowed to cover possible damages.
C) Cloud blocked Polonius' credit card when he registered.
D) Cloud made use of the card for payments other than paying the hotel tariff.

Question 24

Rare art was stolen from the Zerba Art Museum during a war and thirty years later is located in the Alpha Art Museum in another country. Who has title to the art, if Alpha did not know the art was stolen?

A) Alpha, since it is innocent of wrong doing
B) Zerba, since the art was stolen
C) Alpha, since Zebra has relinquished title in the thirty years
D) Zerba, since it had not sent the art voluntarily

Question 25

Jason has observed an old car parked in the alley behind his apartment for three months. It has no license plates on it and the tires are flat. Jason concludes that the car has been abandoned and takes possession of the car, gets it running, and decides to use it in a demolition derby. At this point, Alex claims that the car is his. To have title to the car, Jason must prove:

A) Alex deserted the car.
B) Alex did not intend to return for the car.
C) Alex deserted the car and did not intend to return for it.
D) Alex had promised the car to Jason as a gift.

Question 26

Viola checked her mink coat at the Landmark Theatre cloakroom while attending a play and was given a claim ticket. After the play, she handed the ticket to the person at the counter, but her mink coat could not be found. What must be proven concerning negligence?

A) Viola must prove that Landmark was negligent.
B) Landmark must prove that Viola was negligent.
C) Viola must prove that she was not negligent.
D) Landmark must prove that it was not negligent.

Question 27

If Phil finds an iPhone in the men's room at a restaurant, it is most likely ____________ and Phil should ____________.

A) lost; leave it with the restaurant manager
B) abandoned; leave it with the restaurant manager
C) stolen; personally return it to the owner
D) misplaced; leave it with the restaurant manager

Question 28

Cato rented a chain saw from Rental Warehouse to cut firewood for his home fireplace. When it was time for lunch, Cato left the chain saw in the woods while he went home to eat. When he returned, the saw had been stolen. Cato is ____________ to Rental Warehouse based on his ____________.

A) liable; duty to use reasonable care
B) not liable; duty to exercise care against gross negligence
C) liable; duty to exercise care against slight negligence
D) not liable; duty of mutuum

Question 29

If Patsy finds a set of car keys on the floor of a cafeteria, most likely the keys are ____________ and Patsy ____________.

A) lost; keeps them while looking for the true owner
B) abandoned; should leave them with the cafeteria manager
C) stolen; should leave them with the cafeteria manager
D) misplaced; keeps them while looking for the true owner

Question 30

____________ is the reward given to persons who voluntarily assist a sinking ship or recover its cargo from peril or loss.

A) Gift in causa mortis
B) Chose in action
C) Salvage
D) Severalty

Question 31

Vanessa has received gifts subject to the provisions of the Uniform Transfer to Minors Act. When Vanessa graduates from high school at age 17 and moves away from home, she wants to terminate the custodianship. At what age does the custodianship terminate?

A) 17
B) 18
C) 21
D) The age is decided on case-by-case basis.

Question 32

Vernon parked his gasoline tanker truck at Moonbeam Hotel while seeking lodging for the night. Moonbeam employees went to the gasoline truck to assist in finding a satisfactory parking place, smelled gasoline, noticed a small drip from the truck, and refused to rent a room to Vernon. Is that action lawful?

A) No, because rooms were available in the hotel.
B) Yes, because the presence of the truck would frighten other guests.
C) No, because the innkeeper cannot discriminate on the basis of social status.
D) Yes, because there is a danger to other guests and the hotel.

Question 33

If an abandoned shipwreck is found outside the boundaries of a state, what law applies?

A) Only the Abandoned Shipwreck Act
B) Only the law of finds
C) Only the law of salvage
D) Either the law of finds or the law of salvage

Question 34

Mashevida and Mei-Ling own a house as tenants in common. When Mei-Ling dies, her share of the house:

A) passes to Mashevida.
B) passes to whomever the probate court designates.
C) passes to Mashevida's heirs.
D) escheats to the state in which the house is located.

Question 35

Jenna hangs her fur coat on a rack in the unattended waiting room of Physicians Associated Office. After her visit with Dr. Wong, Jenna prepares to leave, but discovers her fur coat is missing. What liability, if any, do Physicians Associated and Dr. Wong have for the missing coat?

A) None, since they had no control over the coat.
B) Physicians Associated is liable, since the coat rack was in its waiting room.
C) Dr. Wong is personally liable as Jenna had come to meet him.
D) None, since it was a mutual benefit bailment.

Question 36

Agnes borrowed a cup of sugar from her next-door neighbor. She intended to return the sugar the next day. This transaction was a:

A) bailment for the sole benefit of the bailor.
B) mutuum.
C) mutual-benefit bailment.
D) bailment for the sole benefit of the bailee.

