Business Law II - Chapter 10 6th ed
Situs
"Place, situation"; the place where a thing is located (The situs of land is the state or country where it is located.)
A document of title is broadly defined under a provision of the Uniform Commercial Code as any
"document which in the regular course of business or financing is treated as adequately evidencing that the person in possession of it is entitled to receive, hold and dispose of the document and the goods it covers" [1-201(15)]. Such a document must indicate that it was issued by a bailee or directed to a bailee and that it covers goods in the bailee's possession.
If property is a fixture, the following is true:
(1) It is included in the value of real estate for tax purposes; (2) it is sold, and title passes with the real estate; (3) it is a part of the security covered by a mortgage; and (4) it belongs to the landlord owner, not to the tenant, on termination of a lease.
The absolute liability of a common carrier is subject to only five exceptions. Any loss or damage must fall on the shipper if it results from
(1) an act of God, (2) an action of an alien enemy, (3) an order of public authority, (4) the inherent nature of the goods, or (5) the misconduct of the shipper. Thus, any loss that results from an accident or the willful misconduct of some third party must be borne by the carrier.
Bailments can be categorized naturally into three classes:
(1) bailments for the benefit of the bailor, (bailee is not to use the goods or to be paid in any manner, the bailment is for the exclusive benefit of the bailor.) (2) bailments for the benefit of the bailee, and (A bailment for the benefit of the bailee is best illustrated by a loan of some article by the bailor to the bailee without any compensation to the bailor.-borrow car for weekend) (3) bailments for the mutual benefit of the bailor and bailee.(Contracts for repair, carriage, storage, or pledge of property fall within this class. The bailor receives the benefit of some service; the bailee benefits by the receipt of certain agreed compensation. Thus, both parties benefit as a result of the bailment.)
To have mental capacity, the testator must have the ability to know:
(1) the nature/extent of property; (2) the natural objects of her property; (3) the disposition that her will is making; and (4) the ability to connect all of these elements together to form a coherent plan.
The question of whether an item is a fixture and thus part of the real estate arises in determining
(1) the value of real estate for tax purposes, (2) whether a sale of the real estate includes the item of property in question, (3) whether the item of property is a part of the security given by a mortgagor of the real estate to a mortgagee, and (4) whether the item belongs to the owner of the building or to the tenant on termination of a lease.
If Joe, from Nevada, and Carla, from Colorado, are in dispute over land in California, whose laws are used to determine ownership?
(a. California) b. Nevada c. Either California or Nevada d. Either California or Colorado
If a person dies with a will, the person who will manage the estate is the ______.
(a.Executor) b.Guardian c.Conservator d.Administrator
The person the probate court appoints to manage the estate of a person who died without having a will is the ______.
(a.administrator) b.guardian c.testator d.executioner
Type of Bailment (#'s correspond w/each category) Bailor's Specific Duty Bailor's Standard of Care Bailee's Negligence That Breaches Duty of Care
1.Sole benefit of bailor 2.Mutual benefit 3.Sole benefit of bailee 1.Warn of known defects and those that should be known 2.Warn of known defects and those that should be known 3.Warn of known defects 1.Slight care 2.Ordinary care 3.Extraordinary care 1.Extraordinary negligence 2.Ordinary negligence 3.Slight negligence
Issuer
A bailee who prepares the document of title
Application of the UCC-Article 2A applies to all leases regardless of the form used [2A-102].
A detailed discussion of Article 2A is beyond the scope of this book. Nevertheless, a brief explanation of why Article 2A is likely to be adopted widely is in order. Almost all states have adopted Article 2A.
Bill of lading
A document evidencing receipt of goods for shipment
Gift causa mortis
A gift made in anticipation of death (If the donor survives, the gift is revocable.)
