Question 1

In a bailment,the owner of the property is the bailee.

Accepted Answer

A) True 
 B)False

Question 2

The intellectual property for a new invention is what kind of property?

Accepted Answer

A)  real tangible 
B)  real intangible 
C)  personal tangible 
D)  personal intangible 
E)  real fixture 
A)  real tangible 
B)  real intangible 
C)  personal tangible 
D)  personal intangible 
E)  real fixture

Question 3

With regard to a life insurance policy,the "insured" receives the insurance proceeds when the person whose life is the subject of the policy dies.

Accepted Answer

A) True 
 B)False

Question 4

A warehouser is the bailor of goods in the warehouse.

Accepted Answer

A) True 
 B)False

Question 5

Under the Statute of Frauds,a bailment agreement must be in writing if it is for more than three (3)months.

Accepted Answer

A) True 
 B)False

Question 6

A bailment consists of the transfer of possession of personal property without a transfer of title.

Accepted Answer

A) True 
 B)False

Question 7

Insurance that provides coverage to the driver and passengers of a vehicle who are injured by an uninsured motorist is called uninsured motorist insurance.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is false regarding the termination of a bailment?

Accepted Answer

A)  A bailment generally expires at a specified time, or when a certain purpose is accomplished. 
B)  A bailment "at will" can be terminated at any time by either the bailor or the bailee. 
C)  A gratuitous bailee cannot generally terminate a fixed-term bailment before the expiration of its term. 
D)  Upon termination of the bailment, the bailee is legally obligated to do as the bailor directs with the property. 
E)  Where commingled fungible goods are involved, identically equivalent goods may be returned by the bailee. 
A)  A bailment generally expires at a specified time, or when a certain purpose is accomplished. 
B)  A bailment "at will" can be terminated at any time by either the bailor or the bailee. 
C)  A gratuitous bailee cannot generally terminate a fixed-term bailment before the expiration of its term. 
D)  Upon termination of the bailment, the bailee is legally obligated to do as the bailor directs with the property. 
E)  Where commingled fungible goods are involved, identically equivalent goods may be returned by the bailee.

Question 9

Real property can become personal property if it is removed from the land.

Accepted Answer

A) True 
 B)False

Question 10

The distinction between lost property and mislaid property depends upon whether:

Accepted Answer

A)  the true owner later finds it. 
B)  the true owner intentionally placed the property in the place where it was found. 
C)  the property belonged to a minor or an adult. 
D)  the property was found on public or private property. 
E)  the property was stolen. 
A)  the true owner later finds it. 
B)  the true owner intentionally placed the property in the place where it was found. 
C)  the property belonged to a minor or an adult. 
D)  the property was found on public or private property. 
E)  the property was stolen.

Question 11

The insurance industry is regulated by:

Accepted Answer

A)  the United States Congress, under the Commerce Clause. 
B)  the Central Insurance Regulatory Agency. 
C)  the states, pursuant to the McCarran-Ferguson Act. 
D)  the process of self-regulation. 
E)  the Sherman Act. 
A)  the United States Congress, under the Commerce Clause. 
B)  the Central Insurance Regulatory Agency. 
C)  the states, pursuant to the McCarran-Ferguson Act. 
D)  the process of self-regulation. 
E)  the Sherman Act.

Question 12

Intangible property includes physically defined property,such as goods,animals,and minerals.

Accepted Answer

A) True 
 B)False

Question 13

Historically,the bailee must exercise what level of care in a bailment for the bailor's exclusive benefit?

Accepted Answer

A)  utmost 
B)  minimal 
C)  ordinary 
D)  strict liability 
E)  reasonable 
A)  utmost 
B)  minimal 
C)  ordinary 
D)  strict liability 
E)  reasonable

Question 14

If goods are being shipped by a common carrier trucking company,and the truck is hijacked by an armed robber and the shipment is destroyed,the common carrier will be liable for the loss of the goods because the "acts of a public enemy" exception does not apply in this situation.

Accepted Answer

A) True 
 B)False

Question 15

A ring found on a shelf in front of a bathroom mirror is most likely lost.

Accepted Answer

A) True 
 B)False

Question 16

Hubert U.Masterson,IV is the president of a Buzzer,Inc.,an automobile manufacturer.Hubert is concerned about the possibility of shareholders suing him for his executive decision-making regarding the continued production of large sport-utility vehicles that average ten miles per gallon,at a time when gasoline prices are at record highs.Hubert urges the company to purchase insurance to guard against his potential personal liability to shareholders in the context of his executive decision-making.If the company agrees to purchase insurance for William,what type of policy should it consider?

Accepted Answer

A)  business interruption insurance 
B)  directors' and officers' liability insurance 
C)  professional malpractice insurance 
D)  key-person insurance 
E)  product liability insurance 
A)  business interruption insurance 
B)  directors' and officers' liability insurance 
C)  professional malpractice insurance 
D)  key-person insurance 
E)  product liability insurance

Question 17

Express bailments must be in writing.

Accepted Answer

A) True 
 B)False

Question 18

Personal property that is permanently affixed to land or buildings is called integrated property.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not one of a common carrier's traditional exceptions to liability for goods in its possession?

Accepted Answer

A)  damage caused by an "act of God" 
B)  damage caused by the act of a "public enemy" 
C)  damage caused by an act of the shipper 
D)  damage caused by an act or event not foreseeable by the common carrier 
E)  damage caused by the inherent nature of the goods 
A)  damage caused by an "act of God" 
B)  damage caused by the act of a "public enemy" 
C)  damage caused by an act of the shipper 
D)  damage caused by an act or event not foreseeable by the common carrier 
E)  damage caused by the inherent nature of the goods

Question 20

Common carriers are liable for damage to goods caused by an act of God.

Accepted Answer

A) True 
 B)False

Exam 37: Personal Property, Bailment, and Insurance

In a bailment,the owner of the property is the bailee.

The intellectual property for a new invention is what kind of property?

With regard to a life insurance policy,the "insured" receives the insurance proceeds when the person whose life is the subject of the policy dies.

A warehouser is the bailor of goods in the warehouse.

Under the Statute of Frauds,a bailment agreement must be in writing if it is for more than three (3)months.

A bailment consists of the transfer of possession of personal property without a transfer of title.

Insurance that provides coverage to the driver and passengers of a vehicle who are injured by an uninsured motorist is called uninsured motorist insurance.

Which of the following is false regarding the termination of a bailment?

Real property can become personal property if it is removed from the land.

The distinction between lost property and mislaid property depends upon whether:

The insurance industry is regulated by:

Intangible property includes physically defined property,such as goods,animals,and minerals.

Historically,the bailee must exercise what level of care in a bailment for the bailor's exclusive benefit?

If goods are being shipped by a common carrier trucking company,and the truck is hijacked by an armed robber and the shipment is destroyed,the common carrier will be liable for the loss of the goods because the "acts of a public enemy" exception does not apply in this situation.

A ring found on a shelf in front of a bathroom mirror is most likely lost.

Express bailments must be in writing.

Personal property that is permanently affixed to land or buildings is called integrated property.

Which of the following is not one of a common carrier's traditional exceptions to liability for goods in its possession?

Common carriers are liable for damage to goods caused by an act of God.

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