Question 37

Jim borrowed Sally's car to get to class when his car did not start. After attending the class, he uses the car to visit his grandmother. While on his way, he enters an intersection when the light is just turning from yellow to red and meets with an accident. What is the Jim's legal position regarding the car?

A) Jim is only liable for reasonable care of the car.
B) Jim is only liable if he committed gross negligence.
C) Jim is only liable if he committed slight negligence.
D) Jim has no liability.

Question 38

A(n) ____________ is an example of tangible property.

A) promissory note
B) iPhone
C) share of corporate stock
D) account receivable

Question 39

Sue receives a $5,000 engagement ring from Tau, but unfortunately Tau dies before the marriage can occur. Tau's parents, as his heirs, want the engagement ring, but Sue wants to keep it. In most states, ____________ is/are entitled to the ring because ____________.

A) Tau's parents; the ring was a conditional gift
B) Sue; Tau (the donor) is dead
C) Tau's parents; Tau did not state that Sue was to have the ring if he were to die
D) Sue; the engagement was not broken by mutual agreement or by Sue

Question 40

Tammy leaves her car under Emilia's carport while flying to visit her grandmother. Emilia allowed Tammy to do so as a favor. Emilia uses the car to go to her office though she had not been given any permission to do so. One day she meets with an accident and the car is damaged. Which of these is correct?

A) Emilia is not liable because she let Tammy leave the car as a favor.
B) Emilia is liable because she did not have permission to drive the car.
C) Emilia is not liable because she would have the implied right to drive the car.
D) Emilia is liable because this is a bailment for the sole benefit of the bailor.

Question 41

Jason Jets, Inc. asked Southern Transport, a common carrier, to carry extremely hazardous jet fuels to one of its bases in another state. Was Southern within its rights when it refused to transport the fuel? Why or why not?

Question 42

Matthew opens a checking account with Big Bank in the state of Blue. His National Guard unit is activated for military duty, and Matthew is sent abroad. He makes no deposits to or withdrawals from the account for fifteen months. Matthew gets married and moves to the state of Red when released from active service. May Big Bank or Blue lawfully assert a claim to Matthew's checking account?

Question 43

Quinlan picked up the goods that he had stored in Dana's warehouse, promising to pay Dana the following week. Several months passed, and Quinlan still had not paid Dana for storing the goods. Dana claimed that she had a warehouser's lien on the goods that were stored in her warehouse. Was Dana correct? Why or why not?

Question 44

When Tammy purchased a television from her neighbor, Andy, she paid a fair market price. Andy moved shortly thereafter to an unknown location, and Tammy was shocked to learn that her television was a stolen article. It had actually belonged to Olive. Tammy believes that she will not have to surrender the television or at least Olive should share the financial loss by paying her half of what she paid Andy, since Tammy asserts that she is an innocent victim. Carefully discuss Tammy's beliefs.

Question 45

Crystal is 86 years old and enters the hospital for observation after having fainted. Crystal is depressed and, while in the hospital, gives her antique wedding ring to Autumn, a good friend, saying to Autumn, "I won't be long in this world." After a change in medication, Crystal improves and returns home, living another three years before dying in a bus wreck while going on a fall foliage tour. Her will leaves her antique wedding ring to her granddaughter, Sarah. Discuss who is entitled to ownership of the ring with Autumn in possession of the ring.

Question 46

Anna finds a ring on the sink ledge of a restroom for use by customers of Red Barn Restaurant. Discuss who has legal custody of the ring.

Question 47

Alexander Warehouse Co. stores boxes of china for Crystal Import Co., but stacks the boxes too high so that lower boxes collapse and break the china contents. Alexander asserts that this is Crystal's responsibility for not having stronger boxes, and Crystal asserts that Alexander improperly stacked the boxes. Discuss what party is responsible for the damage.

Question 48

While visiting her uncle, Jackson remarked that she admired her uncle's collection of rare books. Her uncle then said to her, "I've been meaning to tell you that I want you to have them. Instead of leaving them to you in my will, I'm going to give them to you right now. You can consider the books yours. However, please keep them here on my shelves so that my library looks full." Would a court hold that Jackson owns the books? Explain.

Question 49

Viva ships livestock via Cattle Truck Co. to an out of state feed lot. The cattle are held at the state line for a week, while the state's agricultural department determines that the livestock is not diseased. Can Viva require Cattle Truck to pay for the extra expense and lost profits if Cattle did not inform Viva of this possible delay when it accepted the shipment?

Question 50

Carlos, Maria, and Justus own land near a developing city as joint tenants. Maria would like to sell her part of the land to Big Sky Development Co., but Carlos and Justus do not want to sell. Carefully discuss if Maria can sell her interest in the land.