Question 1

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.

Accepted Answer

A) True 
 B)False

Question 2

Instead of being stolen from the locker, assume that the gym is struck by lightning, and Roxie's cell phone is destroyed in a resulting fire. Who would be liable for the cost of the cell phone in this instance and why?

Accepted Answer

A)   Roxie, because she still stored the cell phone in an unlocked locker.
B)   Roxie, because the lightning strike and resulting fire was an "act of God."
C)   The gym, because they failed to extinguish the fire before it destroyed the phone.
D)   The gym, because an act of God automatically creates liability in the bailee.
E)   Both Roxie and the gym are liable for one-half the cost to replace the cell phone.F) A) and D)
G) C) and E)

Question 3

Fernando contracts with Michelle to purchase her lake property as long as she repairs the dock. This is an example of a(n)  ________

Accepted Answer

A)   implied contract
B)   conditional contract
C)   improper contract
D)   collusive contractE) A) and D)
F) B) and C)

Question 4

A gift causa mortis is

Accepted Answer

A)   a gift that is made in contemplation of one's immediate death.
B)   a gift that occurs through a will.
C)   a gift that is made by a person during his or her lifetime.
D)   a gift that must got through probate before it can be distributed.
E)   a gift that has been abandoned by its owner because it has never been properly delivered.F) A) and C)
G) A) and D)

Question 5

Which of the following items would NOT require the transfer and registration of a certificate of title?

Accepted Answer

A)   A personal car
B)   A fishing boat
C)   A commercial moving van
D)   A high-end mountain bike
E)   A privately-owned jet planeF) B) and D)
G) A) and C)

Question 6

Lexie is an artist. Josh, an editor working for ABC Books, a publishing house that specializes in children's books, offers Lexie a contract to illustrate a children's book written by Phoebe. The contract states that ABC will pay Lexie $100 per drawing. Lexie agrees, and she signs a contract with ABC, which Josh signs on the company's behalf. The text and ideas are Phoebe's original work, but Lexie's drawings are result of her own creative view of Phoebe's story. When the book is complete and Lexie's contract is done, Lexie tries to sell the original copies of the drawings she created for Phoebe's book. She is immediately sued by ABC, on the grounds that ABC is the rightful owner of her drawings. Lexie claims that she acquired ownership of the drawings when she created them. Who is the legal owner of the drawings in this case?

Accepted Answer

A)   ABC Books, because they paid Lexie to create the drawings for the book.
B)   Lexie, because she is the person that created the drawings.
C)   Phoebe, because it was her idea and story that inspired the subject of the drawings.
D)   Josh, because he recruited Lexis and signed the contract on behalf of ABC Books.
E)   Lexie and ABC Books are equal owners of the drawings.F) B) and D)
G) C) and E)

Question 7

Which of the following statements is false regarding ways in which people may acquire title to property?

Accepted Answer

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)   In a bankruptcy case the court may award ownership of certain property to a creditor.
E)   A person may acquire ownership through confusion.F) A) and E)
G) C) and D)

Question 8

A bill of lading is a document that is issued by a person engaged in the business of transporting goods that verifies what?

Accepted Answer

A)   Receipt of the goods for shipment.
B)   That the goods are insured.
C)   That the goods are properly marked for shipping.
D)   That the bank has released the goods to ship.
E)   That customs forms are completed.F) A) and D)
G) All of the above

Question 9

Which of the following practices is NOT a means of acquiring ownership of property?

Accepted Answer

A)   Possession
B)   Confusion
C)   Voluntary transfer
D)   Evolution
E)   CreationF) A) and C)
G) All of the above

Question 10

[Shoe Store] Larry owns a store that sells a variety of men's accessories, including shoes, wallets, briefcases, and belts. While shopping in Larry's store, Ed placed his wallet on a shelf so he could look at a particular pair of shoes. When Ed walked away, he forgot to pick up the wallet and left the store without it. Another customer, Susan, noticed the wallet on the shelf a few minutes later. She hadn't seen Ed leave it there, and brought the wallet to Larry at the front counter. Larry thanked her and set the wallet aside, meaning to put it in the back office for safekeeping. However, before he could secure the wallet, Larry was distracted by a phone call. Another customer, Scott, saw the wallet on the counter, took it, and left the store. Once outside, Larry opened the wallet and looked through it. When Larry realized that the wallet contained nothing but two dollars and an expired library card, he tossed the wallet on the ground in disgust and walked away. Five minutes later, Olivia, a passerby, noticed the wallet on the ground. She decided to keep it for herself, so she picked up the wallet and took it home.
-Who is the legal owner of the wallet?

