Deck 47: Personal Property and Bailments

Question 1

A gift is effective whether or not it is accepted.

Answer 1

False

Question 2

Real property and personal property are subject to different types of taxes.

Answer 2

True

Question 3

If an item is capable of being moved, it is most likely classified as per?sonal property.

Answer 3

True

Question 4

A fixture is not included in a sale of land unless the contract provides for it.

Question 5

Production is a means of acquiring ownership of personal property.

Question 6

Delivery of intangible personal property must be done by sym?bolic delivery.

Question 7

Tangible personal property has physical substance.

Question 8

The most common way to acquire personal property is to "capture" it.

Question 9

Personal property can be owned only by an individual.

Question 10

A gift to a dying donee is a gift causa mortis.

Question 11

A promise to deliver a gift is constructive delivery.

Question 12

An item cannot be a fixture unless it is physically attached to the land.

Question 13

Personal property may become real property by attaching it to real property.

Question 14

A gift inter vivos can never be revoked.

Question 15

A donee must give consideration for a gift to be effective.

Question 16

Natural resources are classified as personal property even if they have not been detached from the land in which they are embedded.

Question 17

Constructive delivery occurs when property is physically transferred.

Question 18

If a person intends an item to be a fixture, then normally it will be con?sidered a fixture.

Question 19

In most cases, a trade fixture is, and remains, personal property.

Question 20

One way to acquire ownership rights to property is merely to possess it.

Question 21

Estray statutes determine ownership rights in fungible goods that have been com?mingled.

Question 22

Property voluntarily placed by its owner and inadver?tently forgotten is mislaid property.

Question 23

A gift causa mor?tis is effective only if the donor dies and the donee lives.

Question 24

Constructive delivery does not satisfy the delivery requirement for an ef?fective bailment.

Question 25

A bailment must be in writing to be valid.

Question 26

All bailments include a bailee's right to use the bailed property.

Question 27

In an ordinary bailment, a bailee has the right to limit his or her liability.

Question 28

In most bailments, the bailor must notify the bailee of hidden defects of which the bailor knows or could have discovered with reasonable dili?gence.

Question 29

In a bailment, possession of the property is transferred to the bailee.

Question 30

In most bailments, the bailee has a right to place a lien on the bailed property until he or she is fully compensated.

Question 31

If confusion occurs as the act of a third party, that third party acquires ownership rights in proportion to the amount confused.

Question 32

In a gratuitous bailment, a bailee has a right to be compensated for costs incurred in keeping bailed property.

Question 33

A finder acquires title to lost property good against the whole world, in?cluding the original owner.

Question 34

For an effective bailment, the bailor must deliver possession of the bailed property with its title.

Question 35

A person acquires title to fungible goods by mixing them.

Question 36

Unlike an ordinary bailee, a warehouse company cannot limit its liability.

Question 37

Property voluntarily placed somewhere by its owner and inadver?tently forgotten is lost property.

Question 38

Property voluntarily placed by its owner with no inten?tion of reclaiming it is abandoned property.

Question 39

Common carriers are held to a standard of care based on strict liability in protecting bailed property in their possession.

Question 40

For an effective bailment, the bailor must retain control, but not neces?sar?ily possession, of the bailed property.

Question 41

Baksheesh owns a house. In the house, on a tile floor is a throw rug. Most likely to meet the definition of a fixture is

A) the house.
B) the throw rug.
C) the tile floor.
D) none of these choices.

Question 42

Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Eton, but gives him the key to a safety-deposit box in First State Bank in which the stock certifi?cates are locked. Presenting the key is

A) constrictive delivery.
B) constructive delivery.
C) destractive delivery.
D) destructive delivery.

Question 43

Nero and Olav each buy certain quantities of oil to sell to Petro Refinery, and agree to share storage costs until Petro can take delivery. The oil is commingled so that Nero's oil cannot be distinguished from Olav's. This is

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

Question 44

Grain from Harvest Farms is wrongfully commingled with grain from Idyllic Fields, which obtains possession of all of the grain. This is

A) a bailment.
B) accession.
C) confusion.
D) production.

Question 45

Ansel owns Bar-B Ranch. Ansel's only son Cy owns Double-D Ranch in the same county. Ansel gives 90 percent of the Bar-B to Etta, a short-term employee. This gift

A) may lack the required element of "donative intent."
B) may lack the required element of "donor's acknowledgement."
C) may lack the required element of "heir's acquiescence."
D) meets all of the requirements for an effective gift.

Question 46

During the last years of her life, Barb's chief companion was Sylvia. Barb told Sylvia that she could have a certain painting when Barb died. Barb died without a valid will. Her family refused to give the painting to Sylvia, however, who filed a suit to obtain its possession. Based on the de?cision in Case 47.1, In re Estate of Piper, the court will most likely rule in favor of

A) Barb's family, because the painting was never delivered to Sylvia.
B) Sylvia, because Barb intended to give the painting to Sylvia.
C) Barb's family, because there was no will.
D) Sylvia, because Barb's family never cared about Barbara.

