Question 1

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)  All of these

Question 2

A bailee has the exclusive right to possess the property for the term of the bailment.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Marilyn brought her $300 silk dress to University Dry Cleaners to be cleaned. On the back of the ticket she received in exchange for the dress was written, "liability limited to five times the cost of cleaning." Marilyn's dress was lost and University now claims it owes her only $45, five times the cost of cleaning. Is that true?

Accepted Answer

A)  No, because Marilyn is not a bailor. 
B)  No, because the cleaner is not a common carrier. 
C)  No, because the limitation was not communicated to her before she bailed the property. 
D)  Yes, because the cleaner had the right to limit its liability to a reasonable amount.

Question 5

Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers. Who owns the grain? Can Farmer Brown get his grain back? Explain.

Accepted Answer

The answer of Farmer Brown brings his crop of wheat...

Question 6

Darlene rents an car for her business trip. What is the relationship between Darlene and the car rental company?

Accepted Answer

A)  A bailment for the sole benefit of the bailor 
B)  A bailment for the sole benefit of the bailee 
C)  A bailment for mutual benefit 
D)  Pledgee and pledgor

Question 7

Insurance protects a business from:

Accepted Answer

A)  tort liability. 
B)  strict liability. 
C)  negligence. 
D)  All of these.

Question 8

Estoppel means that a person is prevented by his own conduct from asserting a position inconsistent with such conduct, on which another person justifiably relied.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a requirement of a valid gift?

Accepted Answer

A)  An adult donor 
B)  Payment of money 
C)  A writing 
D)  Delivery

Question 10

A bailee is required to return the identical goods bailed, in the same condition as when the bailee received them.

Accepted Answer

A) True 
 B)False

Question 11

Name and briefly describe the special features or extraordinary duties of five special types of bailments.

Accepted Answer

The answer of Name and briefly describe the special features...

Question 12

Terry's loan of his lawnmower to his neighbor cannot be a bailment if Terry receives no compensation for the use.

Accepted Answer

A) True 
 B)False

Question 13

Mary cleaned her dorm room in the spring and left a pile of books in Sara's room. Mary told everybody that the books were a gift to Sara. Does Sara have to dispose of them?

Accepted Answer

A)  Yes, because there was a present intent and delivery 
B)  Yes, because they are constructively in Sara's possession 
C)  No, because Sara did not accept the books 
D)  No, because there was no agreement between the two parties

Question 14

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 15

A transaction in which the owner gives possession of his personal property to another to secure a debt is:

Accepted Answer

A)  an extraordinary bailment. 
B)  a pledge. 
C)  a consignment. 
D)  commercial bailment.

Question 16

If Keisuki insures his building for $300,000 and at the time of its total loss the property is valued at $250,000, under an open policy Keisuki would recover $300,000.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Ronald says in the presence of three other people that he is giving his automobile to his nephew, and then hands the keys to the car to the nephew. Delivery of the auto has taken place.

Accepted Answer

A) True 
 B)False

Question 19

A gift causa mortis is contingent upon:

Accepted Answer

A)  the donee's surviving the donor. 
B)  the donor's surviving the donee. 
C)  the donee's death as anticipated. 
D)  the donee's not revoking the gift prior to the donee's death.

Question 20

In insurance contracts, warranties:

Accepted Answer

A)  are of little importance. 
B)  must be expressly included in the insurance contract. 
C)  only apply to the insurer, not the insured. 
D)  operate as conditions that must exist before the contract is effective or before the insurer's promise to pay is enforceable.

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

Which of the following is characteristic of a bailment?

A bailee has the exclusive right to possess the property for the term of the bailment.

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

Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers. Who owns the grain? Can Farmer Brown get his grain back? Explain.

Darlene rents an car for her business trip. What is the relationship between Darlene and the car rental company?

Insurance protects a business from:

Estoppel means that a person is prevented by his own conduct from asserting a position inconsistent with such conduct, on which another person justifiably relied.

Which of the following is a requirement of a valid gift?

A bailee is required to return the identical goods bailed, in the same condition as when the bailee received them.

Name and briefly describe the special features or extraordinary duties of five special types of bailments.

Terry's loan of his lawnmower to his neighbor cannot be a bailment if Terry receives no compensation for the use.

Mary cleaned her dorm room in the spring and left a pile of books in Sara's room. Mary told everybody that the books were a gift to Sara. Does Sara have to dispose of them?

A warehouse receipt:

A transaction in which the owner gives possession of his personal property to another to secure a debt is:

If Keisuki insures his building for $300,000 and at the time of its total loss the property is valued at $250,000, under an open policy Keisuki would recover $300,000.

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:

Ronald says in the presence of three other people that he is giving his automobile to his nephew, and then hands the keys to the car to the nephew. Delivery of the auto has taken place.

A gift causa mortis is contingent upon:

In insurance contracts, warranties: