Business Law Ch.29: Personal Property & Bailments

Common Carriers

-"insurers" of all goods accepted for shipment -carrier that holds itself out to the general public to provide transportation for compensation -cannot turn away people who ask for their services -LIABLE as insurers regardless of whether they have been negligent

Lien

-a claim that one has against the property of another -innkeepers have this on their guests' property -if a guest cannot pay the bill ⇒ innkeeper is permitted to take possession of the guest's property as security for payment at some later date

Gift in Causa Mortis

-a gift given during one's lifetime, in contemplation of death from a KNOWN cause -ineffective if the donor does not die as expected or if death is caused by circumstances other than those feared

Bailments for the Sole Benefit of the Bailor

-a gratuitous bailment -when possession of personal property is transferred to another for purposes that will benefit only the bailor -bailee owes a duty to use slight care -bailee only required to refrain from gross negligence -bailor has a duty to reimburse the bailee -bailee has no implied right to use the bailor's property

Bailment for the Sole Benefit of the Bailee

-a gratuitous bailment -when the possession of personal property is transferred for purposes that will benefit only the bailee -bailee is required to use great care -bailee is responsible for slight negligence -bailee has the right to use the property for the purposes for which the bailment was created

Consignment Contract

-a type of mutual benefit bailment in which the consignor entrusts goods to the consignee for the purpose of selling them -if the goods are sold → the consignee will forward the proceeds to the consigner -if the goods are not sold → they will be returned

Carriers

-businesses that undertake to transport persons, goods, or both

Credit Card Blocking

-common method used by hotels to secure payment for a room

Personal Property

-everything that can be owned other than real estate -divided into tangible & intangible

Chose in Action

-evidence of the right to property but not the property itself

Anatomical Gifts

-gifts of human body parts -can't designate body parts to go to certain person

Transient

-guest whose length of stay is variable

Stolen Property

-having possession of this type of property does not mean you also have "good title" -can never be transferred into "good title"

Community property

-property (EXCEPT A GIFT OR INHERITANCE) that is acquired by the personal efforts of either spouse during marriage -by law belongs to both spouses equally

Gratuitous Bailment

-property is transferred to another person without either party giving or asking for payment of any kind -lack consideration -may be rescinded at any time -bailments for the sole benefit of the bailor AND bailments for the sole benefit of the bailee

Abandoned Property

-property that has been discarded by the owner without the intent to reclaim ownership of it -hardest argument to make -anyone who finds this property has the right to keep it & obtains good title to it

Tangible Personal Property (Chattels)

-property that has substance & can be touched -moveable -includes animals & crops

Intangible Personal Property (Chose in Action)

-property that is not perceptible to the senses & cannot be touched

Mutual-Benefit Bailment

-results when personal property is transferred to a bailee with the intent that both parties will benefit -usually ordinary bailments involving business transactions -bailee owes a duty to use reasonable care -bailee is responsible for ordinary negligence -bailee must use the property ONLY for the express purposes permitted by the bailor

Conversion

-the civil wrong that arises when 1 unlawfully treats another's property as one's own

Ordinary Negligence

-the failure to use the care that a reasonable person would use under the same circumstances

Slight Negligence

-the failure to use the degree of care that persons of extraordinary prudence & foresight are accustomed to use

Donor

-the one giving the gift

Donee

-the one receiving the gift

Innkeeper

-the operator of a hotel, motel, or inn that holds itself out to the public as being ready to entertain travelers, strangers, & transient guests

Consignor

-the person in a consignment contract that entrusts goods to a person for the purpose of selling them

Consignee (factor)

-the person in a consignment contract that receives goods for the purpose of selling them

Bailee

-the person to whom the property is transferred in a bailment

Bailor

-the person who transfers the property in a bailment

Bailment

-the transfer of possession & control of personal property to another with the intent that the same property will be returned later -no intent to transfer title