Question 47

Before undergoing sur?gery that could cause paralysis, Greg, a violinist, gives his concert violin to Holly. The surgery is successful, and Greg suf?fers no pa?ralysis. Greg can

A) not revoke his gift because it was a gift causa mortis.
B) not revoke his gift because it was a gift inter vivos.
C) revoke his gift because it was a gift causa mortis.
D) revoke his gift because it was a gift inter vivos.

Question 48

With Meg's permission, Nell cuts the trees growing on Meg's land. Nell sells the timber to Olin, who converts it to a variety of wood products. Personal property includes

A) after the trees are cut, the timber and the wood products.
B) only, after the trees are cut and sold, the wood products,
C) only, after the trees are cut, the timber.
D) only the trees while they are growing on the land.

Question 49

Fanny buys clay to throw pottery, which is glazed and fired in a kiln. The finished products are sold to Gifte Shoppe, which sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to

A) buy it.
B) commingle it.
C) produce it.
D) receive it as a gift.

Question 50

Floyd tells his daughter Glenda that she can have his Harley Davidson when he dies, but he does not add this to his will. This is

A) a valid gift causa mortis.
B) a valid gift inter vivos.
C) a valid gift testamentary.
D) not a valid gift.

Question 51

Faye owns the land on which Golden Spurs Ranch is situated, plus the ranch house, barn, and other structures permanently attached to the land. Faye's brother Huey owns everything else in the ranch's opera?tion-livestock, feed, and so on. The personal property is owned by

A) Faye and Huey.
B) Faye only.
C) Golden Spurs Ranch.
D) Huey only.

Question 52

Patty's parents give her a car as a gradua?tion present. While Patty spends the sum?mer in Europe, her friend Rita agrees to keep the car in her ga?rage. On Patty's part, this is acquisition of property by

A) bailment.
B) capture.
C) find.
D) gift.

Question 53

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional ve?hicle customizing competition shows. The result of Mike's efforts is

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

Question 54

Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn, and other structures permanently attached to the land. Chita's brother Elmo owns everything else on the farm-implements, seed, and so on. The real property is owned by

A) Chita and Elmo.
B) Chita only.
C) Downwind Farm.
D) Elmo only.

Question 55

According to the court in Case 47.1, In re Estate of Piper, the elements of a legally valid inter vivos gift include all of the following except

A) the donor's present intention to make a gift.
B) effective delivery of the property to the donee.
C) acceptance by the donee.
D) a written instrument excluding the property from the donor's will.

Question 56

Ruth gives Seth a computer as a gift. Using the computer, Seth develops a new game, for which he obtains intellectual property protection, and forms Top Games, Inc., to make and market the game. Seth's ac?quisition of the game is by

A) a bailment.
B) accession.
C) confusion.
D) production.

Question 57

Ira is declared mentally incompetent. Jay, Ira's son, is named his guard?ian. At Jay's insistence, Ira transfers his assets to Jay "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no

A) acceptance.
B) delivery.
C) donative intent.
D) donor's acknowledgment.

Question 58

Helen owns heavy construction equipment and the tools to service it, as well as office furniture, including computers. Ilya owns a number of pat?ents, trademarks that identify the products made under those patents, and stock in the company that sells those products. Personal property in?cludes the items owned by

A) Helen and Ilya.
B) Helen only.
C) Ilya only.
D) neither Helen nor Ilya.

Question 59

John steals an old, battered bicycle that is parked, unlocked, in front of a convenience store. He repairs, paints, and replac?es parts on the bike un?til it is like new. The original owner, Kim, claims the bike. The bike be?longs to

A) John and Kim as tenants in common.
B) John because he made substantial improvements to it.
C) John because Kim claimed it only after John improved it.
D) Kim because John stole it.

Question 60

Luna leases a commercial building to operate Mom's Diner. During the term of the lease, Luna installs a new roof and a walk-in cooler, and repaves the parking lot. Most likely to meet the definition of a trade fix?ture is

A) the cooler.
B) the parking lot.
C) the roof.
D) none of these choices.

Question 61

Sid borrows Tony's paint sprayer to paint his house. Uma allows Vic to store his posthole digger in her shed. The party with a right to use the bailed property is

A) neither Sid nor Uma.
B) Sid and Uma.
C) Sid only.
D) Uma only.

Question 62

Jill loans her laptop to Kyle. This is a bailment for

A) neither party's benefit.
B) the parties' mutual benefit.
C) the sole benefit of the bailee.
D) the sole benefit of the bailor.

Question 63

Tab stores video equipment with U-Store-It, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to U-Store-It's negligence destroys the equipment. The loss is most likely to be imposed on

A) neither Tab nor U-Store-It.
B) Tab and U-Store-It.
C) Tab only.
D) U-Store-It only.

