Question 1

Unless otherwise agreed,fixtures remain with real property when the real property is sold.

Accepted Answer

A) True 
 B)False

Question 2

Willie gave his girlfriend Reba a gold necklace for her birthday.The next day,Reba broke up with Willie and started dating his best friend,Waylon.Willie is furious and heartbroken.He becomes so upset that he commits suicide.Can Willie's estate get the necklace back from Reba?

Accepted Answer

A)  Willie's estate can recover the necklace, because a donor is entitled to revoke or withdraw a gift within a reasonable period of time. 
B)  Willie's estate can recover the necklace, because Reba paid no consideration for the gift. 
C)  Willie's estate cannot recover the necklace, because it was a gift "causa mortis." 
D)  Willie's estate cannot recover the necklace, because it was an "inter vivos" gift. 
E)  This was not a gift, because Willie would not have intended to give Reba the necklace had he known about Reba and Waylon. 
A)  Willie's estate can recover the necklace, because a donor is entitled to revoke or withdraw a gift within a reasonable period of time. 
B)  Willie's estate can recover the necklace, because Reba paid no consideration for the gift. 
C)  Willie's estate cannot recover the necklace, because it was a gift "causa mortis." 
D)  Willie's estate cannot recover the necklace, because it was an "inter vivos" gift. 
E)  This was not a gift, because Willie would not have intended to give Reba the necklace had he known about Reba and Waylon.

Question 3

In a bailment,the party to whom the property is delivered for safekeeping,storage,or delivery is the bailor.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true when someone accidentally makes an improvement to the personal property of another where the owner was unaware of the improvement until after it had been made?

Accepted Answer

A)  The property owner gets to keep the improvement in all circumstances, and is not required to pay for it. 
B)  The property owner gets to keep the improvement in all cases, but must pay the party who improved it the reasonable value of the improvement. 
C)  The party who made the improvement can remove it if this is possible; otherwise, the owner of the property gets to keep the improvement and is not required to pay for it. 
D)  The party who made the improvement can remove it if such removal is possible; otherwise, the owner of the property gets to keep the improvement, but must pay the party who improved it the reasonable value of the improvement. 
E)  The party who made the improvement must be paid for the improvement, so long as it is undisputed that the fair market value of the property has been increased as a result of the improvement. 
A)  The property owner gets to keep the improvement in all circumstances, and is not required to pay for it. 
B)  The property owner gets to keep the improvement in all cases, but must pay the party who improved it the reasonable value of the improvement. 
C)  The party who made the improvement can remove it if this is possible; otherwise, the owner of the property gets to keep the improvement and is not required to pay for it. 
D)  The party who made the improvement can remove it if such removal is possible; otherwise, the owner of the property gets to keep the improvement, but must pay the party who improved it the reasonable value of the improvement. 
E)  The party who made the improvement must be paid for the improvement, so long as it is undisputed that the fair market value of the property has been increased as a result of the improvement.

Question 5

With regard to an automobile accident,the type of automobile insurance coverage that pays for the damage caused by the insured to another driver's car is called:

Accepted Answer

A)  collision insurance. 
B)  comprehensive insurance. 
C)  liability insurance. 
D)  no fault coverage. 
E)  "all-risk" coverage. 
A)  collision insurance. 
B)  comprehensive insurance. 
C)  liability insurance. 
D)  no fault coverage. 
E)  "all-risk" coverage.

Question 6

An "umbrella" insurance policy pays when other losses from a covered occurrence exceed the limits of other insurance.

Accepted Answer

A) True 
 B)False

Question 7

Heating systems and storm windows are examples of integrated property.

Accepted Answer

A) True 
 B)False

Question 8

A gift causa mortis is a gift made in contemplation of the execution of a will.

Accepted Answer

A) True 
 B)False

Question 9

If a student leaves a book bag in class by accident and the professor takes possession to safeguard the bag,an implied bailment has been formed.

Accepted Answer

A) True 
 B)False

Question 10

Mike checked into a hotel in a state that has a typical innkeeper statute.The hotel clerk notified Mike that a safe was available for his valuables.Mike decided against using the safe,because he does not trust hotel employees.Mike hid an expensive watch and cash in a drawer and went out to dinner.When he came back,the watch and cash were gone.Which of the following is true?

Accepted Answer

A)  The hotel is not responsible for the loss, unless Mike can prove that a hotel employee stole the items. 
B)  The hotel is not responsible for the loss. 
C)  The hotel is responsible for the loss, unless the hotel can prove Mike failed to make reasonable efforts to hide the items. 
D)  The hotel is responsible for the loss, unless the hotel can prove that a hotel employee did not take the items. 
E)  The hotel is responsible for the loss, but only to a maximum amount of $500. 
A)  The hotel is not responsible for the loss, unless Mike can prove that a hotel employee stole the items. 
B)  The hotel is not responsible for the loss. 
C)  The hotel is responsible for the loss, unless the hotel can prove Mike failed to make reasonable efforts to hide the items. 
D)  The hotel is responsible for the loss, unless the hotel can prove that a hotel employee did not take the items. 
E)  The hotel is responsible for the loss, but only to a maximum amount of $500.

Question 11

Which of the following is true regarding bailment agreements?

Accepted Answer

A)  The creation of all bailments requires a writing. 
B)  A bailment may be express, but not implied. 
C)  A bailment may be implied, but not express. 
D)  An example of an implied bailment is the finding and safeguarding of lost property. 
E)  The creation of all bailments requires that exact formalities be observed. 
A)  The creation of all bailments requires a writing. 
B)  A bailment may be express, but not implied. 
C)  A bailment may be implied, but not express. 
D)  An example of an implied bailment is the finding and safeguarding of lost property. 
E)  The creation of all bailments requires that exact formalities be observed.

Question 12

Which of the following is true regarding liability when a car is stolen or damaged while parked in a commercial lot or garage?

Accepted Answer

A)  Garages are always bailees of automobiles, and they are therefore liable for all theft and/or damage occurring to vehicles in their possession and control. 
B)  Garages are liable for car theft, but not damage to vehicles. 
C)  Garages are liable for damage to vehicles, but not car theft. 
D)  Garages are not bailees, and they are therefore not liable for car theft or damage to vehicles. 
E)  If the owner parks his or her own car and takes the keys, the arrangement is considered merely a lease of the parking space, not a bailment, with the general rule being that the owner of the garage is not liable for theft of or damage to the car. 
A)  Garages are always bailees of automobiles, and they are therefore liable for all theft and/or damage occurring to vehicles in their possession and control. 
B)  Garages are liable for car theft, but not damage to vehicles. 
C)  Garages are liable for damage to vehicles, but not car theft. 
D)  Garages are not bailees, and they are therefore not liable for car theft or damage to vehicles. 
E)  If the owner parks his or her own car and takes the keys, the arrangement is considered merely a lease of the parking space, not a bailment, with the general rule being that the owner of the garage is not liable for theft of or damage to the car.

Question 13

Jean owns a champion female German Shepherd named Abby.Jean had planned to breed Abby in the future,but before that could happen,Abby became pregnant.The only two dogs who could have been the father were a German Shepherd and a Standard Poodle.This is because these were the only male dogs anywhere near Abby's house.Abby was normally kept in a fenced yard but had accidentally gotten out of the yard a couple of times.These were the only times that Abby could have become pregnant.Abby gave birth to a litter of eight purebred German Shepherd puppies.As the puppies became a few weeks old,it became obvious that they were championship quality.Abby mentioned to the owner of the puppies' father that Abby had given birth to some of his dog's offspring.The next day the father's owner notified Jean that he wanted four of the puppies and would go to court for them if Jean did not voluntarily give them to him.Discuss his claim.

Accepted Answer

He would be claiming

Question 14

A gift causa mortis is established when the donor makes a gift in anticipation of approaching death from some potential sickness or peril.

Accepted Answer

A) True 
 B)False

Question 15

If properly created,a bailment can exist for either real or personal property.

Accepted Answer

A) True 
 B)False

Question 16

Constructive delivery is also known as physical delivery.

Accepted Answer

A) True 
 B)False

Question 17

What are the advantages and disadvantages of "no-fault" automobile insurance? What is the purpose of no-fault coverage? Should no-fault coverage be mandatory,optional,or not offered? Give reasons for your answer.

Accepted Answer

No-fault insurance reduces litigation co

Question 18

Property is considered ________ property when its owner voluntarily places the property somewhere and then inadvertently forgets it.

Accepted Answer

A)  abandoned 
B)  conditional 
C)  lost 
D)  mislaid 
E)  intangible 
A)  abandoned 
B)  conditional 
C)  lost 
D)  mislaid 
E)  intangible

Question 19

The courts presume acceptance of a gift unless there is proof that the gift was refused.

Accepted Answer

A) True 
 B)False

Question 20

An insurance agent and insurance broker are essentially the same,and have the same legal relationship with the companies they represent.

Accepted Answer

A) True 
 B)False

Exam 37: Personal Property, Bailment, and Insurance

Unless otherwise agreed,fixtures remain with real property when the real property is sold.

Willie gave his girlfriend Reba a gold necklace for her birthday.The next day,Reba broke up with Willie and started dating his best friend,Waylon.Willie is furious and heartbroken.He becomes so upset that he commits suicide.Can Willie's estate get the necklace back from Reba?

In a bailment,the party to whom the property is delivered for safekeeping,storage,or delivery is the bailor.

Which of the following is true when someone accidentally makes an improvement to the personal property of another where the owner was unaware of the improvement until after it had been made?

With regard to an automobile accident,the type of automobile insurance coverage that pays for the damage caused by the insured to another driver's car is called:

An "umbrella" insurance policy pays when other losses from a covered occurrence exceed the limits of other insurance.

Heating systems and storm windows are examples of integrated property.

A gift causa mortis is a gift made in contemplation of the execution of a will.

If a student leaves a book bag in class by accident and the professor takes possession to safeguard the bag,an implied bailment has been formed.

Which of the following is true regarding bailment agreements?

Which of the following is true regarding liability when a car is stolen or damaged while parked in a commercial lot or garage?

A gift causa mortis is established when the donor makes a gift in anticipation of approaching death from some potential sickness or peril.

If properly created,a bailment can exist for either real or personal property.

Constructive delivery is also known as physical delivery.

What are the advantages and disadvantages of "no-fault" automobile insurance? What is the purpose of no-fault coverage? Should no-fault coverage be mandatory,optional,or not offered? Give reasons for your answer.

Property is considered ________ property when its owner voluntarily places the property somewhere and then inadvertently forgets it.

The courts presume acceptance of a gift unless there is proof that the gift was refused.

An insurance agent and insurance broker are essentially the same,and have the same legal relationship with the companies they represent.

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