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

Question 1

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.

Answer 1

True

Question 2

The statute of frauds requires a writing for a bailment that will not be completed within 6 months.

Answer 2

False

Question 3

Lost property legally has the same status as mislaid property.

Answer 3

False

Question 4

Which of the following is a type of property that can be touched?

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

Question 5

A person who finds abandoned property becomes its owner.

Question 6

Which of the following types of property is land and anything attached to it?

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

Question 7

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

Question 8

Unless a bailment is gratuitous, the bailee has the right to be compensated in accordance with the terms of the bailment.

Question 9

What was the result in the Case Opener in which the prisoner was required to move to a new cell and the guard did not lock the old cell as agreed resulting in the theft of some items that had not yet been moved?

A) The court ruled that a prisoner has no rights in respect to a guard.
B) The court ruled that while a prisoner has some rights, a prisoner does not have the right to expect a guard to safeguard belongings.
C) The court ruled that although no bailment existed, the guard had a duty to lock the cell.
D) The court ruled that a bailment existed and that the guard had a duty to lock the cell and to act with reasonable care as a bailee.
E) The court ruled that the guard had no duty to lock the cell because no witnesses confirmed that the plaintiff prisoner informed the guard that his personal belongings were in the cell.

Question 10

Fixtures are treated like ______ property.

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

Question 11

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

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

Question 12

A promise to make a gift is generally enforceable.

Question 13

Which of the following is property that is initially movable but then becomes attached to land?

A) Appliances
B) Appurtenances
C) Equipment
D) Easements
E) Fixtures

Question 14

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

A) 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.
B) That because no affirmative written statement expressing the plaintiff's intent to abandon the property was made, it would not be considered abandoned.
C) That the plaintiff had sufficient time to remove the property once the court issued its writ of possession, the property was considered abandoned.

D) 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.

Question 15

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

Question 16

Which of the following was the result in Campbell v. Robinson, the case in the text in which the plaintiff claimed that the defendant wrongfully refused to return an engagement ring when the marriage was cancelled?

A) That the defendant was entitled to keep the ring because the termination of the engagement was the plaintiff's fault.
B) That the defendant was entitled to keep the ring because it was a completed gift when she initially received it.
C) That 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.
D) The under principles of equity, the plaintiff was entitled to keep the ring, but only if she paid the defendant ½ of its value and that, otherwise, it would be sold with the proceeds split between the parties.
E) That because the termination of the engagement was the defendant's fault, she was required to return the ring.

Question 17

Some states allow innkeepers to avoid strict liability for their guests' personal property by providing them with a safe in which they may keep their valuables.

Question 18

Which of the following was the result in GNOC Corp. v. Powers, the case in the text involving the application of New Jersey's State Innkeeper's Act to Powers' 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?

A) 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.
B) 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.
C) 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.
D) 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.
E) 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.

Question 19

Which of the following is a set of rights and interests in relation to others with reference to a tangible or intangible object?

A) Interests
B) Property
C) Transfers
D) Business
E) Commerce

Question 20

Ownership of property is referred to as "title."

Question 21

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

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

Question 22

What fundamental duty or duties does the bailor have toward the bailee in a bailment for consideration?

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

Question 23

Which of the following is a term for gifts made in contemplation of death?

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

Question 24

Which of the following is property that the true owner has intentionally placed somewhere but has forgotten its location?

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

Question 25

Property that the original owner has discarded is ______ property.

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

Question 26

Which of the following is true regarding the person to benefit from a bailment?

A) A bailment may benefit a bailor.
B) A bailment may benefit a bailee.
C) A bailment may benefit either a bailor or a bailee, or both.
D) A bailment may benefit a bailee only if an employer-employee relationship is involved.
E) A bailment may benefit a bailee only if the bailee owed a preexisting debt to the bailor.

Question 27

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

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

Question 28

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

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

Question 29

A _____ of personal property is a relationship that arises when one party transfers possession of personality to another to be used in an agreed-on manner for an agreed-on time period.

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

Question 30

The ______ is the person who receives transfer of possession of property in a bailment situation.

A) Transferor
B) Transferee
C) Novator
D) Bailor
E) Bailee

Question 31

Which of the following is a term for gifts made during someone's lifetime, not in contemplation of death?

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

Question 32

When does title to property pass?

A) When the parties intend.
B) When a contract is made.
C) When physical possession is obtained.
D) Twenty-four hours after possession is obtained.
E) Three days after a contract is signed.

Question 33

Which of the following is a way in which a gift differs from a purchase as a way of transferring ownership?

A) 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.
B) No consideration is needed for a gift.
C) No written contract is needed for a gift whereas it is needed for a purchase.
D) No certificate of title is needed for a gift whereas it is needed for a purchase.
E) Intent to permanently transfer title is irrelevant when gifts are concerned.

Question 34

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

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

Question 35

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

Question 36

Which of the following is true regarding lost property?