Guardian
A person appointed by the court to look after the property rights and person of a minor
Administrator
A person to whom letters of administration have been issued by a probate court, giving such person authority to administer, manage, and close the estate of a person who died intestate
Testator
A person who has died leaving a will
Warehouse receipt
An acknowledgement issued by a person engaged in the business of storing goods for hire [1-201(45)]
Fixture
An item of personal property that has become attached to land and is treated as real property
Chattel
Another name for personal property
Acquiring Title to Personal Property - Methods of Transfer
As a general rule, a transferee of personal property receives the rights of the transferor, and a transferee takes no better title than the transferor had. An innocent purchaser from a thief obtains no title to the property purchased, and no subsequent purchaser stands in any better position. Because the thief had no title or ownership, persons who acquired the property from or through the thief have no title or ownership. Title to personal property may be transferred by sale, gift, or will
Fixture
As an item of personal property that has become attached or annexed to real estate, a fixture generally is treated as part of the real estate (Dishwasher bought at store-personal property ~ Dishwasher built into cabinets - typically real estate) - personal property added to land
Ben let Ann borrow his car for a job interview. Ann will return the car and owes Ben nothing but thanks for the use of the car. This is an example of a bailment for the benefit of the bailor.
Ben let Ann borrow his car for a job interview. Ann will return the car and owes Ben nothing but thanks for the use of the car. This is an example of a bailment for the benefit of the bailor.
Intestate
Condition where a person dies without a valid will
Reasons for Distinguishing Between Real and Personal Property
Conflict of Laws Principles Transfer of Property Taxes
Bailment
Delivery of personal property to another for a special purpose (Delivery is made under a contract, either expressed or implied; upon completion of the special purpose, the property shall be redelivered to the bailor or placed at his/her disposal.)
Innkeepers as Bailees-Under common law, an innkeeper was an insurer of the safety of the goods of its guests.
Exceptions to this general rule relieved the innkeeper from liability for loss caused by an act of God, a public enemy, an act of public authority, the inherent nature of the property, or the fault of the guest.
Two general rules should be kept in mind concerning inter vivos gifts.
First, an executory promise to make a gift is not enforceable because the donee typically has not given consideration to support the donor's promise. Second, the donor cannot rescind an executed or completed gift. This latter general rule is subject to one important exception. (Gifts causa mortis)
intestate laws of two or more states may have to be used in settling the estate of a person who dies without a will.
For example, when real estate is a part of the deceased's estate, the appropriate intestate statute is that of the state in which the land is located. When personal property is to be distributed, the law of the deceased's domicile is generally in control.
Inter vivos gift
Gift made during life
Gift causa mortis
Gift made in anticipation of death
When the owner of property dies, how the transfer of title is accomplished may depend on whether the owner had a will.
If no will is found, ownership of real property typically passes to a court-appointed administrator who determines who is entitled to the real property under the terms of the state law. Title to personal property generally passes directly to the heirs of the deceased owner. A valid will can simplify this need to distinguish between real and personal property.
Taxes
In many states, systems for taxing real estate are different from those for taxing personal property. Property taxes on real estate are significant in every state, while personal property taxes often are less significant. Typical of the issues that may arise are those relating to mobile homes. Is a mobile home that is placed on a foundation real estate and thus subject to real estate taxation, or is it personal property?
A common carrier is an absolute insurer of the safe delivery of the goods to their destination under common law.
Modern courts, however, have moved away from the notion that a common carrier is an absolute insurer, as illustrated in Case 10.2. Proof of delivery to a carrier of a shipment in good condition and its arrival at the destination in a damaged condition create a prima facie case against the carrier.
Testamentary capacity refers to the ability of a person to make a valid will.
Most states have both an age requirement (usually 18 years old) and a mental capacity requirement.
Common carrier
One who is engaged in the business of transporting personal property from one place to another for compensation (Such a person is bound to carry for all that tender their goods and the price for transportation. A common carrier operates as a public utility and is subject to state and federal regulations.)
Common carrier
One who transports personal property
Testator
Person who dies with a valid will
Personal Property
Personal property may be classified as tangible or intangible. The term tangible personal property includes objects such as goods. The term intangible personal property refers to things such as accounts receivable, goodwill, patents, and trademarks. Intangible personal property has value, just as tangible property has, and each can be transferred.
