Exam 37: Personal Property, Bailment, and Insurance

Kevin's car is in for repairs,so Kevin borrows Gloria's car at no charge.While Kevin is driving on the highway,one of the tires goes flat.Kevin is disgusted and makes no effort to change the tire,although he knew how to do so.Kevin leaves the car on the highway,gets a ride,and picks up his own car.The next day,Kevin tells Gloria about the car.She goes to pick it up,but someone has stolen it.Which of the following describes Kevin's responsibility to Gloria in a state applying the traditional classifications of bailments?

In most cases,a bailment for hire is considered to be for the sole benefit of the bailor.

An example of an implied bailment is the finding and safeguarding of lost property.

In a state that has not enacted innkeepers' statutes,if a woman knows that a hotel safe is available but does not put her engagement and wedding rings in the safe,the hotel will still be strictly liable for the two rings if they are stolen when a thief breaks into her room and steals them from atop the night stand while she is in the shower.

Karen is going downtown to shop.She pulls her car into a parking lot,stops,pays and receives a ticket,parks her car,and leaves.Karen keeps her keys,and she may retrieve her car at any time.Several hours later when Karen returns,she learns her car has been stolen.Which of the following statements best describes this situation?

Grandpa calls his grandson,Billy,and says,"I want you to have my toy train set.I'll bring it by next week." Billy says that he would love to have it.Grandpa dies unexpectedly that afternoon; in his will,he leaves everything to Alicia,Billy's cousin.Which is true?

Bob is camping in the mountains one cold winter night with his friend,Alfred.Bob writes a postcard to his college roommate that says,"Dear Frank,I am giving you the antique desk in my Denver home.Come pick it up once I am back in town.With kind regards from your freezing cold friend,Bob." Bob freezes to death at his campsite an hour later.Bob has no will,but his wife is his only heir.Which of the following statements is true?

Kirk was recently visited by a life insurance salesperson.The salesperson did an especially good job of selling,and Kirk decided to buy several policies.In addition to a policy on himself,Kirk purchased one policy each on the life of his wife,his son,his aunt,his uncle and the old man who lives next door.Kirk has been married for twelve years.His mother is sixty-two years old,and provides no support to Kirk.In fact,Kirk has very little contact with her.His aunt provides no support,but had provided support when Kirk was young and his parents were experiencing financial difficulties.Kirk receives $10,000 each year as a gift from his uncle,but otherwise receives nothing from him.Kirk has known the old man next door for eleven years,and often assists the old man when he needs help.For which of these policies does Kirk have an insurable interest?

In today's urbanized society,acquiring ownership in personal property by capture has become increasingly important.

A bailment for a fixed term terminates at the end of the term,or sooner by the mutual consent of the parties.

A homeowner's policy is a comprehensive insurance policy that includes coverage for the real and personal risks covered by a fire insurance policy,as well as personal liability insurance.

Which of the following is true about "no-fault" automobile insurance?

Property is considered mislaid property when its owner involuntarily places the property somewhere and then intentionally forgets it.

Only ________ property can be bailed.

Should an insurance company have a duty to defend its insured when the defense will cost the insurance company more than it will cost to simply pay the claim? For example,should an automobile insurer have a duty to spend $10,000 to defend an insured when the claim is under $10,000? What ethical problems arise when the outcome would affect the insured's driving record,and therefore the rates that the insurance company would charge? What ethical problems can arise with this duty to defend when both drivers are covered by the same insurance company?

A gift "causa mortis" is ineffective if the donor recovers from the existing illness or peril.

Almost all states have enacted innkeepers' statutes that limit the liability of innkeepers.

Constructive delivery is the usual method of transferring personal property.

Which of the following is true when a party wrongfully makes an improvement to someone else's property?

An insurance agent is an independent contractor who represents a number of insurance companies.