Question 1

[Disputed Ring] While working in the yard Megan found a beat up ring. Taylor, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Megan told her, "You can have this old thing if you would like." Taylor replied, "I really like it - Maybe it's a real diamond!" Megan laughingly told her that there was a one in a billion chance of that and that Megan was more likely to win the lottery. A few months later Taylor ran over to Megan's house and told Megan that the ring actually was a diamond worth thousands! Taylor gave Megan the ring to examine. Megan put it in her pocket and told Taylor that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Megan also told Taylor that Taylor failed legally to accept the gift because neither party knew its true value and that because Megan did not sign any document turning over title, it was impossible for legal ownership to pass. Taylor sues.
-Which of the following terms best describes the type of gift, if any, at issue?

Accepted Answer

A)   A gift causa mortis
B)   A gift inter vivos
C)   A gift inter mortis
D)   A gift causa vivos
E)   There was no gift because Megan did not realize the ring's value.F) D) and E)
G) B) and C)

Question 2

The definition of real property is

Accepted Answer

A)   land and anything permanently attached.
B)   property that is moveable.
C)   property that has a value in excess of $10,000.
D)   personal property and fixtures attached to land.
E)   any property deemed by state statute as real property.F) C) and E)
G) C) and D)

Question 3

Which of the following statements is true if a bailment is for the mutual benefit of both the bailee and the bailor?

Accepted Answer

A)   The bailee is liable for harm to the bailed property arising out of 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.
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.
E)   The bailee is not liable for harm to the bailed property because of the doctrine of assumption of the risk.F) D) and E)
G) A) and D)

Question 4

Assume that the hotel had provided a parking facility for its guests. To what standard of care would Steve be held for his guests' automobiles?

Accepted Answer

A)   Strict liability for the automobile and any of its contents, with no exceptions
B)   Strict liability for the actual automobile, but reasonable care for its contents
C)   Strict liability for the automobile and any of its contents, but only if Steve is aware of the presence of the automobiles' contents.
D)   Standard of reasonable care for the automobiles and contents.
E)   Steve has no obligation of care, even if he provides the parking facilities.F) B) and E)
G) A) and D)

Question 5

Jack is severely injured in an accident at work and believes he is going to die. He tells his friend and co-worker, Diane, that she can have his car after he is dead. However, Jack makes a full recovery. Because he did not die, his gift of the car to Diane will be automatically revoked.

Accepted Answer

A) True 
 B)False

Question 6

The ________ is the person who transfers possession of personality in a bailment situation.

Accepted Answer

A)   Transferor
B)   Transferee
C)   Novator
D)   Bailor
E)   BaileeF) All of the above
G) D) and E) D

Question 7

Moko is by his dying grandfather's bedside. His grandfather says "I do not have long to live I am afraid. Please take this pocket watch." This is a(n)  ________

Accepted Answer

A)   inter vivos gift
B)   sustainable gift
C)   in rem gift
D)   terminal gift
E)   causa mortis giftF) A) and B)
G) C) and D)

Question 8

If a bailment is intended to benefit only the bailor, which of the following statements is accurate?

Accepted Answer

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.
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.
E)   The bailee is not liable for harm to the bailed property because of the doctrine of assumption of the risk.F) A) and D)
G) A) and B)

Question 9

[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.
-Jason stated that he owes Sabrina nothing and that only Sabrina has the right to take legal action against the thief. Which of the following statement is true regarding Jason's statement to Sabrina?

Accepted Answer

A)   He is correct on all counts.
B)   He is correct that he has no liability to Sabrina, but incorrect that only Sabrina may take legal action against the thief.
C)   He is incorrect that he has no liability to Sabrina, but correct that only Sabrina may take legal action against the thief.
D)   Only if he can identify the thief beyond a reasonable doubt is he correct that he has no further duties to Sabrina, because only Sabrina has the right to take legal action against the thief at that point.
E)   He is incorrect because he has the right to take legal action against the thief, and Jason's conduct indicates that he has legal liability to Sabrina.F) C) and D)
G) B) and E)

Question 10

In the "Case Nugget" Ziva Jewelry, Inc. v. Car Wash Headquarters, Inc., what was the main rule regarding bailee liability to come from this case?

Accepted Answer

A)   A bailee is only liable for unknown property if that property is valued at over $100,000.
B)   Knowledge of possession of property is irrelevant when establishing bailee liability.
C)   Only bailees in a commercial setting can be liable for property they do not know they possess.
D)   A bailee can only be liable for property she knows she possesses.
E)   A bailee can be liable for property, even if he is not aware that he is in possession of it.F) A) and E)
G) C) and E)

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 best describes the outcome of Devin's statement that he made to Kendra regarding the lottery ticket prior to surgery?

