Exam 23: Personal Property, Bailments, and Insurance

All transactions involving the delivery of property from one person to another create a bailment.

In a bailment of fungible goods, the bailee must return the identical goods given by the bailor.

​Orin is a doctor with Physicians Health Clinic, which obtains insurance from Quotient Insurance, Inc., on Orin's life. Orin dies. The proceeds of the policy belong to

Oleg takes a PowerMade-brand rototiller to QuikFix Inc. for repairs. Lacking certain parts, QuikFix ships the rototiller to Repair & Parts Company. While in Repair & Parts's possession, the machine is damaged by its failure to exercise the appropriate degree of care. QuikFix can recover for the damage from

Bram finds a tablet on the counter at Caffe Café. He takes the tablet to a police station. A police officer tells Bram that under state law if the tablet is not claimed by a certain time, Bram can obtain title to it. This is acquiring possession by

Marcy owns land in North Dakota under which deposits of oil shale are discovered. Marcy sells the rights to the shale to Oil Mining & Refining Inc. Once the oil in the rock is removed, it will be considered​

Constructive delivery confers the right to take possession of an object.

Ruby stores her furniture with Stow-Away, Inc., under a contract that limits the dollar amount of its liability. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on

Under a coinsurance clause, if a homeowner insures a home for less than the policy's specified percentage, the homeowner is not responsible for a proportionate share of the loss.

​Donatella owns factory machinery and the tools to service it, as well as office furniture, including computers. Emilio owns patents, trademarks that identify the products made under those patents, and stock in the company that sells those products. Personal property includes items owned by

Without an insurable interest, there is no enforceable insurance contract.

The words used in an insurance contract are given their ordinary meanings in light of the nature of the coverage involved.

There is little state regulation of the insurance industry.

Warehouse companies are not liable for loss or damage to property resulting from negligence.

Rhett works at Scarlett's Service Station. After work, in the station's restroom, Rhett finds a diamond ring lost by Thalia. Title to the ring belongs to

Insurance policies are governed by the general principles of contract law.

Only tangible personal property can be bailed.

Logan borrows Morris's bike to ride over mountain trails. The bike is damaged during the ride by Logan's failure to exercise the required degree of care. Liable for the cost of repairing the bike is

Generally, a finder of lost property can claim title to the property against the whole world-except the true owner.

An incontestability clause prohibits an insurer from contesting statements made in an insurance application until a specified time has elapsed.