Question 1

Consideration is one of the necessary elements for an effective gift.

Accepted Answer

A) True 
 B)False

Question 2

Sometimes, a person can become an owner of personal property merely by possessing it.

Accepted Answer

A) True 
 B)False

Question 3

Before going on a business trip, Gina leaves the key to her apartment with Harry. She checks her suitcase at the airport, and boards the plane. A bailment is created when Gina

Accepted Answer

A)  delivers the key to Harry. 
B)  checks her suitcase. 
C)  boards the plane. 
D)  all of the choices. 
A)  delivers the key to Harry. 
B)  checks her suitcase. 
C)  boards the plane. 
D)  all of the choices.

Question 4

While moving to a new apartment, Vance discards a sofa near the entrance to his old residence, with no intention of recovering it. The sofa is

Accepted Answer

A)  abandoned property. 
B)  converted property. 
C)  lost property. 
D)  mislaid property. 
A)  abandoned property. 
B)  converted property. 
C)  lost property. 
D)  mislaid property.

Question 5

Delivery Service Inc. agrees to pick up a truckload of merchandise for Exporters Corporation and store the contents to be delivered later. Delivery's obligation to deliver the load to Exporters is excused if the contents are

Accepted Answer

A)  any of the choices. 
B)  lost through no fault of Delivery. 
C)  stolen through no fault of Delivery. 
D)  claimed by a third party with a superior claim. 
A)  any of the choices. 
B)  lost through no fault of Delivery. 
C)  stolen through no fault of Delivery. 
D)  claimed by a third party with a superior claim.

Question 6

A finder of mislaid property has no obligation to return the property to the true owner.

Accepted Answer

A) True 
 B)False

Question 7

Although a written agreement is not required for a bailment of less than a year, because the Statute of Frauds does not apply, it is a good idea to have one.

Accepted Answer

A) True 
 B)False

Question 8

If the bailed property has been lost, a court will presume that the bailee was negligent, which he or she can rebut by showing an exercise of due care.

Accepted Answer

A) True 
 B)False

Question 9

Ordinary bailments are distinguished according to which party receives a benefit from the bailment.

Accepted Answer

A) True 
 B)False

Question 10

Carrier Inc. agrees to pick up two truckloads of housewares for Discount Corporation and store the contents to be delivered later. After Carrier unloads the goods at its warehouse, some of them disappear from the loading dock. A court will presume that

Accepted Answer

A)  Carrier was negligent. 
B)  Discount was negligent. 
C)  the goods were stolen through no fault of Carrier. 
D)  the warehouse is in a high-crime area. 
A)  Carrier was negligent. 
B)  Discount was negligent. 
C)  the goods were stolen through no fault of Carrier. 
D)  the warehouse is in a high-crime area.

Question 11

Hotel operators can limit their liability for any loss or damage to their guests' personal property

Accepted Answer

A)  in many states, by providing a safe for their guests' valuables. 
B)  under state statutes that limit the liability for articles not kept in a safe. 
C)  in the absence of negligence. 
D)  all of the choices. 
A)  in many states, by providing a safe for their guests' valuables. 
B)  under state statutes that limit the liability for articles not kept in a safe. 
C)  in the absence of negligence. 
D)  all of the choices.

Question 12

With respect to property, the law defines the right to

Accepted Answer

A)  sell or dispose of it, but not prevent trespass onto it. 
B)  prevent trespass onto it, but not to sell or dispose of it. 
C)  sell or dispose of it, and prevent trespass onto it. 
D)  none of the choices. 
A)  sell or dispose of it, but not prevent trespass onto it. 
B)  prevent trespass onto it, but not to sell or dispose of it. 
C)  sell or dispose of it, and prevent trespass onto it. 
D)  none of the choices.

Exam 41: Personal Property and Bailments

Consideration is one of the necessary elements for an effective gift.

Sometimes, a person can become an owner of personal property merely by possessing it.

Before going on a business trip, Gina leaves the key to her apartment with Harry. She checks her suitcase at the airport, and boards the plane. A bailment is created when Gina

While moving to a new apartment, Vance discards a sofa near the entrance to his old residence, with no intention of recovering it. The sofa is

Delivery Service Inc. agrees to pick up a truckload of merchandise for Exporters Corporation and store the contents to be delivered later. Delivery's obligation to deliver the load to Exporters is excused if the contents are

A finder of mislaid property has no obligation to return the property to the true owner.

Although a written agreement is not required for a bailment of less than a year, because the Statute of Frauds does not apply, it is a good idea to have one.

If the bailed property has been lost, a court will presume that the bailee was negligent, which he or she can rebut by showing an exercise of due care.

Ordinary bailments are distinguished according to which party receives a benefit from the bailment.

Carrier Inc. agrees to pick up two truckloads of housewares for Discount Corporation and store the contents to be delivered later. After Carrier unloads the goods at its warehouse, some of them disappear from the loading dock. A court will presume that

Hotel operators can limit their liability for any loss or damage to their guests' personal property

With respect to property, the law defines the right to

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