Accepted Answer

A)   Ed
B)   Larry
C)   Susan
D)   Scott
E)   OliviaF) A) and D)
G) A) and C)

Question 11

[Lottery Winnings] Devin, a hypochondriac with a very compulsive personality and habits, was having minor surgery to repair a bone spur on his foot. Just prior to his surgery, he purchased a lottery ticket for a chance at the grand prize of $30,000,000. He always kept lists of his lottery ticket numbers with him in his wallet. Devin's girlfriend, Kendra, went with him to the hospital. While in the waiting room, Devin said to her, "Kendra, 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." Kendra replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Devin came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Kendra watched the lottery drawing and discovered that Devin's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Devin saw her on television with her new boyfriend, John. She appeared to be very happy. He checked the numbers and discovered that she won off of his ticket. Devin says that the lottery money is his.
-Which of the following is true regarding Devin's statement at the hospital regarding Kendra taking the ticket?

Accepted Answer

A)   Once Kendra accepted the ticket, a valid gift was made which could not be revoked.
B)   Because there was no certainty that Devin would die, there was no valid inter vivos or causa mortis gift.
C)   The gift was irrevocable based on the condition that Kendra never had another boyfriend; otherwise, she had to give the ticket and any resulting cash back to Devin.
D)   The gift was irrevocable based on the condition that Kendra never had another boyfriend; but because the gift was of the ticket itself and not the potential winnings, once the ticket was converted into cash, the gift became fully irrevocable and the condition no longer applied.
E)   Because he did not die and recovered from the surgery, his gift to Kendra was automatically revoked.F) A) and C)
G) C) and D)

Question 12

Stocks, bonds, and other items that can be owned but cannot be seen or touched are examples of tangible property.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

In the text case of J&L Jewelry v. EPK Management, the plaintiff, J&L, sued EPK for breach of an implied bailment after thieves broke in and stole J&L's entire inventory of jewelry. The trial court dismissed J&L's complaint for failure to state a claim upon which relief could be granted. What was the result upon appeal?

Accepted Answer

A)   The motion to dismiss was affirmed in part, reversed in part, on the grounds that while an implied bailment was created, the bailment for the benefit of the bailor and not the bailee, and liability was a matter best determined by a jury.
B)   The motion to dismissed was reversed, because EPK's refusal to allow J&L access to the building after closing hours created an implied bailment and shifted liability for J&L's merchandise to EPK.
C)   The motion to dismiss was affirmed, because a bailment agreement must be in writing and signed by both parties in order to be upheld.
D)   The motion to dismiss was reversed and the case remanded for a new trial, on the grounds that EPK had a duty to protect J&L's merchandise when the mall was closed for the night.
E)   The motion to dismiss was affirmed, because the retail space license agreement created a licensee relationship, not a tenancy, and J&L failed to sufficiently allege a constructive bailment.F) B) and C)
G) C) and D)

Question 15

[Stolen Cell Phone] Roxie takes her brand new cell phone to the gym after work. She places it in a locker in the woman's locker room, which is not secured. There are signs conspicuously posted on both the door to the locker room and the wall above the lockers which say "Rent a lock at the front desk for $1.00. This gym is not responsible for items stolen from unlocked lockers." Roxie reads the sign, but not wanting to delay her workout, she decides to hide the phone under her clothes in the locker. She closes the locker, but leaves it unlocked as leaves the locker room to work out. An hour later she completes her workout and returns to the locker, only to find that her new phone has been stolen from the unlocked locker. She sues the gym for the value of the phone.
-Who is liable for the loss of the cell phone?

Accepted Answer

A)   Roxie, because she left the phone in an unlocked locker in an unsecured room.
B)   The gym, because when Roxie made use of the lockers provided by the gym, an implied bailment was created.
C)   The thief who took the cell phone, provided he or she can be found and identified by authorities.
D)   The parent company of the gym, because they are the ones who set the policy not to automatically provide locks to all gym patrons.
E)   Roxie and the gym are equally liable because both parties were at fault for failing to secure the phone.F) A) and D)
G) A) and C)

Question 16

________ is property that does not exist in physical form, such as bank accounts, stocks and insurance policies.

Accepted Answer

A)   Tangible property
B)   Intangible property
C)   Discernable property
D)   Actual property
E)   Manifest propertyF) B) and D)
G) A) and E)

Question 17

[Stolen Bicycle] Jason borrowed his friend Sabrina's bicycle. She told him that she was happy to let him to use it for free, but that she would appreciate him taking good care of it. Jason said nothing in reply. Jason lived in a high crime neighborhood, but he left the bicycle unlocked on his deck anyway. The next morning, he discovered that the bicycle had been stolen. Jason told Sabrina that he was very sorry about the bicycle. Sabrina told him that she expected him to pay for it. Jason refused on the basis that a thief took the bicycle. Jason told Sabrina that he believes he knows the identity of the thief and that since only Sabrina has the right to sue to recover the property, he has no further responsibility.
-What is the status of the bailment situation, or lack thereof, existing between Jason and Sabrina?

