BUS 303 Ch. 48

A _____ of personal property is a relationship that arises when one party transfers possession of personality to another to be used in an agreed-on manner for an agreed-on time period. A. Bailment B. Transfer C. Loan D. Lease

A

Frank was having minor surgery to repair a bone spur on his foot. He had a lottery ticket for a chance at the grand prize of $30,000,000 and a separate list of the numbers. Frank's girlfriend, Bubbles, went with him to the hospital. While in the waiting room, Frank said to her, "Bubbles, I may not make it out of this bone spur surgery. Take my lottery ticket. If I don't make it, I hope you win and live it up; but please don't get another boyfriend." Bubbles replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Frank came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Bubbles watched the lottery drawing and discovered that Frank's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Frank saw her on television with her new boyfriend, George. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Frank says that the lottery money is his. Which of the following describes the statement Frank made to Bubbles prior to surgery regarding the lottery ticket? A. A gift causa mortis. B. A gift inter vivos. C. A gift inter mortis. D. It was meaningless because of the condition of death placed on the gift.

A

When does title to property pass? A. When the parties intend. B. When a contract is made. C. When physical possession is obtained. D. Twenty-four hours after possession is obtained.

A

Which of the following is a type of property that can be touched? A. Tangible B. Manifest C. Substantive D. Physical

A

Which of the following is false regarding ways in which people may acquire title to property? A. If a person creates a piece of property for himself or herself, then he or she owns that property only so long as it is registered through either the patent or copyright process. B. When a person is paid to create property for someone else, the property is owned by the person who paid for its creation. C. A means of acquiring ownership is by court order. D. A person may acquire ownership through confusion

A

Which of the following is not a duty of a bailee? A. The bailee must at his or her own expense maintain the property. B. The bailee must take reasonable care of the bailed property. C. The bailee must use the bailed property only as stipulated in the bailment agreement. D. The bailee must not alter the bailed property in any unauthorized manner.

A

Which of the following is true regarding rightful ownership of the lottery money? A. Frank's gift was automatically revoked when he recovered, and the lottery ticket and any proceeds are validly his. p. 1067 B. Although the gift was not automatically revoked on his recovery, Frank has the right to revoke the gift and recover the lottery proceeds. C. The gift was not automatically revoked on his recovery; and since Frank did not revoke the gift prior to Bubbles cashing the ticket, he has no rights to any funds. D. Frank has no rights because once he gave the tickets to Bubbles, he gave up all his rights to them.

A

Bank accounts, stocks, and insurance policies are examples of which of the following types of property? A. Tangible B. Intangible C. Substantive D. Unsubstantive

B

Contracts that are drafted so that one person's obligations under the contract do not arise until the happening of a certain event are called ______ contracts. A. Invalid B. Conditional C. Preventable D. Temporary

B

What fundamental duty or duties does the bailor have toward the bailee in a bailment for consideration that is for the mutual benefit of both parties? A. Only the duty of compensation and reimbursement. B. The duty of compensation and reimbursement, and the duty to warn the bailee of known defects or any that could have been discovered through reasonable investigation. C. Only the duty to provide the bailee with property free from hidden defects that could harm the bailee. D. The duty of compensation and reimbursement, the duty to provide the bailee with property free from hidden defects that could harm the bailee, and the duty to keep accurate records of the transaction.

B

Which of the following is a set of rights and interests in relation to others with reference to a tangible or intangible object? A. Interests B. Property C. Transfers D. Business

B

Which of the following is movable property that is not attached to land? A. Real B. Personal C. Valued D. Appraised

B

Which of the following is true if a bailment is intended to benefit only the bailor? A. The bailee is liable for harm to the bailed property arising out of either the bailee's ordinary or gross negligence. B. The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence only. C. The bailee is liable for harm to the bailed property caused by even the slightest lack of due care on the part of the bailee. D. The bailee is strictly liable for harm to the bailed property.

B

Which of the following is true regarding lost property? A. In most states the finder of lost property has title to the lost goods against all including the person who lost the property. B. In most states the finder of lost property has title to the lost goods against all except the person who lost the property. C. In most states the finder of lost property has no title to the lost goods because the good is to be turned over to the police department for later sale if the true owner cannot be located. D. In all states the finder of property has an obligation to put a notice in the local paper looking for the true owner before the finder of the property can claim ownership.

