Chapter 14: Nature of Personal Property
Dexter was the manager of Mel's Hotel. Jordan, a businessman who loved the services of Mel's Hotel, was a privileged customer of the hotel. He used the hotel for a business meeting and unknowingly left a check payable to one of his clients in the meeting room of the hotel. Dexter found the check and took possession of it. Which of the following is true?
A constructive bailment occurred when Dexter found the check and took possession of it. A constructive bailment arises when someone finds and takes possession of lost property. The owner does not actually deliver the property to the finder, but the law holds this to be a bailment.Review the section "Delivery and Acceptance" in Chapter 14.
Lula was walking in the park on a path next to a bubbling stream. She noticed a toy boat floating in the stream near the shore. Lula used a long stick to push the toy boat close enough to the shore to reach it. She then picked up the boat and took it home. What has occurred?
A constructive bailment. When Lula found and took possession of the toy boat, she became the bailee in a constructive bailment. The owner of the boat did not actually deliver the property to Lula, but the law holds this to be a bailment. Review the section "Delivery and Acceptance" in Chapter 14.
Clyde Britton was going on a three week trip to Europe. He knew his friend and dog lover, Casmir Goodnow, really liked Britton's poodle. He asked Goodnow to take care of the poodle while he was away. What kind of bailment was created?
Bailment for the sole benefit of the bailor Goodnow, the bailee, held Britton's personal property, the poodle, only for the benefit of Britton, the bailor. This was a bailment for the sole benefit of the bailor. Review the section "Types of Bailments" in Chapter 14.
A _____ bailment is a bailment for the sole benefit of the bailor.
constructive A constructive bailment arises when someone finds and takes possession of lost property. The owner does not actually deliver the property to the finder, but the law holds this to be a bailment. A constructive bailment is a bailment for the sole benefit of the bailor. The loser is the bailor, and the finder is the bailee. Review the section "Types of Bailments" in Chapter 14.
Lisa, an artist, produced a modern art painting depicting the result of global warming. She registered a copyright for her work to establish exclusive rights over the painting. Lisa obtained ownership of the painting by means of:
creation Lisa obtained ownership of the painting through creation. Creation applies to inventions, paintings, musical compositions, books, artwork, trade secrets, and other intellectual productions. This unique intangible personal property is called intellectual property because it is produced by human innovation and creativity. Review the section "Methods of Acquiring Personal Property" in Chapter 14.
Assume that Oscar owns the rug cleaning machine. By borrowing the machine, what standard of care does Vinny owe in this situation?
A duty of great care. Since Vinny is borrowing the machine and there is no benefit to Oscar, who becomes the bailor. This would be different if Vinny had rented the machine, then Oscar would receive a benefit as well. The only one who benefits from this arrangement is Vinny, who is the bailee. When there is a bailment for the sole benefit of the bailee, the bailee owes a duty of great care of the property.
Assume that Oscar owns the rug cleaning machine. If a customer had rented the machine instead of borrowing the machine, what duty of care would he or she owe?
A duty of ordinary care. If a customer were to have rented the machine, then there would be a benefit to both of the customer and to Oscar, and it would become a bailment for the mutual benefit of the bailor and the bailee. In this type of bailment, the bailee owes a duty of ordinary care.
Angela was going to a large benefit gala. She had a beautiful dress to wear, but had spilled something on it the last time she wore it. She took the dress to a dry cleaner. The cleaner told her the dress could be cleaned, but the spot mightnot come out. When Angela went to pick up the dress, the spot had not come out. She was furious and left without the dress. What, if anything, can the parties do?
After two months the cleaner can sell the dress to cover the cleaning cost. A bailee has a lien against the bailed property for the charges. If these charges are not paid after a reasonable time, the bailee may advertise and sell the property for the charges.Review the section "Types of Bailments" in Chapter 14.
Austin found a leak in the fuel tank of his car and took the car to John's Auto Fix, a neighborhood auto repair company. He told the mechanic about the leak and asked to have it fixed. Which of the following is true?
Austin is considered the bailor of the car. The transfer of possession, but not the title, of personal property by one party, usually the owner, to another party is called a bailment. The transfer is on condition that the same property will be returned or appropriately accounted for either to the owner or to a designated person at a future date. The person who gives up possession, the bailor, is usually the owner of the property. The bailee accepts possession of the property but not the title. Review the section "Types of Bailments" in Chapter 14.
Assume that Oscar owns the rug cleaning machine. If a customer had rented the machine instead of borrowing the machine, what defects to the machine must Oscar notify the customer of?
Defects that Oscar actually knew of and any hidden defects that Oscar knows of or could have discovered with reasonable diligence and proper inspection. If a customer were to have rented the machine, then there would be a benefit to both of the customer and to Oscar, and it would become a bailment for the mutual benefit of the bailor and the bailee. In a mutual-benefit bailment, the bailor must notify the bailee of all known defects and any hidden defects that the bailor knows of or could have discovered with reasonable diligence and proper inspection.
