Deck 23: Personal Property and Bailments

Question 1

Which of the following is the most common method of obtaining ownership of property?

A) Claiming abandoned property
B) Producing the property
C) Inheriting the property
D) Discovering the property

Answer 1

B

Question 2

Anya leaves her expensive handbag in the washroom of a restaurant. Melissa follows her inside, quietly hides the handbag inside her coat, and leaves the washroom. She refuses to tell Anya the truth even when the former frantically starts searching for her handbag as soon as she discovers its loss. Melissa is guilty of:

A) conversion.
B) bailment.
C) confusion.
D) fixture.

Answer 2

A

Question 3

If the bailee returns the goods in a damaged condition, there is a rebuttable presumption of negligence on the part of the bailee.

Answer 3

True

Question 4

In order to create a bailment, the bailor and bailee need not agree in writing to the existence of the bailment.

Question 5

Under tariff rules, a common carrier may limit her liability to a shipper's declaration of value, provided that the rates are dependent on value.

Question 6

The finder of lost property has better rights to the property than anyone, including the original owner.

Question 7

The warehouse receipt or the bill of lading is nonnegotiable.

Question 8

Which of the following is an example of personal property?

A) Land
B) Office
C) House
D) Books

Question 9

Bob parked his new Porsche with the restaurant valet. The valet gave Bob a claim receipt. A bailment has been created.

Question 10

If the bailee delivers the bailed property to the third-party claimant and the claimant is not entitled to possession, the bailee is not liable to the bailor.

Question 11

A person becomes the owner of abandoned property by possessing the property.

Question 12

Property can be transferred by a will, if it is validly executed.

Question 13

Title to a personal property may be obtained by accession, which is the intermixing of goods that belong to different owners.

Question 14

Personal property is defined by a process of _____.

A) exclusion
B) tangibility
C) consideration
D) inheritance

Question 15

An involuntary bailee has the right to use or destroy the property.

Question 16

When personal property is used in conjunction with, real property in such a way as to be treated as part of the real property, it is known as a _____.

A) consideration
B) gift
C) fixture
D) bailment

Question 17

Real property cannot be turned into personal property.

Question 18

A person who has leased a personal property has ownership rights and can also subsequently sell the property to a third person.

Question 19

Common carriers are not permitted to limit their liability for damage to bailed goods.

Question 20

Tangible property is property that has a physical existence; for example, a car or a computer is tangible property.

Question 21

Which of the following is a transfer of the right to possess and use personal property belonging to another without gaining any ownership rights?

A) Conversion
B) Bailment
C) Inheritance
D) Lease

Question 22

Why is a conditional gift considered to be an incomplete gift?

A) It may be revoked by the donor.
B) It involves money transactions.
C) The donee may refuse the gift.
D) The donor is liable to the donee in the future.

Question 23

Sarah is hiking in the Clearwater National Forest and her wristwatch falls off her wrist. Sarah does not notice this, and the watch falls onto the trail. Later, Hans finds the watch. How may this watch best be described?

A) Lost property
B) Mislaid property
C) Abandoned property
D) Bailment property

Question 24

In which of the following cases does a finder have no rights at all to the property?

A) Abandoned property
B) Lost property
C) Mislaid property
D) Inherited property

Question 25

Rachel was jogging when she slipped and fell on the jogging track and her diamond bracelet fell off her hand. She got up and resumed her jog, unaware of what had happened. A little later, Judy came jogging on the same track and discovered the bracelet. Which of the following is true of the case?

A) The bracelet is lost property that Judy can hold until the owner claims it.
B) The bracelet is abandoned property.
C) The bracelet has two rightful owners.
D) The bracelet now belongs to the local authorities.

