Deck 33: Personal Property and Bailments

Question 1

Marcie works for a large software company as a security analyst.In her free time away from work,she likes to develop computer games.Who is likely to be considered the owner of the games that Marcie has developed?

A)The software company
B)Marcie
C)Marcie and the software company jointly own the games Marcie develops
D)The person who uses the game first

Answer 1

B
Explanation: The most common ways of obtaining ownership of property are by producing it or by purchasing it.A person owns the property he makes unless the person has agreed to do the work for someone else.

Question 2

If a person permits a neighbor to borrow a wheelbarrow free of charge,a bailment for the benefit of the bailee has been created.

Answer 2

True

Question 3

An involuntary bailee does not have the right to use property that was found by chance.

Answer 3

True

Question 4

An example of intangible property would be ____.

A)an MP3 Player
B)a tree cut down
C)a patent
D)land

Question 5

A bailor,in a bailment for mutual benefit,can be held liable for injuries sustained by the bailee if the rented property is not fit for the purpose for which it was rented and causes injury.

Question 6

Tangible property is taxable in the state where its owner lives.

Question 7

When a person goes into a restaurant,and hangs his hat and coat on an unattended rack,it creates a bailment.

Question 8

If a bailment is solely for the benefit of the bailor,then the bailee may be held to a somewhat higher degree of care.

Question 9

Dave purchased a plot of land that was owned by Ron.After he purchased the property,Dave discovered that the land contained valuable mineral deposits and quarried them.Ron,who did not know that the land contained valuable minerals at the time of sale,sues Dave to recover the value of the mineral deposits.Under these circumstances:

A)Dave is the owner of the deposits because they became his personal property upon quarry.
B)Dave is the owner of the deposits because the mineral deposits became part of the land under the doctrine of fixture.
C)Ron can recover the fair market value of the mineral deposits because he did not intend to make a gift of personal property under these circumstances.
D)Ron can rescind the sale because Dave is liable for conversion under these circumstances.

Question 10

In the United States,private ownership of property is protected by the:

A)Fifth Amendment to the Constitution.
B)Ninth Amendment to the Constitution.
C)Tenth Amendment to the Constitution.
D)Fourteenth Amendment to the Constitution.

Question 11

Legal rights that have economic value but are not connected with an object can also be considered as property.

Question 12

A person who finds lost property has a better right to that property than anyone,other than the true owner.

Question 13

Which of the following statements about tangible property is true?

A)It has no physical existence.
B)It is subject to tax in the state in which it is located.
C)It is only owned by the government or a government unit.
D)It is only taxable in the state where its owner lives.

Question 14

A promise to make a gift is usually enforceable.

Question 15

If Megan hires Pablo to paint her portrait,Megan is the owner of the painting.

Question 16

In determining whether a bailment was created,one must know whether the person to whom the property was delivered intended to assume possession and control over the property.

Question 17

In a bailment situation,the bailor retains the title to the item of property.

Question 18

As a general rule,the owner of the original personal property becomes the owner of the improvements.

Question 19

Real property which is detached from the earth can be turned into personal property.

Question 20

Wildlife is not a type of property.

Question 21

When John,a dealer in antique furniture,stores his goods in a commercial warehouse,it is a:

A)bailment for the sole benefit of John.
B)bailment for the sole benefit of the storage company.
C)bailment for the mutual benefit of John and the storage company.
D)bailment for mutual benefit of the government and storage company.

Question 22

Oscar drove his 1963 Rambler automobile to the Park & Run,Inc.parking garage.Oscar delivered the keys to the attendant and left the premises.The attendant parked the car.Oscar did not tell the attendant that there was an antique painting valued at $5,000 in the trunk of the car.A thief entered the parking garage,pried open the trunk of Oscar's car,and stole the painting.In this regard,identify the correct statement.

A)Park & Run is a bailee only to the automobile,but not to the painting.
B)Park & Run is a bailee as to both the automobile and the painting.
C)A bailment for the painting will be created automatically when Park & Run accepted delivery and possession of the car.
D)A bailment for the car and the painting will be created only if Park & Run makes an express warranty.

Question 23

Jose gave Joon the permission to hunt on his land.While hunting,Joon discovered a Civil War-era sword half buried in the dirt.Under these circumstances:

A)Joon is the owner of the sword.
B)Jose is the owner of the sword.
C)Jose and Joon share joint ownership of the sword.
D)the government is the owner of the sword.