Dale was a professional author, web content writer and blogger. He had written a manuscript on business ethics but did not file for copyright on it because he was not pleased with its content. He discarded the only copy of the manuscript. Eddy, who later found the manuscript, registered a copyright in his name so that he could have exclusive rights as the owner of this creation. Which of the following is true?
Eddy has absolute right to possession of the manuscript
Which of the following can be classified as tangible personal property?
Furniture Tangible personal property is personal property that can be seen, touched, and possessed. Tangible personal property includes animals, merchandise, furniture, annual growing crops, clothing, jewelry, and similar items. Review the section "Personal Property" in Chapter 14.
Assume that Oscar owns the rug cleaning machine and that once Vinny returned the broken machine, it could not be fixed. Oscar then left the machine by the side of the road with the intention of never retrieving it. Which of the following is true?
It is abandoned property, and whoever finds it can get title to the property. Property that has been discarded by the true owner, who has no intention of reclaiming title to it, is abandoned property. Someone who finds abandoned property acquires title to it, and that title is good against the whole world, including the original owner.
Assume that Oscar owns the rug cleaning machine. When Vinny borrows the machine, what defects to the machine must Oscar notify him of?
Only of defects that Oscar actually knew of. The only one who benefits from this arrangement is Vinny, who is the bailee. In a bailment for the sole benefit of the bailee, the bailor must notify the bailee of any known defects.
Pamela, on her death bed, gave her prized possession, a houseboat, to her friend, Stephanie, as a token of appreciation for helping Pamela succeed in her fishing business. Which of the following is true?
Pamela was the donor and Stephanie was the donee. Pamela made a transfer without consideration in return. A gift is a transfer made without consideration in return. The person making a gift is called the donor. The person receiving the gift is called the donee. Review the section "Methods of Acquiring Personal Property" in Chapter 14.
Which of the following is true about abandoned property?
The finder of abandoned property has an absolute right to possession of it. Property becomes abandoned when the owner actually discards it with no intention of reclaiming it. The finder of abandoned goods has title to them and thus has an absolute right to possession. Review the section "Methods of Acquiring Personal Property" in Chapter 14.
Assume that Oscar owns the rug cleaning machine. Who would bear the cost of fixing the carpet cleaning machine in this video?
Vinny, since it was a bailment for the sole benefit of the bailee. Since Oscar receives no benefit, there is a bailment for the sole benefit of the bailee, and Vinny would therefore owe a duty of great care in handling the machine. Ordinary negligence would generally give Vinny liability and he would solely bear the responsibility for violating his duty.
Assume that Oscar owns the rug cleaning machine. When Vinny borrowed it, was a bailment agreement created?
Yes, it is a bailment for the sole benefit of the bailee. Since Vinny is borrowing the machine and there is no benefit to Oscar, who becomes the bailor. This would be different if Vinny had rented the machine, then Oscar would receive a benefit as well. The only one who benefits from this arrangement is Vinny, who is the bailee.
The actual bailed property is expected to be returned in identical condition when:
a person checks a coat at a theater. Since a person checking a coat at a theater does not expect the coat to be exchange for another, processed or repaired, it is expected that the actual coat that was bailed will be returned. Review the section "Return of the Bailed Property" in chapter 14.
The transfer of possession, but not the title, to personal property by one party, usually the owner, to another party is called a(n):
bailment The transfer of possession, but not the title, to personal property by one party, usually the owner, to another party is called a bailment. The transfer is on condition that the same property will be returned or appropriately accounted for either to the owner or to a designated person at a future date. Review the section "Bailments" in Chapter 14.
Darwin died without leaving a will. According to the law in his state, when a person died intestate, the property was equally distributed among the immediate heirs. Darwin owned two acres of land which was equally distributed between his two sons: Sam and Walter. Sam and Walter obtained ownership of the property through:
descent Sam and Walter obtained ownership to the property through descent. Ownership by descent occurs when a person dies without leaving a will and the heirs acquire title to the personal property according to the laws existing in the decedent's state of residence. Review the section "Methods of Acquiring Personal Property" in Chapter 14.
The transfer of personal property made without consideration in return is called a(n):
gift A gift is a transfer made without consideration in return. In order to have a valid gift, the donor must have the intention to make the gift, and there must be a delivery of the property being given to the donee. Review the section "Methods of Acquiring Personal Property" in Chapter 14.
Adam bought a ten story hotel from Frank on Pea Patch Island, Delaware, for $1,000,000. Adam's ownership of the hotel occurred through:
purchase Adam's ownership of the hotel occurred by means of purchase. Ownership most commonly occurs by purchase. The buyer pays the seller, and the seller transfers the property to the buyer. Review the section "Methods of Acquiring Personal Property" in Chapter 14.
A bailee may convey good title to the bailed property to a third person when:
the bailor has mislead others into thinking the bailee owns the property. When a vailor misleads an innocent third person into believing that the bailee owns the bailed property, the bailee may convey good title. Review the section "Conversion of Bailed Property by the Bailee" in Chapter 14.