B

Which of the following was the result in the case referenced in the "Case Nugget," Ziva Jewelry Inc., v. Car Wash Headquarters Inc., in which the plaintiff left his car and keys with a car wash employee and a thief drove off with the car abandoning it unharmed after stealing jewelry valued at over $800,000 from the car's trunk? A. That the car wash was liable to the plaintiff because the car wash accepted responsibility as a bailee. B. That the car wash was not liable to the plaintiff because the car wash employees had no notice they were taking responsibility for so much jewelry. C. That the car wash and the plaintiff would be required to split the loss. D. That the car wash was liable to the plaintiff for the loss because the car wash had not issued a valid disclaimer.

B

Bernice enjoys snooping, particularly through her neighbor's trash. She sneaks out and grabs the neighbor's trash after they have gone to work but before the trash collector comes. She goes through it to find out confidential information regarding the neighbors but never tells anyone else or uses the information for any purpose. Can Bernice become the legal owner of this property; and, why or why not? Discuss whether you believe it is ethical for Bernice to go through the neighbor's trash, and why or why not.

Bernice can become the owner because the property has been discarded and abandoned. Anyone finding such property becomes its owner by possessing it. Student answers may vary on the ethical issue. Most students will likely believe that it is unethical to go through the trash of a neighbor even if the information is not used for any improper purpose. p. 1071

Which of the following is not a right of a bailee? A. The right to possess the bailed property during the term of the bailment. B. The right to use the property in a manner consistent with the terms and purpose of the bailment. C. The right to alter the property in order to accomplish the reason for which the bailment was entered into. D. The right to retain the bailed property until payment is received.

C

Which of the following was the result in Campbell v. Robinson, the case in the text in which the plaintiff claimed that the defendant wrongfully refused to return an engagement ring when the marriage was cancelled? A. That the defendant was entitled to keep the ring because the termination of the engagement was the plaintiff's fault. B. That the defendant was entitled to keep the ring because it was a completed gift when she initially received it. C. That a jury question was presented as to whether the plaintiff made an absolute gift of the ring to the defendant after the termination of the engagement. D. That because the termination of the engagement was the defendant's fault, she was required to return the ring.

C

Cindy sold her old used automobile to Bruce for $1,000. Cindy told Bruce to come and take the car and that the transfer would be complete. Is Cindy correct, and why or why not?

Cindy is incorrect because in order to transfer a vehicle, a certificate of title must be signed by the seller, taken to the appropriate government agency, and then reissued in the name of the new owner. p. 1065

Property that the original owner has discarded is ______ property. A. Mislaid B. Terminated C. Discarded D. Abandoned

D

Which of the following is a type of document of title issued by a person engaged in the business of transporting goods that verifies receipt of goods for shipment? A. Warehouse receipt B. Delivery order C. Receipt order D. Bill of lading

D

Which of the following is property that is initially movable but then becomes attached to land? A. Appliances B. Appurtenances C. Equipment D. Fixtures

D

Which of the following is the applicable standard used in determining the liability of a common carrier when harm befalls property that is the subject of a bailment placed in the care of the carrier? A. The carrier is liable only if ordinary or gross negligence can be proven. B. The carrier is liable only if gross negligence can be proven. C. The carrier is liable only if it can be proven that the carrier acted in a reckless manner. D. The carrier is generally strictly liable for harm to the bailed property.

D

Lost property legally has the same status as mislaid property. True False

F

A person who finds abandoned property becomes its owner. True False

T

Ownership of property is referred to as "title." True False

T

Parties to a bailment contract can limit or expand the liability of the bailee by contract. True False

T

Some states allow innkeepers to avoid strict liability for their guests' personal property by providing them with a safe in which they may keep their valuables. True False

T

Unless a bailment is gratuitous, the bailee has the right to be compensated in accordance with the terms of the bailment. True False

T

When property is sold pursuant to a bailee's lien, the proceeds are first used to pay the bailee and to cover the costs of the sale, and then remaining proceeds go to the bailor. True False

T