Deck 28: Personal Property and Bailments

Question 1

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

Answer 1

False

Question 2

If property is owned as community property,each spouse owns an undivided one-half interest in it.

Answer 2

True

Question 3

A person who holds all rights in property owns the prop?erty in fee simple.

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

Constructive delivery occurs when property is physically transferred.

Question 8

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

Question 9

Property used by a government for a public purpose such as a park is community property.

Question 10

A joint tenant's sale of his or her interest terminates the joint tenancy.

Question 11

A promise to deliver a gift is constructive delivery.

Question 12

Only two persons can hold property as tenants in common.

Question 13

An unlimited number of persons can hold property as joint tenants.

Question 14

Co-ownership in which each of two or more unmarried persons owns an undivided interest in property is a tenancy by the entirety.

Question 15

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

Question 16

Tangible personal property has physical substance.

Question 17

A gift is effective whether or not it is accepted.

Question 18

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

Question 19

A co-tenancy is presumed to be a tenancy in common unless there is a clear intention to establish a joint tenancy.

Question 20

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

Question 21

Edna and Flavia buy a boat that they dock in a marina near Gulfport,Mississippi.On the death of either owner,that owner's interest in the boat passes to her heirs.This is

A)a joint tenancy.
B)a tenancy by the entirety.
C)a tenancy in common.
D)ownership in fee simple absolute.

Question 22

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

Question 23

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

Question 24

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 25

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

Question 26

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

Question 27

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

Question 28

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 29

A bailment must be in writing to be valid.

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

A person acquires title to fungible goods by mixing them.

Question 36

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

Question 37

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

Question 38

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

Question 39

Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation.On the death of ether owner,that owner's interest in the stock passes to the surviving owner.This is

A)a joint tenancy.
B)a tenancy by the entirety.
C)a tenancy in common.
D)ownership in fee simple absolute.

Question 40

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.Thus,property can be acquired in various ways.The most common way to acquire personal property,however,is to

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

Question 41

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 42

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 43

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 44

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 45

Before undergoing sur?gery that could cause death,Greg,a violinist,gives his concert violin to Holly.The surgery is successful,and Greg does not die.The gift of the violin is

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

Question 46

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 47

Floyd,who is not in contemplation of imminent death,tells his daughter Glenda that she can have his Harley Davidson motorcycle on his death,whenever that happens.This is

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

Question 48

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

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

Question 49

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 50

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 43.1,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 51

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 52

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 53

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 54

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.

Question 55

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 56

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 57

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 58

Fact Pattern 28-1 (Questions 25-26 apply)
Town Transport Company (TTC)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 28-1.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 59

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 60

Uri borrows Vera's boat to enjoy for a weekend.Uri negligently runs the boat aground near Water's Edge Beach,damaging the hull.Liable for the cost of repairing the boat is

A)Uri and Vera equally.
B)Uri only.
C)Vera only.
D)the owner of Water's Edge Beach.

Question 61

Owen takes a Paisley-made pinball machine to Quality Games,Inc. ,for repair.Lacking certain parts,Quality ships the game to Regal Repair 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 62

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 63

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 64

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 65

Frenchy's Fast Fries (3F)requires that its employees wear uniforms and protective clothing while on the job.3F provides a locker room for the employees to leave their street clothes and personal items while working.A sign on the back of the locker room door states,"Frenchy's is not re?sponsible for the loss of any property in the locker room." Grant,a 3F employee,changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his locker.When he returns after his shift,the wallet and watch are gone.Does Grant's leaving personal items in the locker room constitute a bailment? If so,what type of bailment? If not,what legal relationship is it? Does 3F's sign exculpate the com?pany for Grant's loss? Why or why not?

Question 66

During a storm on Blue Lake,a boat sinks,but its owner Cappy survives.Cappy plans to return to the site of wreck to salvage its equipment and his possessions,but he delays.Meanwhile,Dick,an amateur diver,discovers the wreck and strips it clean of useful items.Cappy learns of the recovery and files a suit against Dick,claiming that the items are his.Dick responds that the sunken boat was abandoned and therefore he has good title to everything to which he took possession.What is the court likely to rule,and why?

Question 67

Fact Pattern 28-1 (Questions 25-26 apply)
Town Transport Company (TTC)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 28-1.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 68

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 69

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 70

Venerable 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.Venerable declines the option to pay a higher storage rate for an increase in the liability limit.The furniture is lost through no fault of WSI.The loss is most likely suffered by

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

Question 71

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 72

BroadView Company arranges to have Carrier Corporation,a common carrier,transport 500 DVD players from New York to California.Dan is Carrier's driver.BroadView 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.