Deck 34: Personal Property and Bailments

Question 1

Real property can be turned into personal property by detaching it from the land.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

The most common way to acquire personal property is by producing it.

Answer 3

False

Question 4

Tangible personal property has physical substance.

Question 5

Businesses do not usually pay taxes on the personal property they own, use, or lease, including office or farm equipment and supplies.

Question 6

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

Question 7

Constructive delivery is always necessary for gifts of intangible personal property.

Question 8

A gift is essentially a voluntary transfer of property ownership for which no consideration is given.

Question 9

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

Question 10

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

Question 11

A gift is effective whether or not it is accepted.

Question 12

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

Question 13

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

Question 14

Property consists of the legally protected rights and interest of a person in anything with an ascertainable value that is subject to ownership.

Question 15

Manufacturers acquire ownership of their work through production.

Question 16

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

Question 17

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

Question 18

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

Question 19

A finder of lost property who knows the true owner and fails to return the property is guilty of the tort of conversion.

Question 20

How property is taxed and what is required to transfer or acquire property is determined by whether the property is classified as tangible or intangible.

Question 21

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

Question 22

Donatella owns factory machinery and the tools to service it, as well as office furniture, including computers. Emilio 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)Donatella and Emilio.
B)Donatella only.
C)Emilio only.
D)neither Donatella nor Emilio.

Question 23

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

Question 24

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

Question 25

A bailment agreement must be express.

Question 26

Marcy owns land in North Dakota under which deposits of oil shale are discovered. Marcy sells the rights to the shale to Oil Mining & Refining 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 27

When you board a plane as a passenger, a bailment is created.

Question 28

If the bailed property has been lost or is returned damaged, a court will presume that the bailee was negligent.

Question 29

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)none of the choices.

Question 30

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

Question 31

Mallory’s sister Naomi gives Mallory a leather working kit. Mallory uses the kit to make a saddle. Mallory’s acquisition of the saddle is by

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

Question 32

Common carriers can contract away their liability for damaged goods.

Question 33

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

Question 34

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

Question 35

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 36

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

Question 37

A hotel owner may be strictly liable for any loss or damage to their guests' personal property.

Question 38

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

Question 39

Only tangible personal property can be bailed.

Question 40

Only personal property, not real property or persons, can be the subject of a bailment.

Question 41

Pearl gives Raphael a smartphone as a gift. Raphael develops a new app for the phone. She obtains intellectual property protection, and forms QuikApps, LLC, to make and market the app. Raphael's acquisition of the app is by​

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

Question 42

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 43

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 44

GR8 Vision, Inc., hires Haul-Way Company to transport fifty large-screen HDTVs from GR8's warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The bailee is​

A) ​GR8 Vision.
B) Haul-Way.
C) Ideal Electronics.
D) no one.

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

Rhett works at Scarlett's Service Station. After work, in the station's restroom, 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 47

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 48

Derrick buys a hunting license and goes hunting. He shoots a deer, cleans it, and takes it back to his truck. He takes the deer to town and has the meat processed. Derrick's acquisition of the deer is by​

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

Question 49

Garth 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 50

Inadvertently, Rocko leaves his backpack at Suki's Sushi when he stops for lunch and an hour of Facebook. The backpack is​

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

Question 51

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

A) ​Ben.
B) Cody.
C) Plain States.
D) no one.

Question 52

Yogi loans his laptop to Zoey. This is​

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

Question 53

Gabrielle buys silver and jade 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 54

In contemplation of death during risky surgery, Donnelly, a guitarist, gives his guitars to Cathy. The surgery is successful, and Donnelly 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 55

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 56

Bram finds a tablet on the counter at Caffe Café. He takes the tablet to a police station. A police officer tells Bram that if the tablet is not claimed by a certain time, Bram can obtain title to it. This is acquiring possession by​

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

Question 57

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 58

Ester sells stock in Fast Food Franchise 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 59

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is​

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

Question 60

Gretel, an inventor, has tools in her workshop, including hammers, a table saw, and drills. She has a patent on her most recent invention, a kitchen gas grill. 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 61

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 62

Fact Pattern 34-1
​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 34-1. 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.

Question 63

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 64

Fact Pattern 34-1
​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 34-1. 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 65

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 66

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 67

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 68

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 69

One morning, Roche agrees to lend his bike to Shelley, 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 70

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

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

Question 71

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 72

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.