Accepted Answer

A)   Devin's statement created a gift causa mortis of the lottery ticket.
B)   Devin's statement created a gift inter vivos of the lottery ticket.
C)   Devin's statement created a gift inter mortis of the lottery ticket.
D)   Devin's statement created a gift causa vivos of the lottery ticket.
E)   Devin's statement was meaningless because of the condition of death placed on the gift.F) A) and C)
G) A) and D)

Question 12

Property that is mislaid is different from lost property because the owner intentionally forgot where they placed the mislaid property.

Accepted Answer

A) True 
 B)False

Question 13

[Disputed Ring] While working in the yard Megan found a beat up ring. Taylor, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Megan told her, "You can have this old thing if you would like." Taylor replied, "I really like it - Maybe it's a real diamond!" Megan laughingly told her that there was a one in a billion chance of that and that Megan was more likely to win the lottery. A few months later Taylor ran over to Megan's house and told Megan that the ring actually was a diamond worth thousands! Taylor gave Megan the ring to examine. Megan put it in her pocket and told Taylor that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Megan also told Taylor that Taylor failed legally to accept the gift because neither party knew its true value and that because Megan did not sign any document turning over title, it was impossible for legal ownership to pass. Taylor sues.
-Which of the following statements is true regarding Megan's statement that Taylor could not have validly accepted the ring?

Accepted Answer

A)   If the ring is valued at $500 or over, then Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance.
B)   If the ring is valued at $1,000 or over, then Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance.
C)   Megan is correct that Taylor could not have validly accepted the ring because a writing transferring title would have been needed to validate acceptance.
D)   Megan is correct that Taylor could not have validly accepted the ring when she did not understand its true value.
E)   Megan is incorrect, and Taylor validly accepted the ring as a gift.F) None of the above
G) All of the above E

Question 14

[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.
-Which of the following is the most accurate classification of the wallet in the above scenario?

Accepted Answer

A)   Abandoned property
B)   Lost property
C)   Mislaid property
D)   Stolen property
E)   Missing propertyF) D) and E)
G) C) and D)

Question 15

Which of the following statements is not a right of a bailee?

Accepted Answer

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 created.
D)   The right to retain the bailed property until payment is received.
E)   The right to receive compensation for the bailment unless the bailment is gratuitous.F) None of the above
G) C) and E)

Question 16

If an instrument contains the word "bearer" or "to the order of" it is considered negotiable. By law, a document of title may not be negotiable.

Accepted Answer

A) True 
 B)False

Question 17

The definition of personal property is

Accepted Answer

A)   land and anything attached to the land.
B)   property that is not attached to the land or is moveable.
C)   property that has a value in excess of $10,000.
D)   personal objects that are attachable to land.
E)   any property deemed by state statute as personal property.F) A) and D)
G) A) and C)

Question 18

Which of the following statements regarding commingled fungible goods is TRUE?

Accepted Answer

A)   If goods are commingled because of the actions of a third party, the third party has the right to determine how the commingled goods will be distributed to each contributing party.
B)   If a party who is responsible for the commingling of fungible goods cannot prove what percentage of the fungible goods he or she contributed, the commingled goods will be divided equally among all contributing parties, regardless of the original contributions of each party.
C)   Fungible goods that are intentionally commingled by a third party may only be separated and distributed via a court order.
D)   If two people accidentally commingle their fungible goods, or if the goods are commingled because of the actions of a third party, each party in entitled to the percentage of the fungible goods that he or she contributed.
E)   If one of the parties responsible for the comingling of fungible goods, and that person cannot prove what percentage of the commingled goods he or she contributed, the holder of the goods at the time gains property rights over the commingled goods.F) A) and C)
G) All of the above

Question 19

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

Accepted Answer

Karla can become the owner because the p...

Question 20

[Heartache Hotel] Steve owns the Heartache Hotel, which is located in a trendy neighborhood in a major city. Because of the proximity of the hotel to a high-end retail shopping district, Steve provides a small hotel safe for guests to use to store valuables. At check-in, all guests receive a printed notice of the availability of the safe, which includes a printed disclaimer that explains that if a guest fails to take advantage of the safe, according to state law the hotel will not be liable for lost valuables. Further, because of its proximity to public transportation and multiple public parking facilities, the hotel does not provide parking facilities for its guests. Jason and Lisa book a room at the Heartache Hotel after a long day of shopping. They have a valuable 50" television in the trunk of their car, which is parked at a public garage next to, but not affiliated with or recommended by, the hotel. They also have about $10,000 worth of jewelry, which they bring into the hotel. At check-in, they are handed the notice about the hotel safe, but after reading it, Lisa decides to just hide the jewelry in the bottom of her suitcase. While Lisa and Jason are having a drink at the hotel bar, a thief breaks into their room and steals the jewelry. During the night, the television is also stolen from the trunk of their car. When Lisa and Jason discover their valuables are missing, they sue the hotel for negligence for the value of the stolen jewelry and television.
-Will the hotel be liable for the value of the stolen television?

