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

Question 1

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

Answer 1

False

Question 2

The text case GNOC Corp.v.Powers discusses the application of New Jersey's State Innkeeper's Act to Powers's claim involving a thief who obtained a second key from the hotel and stole $75,000 in gambling winnings and chips that the plaintiff had not placed in the hotel's safe.Which of the following outcomes was the result of the case?

A)That the plaintiff was entitled to recover only ½ of his losses due to the application of the Innkeeper Act and the fact that the items could have been deposited in the hotel safe.
B)That as a matter of law,the plaintiff was entitled to prevail because the Innkeeper Act applies to shield a hotel only from acts of its employees with pass keys,not acts of a non-employee thief.
C)That the Innkeeper Act shielded the hotel from liability because the items could have been deposited in the hotel safe and that the plaintiff was not therefore entitled to recover.
D)That a jury question was presented as to whether the negligence of the hotel prevented it from relying on the protection of the Innkeeper Act.
E)That as a matter of law,the plaintiff was entitled to prevail because the negligence of the hotel prevented it from relying on the protection of the Innkeeper Act.

Answer 2

C
Explanation: A)The appeals court recognized that under New Jersey law,a hotel could not be held liable for the loss of valuables that could have been deposited in the hotel safe.
B)The appeals court recognized that under New Jersey law,a hotel could not be held liable for the loss of valuables that could have been deposited in the hotel safe.

Question 3

In general,a donee need not take ownership of property in order for a gift to still be valid.

Answer 3

False

Question 4

Gifts that are made by a person during his or her lifetime are called inter vivos gifts.

Question 5

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 6

By law,a document of title may not be negotiable.

Question 7

Mislaid property and lost property legally have the same status.

Question 8

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

Question 9

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 10

Land,and anything attached to it is classified as which type of property?

A)Personal
B)Real
C)Substantive
D)Valued
E)Appraised

Question 11

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

Question 12

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 13

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

Question 14

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 15

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 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.
B)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.
C)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.
D)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.
E)The court ruled that inmates forfeit all property rights - including the right to enter into a bailment agreement - upon entry to prison.

Question 16

Ownership of property is referred to as "title".

Question 17

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

Question 18

The text case,Omni Holding and Development Corp.v.C.A.G.Investments Inc. ,the issue was whether the plaintiff abandoned personal property following the court's order that it remove itself from the property.Which of the following outcomes was the result of the original ruling in the case?

A)The court held that the plaintiff had abandoned all personal property it left on the premise following its failure to post the requisite bond to retain possession of the property.
B)The court held that regardless of the intent of the plaintiff,the property was considered abandoned based on the fraud committed by the plaintiff as to the defendant.
C)The court held that because no affirmative written statement expressing the plaintiff's intent to abandon the property was made,it would not be considered abandoned.
D)The court held that regardless of the intent of the plaintiff,the property was considered abandoned based on the amount of money the plaintiff owed to the defendant.
E)The court held that because no affirmative statement,either orally or in writing,was made expressing the plaintiff's intent to abandon the property,it would not be considered abandoned.

Question 19

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 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.
D)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.
E)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.

Question 20

A promise to make a gift is generally enforceable.

Question 21

Property that the original owner has permanently discarded is classified as ________ property.

A)Discarded
B)Tossed
C)Terminated
D)Mislaid
E)Abandoned

Question 22

Gifts made during someone's lifetime and not made in contemplation of death are referred to as:

A)Causa mortis gifts
B)Inter vivos gifts
C)Conditional gifts
D)Sustainable gifts
E)In rem gifts

Question 23

Which of the following statements is true regarding lost property?

A)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.
B)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.
C)In most states,the finder of lost property has title against all others,including the person who lost the property.
D)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.
E)In most states,the finder of lost property has title against all others except the person who lost the property.

Question 24

Which of the following statements is false under Italian Property Law?

A)For movable property,the potential owner must possess the property for no less than 10 years before full ownership can occur.
B)Registration is not required for any movable property.
C)There is a difference between physical possession and a mental intention to possess.
D)For immovable property,the potential owner must possess the property for no less than 20 years before full ownership can occur.
E)Immovable property includes anything attached to the ground,such as trees,buildings,homes,and arenas.

Question 25

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

A)Gifts may be conditional only if one of the parties is related by blood or marriage.
B)Gifts may be conditional only if a condition precedent is involved.
C)Gifts may be conditional only if consideration is present.
D)Gifts may be conditional.
E)Gifts may not be conditional.

Question 26

Which of the following terms best describes property that the true owner has unknowingly or accidentally dropped or left somewhere?

A)Abandoned
B)Discarded
C)Mislaid
D)Lost
E)Terminated

Question 27

Which of the following terms describes movable property that is not attached to land?

A)Personal
B)Real
C)Valued
D)Appraised
E)Substantive

Question 28

Bank accounts,stocks,and insurance policies are examples of which of the following types of property?

A)Intangible
B)Manifest
C)Tangible
D)Substantive
E)Unsubstantial

Question 29

Which of the following terms best describes gifts made in contemplation of death?

A)Sustainable gifts
B)Terminal gifts
C)Causa mortis gifts
D)In rem gifts
E)Inter vivos gifts

Question 30

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

A)The right to retain the bailed property until payment is received.
B)The right to alter the property in order to accomplish the reason for which the bailment was created.
C)The right to possess the bailed property during the term of the bailment.
D)The right to receive compensation for the bailment unless the bailment is gratuitous.
E)The right to use the property in a manner consistent with the terms and purpose of the bailment.

Question 31

Fixtures are treated like ________ property.

A)Appraised
B)Personal
C)Valued
D)Real
E)Substantive

Question 32

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)Twenty-four hours after possession of the property is obtained by the donee.
C)When a contract is executed between the parties.
D)Three days after a contract is signed and executed by both parties.
E)When physical possession of the property is obtained by the donee.

Question 33

A gift differs from a purchase as a way of transferring ownership in which of the following ways?

A)No written contract is needed for a gift whereas it is needed for a purchase.
B)No consideration is needed for a gift.
C)No certificate of title is needed for a gift whereas it is needed for a purchase.
D)Once delivered a gift may be taken back by the person who gave the gift whereas that is not true when an item is purchased.
E)Intent to permanently transfer title is irrelevant when gifts are concerned.

Question 34

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.
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)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.
D)Only the duty to provide the bailee with property free from hidden defects that could harm the bailee.
E)Only the duty of compensation and reimbursement.

Question 35

Which of the following terms best describes property that can be touched?

A)Tangible
B)Manifest
C)Discernible
D)Substantive
E)Physical

Question 36

Property that is initially movable,but then becomes attached to land,is classified as an):

A)Appliance
B)Easement
C)Addition
D)Appurtenance
E)Fixtures

Question 37

Contracts that are drafted so that one person's obligations under the contract do not arise until the happening of a certain event are called ________ contracts.

A)Preventable
B)Convertible
C)Conditional
D)Invalid
E)Temporary

Question 38

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

A)The bailee must take reasonable care of the bailed property.
B)The bailee must not alter the bailed property in any unauthorized manner.
C)The bailee must return the bailed property in good condition at the end of the bailment.
D)The bailee must maintain the property at his or her own expense.
E)The bailee must use the bailed property only as stipulated in the bailment agreement.

Question 39

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)In a bankruptcy case the court may award ownership of certain property to a creditor.
C)A person may acquire ownership through confusion.
D)When a person is paid to create property for someone else,the property is owned by the person who paid for its creation.
E)A means of acquiring ownership is by court order.

Question 40

Property intentionally placed somewhere by its true owner,who then forgets its location,is best classified as which type of property?

A)Terminated
B)Abandoned
C)Discarded
D)Lost
E)Mislaid

Question 41

In the "Case Nugget" GNOC Corp.v.Powers,a hotel guest sued a hotel for negligence when valuables were stolen from his hotel room.What was the main holding of the case on appeal?

A)A hotel is only liable for the loss of a guest's valuables when those valuables are stolen by a third party that is unrelated to the hotel.
B)A hotel cannot be held liable for the loss of a guest's valuables that could have been - but were not - deposited in the hotel safe.
C)A hotel is only liable for the loss of a guest's valuables if the value of the lost property is in excess of $50,000,regardless of where the valuables are stored.
D)A hotel is strictly liable for the loss of a guest's valuables,with no exceptions.
E)A hotel has no legal obligation to provide its guests with access to the hotel safe.

Question 42

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 it would be unconscionable to hold the car wash liable for the loss.
B)That the car wash was liable to the plaintiff because the car wash accepted responsibility as a bailee.
C)That the car wash was liable to the plaintiff for the loss because the car wash had not issued a valid disclaimer.
D)That the car wash and the plaintiff would be required to split the loss.
E)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.

Question 43

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

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

Question 44

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 only out of the bailee's gross negligence only.
B)The bailee is liable for harm to the bailed property arising out of either the bailee's ordinary or 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 not liable for harm to the bailed property because of the doctrine of assumption of the risk.
E)The bailee is strictly liable for harm to the bailed property.

Question 45

Certain ,governed by Article VII of the Uniform Commercial Code,may be issued in conjunction with the bailment when a bailment is for the purpose of transportation or storage of goods.

A)Proofs of title
B)Evidence of title
C)Agreements of title
D)Illustrations of title
E)Documents of title

Question 46

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 not liable for harm to the bailed property.
B)The bailee is strictly liable for harm to the bailed property.
C)The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence.
D)The bailee is liable for harm to the bailed property arising out of the bailee's ordinary or gross negligence.
E)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.

Question 47

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

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

Which of the following statements is true in terms of the person to benefit from a bailment?

A)A bailment may only benefit a bailor.
B)A bailment may benefit either a bailor or a bailee,or both.
C)A bailment may only benefit a bailee.
D)A bailment may benefit a either a bailor or a bailee,but never both.
E)A bailment may benefit a bailee only if the bailee owed a preexisting debt to the bailor.

Question 53

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

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

Question 54

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

A)Bailments may be express but not implied.
B)Bailments that are not express may be enforced as implied bailments only if a gratuitous bailment is involved.
C)Bailments may be implied but not express.
D)Bailments that are not express may be enforced as implied bailments only if a mutual benefit bailment is involved.
E)Bailments may be implied or express.