A) In most states the finder of lost property has title to the lost good against all including the person who lost the property.
B) In most states the finder of lost property has title to the lost good against all except the person who lost the property.
C) In most states the finder of lost property has no title to the lost good because the good is to be turned over to the police department for later sale if the true owner cannot be located.
D) In all states the finder of property has an obligation to put a notice in the local paper looking for the true owner before the finder of the property can claim ownership.
E) In most states the finder of lost property has title to the lost good against all except the person who lost the property, but that right only arises after the finder of the property can establish that the finder spent at least one-fifth of the fair market value of the property in locating the owner.

Question 37

Which of the following is not a duty of a bailee?

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

Question 38

Which of the following is false under Italian Property Law?

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

Question 39

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

Question 40

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

A) Transferor
B) Transferee
C) Novator
D) Bailor
E) Bailee

Question 41

Which of the following was the result in the case referenced in the "Case Nugget," Ziva Jewelry Inc., v. Car Wash Headquarters Inc., in which 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?

A) That the car wash was liable to the plaintiff because the car wash accepted responsibility as a bailee.
B) That the car wash was not liable to the plaintiff because the car wash employees had no notice they were taking responsibility for so much jewelry.
C) That the car wash and the plaintiff would be required to split the loss.
D) That the car wash was liable to the plaintiff for the loss because the car wash had not issued a valid disclaimer.
E) That it would be unconscionable to hold the car wash liable for the loss.

Question 42

Which of the following is true if it is determined that harm befell bailed property due to an "act of God"?

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

Question 43

"Disputed Ring." While working in the yard Tina found a beat up ring. Becca, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca 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. Tina also told Becca that Becca failed legally to accept the gift because neither party knew its true value and that because Tina did not sign any document turning over title, it was impossible for legal ownership to pass. Becca sues.

-Which of the following describes the type of gift, if any, at issue?

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

Question 44

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

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

Question 45

Which of the following 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 out of the bailee's ordinary or gross negligence.
B) The bailee is liable for harm to the bailed property arising only out of the bailee's 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 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 46

"Stolen Bicycle." Donnie borrowed the bicycle of his friend Karen. She told him that she was happy for him to use it for free, but she would appreciate him taking good care of it. Donnie said nothing in reply. Although Donnie lived in a high crime neighborhood, he left the bicycle unlocked on his deck. The next morning, he discovered that the bicycle had been stolen. Donnie told Karen that he was very sorry about the bicycle. Karen told him that she expected him to pay for it. Donnie refused on the basis that a thief took the bicycle. Donnie told Karen that he believes he knows the identity of the thief and that since only Karen has the right to sue to recover the property, he has no further responsibility.

-Which of the following is true regarding Donnie's obligation to Karen?

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

Question 47

Which of the following was the result on appeal in the case of Stephen Labatt Porter v. Black Warrior Farms L.L.C., the case in the text involving whether a gift was made when prior to going on a cruise, a mother sent money to her son for investment, said in a letter to him that he should keep the money if anything happened to her, returned from the cruise, and died at a later date?

A) The court ruled that a gift causa mortis was made because she died before requesting the return of the money and that the money therefore belonged to the son.
B) The court ruled that a gift causa mortis was made because the mother intended that the son keep the money if anything happened to her before or after the trip and that the money therefore belonged to the son.
C) The court ruled that a valid inter vivos gift was made because the mother never requested the return of the money and that the money therefore belonged to the son.
D) The court ruled than a valid inter vivos gift was made because the mother meant for the son to invest the money for her, retaining it if she died, and that the money therefore belonged to the son.
E) The court ruled that neither a valid causa mortis nor a valid inter vivos gift was made and that the funds were properly deducted from any distribution to the son or his heirs.

Question 48

"Lottery Winnings." Frank, a hypochondriac who was also very compulsive, was having minor surgery to repair a bone spur on his foot. He had just purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of the numbers of his lottery tickets with him in his billfold. Frank's girlfriend, Bubbles, went with him to the hospital. While in the waiting room, Frank said to her, "Bubbles, 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." Bubbles replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Frank came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Bubbles watched the lottery drawing and discovered that Frank's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Frank saw her on television with her new boyfriend, George. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Frank says that the lottery money is his.

-Which of the following is true regarding Frank's statement at the hospital regarding Bubbles taking the ticket?

A) At that point he made a valid gift that could not be revoked.
B) He did not make a valid inter vivos or causa mortis gift because there was no certainty that he would die.
C) He made an irrevocable gift at that time only if Bubbles never had another boyfriend; otherwise, she had to give the ticket and any resulting cash to Frank.
D) He made an irrevocable gift at that time if Bubbles refrained from having another boyfriend until she cashed the ticket; and, after the ticket was converted, the condition no longer applied.
E) None of these.

Question 49

"Stolen Bicycle." Donnie borrowed the bicycle of his friend Karen. She told him that she was happy for him to use it for free, but she would appreciate him taking good care of it. Donnie said nothing in reply. Although Donnie lived in a high crime neighborhood, he left the bicycle unlocked on his deck. The next morning, he discovered that the bicycle had been stolen. Donnie told Karen that he was very sorry about the bicycle. Karen told him that she expected him to pay for it. Donnie refused on the basis that a thief took the bicycle. Donnie told Karen that he believes he knows the identity of the thief and that since only Karen has the right to sue to recover the property, he has no further responsibility.

