Question 1

Bailments for the bailee's sole benefit are usually limited to the gratuitous loan of personal property for use by the bailee.

Accepted Answer

A) True 
 B)False

Question 2

Accession means the right of the owner of property to any increase in it.

Accepted Answer

A) True 
 B)False

Question 3

No warranties are given out by the person who negotiates or transfers a document of title.

Accepted Answer

A) True 
 B)False

Question 4

Marilyn brought her $400 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 no more than $53.25, five times the cost of cleaning. Is that true?

Accepted Answer

A)  No, because Marilyn is not a bailor. 
B)  No, because University is a common carrier. 
C)  No, because the limitation was not communicated to her. 
D)  No, because the limitation is unconscionable.

Question 5

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 6

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 7

Sales of tangible personal property involve the transfer of title.

Accepted Answer

A) True 
 B)False

Question 8

Janessa receives a text from her Aunt Mary in which Mary says she has decided to give Janessa her pet python as a gift. Janessa may not refuse to accept the gift.

Accepted Answer

A) True 
 B)False

Question 9

Defenses of the insurer include:

Accepted Answer

A)  misrepresentation. 
B)  judgment pro rata. 
C)  judgment pro norma. 
D)  revelation.

Question 10

Warranties in insurance contracts:

Accepted Answer

A)  are of great importance. 
B)  may be expressly included in the contract, be clearly incorporated by reference, or be implied. 
C)  may be used to avoid liability in all states, whether or not the breach of warranty is material. 
D)  are becoming increasingly easy to use as a basis for an insurer to avoid liability on a policy when an insured breaches.

Question 11

Melissa cannot transfer control of the goods held by a bailee by transferring a document of title.

Accepted Answer

A) True 
 B)False

Question 12

Carol took her earrings off at Marcia's beauty shop and put them on the counter. She left the shop without remembering the earrings. Betty finds them and wants to keep them. Can she?

Accepted Answer

A)  Yes, since she is a finder. 
B)  Yes, she now is the true owner. 
C)  No, since the earrings were personal property. 
D)  No, Marcia would have the right to keep them as against anyone but Carol.

Question 13

A furnace would be classified as a "fixture."

Accepted Answer

A) True 
 B)False

Question 14

Insurance companies have been successful in limiting the authority of local selling agents to bind the company through waiver or estoppel.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is not true of insurance policies?

Accepted Answer

A)  The basic principles of contract law apply to insurance policies. 
B)  Insurance companies tend to standardize their policies. 
C)  Some states forbid standardization of insurance policies. 
D)  All of these statements are untrue of insurance policies.

Question 16

The basic principles of contract law apply to insurance policies.

Accepted Answer

A) True 
 B)False

Question 17

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 18

A lease for office space is considered to be personal property.

Accepted Answer

A) True 
 B)False

Question 19

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...

Question 20

An insurable interest in property is a financial interest that justifies insuring such property.

Accepted Answer

A) True 
 B)False

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

Bailments for the bailee's sole benefit are usually limited to the gratuitous loan of personal property for use by the bailee.

Accession means the right of the owner of property to any increase in it.

No warranties are given out by the person who negotiates or transfers a document of title.

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

Which of the following is tangible real property?

Sales of tangible personal property involve the transfer of title.

Janessa receives a text from her Aunt Mary in which Mary says she has decided to give Janessa her pet python as a gift. Janessa may not refuse to accept the gift.

Defenses of the insurer include:

Warranties in insurance contracts:

Melissa cannot transfer control of the goods held by a bailee by transferring a document of title.

Carol took her earrings off at Marcia's beauty shop and put them on the counter. She left the shop without remembering the earrings. Betty finds them and wants to keep them. Can she?

A furnace would be classified as a "fixture."

Insurance companies have been successful in limiting the authority of local selling agents to bind the company through waiver or estoppel.

Which of the following statements is not true of insurance policies?

The basic principles of contract law apply to insurance policies.

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 lease for office space is considered to be personal property.

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

An insurable interest in property is a financial interest that justifies insuring such property.