Question 55

Which of the following statements is false regarding bailments?

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

Question 56

A document of title issued by a person engaged in the business of transporting goods that verifies receipt of goods for shipment best classified as a:

A)Receipt order
B)Warehouse receipt
C)Bill of lading
D)Delivery order
E)Negotiable receipt

Question 57

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

Question 58

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 only out of the bailee's gross negligence.
B)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.
C)The bailee is liable for harm to the bailed property arising out of the bailee's ordinary or gross negligence.
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 59

What is a "fungible good?"

A)A good for which one unit of the good is essentially the same as every other unit of the good.
B)A good that is given as the subject of an inter vivos gift.
C)A good that has value but not actual,physical form,such as a stock or a bond.
D)A good that was once classified as mislaid property,but which was later transferred to the owner of the realty on which it was mislaid by operation of law.
E)A good which was once moveable but is now permanently attached to real property.

Question 60

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

A)Bailee
B)Transfere e
C)?Transfero r
D)?Novator
E)Bailor

Question 61

Which of the following statements is true regarding Jason's obligation to Sabrina?

A)He is liable for the theft of the bailed property caused by even the slightest lack of due care on his part.
B)He is liable for the theft of the bicycle arising out of his ordinary or gross negligence.
C)He is not liable for the theft of the bicycle because of the doctrine of assumption of the risk.
D)He is strictly liable for the theft of the bicycle.
E)He is liable for the theft of the bicycle arising out of his gross negligence.

Question 62

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)Lexie,because she is the person that created the drawings.
B)Phoebe,because it was her idea and story that inspired the subject of the drawings.
C)ABC Books,because they paid Lexie to create the drawings for the book.
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 63

Who is the legal owner of the wallet?

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

Question 64

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

Question 65

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

Question 66

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)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 when she did not understand its true value.
D)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.
E)Megan is incorrect,and Taylor validly accepted the ring as a gift.

Question 67

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 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.
B)He is correct on all counts.
C)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.
D)He is incorrect that he has no liability to Sabrina,but correct that only Sabrina may take legal action against the thief.
E)He is correct that he has no liability to Sabrina,but incorrect that only Sabrina may take legal action against the thief.

Question 68

Instead of being stolen from the locker,assume that the gym is struck by lightning,and Roxie's cell phone is destroyed in a resulting fire.Who would be liable for the cost of the cell phone in this instance and why?

A)Roxie,because she still stored the cell phone in an unlocked locker.
B)Roxie,because the lightning strike and resulting fire was an "act of God."
C)Both Roxie and the gym are liable for one-half the cost to replace the cell phone.
D)The gym,because an act of God automatically creates liability in the bailee.
E)The gym,because they failed to extinguish the fire before it destroyed the phone.

Question 69

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

Question 70

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

Question 71

Which of the following is true regarding Devin's statement at the hospital regarding Kendra taking the ticket?

A)Because there was no certainty that Devin would die,there was no valid inter vivos or causa mortis gift.
B)Once Kendra accepted the ticket,a valid gift was made which could not be revoked.
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)Because he did not die and recovered from the surgery,his gift to Kendra was automatically revoked.
E)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.

Question 72

Assuming that the gym is not liable,what would be the reason why?

A)Because an implied bailment requires knowledge of the existence of the bailed property by both parties,and Roxie hid the phone in her clothes.
B)Because the gym is a public facility in which there is a lessened expectation of liability than in private or exclusive facilities.
C)Because an express bailment must be in writing and signed by both parties,and no such agreement was in place in this scenario.
D)Because the gym limited their liability by posting conspicuous signs describing the limits of their liability.
E)Because the phone was stolen by a third party,and the act was therefore out of the gym's ability to control.

Question 73

Which of the following statements is true regarding rightful ownership of the lottery money?

A)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.
B)Devin's gift was automatically revoked when he recovered,and the lottery ticket and any proceeds are validly his.
C)Devin has the right to all funds only because Kendra has a new boyfriend.
D)Devin has no rights because once he gave the tickets to Kendra,he gave up all his rights to them.
E)Although the gift was not automatically revoked on his recovery,Devin has the right to revoke the gift and recover the lottery proceeds.

Question 74

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

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

Question 75

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

Question 76

At common law,innkeepers were held to the same strict-liability standard of care for their guests' property as what other group?

A)Merchants
B)Shippers
C)Vendors
D)Common carriers
E)Private carriers

Question 77

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

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

Question 78

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 no rights to the wallet and is obligated to either find Ed and return it or turn the wallet over to the proper authorities.
B)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.
C)Larry has the right to give the wallet to another person as a gift,but may not receive consideration in return for the transfer.
D)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.
E)Larry has the right to sell the wallet immediately,because he is a merchant of goods of that kind.

Question 79

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)Donative Intent
C)Delivery
D)Ownership
E)Acceptance

Question 80

[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 vivos
B)A gift causa mortis
C)A gift inter vivos
D)A gift inter mortis
E)There was no gift because Megan did not realize the ring's value.