Accepted Answer

A)   No, because the hotel did not provide, nor was the hotel affiliated with, the parking facility in which Lisa and Jason parked their car.
B)   No, because the television could not have physically fit into the hotel safe.
C)   Yes, because the hotel did not provide a secured parking facility for its guests.
D)   Yes, but only if the hotel recommended that particular parking facility to Lisa and Jason.
E)   No, because the hotel was unaware of the presence of the television in Lisa and Jason's car.F) C) and E)
G) B) and D) A

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

Correct Answer
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The definition of real property is

Correct Answer
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Which of the following statements is true if a bailment is for the mutual benefit of both the bailee and the bailor?

Correct Answer
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Assume that the hotel had provided a parking facility for its guests. To what standard of care would Steve be held for his guests' automobiles?

Correct Answer
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Jack is severely injured in an accident at work and believes he is going to die. He tells his friend and co-worker, Diane, that she can have his car after he is dead. However, Jack makes a full recovery. Because he did not die, his gift of the car to Diane will be automatically revoked.

Correct Answer
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The ________ is the person who transfers possession of personality in a bailment situation.

Correct Answer
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D

Moko is by his dying grandfather's bedside. His grandfather says "I do not have long to live I am afraid. Please take this pocket watch." This is a(n) ________

Correct Answer
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If a bailment is intended to benefit only the bailor, which of the following statements is accurate?

Correct Answer
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In the "Case Nugget" Ziva Jewelry, Inc. v. Car Wash Headquarters, Inc., what was the main rule regarding bailee liability to come from this case?

Correct Answer
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Correct Answer
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Property that is mislaid is different from lost property because the owner intentionally forgot where they placed the mislaid property.

Correct Answer
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Correct Answer
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E

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Which of the following statements is not a right of a bailee?

Correct Answer
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If an instrument contains the word "bearer" or "to the order of" it is considered negotiable. By law, a document of title may not be negotiable.

Correct Answer
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The definition of personal property is

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Which of the following statements regarding commingled fungible goods is TRUE?

Correct Answer
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Karla can become the owner because the p...
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A

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

Correct AnswerverifiedShow Answer

The definition of real property is

Correct AnswerverifiedShow Answer

Which of the following statements is true if a bailment is for the mutual benefit of both the bailee and the bailor?

Correct AnswerverifiedShow Answer

Assume that the hotel had provided a parking facility for its guests. To what standard of care would Steve be held for his guests' automobiles?

Correct AnswerverifiedShow Answer

Jack is severely injured in an accident at work and believes he is going to die. He tells his friend and co-worker, Diane, that she can have his car after he is dead. However, Jack makes a full recovery. Because he did not die, his gift of the car to Diane will be automatically revoked.

Correct AnswerverifiedShow Answer

The ________ is the person who transfers possession of personality in a bailment situation.

Correct AnswerverifiedD

Moko is by his dying grandfather's bedside. His grandfather says "I do not have long to live I am afraid. Please take this pocket watch." This is a(n) ________

Correct AnswerverifiedShow Answer

If a bailment is intended to benefit only the bailor, which of the following statements is accurate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the "Case Nugget" Ziva Jewelry, Inc. v. Car Wash Headquarters, Inc., what was the main rule regarding bailee liability to come from this case?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Property that is mislaid is different from lost property because the owner intentionally forgot where they placed the mislaid property.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedE

Correct AnswerverifiedShow Answer

Which of the following statements is not a right of a bailee?

Correct AnswerverifiedShow Answer

If an instrument contains the word "bearer" or "to the order of" it is considered negotiable. By law, a document of title may not be negotiable.

Correct AnswerverifiedShow Answer

The definition of personal property is

Correct AnswerverifiedShow Answer

Which of the following statements regarding commingled fungible goods is TRUE?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedKarla can become the owner because the p...View AnswerShow Answer

Correct AnswerverifiedA

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D

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E

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Karla can become the owner because the p...
View Answer

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A