Deck 48: Personal Property and Bailments

Question 1

Property voluntarily placed by its owner and inadvertently forgotten is mislaid property.​

Answer 1

True

Question 2

The most common way to acquire personal property is to receive it as a gift.​

Answer 2

False

Question 3

Constructive delivery confers the right to take possession of an object.​

Answer 3

True

Question 4

A gift causa mortis does not become absolute until the donor dies from the contemplated illness or other peril.​

Question 5

What is required to transfer or acquire property is determined by whether the property is classified as tangible or intangible.​

Question 6

Businesses often pay taxes on the personal property they own, use, or lease.​

Question 7

Property would have little value if the law did not define the rights of owners to use, sell, dispose of, and control their property.​

Question 8

Manufacturers acquire ownership of their work through production.​

Question 9

Constructive delivery is not necessary for gifts of intangible personal property.​

Question 10

The owner of the place where property was mislaid becomes the caretaker of the property.​

Question 11

To be effective, a gift causa mortis must meet only two requirements: intent and acceptance.​

Question 12

Tangible personal property has physical substance.​

Question 13

A gift is a voluntary transfer of property ownership for which consideration is given.​

Question 14

Real property can not be turned into personal property by any method.​

Question 15

Many states require a finder of lost property to make a reasonably diligent search to locate the true owner.​

Question 16

A gift is effective whether or not it is accepted.​

Question 17

A finder of lost property can claim title to the property against the whole world-including the true owner.​

Question 18

Someone who finds abandoned property acquires title to it and that title is good against the whole world, except the original owner.​

Question 19

Confusion of fungible goods results in the owners' loss of their rights in the property.​

Question 20

Accession occurs when someone adds value to an item of personal property by the use of labor or materials.​

Question 21

Dona owns factory machinery and the tools to service it, as well as office furniture, including computers. Emily owns patents, trademarks that identify the products made under those patents, and stock in the company that sells those products. Personal property includes items owned by​

A) ​Dona and Emily.
B) ​Dona only.
C) ​Emily only.
D) ​neither Dona nor Emilio.

Question 22

If the bailed property has been lost, a court will presume that the bailee was negligent.​

Question 23

Gail, an inventor, has tools in her workshop. She has a patent on her most recent invention, a convection oven. She licenses the patent to Housewares, Inc. Her tangible personal property includes​

A) ​the tools.
B) ​the license.
C) ​the patent.
D) ​all of the choices.

Question 24

Marcy owns land in North Dakota under which deposits of oil shale are discovered. Marcy sells the rights to the shale to Oil Mining Inc. Once the oil in the rock is removed, it will be considered​

A) ​personal property.
B) ​real property.
C) ​intangible property.
D) ​none of the choices.

Question 25

Common carriers can contract away their liability for damaged goods.​

Question 26

When a passenger boards a plane, he or she becomes the subject of a bailment.​

Question 27

Property that is leased from a bailor must be fit for the intended purpose of the bailment.​

Question 28

The implied warranties of merchantability and fitness for a particular purpose extend to bailments that include rights to use the bailed goods.​

Question 29

For estray statutes to apply, property must be mislaid, not merely lost.​

Question 30

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 operation-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 31

Estray statutes make it possible for finders to acquire legal title to the property they find.​

Question 32

The delivery of goods to a common carrier creates a bailment relationship between the shipper and the carrier.​

Question 33

A hotel owner is not liable for loss or damage to its guests' personal property under any circumstances.​

Question 34

A bailment agreement must be express.​

Question 35

Shari owns a television, video games, and stock in the game company Time Travel, Inc. Shari's intangible property includes​

A) ​the television.
B) ​the games.
C) ​the stock.
D) ​all of the choices.

Question 36

Only tangible personal property can be bailed.​

Question 37

All transactions involving the delivery of property from one person to another create a bailment.​

Question 38

Warehouse companies are not liable for loss or damage to property resulting from negligence.​

Question 39

In a bailment of fungible goods, the bailee must return the identical goods given by the bailor.​

Question 40

Real property can be the subject of a bailment.​

Question 41

Rob steals a damaged, broken bike that is parked, unlocked, in a bike rack. He repairs, paints, and replaces parts on the bike until it is like new. The original owner, Sue, then claims it. The bike belongs to​

A) ​Rob and Sue as co-owners.
B) ​Rob because he improved it substantially.
C) ​the state under an estray statute.
D) ​Sue because Rob stole it.