Testamentary capacity
Persons are said to have testamentary capacity when they understand the nature of their business and the value of their property, know those persons who are natural objects of their bounty, and comprehend the manner in which they have provided for the distribution of their property
prima facie
Prima facie may be used as an adjective meaning "sufficient to establish a fact or raise a presumption unless disproved or rebutted." the bailee promises to return the property to the bailor undamaged upon termination of the bailment. This promise can be used to create a prima facie case of negligence.
Abandoned Property
Property that has been discarded by the owner, who has no intention of reclaiming it.
Tangible
Property that is physical in character and capable of being moved
Intangible
Something that represents value but has no physical nature
Fixture issues also arise under Article 9 of the Uniform Commercial Code in disputes between secured creditors and persons with an interest in the land.
The UCC provides that no security interest exists in goods incorporated into a structure in the manner of lumber, bricks, tile, cement, glass, metalwork, and the like. A party with a security interest in such goods loses that interest when the goods are incorporated into the real estate.
Documents of title may be negotiable or nonnegotiable.
The concept of negotiability for a document of title is similar to that of negotiability discussed in connection with commercial paper. The holder of a negotiable document is in a much more favorable position than he/she would be with a nonnegotiable document. The holder of a negotiable document obtains the direct obligation of the issuer to hold or deliver the goods free from most defenses and claims. In essence, the holder is so well protected that he/she can almost regard the document as the equivalent of the goods it represents.
In general, only two people are required to accomplish an inter vivos gift:
The donor is the party making the gift, and the donee is the one receiving or acquiring title to the property.
Will
The formal instrument by which a person makes disposition of his/her property to take effect on his/her death
Ademption is the act of revoking a gift mentioned in a will by destruction, or selling or giving away the gift before death. It is the failure of bequest of property in a will.
The gift is adeemed when property mentioned in a will cannot be given to the beneficiary.
Real property
The legal interests in land and things attached to or growing on land
The owner of the goods is called the bailor.
The one receiving possession is called the bailee.
Consignee
The person named in a bill of lading as the one to whom delivery is to be made
Consignor
The person named in a bill of lading as the person from whom the goods have been received for shipment
Executor
The person whom the testator names or appoints to administer his/her estate on his/her death and to dispose of it according to the testator's intention
Property is said to be abandoned whenever the true owner, who at that time has no intention of reclaiming it, discards it.
The property belongs to the first person who asserts possession over personal property that has been abandoned.
Most states have enacted statutes pertaining to the liability of hotel or motel operators. These statutes usually provide that if the operator appropriately notifies guests that a safe or lockbox is maintained for their use, there is no liability if guests' property is stolen from their rooms.
The requirement that notice of the availability of the safe be given with notice of the liability limitation is usually strictly enforced. Some states also have laws that limit the maximum liability of hotel and motel operators to a stated amount, such as $500. Others have changed the liability from that of an insurer to that of a bailee of a mutual benefit bailment (ordinary care as the duty). In all states, the liability of the innkeeper is limited to the value of the property. There is no liability for consequential damages that may flow from the loss of the property.
Personal property
The rights, powers, and privileges a person has in things that are not real property
Intestate succession
The transfer by operation of law of all assets of a deceased person to those who are entitled to them
Documents of title can serve a dual function.
They may serve as receipts for goods stored or shipped, and they may be representative of the goods. In the representative capacity, they are most useful in financing commercial transactions.
Property is lost whenever, as a result of negligence, accident, or some other cause, it is found at some place other than that chosen by the owner.
Title to lost property continues to rest with the true owner. However, until this owner has been ascertained, the finder may keep the property found. The finder's title is good against everyone except the true owner. The rights of the finder are superior to those of the person in charge of the property on which the lost article is found, unless the finder is a trespasser.
case example of inter vivos gift
United States v. Thirty-One Thousand Dollars in United States Currency, 2012 U.S. Dist. LEXIS 157019 (United States District Court for the Eastern District of Michigan, 2012).
