National American University

BUSINESS L 3100

Chapter 21-PERSONAL PROPERTY AND BAILMENTS

TRUE/FALSE

1)Personal property includes all things of value including real estate.

 

                                           

 

2. The legal concept of property includes rights in the property.

 

                                           

 

3. In common usage today, there is no distinction between real and personal property.

 

                                           

 

4. If a thief sells stolen property to a good-faith buyer, the buyer acquires title to the property.

 

                                           

 

5. An ordinary gift made between two living persons is an inter vivos gift.

 

                                           

 

6. The intent to make a gift requires an intent to transfer title at that time.

 

                                           

 

7. In order for delivery to occur, a gift must actually be handed over to the recipient.

 

                                           

 

8. A custodian who holds money for the benefit of a minor under the Uniform Gifts to Minors Act may choose to use the money to send the minor to summer camp.

 

                                           

 

9. After fully complying with the procedures of the Uniform Gifts to Minors Act, a donor is entitled to take back the donated property at any time before the minor donee reaches the age of 18.

 

                                           

 

10. Most courts consider an engagement ring to be a conditional gift.

 

                                           

 

11. The Uniform Anatomical Gift Act permits persons sixteen (16) years of age or older to make gifts of their bodies or any parts thereof.

 

                                           

12. Personal property is lost when an owner does not know where it is located but intends to retain title or ownership to it.

 

                                           

 

13. The finder of lost property is usually entitled to a judicially-determined reward for finding and caring for the property until the rightful owner reclaims it.

 

                                           

 

14. If while trespassing a hunter kills game, the game belongs to that hunter.

 

                                           

 

15. Title to abandoned property may be acquired by the first person who obtains possession and control of it.

 

                                           

 

16. Unclaimed property is often transferred to the government under the concept of escheat.

 

                                           

 

17. A tenancy in common is a form of ownership by two or more persons.

 

                                           

 

18. Joint tenancy and tenancy in common both feature the right of survivorship.

 

                                           

 

19. At common law, a tenancy by entirety or a tenancy by the entireties is created when property is transferred to both husband and wife.

 

                                           

 

20. In states that follow the community property tradition, property acquired after the marriage belongs solely to the party who acquired it.

 

                                           

 

21. The person who turns over the possession of bailed property is the bailor, and the person who accepts possession is the bailee.

 

                                           

 

22. An ordinary bailment can arise without an agreement between the parties.

 

                                           

 

23. Generally, a bailment agreement does not contain all the elements of a contract.

 

                                           

24. With regard to a bailment, a valid delivery and acceptance need not require that the bailee be aware that goods have been placed within the bailee’s exclusive possession or control.

 

                                           

 

25. In order for a bailment to be valid, the bailor must be the owner of the subject property.

 

                                           

 

26. Transfer or possession and use of bailed property without compensation is a gratuitous bailment.

 

                                           

 

27. When a person rents space in a locker or building under an agreement that gives the renter the exclusive right to use that space, the placing of goods by the renter in that space creates a bailment.

 

                                           

 

28. A bailee’s duty of care for bailed property depends on the type of bailment.

 

                                           

 

29. A bailee’s lien gives the bailee the right to keep possession of the bailed property until reasonable charges for storage and/or repairs are paid.

 

                                           

 

30. If a bailment is for the sole benefit of the bailee, the bailor has no obligation to inform the bailee of known defects.

 

                                           

 

MULTIPLE CHOICE

 

1.                           property means land and things embedded in the land.
   1. Real
   2. Personal
   3. Intangible
   4. Tangible

                                           

 

2. To establish a gift, the party claiming to be the donee must prove:
   1. delivery only.
   2. intent only.
   3. intent and a promise to deliver.
   4. intent and delivery.

                                           

 

3. A gift causa mortis is revoked if:
   1. the donor does not die.
   2. the donor revokes the gift before dying

1. 3. the donee dies before the donor.
   4. all of the above.

                                           

 

4. Tom established a bank account for his daughter Mary under the Uniform Gifts to Minors Act. Tom named himself the custodian. Later, Tom had a serious disagreement with Mary and ordered the bank to transfer the money in that account to a similar account maintained in the same bank for Tom's son Ed. The bank must:
   1. comply with Tom’s order, because the custodian controls the account.
   2. refuse Tom’s order, because this would clearly not be for the benefit of Mary.
   3. comply with Tom’s order, because Uniform Gifts to Minors accounts are not final.
   4. comply with Tom’s order if Mary is under 18 years of age and refuse the order if she is over 18 years of age.