Question 64

Fact Pattern 47-1B
Town Transport Company agrees to pick up two containers for Unlimited Sales, Inc., and store their contents, to be delivered later. While TTC un?loads one container, the other disappears from TTC's loading dock.
Refer to Fact Pattern 47-1B. TTC can avoid liability

A) by proof that TTC did not convert the goods and was not negligent.
B) by proof that TTC's warehouse is located in a high-crime area.
C) by proof that Unlimited Sales was negligent in hiring TTC.
D) under any circumstances.

Question 65

Fact Pattern 47-1B
Town Transport Company agrees to pick up two containers for Unlimited Sales, Inc., and store their contents, to be delivered later. While TTC un?loads one container, the other disappears from TTC's loading dock.
Refer to Fact Pattern 47-1B. These facts give rise to

A) a presumption of intentional or negligent conversion by TTC.
B) a presumption of theft by a third party.
C) a presumption of theft by TTC.
D) Unlimited Sales's liability for the container's loss.

Question 66

Beta Company arranges to have Carrier Corporation, a common carrier, transport 500 DVD players from New York to California. Dan is Carrier's driver. Beta will have no cause of action against Carrier if Carrier fails to deliver the players on time because

A) authori?ties are stopping and searching all trucks entering California.
B) Carrier's dispatcher mistakenly delays Dan's departure.
C) Carrier's truck is broken into and the players are stolen.
D) Dan has to wait two days in Denver for the truck to be repaired.

Question 67

Uri borrows Vera's boat to enjoy with Wendell for a weekend. Uri runs the boat aground, damaging the hull. Liable for the cost of repairing the boat is

A) Uri and Vera equally.
B) Uri, Vera, and Webdell proportionately.
C) Uri only.
D) Vera only.

Question 68

Inadvertently, Bret leaves his briefcase at Clean 'n Dry Launderers when she stops to pick up her clothes. The briefcase is

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

Question 69

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town. Later, Ben no?tices rainwater collecting in the trailer and covers it with a tarp at a cost of $40. This cost is most likely borne by

A) Ben and Cody.
B) Ben only.
C) Cody only.
D) neither Ben nor Cody.

Question 70

Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S. Marines Corps. Ned agrees. This is a bail?ment for

A) neither party's benefit.
B) the parties' mutual benefit.
C) the sole benefit of the bailee.
D) the sole benefit of the bailor.

Question 71

Stan can be held liable for the conver?sion of Tyler's business law textbook

A) if Tyler can prove that the book was in Stan's pos?session when it disappeared.
B) only if Tyler can prove that Stan was negligent.
C) only if Tyler can prove that Stan intentionally stole the book.
D) under no circumstances.

Question 72

Rhett works at Scarlett's Sandwich Café. After work, in the parking lot, Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed by

A) Rhett.
B) Scarlett's.
C) Thalia.
D) the state.

Question 73

Jennifer finds a full duffel bag that she believes may be subject to an es?tray statute. Estray statutes apply to

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

Question 74

Bob rents a golf cart at Country Club Golf Course. The brakes are worn, and while Bob is driving the cart, they fail. The cart crashes into a tree, and Bob is injured. Country Club could have discovered, with rea?sonable diligence, that the brakes were worn. Liability for Bob's injuries most likely rests with

A) Bob and Country Club.
B) Bob only.
C) Country Club only.
D) neither Bob nor Country Club.

Question 75

Roy leaves his pick-up truck at Sam's Auto Service for an oil change. This is a bailment for

A) neither party's benefit.
B) the parties' mutual benefit.
C) the sole benefit of the bailee.
D) the sole benefit of the bailor.

Question 76

GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to trans?port fifty large-screen HDTVs from San Diego to Phoenix. En route, a pothole causes the truck to crash, damaging the goods. Liability for the damage most likely rests with

A) GR8 Stores and Haul-Way.
B) GR8 Stores only.
C) Haul-Way only.
D) neither GR8 Stores nor Haul-Way.

Question 77

Owen takes a Paisley-made pinball machine to Quality Games, Inc., for repair. Lacking certain parts, Quality ships the game to Regal Company. While in Regal's possession, the game is damaged. Quality can recover for the damage from

A) no one.
B) Owen.
C) Paisley.
D) Regal.

Question 78

Veritable Company stores office furniture with Warehouse Storage, Inc. (WSI), under a contract that limits the warehouse company's liability for lost or damaged property to $500. The furniture is lost through no fault of WSI. The loss is most likely suffered by

A) Veritable and WSI.
B) Veritable only.
C) WSI only.
D) neither Veritable nor WSI.

Question 79

Quint rents a riding mower from Rent-All, Inc. Quint leaves the mower in a remote location overnight. When he returns to retrieve it, it is gone. Liability for the loss most likely rests with

A) Quint and Rent-All.
B) Quint only.
C) Rent-All only.
D) neither Quint nor Rent-All.

Question 80

Idaho Farms mistakenly puts its potatoes in Jackson Co-op's storage bin, which already contains Kelly Spud Farm's potatoes. It is impossible to tell which potatoes originally belonged to which party. This is

A) a bailment.
B) accession.
C) confusion.
D) production.