Conflict of Laws Principles
When property becomes involved in a multiple-state transaction, the law that governs the property rights may depend on whether that property is real or personal. Sorting out which state's laws are applicable may be determined by the conflict of laws principle. As a general rule, conflict of laws principles provide that the law of the situs, that is the law of the state where real property is located—determines all legal questions concerning real property. The law of the situs of the personal property is also used to resolve some legal issues. Therefore, the description of property as real or personal has a significant impact on the determination of the body of substantive law used to decide legal issues concerning the property.
Conditional gift
Where a transfer of personal property is made contingent on a potential donee doing an act or refraining from doing an act; no gift occurs until the contingency is satisfied example given-engagement ring, if no marriage ring giver gets ring back
property "a bundle of rights"
While most people tend to think of property as a thing owned or possessed by someone, this is not the way the law thinks of and analyzes property. In the law, property is thought of as "a bundle of rights" that one or more persons may have with respect to a thing. These rights may include the right to physically control the thing (possession); the right to transfer the thing to another by sale, gift, or will; or even the right to destroy it. The bundle of rights concept means that property is a series of legal relationships in which some people have rights and all others have duties that are negative in character. For example, each of us has a duty not to interfere with another's use and enjoyment of his/her property.
When transferring gifts inter vivos, what element is considered to be the most important?
a. Intent to make the gift b. Acceptance of the gift (c. Delivery of the gift) d. Relationship of the parties
Chattels real describes which of the following?
a. Interest in right of possession b. Interest in intangible property c. Interest in movable property (d. Interest in land)
"Place, situation" refers to which personal property doctrine?
a. Jurisdiction (b. Situs) c. Locale d. Residence
A mislaid iPad found on a table at a coffeehouse, is considered to be which of the following?
a. Owned by the finder (b. Still owned by the true owner) c. Owned by the diner d. Stolen property
A check or note that requires an endorsement to obtain money is an example of a _________.
a. chattel real (b. chose in action) c. situs in action d. transfer of property
In her will, Marie left her daughter $10,000. This gift is classified as a ______.
a.devise b.bequest (c.legacy) d.remainder trust
When the term chattel is used in connection with intangible personal property, the property is referred to as
chattels personal in action. A chattel personal in action, or chose in action as it is frequently called, is something to which one has a right to possession but concerning which one may be required to bring some legal action, ultimately, to enjoy possession.
A gift by will of real estate is usually called a _____
devise
A testamentary gift is one that is
effective only at the owner's death.
The personal representative of a testator is an ________.
executor
Bearer and order documents are negotiated in the same way.
false
A person who dies without leaving a valid will dies ________________.
intestate. When a person dies intestate, the state law provides how the deceased's property will be distributed. In this sense, a state's intestate succession law acts as an alternative to a will.
A finance lease, like those used in most automobile transactions,
involves a lessor that does not select, manufacture, or supply the goods [2A-103(l)(g)].
A guardian
is the personal representative in charge of the well-being of a minor's person or property or both.
a gift of money is referred to as a _______.
legacy
chattels personal is applied to
movable personal property.
A fixture is
personal property that has become a part of real estate.
Classifications of Property
real property or personal property
Devises, bequests, and legacies are further classified as
specific, general, or residuary.
A person who dies leaving a valid will is said to die _______
testate.
A lease is a
transfer of the right of possession and use of goods for a term in return for consideration [2A-103(1)(j)].
A document of TITLE provides evidence that the person holding it is entitled to receive the goods it covers.
true
Whether personal property that is installed in real property becomes a fixture will impact the value of the real property.
true
real property is
used to describe the legal rights that a person can have in real estate. For instance, the ownership interest a person may have in land and its improvements is classified as a real property interest. Because the distinction between real property and real estate is a subtle one, the text and cases included in this book use the terms as synonyms.
The word owner
usually describes someone who possesses all the rights or interest associated with the thing involved.
The three most important areas of the law of real property concern
(1) ownership interests, (2) methods of acquiring title, and (3) transactions.
There are three distinct requirements for a bailment:
(1) retention of title by the bailor, (2) possession and temporary control of the property by the bailee, and (3) ultimate possession to revert to the bailor or to someone designated by the bailor.