Question 24

Mary parked her car in a municipal parking lot.She locked her car,and kept her keys.When she returned,she discovered that someone had deliberately scratched "I love Reggie" into her car door,causing $150 in damage.Mary wants to sue the city for failing to protect her car from vandals.In this situation:

A)a bailment was not created and,therefore,the city was under no duty to protect Mary's automobile from vandals.
B)a bailment for the benefit of the bailor was created and,therefore,the city owed Mary only the duty to exercise minimal care in protecting the automobile.
C)a bailment for the benefit of the bailee was created and,therefore,the city owed Mary a duty to exercise more than ordinary care in protecting her automobile.
D)a bailment for mutual benefit was created and both parties owe a duty of reasonable care in protecting the automobile from the acts of third parties.

Question 25

If Susan found Tom's backpack in Biblio Bookstore:

A)Susan would have the right to hold the mislaid property for Tom.
B)the bookstore would have the right to hold the mislaid property for Tom.
C)Susan would acquire possession and ownership of the backpack.
D)the bookstore would acquire possession and ownership of the backpack.

Question 26

The statute that requires the true owner of property to claim it or bring a legal action to recover possession of it within a certain number of years after it has been mislaid is the ____.

A)estray statute
B)real property statute
C)ownership statute
D)statute of limitations

Question 27

Uncle Fred is about to undergo a major operation.Fred gives his watch to his nephew,Harry,and tells Harry he wants him to have it if he does not survive the operation.Uncle Fred's gift to Harry is a:

A)gift inter vivos.
B)general gift.
C)residuary gift.
D)gift causa mortis.

Question 28

Which of these actions are applicable under the Uniform Gifts to Minors Act?

A)Adults are prohibited from making gifts of unregistered securities to minors.
B)Adults can make a gift of money to minors by depositing the money with a bank in an account in the donor's name.
C)Gifts of registered securities can be made by merely delivering the securities to a bank trustee.
D)Gifts of unregistered securities can be made by registering the securities in the name of another adult.

Question 29

Nellie owned a Great Dane that she entered in dog shows on a regular basis.When she went on vacation,she asked her neighbor,Wilson,to take care of the dog.Wilson agreed to do so without asking to be paid for his services.Before leaving,Nellie gave Wilson instructions about how to care for the dog,but Wilson did not follow her instructions or restrain the dog.While Nellie was on vacation,a car hit the dog when it ran into the street.Which of the following statements is true?

A)A bailment does not exist because Nellie did not pay Wilson anything to take care of the dog.
B)A bailment was created,but since it was a bailment for the sole benefit of the bailor,Wilson had no duty to care for the dog.
C)A bailment for the sole benefit of the bailor was created,which holds Wilson responsible for gross negligence.
D)A bailment for the sole benefit of the bailee was created,meaning that Wilson will be held strictly liable to Nellie,for the dog's injuries.

Question 30

If property is mislaid by its owner:

A)the finder of the property has the right to hold the property for the rightful owner.
B)the finder can be held guilty of conversion and must pay the owner the fair value of the property.
C)the finder acquires no rights to the property.
D)the first person who thereafter takes possession of it with the intent of claiming ownership becomes its owner.

Question 31

James and Maria dated for two years.On the event of their second anniversary,James gave Maria a $20,000 diamond engagement ring.Two months later,James called off the engagement without giving Maria any valid reason.Under the traditional rule:

A)James may not recover the ring as it was a gift made in contemplation of marriage.
B)Maria must return the ring as the engagement is broken by mutual consent.
C)the ring must be sold and the proceeds divided between James and Maria.
D)Maria may retain the ring only if she pays its fair value to James.

Question 32

George rented a car from RentaCar Co.When he returned the car to RentaCar Co.,he forgot to retrieve his wallet from the glove compartment.What is the status of the wallet?

A)Lost
B)Mislaid
C)Abandoned
D)Unowned

Question 33

When Martha of Martha's Homemade Pies gives a freshly baked apple-cinnamon double-crust pie to her sales clerk to put in the window case for display,the clerk:

A)has possession of the pie.
B)has custody of the pie.
C)is a bailee to Martha.
D)has ownership of the pie.

Question 34

Which of the following statements is true with regard to the possession of a wild animal?

A)The first person to take possession of a wild animal acquires its ownership rights.
B)Personal ownership rights are never given to individuals for wild animals.
C)Wild animals caught in traps are usually considered to be the property of the first person who finds the animal.
D)To take possession of a wild animal found in a forest,a person must have the ownership rights of the property in which the animal was found.

Question 35

Which of the following statements is true about accession?

A)Accession is the intermixing of goods belonging to different owners in such a way that the goods cannot later be separated.
B)Even if work is done on personal property without the consent of the owner,he has to reimburse for the improvements.
C)Usually the person who improved the property in good faith is entitled to recover the cost of the improvement made to it.
D)Under accession,the owner of the original property generally doesn't become the owner of the improvements.

Question 36

If a bailee misdelivers the bailed property at the termination of the bailment:

A)the bailee is liable to the bailor.
B)the bailor assumed the risk and is liable.
C)neither the bailee nor the bailor is liable.
D)both the bailee and the bailor are equally liable.