                                           

 

5. If a maintenance employee at a hotel finds a pocketbook with $500 in cash while cleaning an empty guest room, the employee:
   1. is entitled to keep the property, because the employee has the legal status of a "finder."
   2. must give the property to the manager of the hotel to be kept for the owner.
   3. must place an advertisement in a local newspaper, and if the property is not claimed within seven (7) business days, the employee is entitled to keep it.
   4. can retain possession of the property until the owner establishes ownership.

                                           

 

6. A person becomes a(n)                         at the moment of taking possession of abandoned personal property.
   1. Bailor
   2. Bailee
   3. constructive bailee
   4. Owner

                                           

 

7. Which of the following forms of cotenancy does not have right of survivorship?
   1. joint tenancy
   2. tenancy by entirety
   3. tenancy in common
   4. community property

                                           

 

8. Barry and Eldridge owned Blueacre as tenants in common. Eldridge died. Blueacre is owned:
   1. solely by Barry because of the survivorship feature.
   2. jointly by Barry and the state because of escheat.
   3. by Barry and Eldridge's heirs.
   4. solely by Eldridge's heirs.

                                           

 

9. A third person to whom a joint tenant's interest is transferred becomes a:
   1. joint tenant.
   2. cotenant.
   3. tenant in common.

1. 4. tenant by the entirety.

                                           

 

10. Sylvia and Morris were married and owned their home as tenants by the entirety. When Morris died, his will said that he left his half of his home to his brother Tim. Sylvia objects to this. The ownership of the home:
    1. belongs solely to Sylvia by survivorship.
    2. is now a joint tenancy between Sylvia and Tim.
    3. is now a tenancy in common between Sylvia and Tim.
    4. belongs to Sylvia and the state, in equal and divisible shares.

                                           

 

11. The legal relation that arises when one person delivers possession of personal property to another under an express or implied agreement to return the property at a later date is called a:
    1. tenancy agreement.
    2. bailment.
    3. rental agreement.
    4. trust arrangement.

                                           

 

12. Bailments may be:
    1. created orally or through a writing.
    2. created for either real or personal property.
    3. created for nonpossessory personal property.
    4. made only after delivery to the bailor is accomplishe

                                           

 

13. A bailee's interest in the bailed property can be characterized as:
    1. ownership.
    2. a fractional proprietary interest.
    3. possession.
    4. constructive ownership.

                                           

 

14. Which of the following is not a classification of ordinary bailments?
    1. for the sole benefit of the bailor
    2. for the sole benefit of the bailee
    3. for the sole benefit of the third party beneficiary
    4. for the mutual benefit of the bailor and the bailee

                                           

 

 

15. A bailment is created:
    1. when a person rents space in a building
    2. when a person rents a safe deposit box at a bank
    3. both a. and b.
    4. neither a. nor b.

                                           

16. A bailee’s                           gives the bailee the right to maintain possession of the bailed property until reasonable storage and/or repair charges are paid.
    1. reversionary interest
    2. Lien
    3. remainder interest
    4. Mortgage

                                           

 

17. Joan brought her car into Ace Service Station for a tune-up. After tuning up the car, Ace (the owner of the service station) decided to visit his mother. Ace drove Joan's car. Ace was following all safety precautions when a negligent driver without insurance struck Joan's car. Joan sued Ace for the damages to her car. The probable result is:
    1. Ace will win, since he was taking reasonable care of the bailed goods.
    2. Ace will win, since the bailee has the right to use the bailed goods.
    3. Joan will win, since the harm was sustained during the bailee’s unauthorized use of the property.
    4. Joan will win, since bailees are absolutely liable for bailed goods in their possession and control.

                                           

 

18. Warren brought his television in for repairs. After Warren left the store, gunmen came in to rob the proprietor. As they ran out, Warren's television was knocked over and destroyed. Warren demanded that the proprietor of the store compensate him for the fair market value of the television. The bailee:
    1. is liable, since the goods were not returned to Warren in proper condition.
    2. is liable, since the bailee did not prevent the gunmen from damaging the television.
    3. is not liable, since this was a mutual-benefit bailment.
    4. is not liable, since the damage was caused by the act of a third party.

                                           

 

19. When a bailor sues the bailee for damages to the bailed property, who has the burden of proving fault and that such fault was the proximate cause of the bailor’s loss?
    1. the person in possession of the property
    2. the bailor
    3. the bailee
    4. the jury

                                           

 

20. The bailor must both inform the bailee of known defects and make a reasonable investigation to discover defects in a:
    1. mutual benefit bailment.
    2. Bailment for the sole benefit of the bailee.
    3. both a. and b.
    4. neither a. nor b.

                                           

 

CASE