The law requires that three elements be satisfied to have a valid inter vivos gift:
(1) the donor's intent to make a gift, (2) delivery of possession by the donor, and (3) acceptance of the gift by the donee. From a legal standpoint, the element of delivery usually is most important.
A trucking company must issue a bill of lading for proof of what?
(a.Goods were received and accepted.) b.Goods will be delivered. c.Goods will be transferred. d.Payment upon receipt of goods.
Tom is expecting a package from IBC Delivery. Tom is a ______.
(a.consignee) b.consignor c.negotiator d.warehouse receiver
Transactions that involve the transfer of the right of possession and use of goods for a term, in return for consideration, and are covered by UCC Article 2A, are known as _______.
(a.leases) b.finance agreements c.sales of goods d.temporary sales
A specific gift is a gift of particular property described to identify and distinguish it from all other parts of the deceased's property.
(devise, bequest, or legacy) true
Article 2A-Several observations about this definition can be made.
First, a gratuitous bailment is not covered by Article 2A. Second, the word goods here basically has the same meaning as in Article 2—that is, items of movable personal property and fixtures. Third, sales on approval and sales on return transactions are not covered; they remain subject to Sections 2-326 and 2-327. Finally, the creation of a security interest in personal property is governed by Article 9 and is not to be confused with the Article 2A provisions on leases.
Bailment
Grant of temporary possession of personal property- an act of delivering goods to a bailee for a particular purpose, without transfer of ownership.
Mislaid property
Held by the owner of the real estate on which it is found, subject to the true owner's claims
To constitute a bailment for mutual benefit, it is not essential that the bailee actually receive compensation in money or tangible property.
If the bailment is an incident of the business in which the bailee makes a profit or if it was accepted because of benefits expected to accrue, it is a mutual benefit bailment.
Why Lease?
Lease financing is a popular approach to securing the use of equipment because it limits expenditures that a business must employ for capital improvements. Instead of paying the full price to purchase the equipment, the business owner makes period payments to lease the equipment. There are three parties to the transaction: (1) the supplier of the equipment, (2) the lessor, and (3) the lessee. The lessee selects the equipment from the supplier. The lessor then purchases the equipment and leases it to the lessee. A finance lease is subject to provisions of the UCC. Due to the limited role that a lessor plays in a finance lease and the important role that such transactions play in our economy, Article 2A offers special statutory protection to lessors who lease goods in this manner. As noted in the comments to the UCC, the various sections of Article 2A operate to "substitute the supplier of the goods for the lessor as the party responsible for warranties and the like." For example, Section 2A-209 automatically extends the seller's warranties (and their exclusions) to the lessee and automatically excludes any implied warranties of fitness or merchantability by the lessor. The impact of the Code provisions are considerable and favor the lessor by making the lessee's obligations (including payment obligations) irrevocable and independent of the lessor's or supplier's obligations. So, once a lessee accepts the property from the supplier under a finance lease, the lessee is obligated to perform regardless of whether the equipment performs as required. Source: Uniform Commercial Code, Article 2A.
The finder of lost property has superior rights to the property to everyone including the owner.
The finder of lost property has superior rights to the property to everyone including the owner.
Real property does NOT include ________.
a. land (b. personal property) c. fences d. things attached to land
Once a dishwasher has been installed into a house, it is considered _______.
a. personal property b. an intangible good c. chose in action (d. A fixture)
Which of the following would be classified as a fixture?
a.A copyright b.A big box store c.A collection of rare coins (d.Shelving installed in a store)
Whether personal property that is attached to real estate is considered a fixture has all EXCEPT which of the following impacts?
a.A fixture is included in the value of the real property for tax purposes. b.A fixture will transfer with the real property. (c.A fixture is not a part of the security covered by a mortgage.) d.A fixture belongs to the landlord and not the tenant, even if the tenant installed it.