Question 42

Ester sells stock in Fast Food Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is​

A) ​incomplete delivery.
B) ​constructive delivery.
C) ​accession.
D) ​conversion.

Question 43

Neal allows Owen to store his trailer on Neal's property for $20 a month while Owen is out of town on a job for Plain States Construction, his employer. The bailor is​

A) ​Neal.
B) ​Owen.
C) ​Plain States.
D) ​the trailer.

Question 44

Dick buys a fishing license and goes fishing. He catches a rainbow trout, cleans it, cooks it, and eats it. Dick's acquisition of the trout is by​

A) ​possession.
B) ​accession.
C) ​preparation.
D) ​production.

Question 45

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift​

A) ​inter vivos.
B) ​causa mortis.
C) ​by accession.
D) ​by production.

Question 46

Perry gives Rachel a phone as a gift. Rachel develops a new app for the phone, obtains intellectual property protection, and forms QuikApps, LLC, to sell it. Rachel's acquisition of the app is by​

A) ​possession.
B) ​a bailment.
C) ​gift.
D) ​production.

Question 47

Nero and Omar agree to buy natural gas to sell to Power Fuel Company and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is​

A) ​accession.
B) ​confusion.
C) ​conversion.
D) ​a bailment.

Question 48

Belle finds a tablet on the counter at Café Latte. She takes it to a police station where she is told that if it is not claimed by a certain time, she can obtain title to it. This is acquiring possession by​

A) ​an estray statute.
B) ​gift.
C) ​confusion.
D) ​production.

Question 49

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by​

A) ​James.
B) ​Kay's.
C) ​Lani.
D) ​the state.

Question 50

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is​

A) ​a bailment.
B) ​a gift.
C) ​confusion.
D) ​abandoned property.

Question 51

In contemplation of death during risky surgery, Ben, a guitarist, gives his guitars to Cathy. The surgery is successful, and Ben does not die. The gift of the guitars 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 52

Gina buys silver to make jewelry. The finished products are sold to Hand Crafts, a shop that sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to​

A) ​purchase it.
B) ​add value to it.
C) ​make it.
D) ​receive it as a gift.

Question 53

Inadvertently, Ralph leaves his backpack at Sushi Café when he stops for lunch. The backpack is​

A) ​abandoned property.
B) ​bailed property.
C) ​lost property.
D) ​mislaid property.

Question 54

Gary tells his daughter Heidi that she can have his restored 1932 Ford Coupé when he dies, but he does not add this to his will. This is​

A) ​a gift causa mortis.
B) ​a gift inter vivos.
C) ​a gift by accession.
D) ​not a gift.

Question 55

​Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no

A) ​acceptance by the donee.
B) ​constructive delivery.
C) ​donative intent.
D) ​relinquishment of control.

Question 56

Mallory's brother Nate gives her a leather working kit. She uses it to make a saddle. Her acquisition of the saddle is by​

A) ​gift.
B) ​accession.
C) ​confusion.
D) ​production.

Question 57

Miranda delivers her bridesmaid's dress to Nina for alterations. Nina promises that the dress will be ready within five business days. Miranda agrees to pay the charge when she picks up the dress. This is​

A) ​an implied bailment.
B) ​an involuntary bailment.
C) ​an express bailment.
D) ​not a bailment.

Question 58

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is​

A) ​accession.
B) ​acquisition.
C) ​conversion.
D) ​a bailment.

Question 59

Yogi loans his laptop to Zoey. This is​

A) ​a bailment.
B) ​acquiring ownership by possession.
C) ​a gift.
D) ​accession.

Question 60

Nan asks Otto if she can store her car in his garage while she serves in the U.S. Army. He agrees. This is​

A) ​a bailment.
B) ​accession.
C) ​a gift.
D) ​abandoned property.