Question 26

Jacobs put an old typewriter in the trash. The trash collector, Land, took the typewriter, fixed it up, and sold it to Jones for $750. Jacobs contends that he is entitled to some or all of the $750 that Land received from Jones. Based on these facts:

A) Land is entitled to the value of the improvements he made, but Jacobs is entitled to the difference between the $750 Land received and the value of the improvements Land made.
B) Land is entitled to keep the full $750 because Jacobs had abandoned the typewriter.
C) Jacobs is entitled to the $750 because Land paid Jacobs no consideration for the typewriter.
D) Jacobs is entitled to recover the typewriter from Jones.

Question 27

A gift causa mortis is a gift made in:

A) case of a birth.
B) anticipation of birth.
C) fear of death.
D) contemplation of death.

Question 28

Dan has leased a site from Mark for a period of 2 years. Bob is interested in purchasing it and makes a great offer to him for the site. In this case:

A) Dan cannot sell the land because he does not have ownership.
B) Dan cannot sell the land, unless he stays on it for more than 5 years.
C) Dan can sell the land because he has leased it from Mark.
D) Dan can sell the land if the amount offered is equal to the value of the site.

Question 29

Which of the following is true of conditional gifts?

A) They are considered completed gifts.
B) They come with certain restrictions.
C) They cannot be revoked.
D) They need to be delivered.

Question 30

Karen parked her car in a parking lot. She paid the $2 fee and left for several hours. She kept her keys and had access to her car during that time. When Karen returned, she saw that her car had been damaged. Has a bailment been created here?

A) This is a bailment, because Karen paid a fee to park in the lot.
B) This is a bailment, because the car is a personal property.
C) This is not a bailment, because there was no transfer of exclusive possession to a bailee.
D) This is not a bailment, because there is no contract here.

Question 31

Which of the following characterizes the Uniform Transfers to Minors Act?

A) The custodian must be the transferor himself.
B) It defines a minor as anyone under the age of 21.
C) It only covers the transfer of real property to a minor.
D) It has been adopted in a few states.

Question 32

Carl gave his car to be serviced and washed at Harold's carwash. Unknown to either of them, Danny replaces the engine in the car with a new four-speed transmission. He now claims that the car belongs to him. Which of the following is true?

A) Carl remains the actual owner, as he always was.
B) Danny has rights over the car since he improved it.
C) The car belongs to Harold because he is the owner of the carwash.
D) Danny can sue both Harold and Carl if they do not pay him.

Question 33

Some states have a statute that allows finders of property to clear their title to the property. These are called:

A) leasings.
B) statutes of limitations.
C) estray statutes.
D) exculpatory clauses.

Question 34

Which of the following is an example of a gift inter vivos?

A) Tom is promised a watch by his uncle in case he dies during an operation.
B) Eva receives a car as a birthday gift from her father.
C) Casey inherits a huge mansion according to his late grandfather's will.
D) A charity home receives a huge grant from its dead benefactor's trust.

Question 35

Debbie gives Barry a Cartier watch as a gift for their engagement. A week later, Debbie suddenly leaves the country, leaving Barry a note that she cannot marry him. Assume that Debbie had no good reason to break off the engagement. Under the traditional rule:

A) Debbie will be able to recover the watch because she does not intend Barry to keep the gift.
B) Debbie will be able to recover the watch because the gift was made on the implied condition of marriage.
C) Debbie cannot recover the watch, because she is in a foreign country.
D) Debbie cannot recover the watch because it is a valid gift delivered to Barry.

Question 36

Which of the following is the most essential requirement while making a valid gift?

A) Intention
B) Delivery
C) Consideration
D) Acceptance

Question 37

The Uniform Transfers to Minors Act:

A) permits the donor to deliver the property to a custodian who acts for the benefit of the minor under the Act.
B) prohibits an adult from making a gift to a minor unless the minor is the child of the donor.
C) provides a method for making gifts to minors, who are defined by the Act as children under the age of 16.
D) provides a complicated and abstract method of transferring money to minors.

Question 38

A gift inter vivos is a gift:

A) made in contemplation of death.
B) between two living persons.
C) between a deceased person and a living one.
D) made in consideration for money.

Question 39

Which of these is an essential element of a bailment?