Testamentary capacity does NOT require which of the following?
a.A minimum age b.Sufficient mental capacity c.The understanding that a will is being created (d.Sufficient assets)
If a person dies without a will, the court will appoint which of the following to oversee the estate?
a.A testator b.A guardian (c.An administrator) d.An executor
Which of the following is NOT an exception to the absolute liability of common carriers for the goods in their possession?
a.Action of an alien enemy b.Nature of the goods c.Misconduct of the shipper (d.Failure of equipment)
What is a gift that is made in contemplation of death?
a.An inter vivos gift b.A devise c.A testamentary gift d.A gift causa mortis
Which article of the UCC applies to leases of personal property?
a.Article 2 (b.Article 2A) c.Article 4 d.Article 9
Goods that are destroyed by an alien enemy during transit are the responsibility of which of the following?
a.Carrier (b.Shipper) c.The shipper and the carrier share the loss d.Public enemy
What is the responsibility of the testator?
a.Closing the will b.Overseeing the will c.Distributing a will (d.Making out a will)
What is an agreement to temporarily transfer possession of personal property from one person to another?
a.Conditional gift b.Bill of lading c.Good faith transfer (d.Bailment)
Jack has a new car, for which he will make payments of $250 a month for two years. After two years, Jack will return the car to the original owner. This is an example of which of the following?
a.Conditional ownership b.Conditional gift c.Inter vivos gift (d.Lease)
The person who prepares the document of title is the ______.
a.Consignor b.Assignor (c.Issuer) d.Consignee
Inter vivos gifts must include which of the following?
a.Contingency b.Donee complies with the condition (c.Delivery of the gift) d.Title is transferred
Gifts causa mortis include which of the following?
a.Contingent action by the donee b.The donor is deceased. (c.The gift is revocable.) d.The gift is not revocable.
A document must contain which words to be considered negotiable?
a.Delivery upon receipt. b.Payment received (c.Words of negotiability) d.Transferrable delivery
The motel where Gerry stays on vacation offers its guests a lockbox for valuables. The motel will NOT be liable if which of the following is true?
a.Gerry uses the lockbox and her goods are stolen by a motel employee. (b.The motel posts notice that the lockbox is available and Gerry does not use the lockbox.) c.The motel does not post notice that the lockbox is available and Gerry does not use the lockbox. d.Gerry's car is broken into after she checks out.
Presenting a woman with an engagement ring in anticipation of marriage is considered which type of gift?
a.Testamentary gifts b.Inter vivos gifts (c.Conditional gifts) d.Causa mortis
If Herman finds a backpack in the library, and it is simply mislaid, who owns the backpack?
a.The library b.Jake (c.The original owner) d.The school
Rights in a piece of real property include rights in which of the following?
a.The personal property in the house (b.Minerals below the surface of the land) c.Previous owners' personal property d.Adjacent land
Giving a watch to a jeweler for repair is an example of which of the following?
a.Transfer of goods b.Conditional gift (c.Bailment) d.Bill of lading
Marina took her car to Carmine's service shop so that Carmine could replace the battery and leaky gas tank. This is an example of bailment for ______, and Carmine will be liable for ______ should he not practice the correct duty of care.
a.benefit of the bailee; gross negligence b.mutual benefit; gross negligence (c.mutual benefit; negligence) d.benefit of the bailor; negligence
A gift of money in a will is a ______.
a.devise b.bequest (c.legacy) d.remainder trust
Veronica received a large sum of money from her parents will. This gift to Veronica is called a ______.
a.devise b.bequest (c.legacy) d.residuary gift
If a testator leaves specific property in the will, but then sells the property shortly before death, the gift is considered __________.
a.forfeited b.residuary (c.adeemed) d.a bequest
A person who dies without a will dies ______ and the estate is managed by an ______.
a.intestate; executor b.testate; executor (c.intestate; administrator) d.testate; administrator
Joseph allowed Mary to borrow his car while Mary's car was being repaired. This is an example of a bailment for ______, and Mary must exercise ______ care while the car is in his possession.
a.mutual benefit; extraordinary b.the benefit of the bailor; ordinary (c.the benefit of the bailee; extraordinary) d.the benefit of the assignee; slight
A person who dies without a will dies ______ and the property of the estate will be distributed according to ______ statutes.
a.testate; residuary property b.testate; intestate succession (c.intestate; intestate succession) d.intestate; causa mortis
The personal representative of a person who dies intestate is called the ______.
a.trustee b.lawyer c.guardian (d.administrator)
If the testator, at death, does not own property described in a specific gift, the gift fails or is said to be _____.
adeemed
The personal representative of a person who dies intestate is called __________ .
an administrator. This personal representative (whether an executor or an administrator) is in charge of gathering the deceased's assets, paying the lawful debts, and distributing the assets to the appropriate persons.
