Ch 23

What is lien?

A charge against property to secure the payment of a debt.

Davidson borrowed a motorcycle from his friend, Harley. Harley did not know that the motorcycle had a defect that could cause the brakes to malfunction. While Davidson was riding the motorcycle, the brakes malfunctioned. This caused an accident and Davidson was injured. What duty of care, if any, did Harley owe to Davidson under the traditional common law rule?

A duty to tell Davidson of any known defects in the motorcycle because this was a bailment for the benefit of the bailee.

Arthur borrows a new pair of stereo speakers from Jim, his classmate, who stays in the campus hostel. After about a week, he goes to the hostel and leaves the speakers with Ryan, who lives on the floor adjacent to Jim's, asking him to give them to Jim. Ryan forgets to do so and loses the speakers. In such a situation:

Arthur is liable to Jim; he is a bailee.

Which of the following is an example of personal property?

Books

Carl gave his car to be serviced and washed at Harold's carwash. Unknown to either of them, Danny replaces the engine in the car with a new four-speed transmission. He now claims that the car belongs to him. Which of the following is true?

Carl remains the actual owner, as he always was.

Dan has leased a site from Mark for a period of 2 years. Bob is interested in purchasing it and makes a great offer to him for the site. In this case:

Dan cannot sell the land because he does not have ownership.

Debbie gives Barry a Cartier watch as a gift for their engagement. A week later, Debbie suddenly leaves the country, leaving Barry a note that she cannot marry him. Assume that Debbie had no good reason to break off the engagement. Under the traditional rule:

Debbie cannot recover the watch because it is a valid gift delivered to Barry.

Which of the following is the most essential requirement while making a valid gift?

Delivery

Which of the following is an example of a gift inter vivos?

Eva receives a car as a birthday gift from her father.

What level of care must a bailee exercise in a bailment for his own exclusive benefit?

Greater than ordinary care

In which of the following circumstances would the bailee be expected to exercise ordinary care?

Harold promises to look after Kate's puppy in exchange for her cleaning his car.

Which of the following characterizes a warehouseman?

He can terminate the contract if the goods are about to deteriorate.

What is the best possible solution for a bailee if there is a third-party, who claims to have superior rights to those of the bailor for possession of the bailed property?

He should bring the third-party claimant into a lawsuit along with the bailor.

Which of the following characterizes the Uniform Transfers to Minors Act?

It defines a minor as anyone under the age of 21.

Why is a conditional gift considered to be an incomplete gift?

It may be revoked by the donor.

Jacobs put an old typewriter in the trash. The trash collector, Land, took the typewriter, fixed it up, and sold it to Jones for $750. Jacobs contends that he is entitled to some or all of the $750 that Land received from Jones. Based on these facts:

Land is entitled to keep the full $750 because Jacobs had abandoned the typewriter.

Which of the following is a transfer of the right to possess and use personal property belonging to another without gaining any ownership rights?

Lease

Sarah is hiking in the Clearwater National Forest and her wristwatch falls off her wrist. Sarah does not notice this, and the watch falls onto the trail. Later, Hans finds the watch. How may this watch best be described?

Lost property

In which of the following cases does a finder have no rights at all to the property?

Mislaid property

Nina lent her car, which she knew had bad brakes, to Heidi. However, she did not inform the latter about the defect. As Heidi was driving down the highway, she met with an accident due to the faulty brakes. In this case:

Nina is liable to Heidi because she did not inform her of the defect.

Amber gave her boyfriend, Hunter, an expensive set of stereo speakers for his birthday. Two days later, Hunter broke up with Amber and began dating Kelly. Amber is both heartbroken and furious. Is she entitled to get the speakers back from Hunter?

No, because she intended to make a gift of the speakers and actually delivered them to Hunter.

Which of the following is the most common method of obtaining ownership of property?

Producing the property

Marjorie leaves her bag in the checkroom of a hotel which has an attendant. When she returns a few hours later, she finds her bag missing, the attendant on another duty, and a new sign outside the checkroom stating "Goods left at owner's risk". Which of the following is true if Marjorie tries to recover damages from the hotel?

She will be successful because the attendant did not inform her of the policy earlier.

Which of these is an essential element of a bailment?

The bailor owns personal property or holds the right to possess it.

Rachel was jogging when she slipped and fell on the jogging track and her diamond bracelet fell off her hand. She got up and resumed her jog, unaware of what had happened. A little later, Judy came jogging on the same track and discovered the bracelet. Which of the following is true of the case?

The bracelet is lost property that Judy can hold until the owner claims it.

Which of the following characterizes common carriers?

They are near-absolute insurers of the goods they carry.

Which of the following is true of conditional gifts?

They come with certain restrictions.

Karen parked her car in a parking lot. She paid the $2 fee and left for several hours. She kept her keys and had access to her car during that time. When Karen returned, she saw that her car had been damaged. Has a bailment been created here?

This is not a bailment, because there was no transfer of exclusive possession to a bailee.

Chloe took her watch to a jeweler to have it repaired. While the jeweler had possession of the watch, a thief broke into the shop. The thief stole Chloe's watch and other items of jewelry. Which of the following is true?

This was a mutual benefit bailment, meaning that the jeweler is liable to Chloe if he did not use reasonable care to protect the watch.

A person becomes the owner of abandoned property by possessing the property.

True

Bob parked his new Porsche with the restaurant valet. The valet gave Bob a claim receipt. A bailment has been created.

True

If the bailee returns the goods in a damaged condition, there is a rebuttable presumption of negligence on the part of the bailee.

True

In order to create a bailment, the bailor and bailee need not agree in writing to the existence of the bailment.

True

Property can be transferred by a will, if it is validly executed.

True

Tangible property is property that has a physical existence; for example, a car or a computer is tangible property.

True

The finder of lost property has better rights to the property than anyone, including the original owner.

True

Under tariff rules, a common carrier may limit her liability to a shipper's declaration of value, provided that the rates are dependent on value.

True

You need to drive to Spokane to pick up your parents. Your car is being repaired, and is therefore unavailable. You ask your good friend Ed if he will lend you his car. You take Ed's car and drive to Spokane. This is:

a bailment exclusively for the benefit of the bailee.

A gift inter vivos is a gift:

between two living persons

A gift causa mortis is a gift made in:

contemplation of death.

Anya leaves her expensive handbag in the washroom of a restaurant. Melissa follows her inside, quietly hides the handbag inside her coat, and leaves the washroom. She refuses to tell Anya the truth even when the former frantically starts searching for her handbag as soon as she discovers its loss. Melissa is guilty of:

conversion

Boris borrowed Martha's lawnmower to cut his grass. Boris will be liable for damage to the lawnmower if he:

did not use greater than ordinary care to protect it.

Some states have a statute that allows finders of property to clear their title to the property. These are called:

estray statutes

Personal property is defined by a process of _____.

exclusion

When personal property is used in conjunction with, real property in such a way as to be treated as part of the real property, it is known as a _____.

fixture

In a bailment, the bailee is liable for loss or damage to the bailed property while it is in the hands of the bailee:

only if the bailee intentionally causes harm or loss to the goods.

The Uniform Transfers to Minors Act:

permits the donor to deliver the property to a custodian who acts for the benefit of the minor under the Act.

A hotelkeeper is liable for loss or damage to property if it can be proved that it was caused by:

the bailee's own conduct.