A) The bailee has no responsibility for the bailed property.
B) There has to be a written agreement between the two parties.
C) The bailee is allowed to make changes to the bailed property.
D) The bailor owns personal property or holds the right to possess it.

Question 40

Amber gave her boyfriend, Hunter, an expensive set of stereo speakers for his birthday. Two days later, Hunter broke up with Amber and began dating Kelly. Amber is both heartbroken and furious. Is she entitled to get the speakers back from Hunter?

A) Yes, because Hunter provided Amber no consideration.
B) No, because she intended to make a gift of the speakers and actually delivered them to Hunter.
C) No, because this was a gift causa mortis.
D) Yes, because a donor is entitled to revoke her gift within a reasonable time.

Question 41

Which of the following characterizes a warehouseman?

A) He is a bailor of the stored goods.
B) He does not have a lien against the bailee of the stored goods.
C) He need not exercise care for the stored goods, as it is the bailee's responsibility to do so.
D) He can terminate the contract if the goods are about to deteriorate.

Question 42

Gil has stolen a "Lancer" from Yu and changed the look and interior of the car. Gil is now using it for his personal purposes. After some months, Yu comes to know about his car and demands it back. However, Gil demands for the amount he spent on modifications. Can he recover it from Gil? Is Yu liable to pay that?

Question 43

In a bailment, the bailee is liable for loss or damage to the bailed property while it is in the hands of the bailee:

A) under all circumstances; the bailee is the "insurer" of the goods.
B) only if the bailee intentionally causes harm or loss to the goods.
C) unless the bailee has given some consideration.
D) only if he has a personal interest in the safety of the property.

Question 44

Watley took his old bicycle to the municipal dump. Vandelay retrieved it from the dump and repaired it. Newman stole the bicycle from Vandelay's garage, made substantial improvements to it (the bicycle), and then sold it to Banya. Banya did not know that the bicycle had been stolen. Who owns the bicycle? Explain your reasoning.

Question 45

Kato checked out a book (Freeloading for Fun and Profit) from the library. While he was reading it, he discovered three $50 bills that had been left in the book. Is the money lost, mislaid, or abandoned property? Why is this determination significant?

Question 46

Nina lent her car, which she knew had bad brakes, to Heidi. However, she did not inform the latter about the defect. As Heidi was driving down the highway, she met with an accident due to the faulty brakes. In this case:

A) Nina is not liable to Heidi because she was never asked about the brakes.
B) Nina is liable to Heidi because she did not inform her of the defect.
C) Heidi is liable to Nina because she had damaged Nina's car.
D) Heidi is liable to Nina because she gave no consideration in return for the car.

Question 47

While eating dinner at a restaurant, Elvis placed his backpack on an empty chair located next to his table. When Elvis left the restaurant, he forgot to pick up the backpack. A few minutes later, Priscilla discovered the backpack and took possession of it. What rights to the backpack do Elvis, Priscilla, and the restaurant have?

Question 48

Chloe took her watch to a jeweler to have it repaired. While the jeweler had possession of the watch, a thief broke into the shop. The thief stole Chloe's watch and other items of jewelry. Which of the following is true?

A) Because this was a bailment for the benefit of the jeweler, the jeweler is strictly liable to Chloe for the value of the watch.
B) This was a mutual benefit bailment, meaning that the jeweler is liable to Chloe if he did not use reasonable care to protect the watch.
C) No bailment existed between Chloe and the jeweler.
D) Because this was a bailment for the benefit of Chloe, the jeweler cannot be held liable to her.

Question 49

Arthur borrows a new pair of stereo speakers from Jim, his classmate, who stays in the campus hostel. After about a week, he goes to the hostel and leaves the speakers with Ryan, who lives on the floor adjacent to Jim's, asking him to give them to Jim. Ryan forgets to do so and loses the speakers. In such a situation:

A) Ryan is liable to Jim; he should have been more careful.
B) Arthur is liable to Jim; he is the bailee.
C) Arthur is not liable to anyone because he returned the speakers.
D) It was Jim's responsibility to take the speakers back.