Question 61

Logan borrows Morris's bike to ride over mountain trails. The bike is damaged during the ride. Liable for the cost of repairing the bike is​

A) ​Logan and Morris in equal measure.
B) ​Logan.
C) ​Morris.
D) ​all of the choices.

Question 62

Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston. Subject to a bailment is​

A) ​Emily.
B) ​Emily's luggage.
C) ​Emily's ticketed seat on the flight.
D) ​none of the choices.

Question 63

One morning, Richard agrees to lend his bike to Sheila, who promises to return it in the evening. This is​

A) ​a constructive bailment.
B) ​an involuntary bailment.
C) ​an express bailment.
D) ​no bailment.

Question 64

Barney's Burgers requires that its employees wear uniforms and protective clothing on the job. Barney's 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, "Barney's is not responsible for the loss of any property in the locker room." Chuck, a Barney's 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 Chuck'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 Barney's sign exculpate the company for Chuck's loss? Why or why not?​

Question 65

​Brian discovers a boat adrift, and retrieves and anchors it. The boat features a number on its side and other evidence pointing to its owner, Celia. This is

A) ​an involuntary bailment.
B) ​a voluntary bailment.
C) ​an express bailment.
D) ​no bailment.

Question 66

Earth's Bounty Farms arranges to have Fresh Express, Inc., a common carrier, transport a load of almonds from California to Delaware. Greg is Fresh Express's driver. Fresh Express will not be liable to Earth's Bounty for failing to deliver the almonds on time if​

A) ​authorities are stopping and searching all trucks leaving California.
B) ​Fresh Express's dispatcher mistakenly delays Greg's departure.
C) ​Fresh Express's truck is broken into and the almonds are stolen.
D) ​Greg has to wait two days in Sacramento for the truck to be repaired.

Question 67

During a storm in Tornado Alley, a house is destroyed, but its owner Dorothy survives. Dorothy plans to return to the site to salvage her possessions, but she delays. Meanwhile, Elliott combs through the ruins and removes all useful items. Dorothy learns of the recovery and files a suit against Elliott, claiming that the items are hers. Elliott responds that the destroyed house was abandoned and therefore he has good title to whatever he took possession of. What is the court likely to rule, and why?​

Question 68

Oleg takes a PowerMade-brand rototiller to QuikFix Inc. for repairs. Lacking certain parts, QuikFix ships the rototiller to Repair & Parts Company. While in Repair & Parts's possession, the machine is damaged. QuikFix can recover for the damage from​
a.
​no one.
b.
​Oleg.
c.
​PowerMade.
d.
​Repair & Parts.

Question 69

Ruby stores her furniture with Stow-Away, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on​

A) ​neither Ruby nor Stow-Away.
B) ​Ruby and Stow-Away in equal proportions.
C) ​Ruby only.
D) ​Stow-Away only.

Question 70

Fact Pattern 48-1​
Truck & Transfer Inc. agrees to pick up two containers for United Home Products Corporation and store their contents, to be delivered later. While Truck & Transfer unloads one container, the other disappears from the company's loading dock.
Refer to Fact Pattern 48-1. Truck & Transfer can avoid liability​

A) ​by proof that Truck & Transfer was not negligent.
B) ​by proof that Truck & Transfer's loading dock is in a high-crime area.
C) ​by proof that United Home was negligent in hiring TTC.
D) ​under any circumstances.

Question 71

EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is​

A) ​EquipLease.
B) ​Farm Harvest.
C) ​the farm owners.
D) ​no one.

Question 72

Fact Pattern 48-1​
Truck & Transfer Inc. agrees to pick up two containers for United Home Products Corporation and store their contents, to be delivered later. While Truck & Transfer unloads one container, the other disappears from the company's loading dock.
Refer to Fact Pattern 48-1. These facts give rise to​

A) ​a presumption of negligence by Truck & Transfer.
B) ​a presumption of theft by a third party.
C) ​a presumption of theft by Truck & Transfer.
D) ​United Home's liability for the container's loss.