Chattels real describes
an interest in land, such as a leasehold;
A consumer lease occurs
anytime the lessee is an individual who enters into the lease primarily for a personal, family, or household purpose [2A-103(1)(e)].
An agreement whereby the owner surrenders possession of personal property with provision for its return at a later time is known as a
bailment
a gift of personal property other than money is called a _____
bequest
The term chattel is used to describe personal property generally, .
but chattels may also be classified as chattels real and chattels personal
Ordinary care is defined as
care that the average individual usually exercises over his/her own property.
A _________ may be appointed when the care of a mentally incompetent adult is involved. Some states use the term guardian as well.
conservator
A will is a document that
expresses a person's intention as to the disposition of his/her property on death. It also serves several additional functions. It designates the personal representative who is to be responsible for settling the affairs of the deceased. A will may make provision for the appointment of a guardian or guardians of the person and the estate of a minor child.
A bill of lading that states goods are transferred to another person is negotiable.
false
A common carrier's truck was stolen by a member of a foreign terror cell and used to run over a local sidewalk café. The carrier is still liable for the loss of the goods.
false
A document evidencing receipt of goods for shipment is a common carrier certificate.
false
A document of lading provides evidence that the person holding it is entitled to receive the goods it covers.
false
An owner of real property has unlimited rights to the spaces below and above the property.
false
Chang borrowed Kim's Business Law textbook to study for an exam, but left the book at his brother's the weekend before the exam. Chang is NOT liable for the value of the book.
false
Gifts that are left to relatives and friends in wills are inter vivos gifts.
false
If a person is not able to sign the will, and someone else signs the will in his or her presence and on his or her behalf, the will can be contested.
false
If the purchaser is NOT aware they purchased stolen goods, the purchaser is still considered to have good title to the goods.
false
Intangible gifts are NOT considered personal property that can be transferred.
false
Patents, as an intangible personal property, do not have value, and therefore, CANNOT be transferred.
false
The motel where Gerry stayed on vacation offered its guests a lockbox for valuables. The motel will be liable if Gerry loses her sunglasses by the swimming pool.
false
UCC Article 2 covers leases of goods.
false (correct answer is 2A)
In leasing equipment, the lessee purchases the equipment from a supplier, then leases it to the lessor.
false ( correct answer would be other way around)
Ben let Ann borrow his car for a job interview. Ann will return the car and owes Ben nothing but thanks for the use of the car. This is an example of a bailment for the benefit of the bailor.
false (bailee benefit)
personal property added to land
fixtures
A ______ gift is one that does not describe any particular property, and it may be satisfied by delivery of any property of the general kind described.
general
A gift of a specified sum of money is a ______ legacy.
general
The phrase inter vivos refers to
gifts made voluntarily during the life of the party transferring title.
Property is mislaid or misplaced if
its owner has intentionally placed it at a certain spot, but the manner of placement indicates that he/she has forgotten to pick it up. The presumption is that the owner will eventually remember where he/she left it and return for it. The finder must turn it over to the owner of the premises, who may hold it until the owner is located.
The word title
often is thought to be synonymous with ownership, but it is also used to signify the method by which ownership is acquired, such as a transfer of title. It may also be used to indicate the evidence by which ownership is established—a written instrument called a title, such as a car title. Thus, the word title has a variety of meanings, depending on the context.
