Question 1

The anthropology department of Towers University is doing an excavation on property that belongs to Farmer Brown.If in the process of excavation the university finds some valuable lost items,they will belong to Farmer Brown and not to the university.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is characteristic of a bailment?

Accepted Answer

A)  There is a separation of ownership and possession 
B)  A bailment must be a contract 
C)  It must last for an indefinite time 
D)  It must be for the benefit of both parties.

Question 3

Which of the following is not a function of a bill of lading?

Accepted Answer

A)  It serves as a receipt for goods. 
B)  It serves as evidence that the goods specified in the bill of lading are stored in the insured building of the issuer. 
C)  It is evidence of the contract of carriage. 
D)  It serves as a document of title.

Question 4

A document of title symbolizes ownership of the goods it describes;its transfer transfers the ownership or control of the goods without necessitating the physical transfer of the goods themselves.

Accepted Answer

A) True 
 B)False

Question 5

An insured holds a $32,000 fire insurance policy on a building which is valued at $40,000,and on which there is an 80% co-insurance clause.If the building is totally destroyed by fire,the policyholder will receive:

Accepted Answer

A)  $40,000. 
B)  $32,000. 
C)  $30,000. 
D)  $25,600.

Question 6

A friendly fire is one that is contained in its intended place such as a fireplace,stove,or barbecue grill.

Accepted Answer

A) True 
 B)False

Question 7

A warehouse receipt:

Accepted Answer

A)  is not a document of title. 
B)  is a receipt issued by a person engaged in the business of storing goods for hire. 
C)  grants a lien enabling a warehouser to sell goods only at a public sale. 
D)  All of these.

Question 8

The Swails have an 80 percent co-insurance policy on their $100,000 home.Explain what this means.If they have an 80 percent co-insurance clause,a policy for $80,000,and suffer a covered loss of $40,000,how much will the insurer pay? If they have an 80 percent co-insurance clause,a $60,000 policy,and suffer a loss of 25% of their property,how much will the insurer pay?

Accepted Answer

The answer of The Swails have an 80 percent co-insurance...

Question 9

A straight bill of lading under which goods are deliverable only to a person named in the bill may be transferred by assignment or negotiation.

Accepted Answer

A) True 
 B)False

Question 10

Temporary insurance coverage prior to the issuance of the actual policy may be obtained by use of a(n):

Accepted Answer

A)  premium agreement. 
B)  coinsurance clause. 
C)  option clause. 
D)  binder.

Question 11

A common carrier is under a duty to serve the public to the limits of its capacity.

Accepted Answer

A) True 
 B)False

Question 12

Sales of copyrights and patents are governed by:

Accepted Answer

A)  the UCC. 
B)  common law. 
C)  federal statute. 
D)  real estate law.

Question 13

Which of the following is tangible real property?

Accepted Answer

A)  Corn harvested and stored in a grain bin 
B)  The mortgage on an office building 
C)  A copyright 
D)  The freight elevator in an office building

Question 14

An example of a bailment for the bailor's sole benefit is when Sherri,without compensation,lends her Cappuccino maker to Ed for Ed's party.

Accepted Answer

A) True 
 B)False

Question 15

Property insurance policies are frequently written for periods of at least five years.

Accepted Answer

A) True 
 B)False

Question 16

A carrier or warehouser who receives goods from a thief and later delivers them to a person to whom the thief ordered them to be delivered is liable to the true owner of the goods.

Accepted Answer

A) True 
 B)False

Question 17

Mark wants to give Susan his car.He can effectively "deliver" it by:

Accepted Answer

A)  giving Susan the keys. 
B)  giving her a written statement that he plans to give the car to her. 
C)  letting her drive it for a period of time. 
D)  telling his wife that he wants to give the car to Susan.

Question 18

To prevent the use of the insurance policy for wagering purposes,the person who is to be indemnified under the contract must have:

Accepted Answer

A)  good faith. 
B)  an insurable interest. 
C)  a binder. 
D)  a coinsurance clause.

Question 19

Mixing identical goods from different owners is:

Accepted Answer

A)  confusion. 
B)  accession. 
C)  possession. 
D)  gift.

Question 20

Explain the difference between lost,mislaid,and abandoned property and who has rights to it.

Accepted Answer

The answer of Explain the difference between lost,mislaid,and abandoned property...

Exam 47: Introduction to Property,property Insurance,bailments,and Documents of Title

The anthropology department of Towers University is doing an excavation on property that belongs to Farmer Brown.If in the process of excavation the university finds some valuable lost items,they will belong to Farmer Brown and not to the university.

Which of the following is characteristic of a bailment?

Which of the following is not a function of a bill of lading?

A document of title symbolizes ownership of the goods it describes;its transfer transfers the ownership or control of the goods without necessitating the physical transfer of the goods themselves.

An insured holds a $32,000 fire insurance policy on a building which is valued at $40,000,and on which there is an 80% co-insurance clause.If the building is totally destroyed by fire,the policyholder will receive:

A friendly fire is one that is contained in its intended place such as a fireplace,stove,or barbecue grill.

A warehouse receipt:

A straight bill of lading under which goods are deliverable only to a person named in the bill may be transferred by assignment or negotiation.

Temporary insurance coverage prior to the issuance of the actual policy may be obtained by use of a(n) :

A common carrier is under a duty to serve the public to the limits of its capacity.

Sales of copyrights and patents are governed by:

Which of the following is tangible real property?

An example of a bailment for the bailor's sole benefit is when Sherri,without compensation,lends her Cappuccino maker to Ed for Ed's party.

Property insurance policies are frequently written for periods of at least five years.

A carrier or warehouser who receives goods from a thief and later delivers them to a person to whom the thief ordered them to be delivered is liable to the true owner of the goods.

Mark wants to give Susan his car.He can effectively "deliver" it by:

To prevent the use of the insurance policy for wagering purposes,the person who is to be indemnified under the contract must have:

Mixing identical goods from different owners is:

Explain the difference between lost,mislaid,and abandoned property and who has rights to it.