Question 37

The statute that allows finders of property to clear their title to the property after taking steps to see whether the true owner can be located is:

A)the estray statute.
B)the statute of limitations.
C)the statute of repose.
D)the nonclaim statute.

Question 38

I.M.Handy was the sole proprietor of Handy's Upholstery Service.Green brought some items of furniture to Handy's place of business and left them there for the purpose of having them reupholstered.Handy and Green did not have any specific discussion concerning what Handy would charge for his services.Under these circumstances:

A)a bailment for the sole benefit of the bailor was created even though the parties did not specifically discuss compensation.
B)a bailment for mutual benefit was created which entitles Handy to compensation from Green for the reasonable value of his services.
C)a bailment was not created and hence,Handy is not liable to any payment.
D)a bailment was created only for the storage of property for which Handy is entitled only to storage services.

Question 39

When the finder of a lost property knows who the owner is and refuses to return it to him/her:

A)the finder is liable to revest the title of the property back to the owner.
B)the finder will not be found guilty of conversion.
C)the finder will be found guilty of accession.
D)the finder is liable to pay the owner the fair value of the property.

Question 40

Identify the statement that is true of a bailee's duty of care.

A)The bailee is liable to the bailor even if the property is lost or damaged without the fault or negligence of the bailee.
B)If the bailment is solely for the benefit of the bailor then,the bailee may be held to a higher degree of care.
C)If the bailment is for the sole benefit of the bailee then,the bailee may be held to a lower degree of care.
D)The bailee must use the same kind of care a reasonable person would use to protect his own property in a mutual benefit bailment.

Question 41

What are the basic duties of a bailee? Explain the critical elements that determine the degree of care that a bailee is required to exercise.

Question 42

What are the differences between a gift inter vivos and a gift causa mortis?

Question 43

Common carriers:

A)are never allowed to limit their liability.
B)are usually allowed to limit their liability to a stated value.
C)can always limit liability for an infinite value.
D)are held to a lower level of responsibility than private carriers.

Question 44

A common carrier is liable for loss of or damage to property if:

A)the damage was caused by the goods themselves.
B)the damage was caused by an act or order of the government.
C)the goods were damaged because of the shipper's negligence.
D)the goods entrusted to it are stolen by some unknown person.

Question 45

Phoebe rented a safe deposit box in a bank to keep her valuables.In this case:

A)Phoebe is the bailee.
B)the bank is the bailor.
C)the bank is not an insurer of the contents of the box.
D)the bank is liable only for the box and not the content.

Question 46

Define a bailment and discuss its essential terms.

Question 47

An involuntary bailee:

A)has the right to destroy the property in any circumstance.
B)has the right to use the property in any circumstance.
C)is obliged to find the owner and return the property under any circumstance.
D)is obliged to assume control of the property in certain circumstances.

Question 48

Tex accidentally left his digital camera at the bus stop on Friday afternoon.Later that night,Bill finds the camera and takes it home with the intent of turning it in to the bus company the next day.Before Bill can turn it in,Dale steals the camera from Bill's house.Discuss the ownership rights,if any,of Tex,Bill,and Dale.

Question 49

While staying at Fancy Hotel,Marie asked her son to take her two diamond rings to the hotel clerk for safekeeping.The rings were shown to the clerk and then placed in a "safe-deposit envelope" which was sealed.The son received a depositor's check stub,which had a number corresponding to the number on the envelope.The envelope was kept in a safe,located in the hotel's front desk,which was used to keep the hotel's cash as well as the valuables of guests.Though equipped with a combination lock,the safe was usually kept unlocked as there would always be a clerk on duty at the reception desk.The following night,the hotel was robbed by two armed men and Marie's rings were taken.She sued the hotel for the value of the rings.The hotel claimed that the robbery was an "act of a public enemy" that relieved the hotel of liability.If the safe-deposit envelope is analyzed in the way that safety deposit boxes are,was the hotelkeeper liable for the theft of property left with it for safekeeping?

Question 50

Sally rented a motorized chain saw from E-Z Rental Company.While Sally was using the saw as specified by the directions,the saw "grabbed" and caused a piece of wood to fly into her eye,seriously injuring her.A subsequent investigation showed that the saw grabbed because of a defect in the chain mechanism.Under these circumstances:

A)E-Z is liable for Sally's injuries only if there is a violation of an express warranty regarding the quality of the saw.
B)E-Z is liable for Sally's injuries if it knew of the defect in the saw when it rented it to Sally,but failed to warn her of the defect.
C)E-Z is not liable for Sally's injuries if the UCC's implied warranty of merchantability principles were applied by the court.
D)E-Z is not liable for Sally's injuries since the bailment was for the sole benefit of the bailee.