Uniform Commercial Code -temporary transfer of possession of personal property (bailment)
perform some service pertaining to the goods, such as a repair, after which the goods are returned to the owner; someone may also borrow or lease an article from its owner. Another temporary transfer of possession occurs when the owner causes the goods to be stored in a warehouse.
real estate refers to the
physical aspects of land and its attachments. For example, the dirt on the land is real estate, as are any actual improvements, such as buildings, roads, fences, and landscaping. Also included in the definition of real estate are the spaces above and below the land's surface. Included in these spaces are mineral, water, and air rights. Historically, real estate included unlimited subsurface (mineral rights) and air rights. Today, these rights are limited to a reasonable distance.
Possession implies the concept of
physical control by a person over property and the personal and mental relationship to it. Possession describes not only physical control but also the power to obtain physical control by legal sanctions, if necessary. In general, the concepts of possession and title should be kept separate and distinct. In other words, having possession of property does not mean the possessor also has title. The reverse is also true—a person who has title to property does not always have possession of that property. For example, a landlord of an apartment building owns (has title to) each unit; the tenants have physical control (possession) of the premises.
A _____ gift is one that includes all the property not included in the specific or general devises, bequests, or legacies.
residuary
Abandoned property
status-Owner intentionally parted with property with intent to relinquish ownership rights. rights of finder-Acquires ownership rights in the property. rights of owner-None
Mislaid property
status-Owner intentionally placed personal property in a specific place but has forgotten where it was placed. None. rights of finder-The finder must not keep possession; rather, the property must be turned over to the owner of the real property where the property was found. The owner of the real property must hold it for the owner. rights of owner-Owns the personal property; has the right to have the owner of the real property where the property was found return the personal property.
Lost property
status-Owner unintentionally parted with possession of the personal property. rights of finder-Has rights to the personal property against everyone, except the owner. rights of owner-Owns the personal property; has the right to have the finder return the property.
Transfer of Property
the distinction between real and personal property is significant because the methods of transferring them are substantially different. Formal instruments such as deeds are required to transfer an interest in land, whereas few formalities are required in the case of personal property. A bill of sale may be used in selling personal property; however, it is not generally required, and it does not, in any event, involve the technicalities of a deed. The transfer of personal property is, as a rule, quite simply accomplished (a motor vehicle transfer may require the delivery of a certificate of title), whereas formality is required to transfer real property.
A good faith purchaser can receive good title to goods.
true
A person who dies without a will is said to have died intestate.
true
A will generally will NOT be set aside merely because the testator did NOT sign it him or herself.
true
An order document is negotiated by endorsement and delivery; a bearer document is negotiated by its possession.
true
An owner of real property has rights to the spaces below and above the property within a reasonable distance.
true
Any property that is NOT real property is considered personal property.
true
Ben borrowed Ann's Business Law textbook. He practiced ordinary care in protecting the book, but the textbook was ruined in a downpour. Ben is still liable for the value of the book.
true
Bill left his automobile at the Honda dealership to be repaired. This is considered a type of bailment.
true
Different procedures are used to transfer real property and personal property.
true
Exceptions to the rule that a common carrier has absolute liability for the loss of goods includes an act of God or the misconduct of the shipper.
true
Gifts that are left to relatives and friends in wills are NOT examples of causa mortis gifts.
true
Hotels that provide a safe or lockbox for use by guests will generally NOT be liable for stolen property if the guests fail to use the safe.
true
Lost property that is intentionally left at one location and found by someone else is now considered owned by the person who found the property.
true
Minimum capacity is required to understand the nature and extent of the making of a will.
true
Provided that the bailee has exercised proper care, any loss or damage to the property bailed falls on the bailor.
true
The amount of care demanded of a bailee varies with the nature and value of the article bailed.
true
The distinctions between abandoned, lost, and mislaid property are subtle and frequently litigated
true
The law that applies to a specific piece of real property is determined by the situs of the property.
true
The legal terms real property and real estate are very similar and frequently confused.
true
The person appointed by a court to act as a personal representative for an intestate estate is called the administrator.
true
The value of real property can be increased by installing personal property that becomes fixtures.
true
When new countertops are installed in a home, the countertops become fixtures of the residence.
true
When new shelving is installed in a store, the shelving becomes a fixture of the store.
true