Chapter 43 and 44

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California. As a bailee, Charles is automatically entitled to use Tuan's car while Tuan is away.

False

If property is mislaid, the finder of the property will have a superior claim to possession of the property against everyone except the true owner.

False

In January, Erwin told David, his nephew, that he would give him a car when he graduates from college. David graduated in May. If Erwin refuses to give David a car, David can sue him for breach of an inter vivos gift.

False

Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant. Even though no employee of the restaurant is present, the provision of the cloakroom makes Jerry think it will be safe. In this situation, the restaurant is the bailor of Jerry's coat.

False

Jody loaned her neighbor, Phil, her snow blower. Phil set it near his driveway and later accidentally ran over and destroyed it. In a suit to recover damages, Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

False

The Uniform Probate Code has been adopted in all states.

False

The only function of a will is to dispose of a person's property upon death.

False

Which of the following would NOT be considered personal property?

Field of soybeans

The element that distinguishes a contract from a gift is

The element of consideration which is present in a contract, but not in a gift

Hanna intends to give her granddaughter, Melodee, her antique hat pin. This heirloom has been kept under lock and key in the wall vault in the library of Hanna's house in Virginia. The hat pin is currently the only item in the vault. When Hanna is visiting Melodee in Connecticut, Hanna gives Melodee the only key to the vault. Melodee is grateful for the present and excitedly accepts. In this situation has there been a completed gift?

Yes. There has been constructive delivery of the hat pin.

Lacy set her textbook under her chair in her business law class and then forgot to take it with her when she left the classroom. A janitor later discovered the textbook and gave it to the Dean of the Business College. In this situation,

the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon. This is a(n)

gift causa mortis.

Bruce tells his son, "You can have my 1990 truck, but if your grades fall, I'm taking it back." Bruce

has made no gift

If Walter becomes incompetent to manage his affairs,

his chosen attorney-in-fact can make decisions for him if he appointed the person in a durable power of attorney with a springing power to become effective upon Walter's incompetence.

A bailment is different from a gift because

in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee.

Legal requirements for a will depend on state law, but generally include all but which of the following?

signatures of at least three witnesses

Pamela applies for a life insurance policy with Forever Young Insurance Company. When completing the application form about past surgeries, Pamela forgot about a past outpatient surgery when she had an infected hang-nail removed and her toe treated. One year after issuing the policy, Pamela died suddenly from a brain aneurysm. Forever Young denies payment under the policy based on misrepresentation. If Pamela's sister, Paula, sues Forever Young, she will most likely

win, because Pamela's misrepresentation was not a material fact and did not increase Forever Young's risk in insuring Pamela's life

An executor who is related to the testator is not entitled to compensation.

False

April purchased a life insurance policy on herself. On her death, the proceeds of the insurance were to be paid to her minor child, Ryan. Ryan is the beneficiary.

True

Per capita means each heir gets an equal share of an estate

True

Reva prepares and signs a document that she intends to be her will. If she has not followed the legal technicalities of her state regarding executing a will, the court may not enforce the will.

True

Which of the following is true about wills?

A will can be amended to change specific terms by execution of a codicil.

After a meeting with his advisor to register for a class at State University, Ron forgot his calculator in the dean's outer office. Theresa, another student, found the calculator. The calculator is treasure trove and Theresa may keep it.

False

In which of the following scenarios has a gift been made?

Grandpa chuckles as Jessica admires his pocket watch. "Go on, put it in your own pocket, Jessica," he tells her. "You can have it." Jessica thanks her grandpa and happily tucks the watch into her pocket.

Myron had two children, Cheryl and Pete, who predeceased him. Cheryl had three children and Pete had one child. Myron had a will. Which of the following is true?

If Myron's will indicates that the issue are to inherit per stirpes, Pete's child will receive one half of Myron's estate.

In estate planning, a person's direct descendants are called

Issue

A bailment was created for the parties' mutual benefit. This means that the bailee must use ordinary care with the property

True

Ed wants to give Howard his old car, but Howard says he doesn't want it. Howard later reconsiders and tells Ed he does want the car. His previous repudiation means there is no gift, and Howard has no rights in the car.

True

In purchasing life insurance, Kelsey concealed the fact that she has a muscular disease. The insurance company can void the policy if the muscular disease is found to be a material fact

True

Alexander loans Miko his baking dish so she can make lasagna for dinner tonight for her family. What kind of bailment is this?

bailee benefit bailment

The person who receives the proceeds from an insurance policy is the

beneficiary

Which type of automobile insurance covers the cost of damage caused by fire, theft, or vandalism?

comprehensive insurance

Which of the following does NOT act as a revocation of a will?

creating a codicil

Dr. Gavornne advises his very ill patients to prepare a living will. The purpose of a living will is to

express a desire not to have extreme medical treatment that would prolong their lives.

In order to travel extensively and not worry about handling her affairs, Lee transfers most of her assets into a trust, with her bank serving as trustee. She has created a(n) ________ trust.

inter vivos

Traditional health insurance plans are

pay for service plans

A child who is left nothing under the parent's will is called a

pretermitted child