-Which of the following is true regarding Donnie's statements that he owes Karen nothing and that only Karen has the right to take legal action against the thief?

A) He is correct.
B) He is correct that he has no liability to Karen, but incorrect that only Karen may take legal action against the thief.
C) He is incorrect that he has no liability to Karen, but correct that only Karen may take legal action against the thief.
D) Only if he can identify the thief beyond a reasonable doubt is he correct that he has no further duties to Karen because only Karen has the right to take legal action against the thief at that point.
E) He is incorrect because he has the right to take legal action against the thief, and Donnie's conduct indicates that he has legal liability to Karen.

Question 50

"Disputed Ring." While working in the yard Tina found a beat up ring. Becca, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca 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. Tina also told Becca that Becca failed legally to accept the gift because neither party knew its true value and that because Tina did not sign any document turning over title, it was impossible for legal ownership to pass. Becca sues.

-Which of the following is true regarding Tina's statement that Becca could not have validly accepted the ring?

A) If the ring is valued at $500 or over, then Tina is correct that Becca could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance.
B) If the ring is valued at $1,000 or over, then Tina is correct that Becca could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance.
C) Tina is correct that Becca could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance.
D) Tina is correct that Becca could not have validly accepted the ring when she did not understand its true value.
E) Tina is incorrect, and Becca validly accepted the ring as a gift.

Question 51

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) Bailee's lien
B) Bailor's lien
C) Bailment document
D) Lien document
E) Enforcement lien

Question 52

Which of the following is a type of document of title issued by a person engaged in the business of transporting goods that verifies receipt of goods for shipment?

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

Question 53

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

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

Question 54

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

Question 55

Which of the following is false regarding bailments?

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

Question 56

"Lottery Winnings." Frank, a hypochondriac who was also very compulsive, was having minor surgery to repair a bone spur on his foot. He had just purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of the numbers of his lottery tickets with him in his billfold. Frank's girlfriend, Bubbles, went with him to the hospital. While in the waiting room, Frank said to her, "Bubbles, 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." Bubbles replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Frank came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Bubbles watched the lottery drawing and discovered that Frank's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Frank saw her on television with her new boyfriend, George. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Frank says that the lottery money is his.

-Which of the following describes the statement Frank made to Bubbles prior to surgery regarding the lottery ticket?

A) A gift causa mortis.
B) A gift inter vivos.
C) A gift inter mortis.
D) A gift causa vivos.
E) It was meaningless because of the condition of death placed on the gift.

Question 57

Which of the following is true if a bailment is intended to benefit only the bailor?

A) The bailee is liable for harm to the bailed property arising out of either the bailee's ordinary or gross negligence.
B) The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence only.
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 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 58

"Disputed Ring." While working in the yard Tina found a beat up ring. Becca, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca 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. Tina also told Becca that Becca failed legally to accept the gift because neither party knew its true value and that because Tina did not sign any document turning over title, it was impossible for legal ownership to pass. Becca sues.

-Which of the following is true regarding Tina's statement that she was entitled to the ring because she would not have given it to Becca if she had known the true value?

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

Question 59

"Stolen Bicycle." Donnie borrowed the bicycle of his friend Karen. She told him that she was happy for him to use it for free, but she would appreciate him taking good care of it. Donnie said nothing in reply. Although Donnie lived in a high crime neighborhood, he left the bicycle unlocked on his deck. The next morning, he discovered that the bicycle had been stolen. Donnie told Karen that he was very sorry about the bicycle. Karen told him that she expected him to pay for it. Donnie refused on the basis that a thief took the bicycle. Donnie told Karen that he believes he knows the identity of the thief and that since only Karen has the right to sue to recover the property, he has no further responsibility.

-Which of the following is true regarding the bailment situation, or lack thereof, existing between Donnie and Karen?

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

Question 60

"Lottery Winnings." Frank, a hypochondriac who was also very compulsive, was having minor surgery to repair a bone spur on his foot. He had just purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of the numbers of his lottery tickets with him in his billfold. Frank's girlfriend, Bubbles, went with him to the hospital. While in the waiting room, Frank said to her, "Bubbles, 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." Bubbles replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Frank came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Bubbles watched the lottery drawing and discovered that Frank's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Frank saw her on television with her new boyfriend, George. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Frank says that the lottery money is his.

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

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

Question 61

List and describe the three types of documents of title governing bailments.

Question 62

Cindy sold her old used automobile to Bruce for $1,000. Cindy told Bruce to come and take the car and that the transfer would be complete. Is Cindy correct, and why or why not?

Question 63

What is meant by the concept of confusion in terms of acquiring ownership, and when and how is it applied?

Question 64

Describe how e-commerce has inspired improvements in Internet postal technology.

Question 65

Bernice enjoys snooping, particularly through her neighbor's trash. She sneaks out and grabs the neighbor's trash after they have gone to work but before the trash collector comes. She goes through it to find out confidential information regarding the neighbors but never tells anyone else or uses the information for any purpose. Can Bernice become the legal owner of this property; and, why or why not? Discuss whether you believe it is ethical for Bernice to go through the neighbor's trash, and why or why not.