Uniform Transfers to Minors Act

-under this procedure minors are assured that gifts to them will either be used for their benefit or made available to them when they become adults -usually held by custodian for benefit of child until 21

Joint Tenants (Joint tenants with the right of survivorship)

-when 2 or more people own personal property -each cotenant's share of the property passes to the surviving joint tenants upon death

Tenants in Common

-when 2 or more people own personal property -each cotenant's share of the property passes to his/her heirs upon death

Mutuum

-when an individual loans goods to another with the intention that the goods may be used & later replaced with an equal amount of different goods -NOT a bailment

Cotenancy

-when personal property is owned by more than 1 person

Severalty

-when personal property is owned solely by 1 person

Escheat

-when property, after a period of up to 20 years, has not been reclaimed → property reverts to the state & is said to __________.

intend, delivered, accept

3 requirements for a gift to be completed: 1. the donor must _______ to make a gift 2. the gift must be __________ to the donee 3. the donee must _______ the gift

T

A bailment does not occur when the person in possession of the property has no control over it. T/F

gift inter vivos

An absolute gift is also known as a...

factor

Consignees are also known as a...

joint tenants, joint tenants with right of survivorship, community property

Cotenancy includes (3):

God, enemy, authorities, shipper, nature

Exceptions to Common Carrier liability: 1. Acts of ___ 2. Acts of the public _____ 3. Acts of public _________ 4. Acts of the _____ 5. The inherent _______ of the goods

between the living

Gift inter vivos means...

Misplaced

If lost property is found on the counter of a store, on a table, in a restaurant or hotel, on a chair in a washroom, or in some similar public/semipublic place, it is considered to have been _____________.

T

If property is found on the floor or in the corridor or any other place that would indicate it was not placed there intentionally → the finder may keep the article while looking for the true owner. T/F

finder

If the finder of lost property has made an effort to locate the owner & has not been successful within a period specified by law → the property belongs to the ___________.

bailee

In a Bailment for the Sole Benefit of the Bailee, any ordinary & expected expense incurred in the use of another's property must be borne by the ___________.

great care

In a Bailment for the Sole Benefit of the Bailee, the bailee owes a duty to use ___________________.

slight care

In a Bailments for the Sole Benefit of the Bailor, the bailee owes a duty to use __________________.

F

In a bailment, title is intended to be transferred. T/F

reasonable care

In a mutual-benefit bailment, the bailee owes a duty to use __________________.

reasonable care, privacy, greater

Innkeeper's duty of care: -must use ________________ in protecting guests from harm -must respect guest's rights to _______ -___________ duty of care to guests' property than in a typical bailment

negligence, God, public enemy, fire, characteristics

Innkeepers are not liable as insurers in 4 situations: 1. losses caused by a guest's own _______________ 2. losses to the guest's property due to acts of __________ or acts of the __________________ 3. losses of property due to accidental _____ in which no negligence may be attributed to the hotelkeeper 4. losses arising out of __________________ of the property that cause its own deterioration

typical

Innkeepers are responsible for _________ items.

chose in action

Intangible personal property is also known as...

joint tenants with the right of survivorship

Joint tenants are also known as...

Gift Inter Vivos

Once all 3 requirements for a gift to be completed are met → the gift (can/cannot) be taken back by the donor -it is known as an absolute gift, or ___________________

T

Spouses can leave their 1/2 of the community property by will to whomever they choose. T/F

Chattels

Tangible personal property that is moveable is also called...

reasonable effort

The finder of lost property must make ____________________ to find owner.

F (must leave it with the proprietor/manager to hold for the owner)

The finder of misplaced property may keep possession of the article. T/F

conditional

The gift of an engagement ring is a _____________ gift.

burden of proof

When items in the possession of a bailee are damaged, lost, or stole, the ______________ is on the bailee to prove that it was not negligent.

Abandoned

When property is ____________ property, there is no intent of true owner to reclaim. Must show clear evidence of desertion.

Lost

When property is not place in a particular place intentionally, then it is considered _______ & does not need to be left with management.