Accepted Answer

A)   It was a gratuitous bailment.
B)   It was a bailment for consideration.
C)   It was a temporary bailment.
D)   It was a constructive bailment.
E)   There was no bailment because no consideration was provided.F) C) and D)
G) D) and E)

Question 18

In a bailment for consideration that is for the mutual benefit of both parties, what fundamental duty (or duties)  does the bailor have toward the bailee?

Accepted Answer

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)   Only the duty of compensation.
E)   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.F) All of the above
G) A) and B)

Question 19

In a proper property transfer by inter vivos gift, the idea that the gift must be physically or constructively presented by the donor to the donee is best categorized as:

Accepted Answer

A)   Consideration
B)   Delivery
C)   Donative Intent
D)   Acceptance
E)   OwnershipF) A) and B)
G) A) and C)

Question 20

Which of the following statements is false regarding bailments?

Accepted Answer

A)   A bailment may be gratuitous.
B)   A bailment may be for consideration.
C)   A bailment agreement must be contained in a written agreement.
D)   The parties to a bailment contract can limit or expand the liability of the bailee by contract.
E)   The standard of care varies depending on who benefits from the bailment.F) A) and D)
G) A) and C)

Exam 48: The Nature of Property, Personal Property, and Bailments

Which of the following practices is NOT a means of acquiring ownership of property?

Correct Answer
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Stocks, bonds, and other items that can be owned but cannot be seen or touched are examples of tangible property.

Correct Answer
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A gift causa mortis is

Correct Answer
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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.

Correct Answer
verified

Which of the following items would NOT require the transfer and registration of a certificate of title?

Correct Answer
verified

Which of the following statements is false regarding bailments?

Correct Answer
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In a bailment for consideration that is for the mutual benefit of both parties, what fundamental duty (or duties) does the bailor have toward the bailee?

Correct Answer
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Parties to a bailment contract can limit or expand the liability of the bailee by contract.

Correct Answer
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Correct Answer
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Correct Answer
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Fernando contracts with Michelle to purchase her lake property as long as she repairs the dock. This is an example of a(n) ________

Correct Answer
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________ is property that does not exist in physical form, such as bank accounts, stocks and insurance policies.

Correct Answer
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A bill of lading is a document that is issued by a person engaged in the business of transporting goods that verifies what?

Correct Answer
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Correct Answer
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Which of the following statements is false regarding ways in which people may acquire title to property?

Correct Answer
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Correct Answer
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Correct Answer
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Instead of being stolen from the locker, assume that the gym is struck by lightning, and Roxie's cell phone is destroyed in a resulting fire. Who would be liable for the cost of the cell phone in this instance and why?

Correct Answer
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Correct Answer
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In a proper property transfer by inter vivos gift, the idea that the gift must be physically or constructively presented by the donor to the donee is best categorized as:

Correct Answer
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Exam 48: The Nature of Property, Personal Property, and Bailments

Which of the following practices is NOT a means of acquiring ownership of property?

Correct AnswerverifiedShow Answer

Stocks, bonds, and other items that can be owned but cannot be seen or touched are examples of tangible property.

Correct AnswerverifiedShow Answer

A gift causa mortis is

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following items would NOT require the transfer and registration of a certificate of title?

Correct AnswerverifiedShow Answer

Which of the following statements is false regarding bailments?

Correct AnswerverifiedShow Answer

In a bailment for consideration that is for the mutual benefit of both parties, what fundamental duty (or duties) does the bailor have toward the bailee?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Fernando contracts with Michelle to purchase her lake property as long as she repairs the dock. This is an example of a(n) ________

Correct AnswerverifiedShow Answer

________ is property that does not exist in physical form, such as bank accounts, stocks and insurance policies.

Correct AnswerverifiedShow Answer

A bill of lading is a document that is issued by a person engaged in the business of transporting goods that verifies what?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is false regarding ways in which people may acquire title to property?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Instead of being stolen from the locker, assume that the gym is struck by lightning, and Roxie's cell phone is destroyed in a resulting fire. Who would be liable for the cost of the cell phone in this instance and why?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In a proper property transfer by inter vivos gift, the idea that the gift must be physically or constructively presented by the donor to the donee is best categorized as:

Correct AnswerverifiedShow Answer

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