Question 50

You need to drive to Spokane to pick up your parents. Your car is being repaired, and is therefore unavailable. You ask your good friend Ed if he will lend you his car. You take Ed's car and drive to Spokane. This is:

A) a mutual benefit bailment.
B) a bailment exclusively for the benefit of the bailee.
C) a bailment exclusively for the benefit of the bailor.
D) no bailment because no consideration was paid to Ed.

Question 51

What is the best possible solution for a bailee if there is a third-party, who claims to have superior rights to those of the bailor for possession of the bailed property?

A) He should give the bailed property to the third-party.
B) He should give the bailed property to the bailor.
C) He should bring the third-party claimant into a lawsuit along with the bailor.
D) In such a case, the bailee will always get possession of the bailed property.

Question 52

What is a lien?

A) Compensation by a bailee for any damages to the bailed property.
B) The charges for delivery of any bailed property.
C) A charge against property to secure the payment of a debt.
D) A bailment for mutual benefit.

Question 53

A hotelkeeper is liable for loss or damage to property if it can be proved that it was caused by:

A) the bailor's negligence.
B) an act of a government authority.
C) the nature of the goods.
D) the bailee's own conduct.

Question 54

In which of the following circumstances would the bailee be expected to exercise ordinary care?

A) Harold promises to look after Kate's puppy in exchange for her cleaning his car.
B) Dave looks after Stacey's dog while she is on vacation with her friends.
C) Nigel borrows a rare book from his professor to write a class report.
D) Melissa helps old Mrs. Henderson clean her garage on Sunday afternoon.

Question 55

What level of care must a bailee exercise in a bailment for his own exclusive benefit?

A) Greater than ordinary care
B) Less than ordinary care
C) Ordinary care
D) The same level of care that a prudent person exercises over his/her own property

Question 56

Marjorie leaves her bag in the checkroom of a hotel which has an attendant. When she returns a few hours later, she finds her bag missing, the attendant on another duty, and a new sign outside the checkroom stating "Goods left at owner's risk". Which of the following is true if Marjorie tries to recover damages from the hotel?

A) She will be unsuccessful because there was no bailment.
B) She will be unsuccessful because the sign clearly says that goods are not the hotel's responsibility.
C) She will be successful because the attendant did not inform her of the policy earlier.
D) She will be successful because guests can claim any damages from the hotel they are staying in.

Question 57

Which of the following characterizes common carriers?

A) They have the same degree of responsibility as private carriers.
B) They are near-absolute insurers of the goods they carry.
C) They do not have a government license.
D) They are not allowed to carry perishable goods.

Question 58

Davidson borrowed a motorcycle from his friend, Harley. Harley did not know that the motorcycle had a defect that could cause the brakes to malfunction. While Davidson was riding the motorcycle, the brakes malfunctioned. This caused an accident and Davidson was injured. What duty of care, if any, did Harley owe to Davidson under the traditional common law rule?

A) The duty of reasonable care--the same duty a bailor owes to a bailee in a bailment for mutual benefit.
B) The highest duty of care because this was a bailment for the benefit of the bailor.
C) A duty to tell Davidson of any known defects in the motorcycle because this was a bailment for the benefit of the bailee.
D) No duty of care, because this was a gratuitous bailment.

Question 59

Wilma, who thought she had a terminal disease, signed over the title to her new Cadillac to her cousin, Kenny, and told him that she wanted him to have the car "after I'm gone." Kenny took the keys and began to use the car. A week later, Wilma was told that her diagnosis had been an error, and that she was not terminally ill. Wilma wants her car back. Can she recover it from Kenny? Why or why not?

Question 60

Boris borrowed Martha's lawnmower to cut his grass. Boris will be liable for damage to the lawnmower if he:

A) owns a lawnmower and borrowed another from Martha.
B) has not given Martha any consideration.
C) did not use greater than ordinary care to protect it.
D) he is sued by Martha.