Question 1

In states that follow the community property tradition, property acquired after the marriage belongs solely to the party who acquired it.

Accepted Answer

A) True 
 B)False

Question 2

If a thief sells stolen property to a good-faith buyer, the buyer acquires title to the property.

Accepted Answer

A) True 
 B)False

Question 3

Joe rents a unit at the local Stor-More storage complex and places a lock on the unit's door. Joe has created a bailment with Stor-More.

Accepted Answer

A) True 
 B)False

Question 4

In order for a bailment to be valid, the bailor must be the owner of the subject property.

Accepted Answer

A) True 
 B)False

Question 5

Proper delivery of a car would be satisfied with the delivery of a key.

Accepted Answer

A) True 
 B)False

Question 6

When a bailor sues the bailee for damages to the bailed property, who has the burden of proving fault and that such fault was the proximate cause of the bailor's loss?

Accepted Answer

A)  the person in possession of the property 
B)  the bailor 
C)  the bailee 
D)  the jury 
A)  the person in possession of the property 
B)  the bailor 
C)  the bailee 
D)  the jury

Question 7

Joan brought her car into Ace's Service Station for a tune-up. After tuning up the car, Ace decided to visit his mother. Ace drove Joan's car. Ace was following all safety precautions when a negligent driver without insurance struck Joan's car. Joan sued Ace for the damages to her car. The probable result is:

Accepted Answer

A)  Ace will win, since he was taking reasonable care of the bailed goods. 
B)  Ace will win, since the bailee has the right to use the bailed goods. 
C)  Joan will win, since the harm was sustained during the bailee's unauthorized use of the property. 
D)  Joan will win, since bailees are absolutely liable for bailed goods in their possession and control. 
A)  Ace will win, since he was taking reasonable care of the bailed goods. 
B)  Ace will win, since the bailee has the right to use the bailed goods. 
C)  Joan will win, since the harm was sustained during the bailee's unauthorized use of the property. 
D)  Joan will win, since bailees are absolutely liable for bailed goods in their possession and control.

Question 8

Sylvia and Morris were married and owned their home as tenants by the entirety. When Morris died, his will said that he left his half of his home to his brother Tim. Who owns the home at Morris's death?

Accepted Answer

A)  The home is now owned solely by Sylvia. 
B)  The home is now owned by a joint tenancy between Sylvia and Tim. 
C)  The home is now owned by a tenancy in common between Sylvia and Tim. 
D)  The home is now owned by Sylvia and the state, in equal and divisible shares. 
A)  The home is now owned solely by Sylvia. 
B)  The home is now owned by a joint tenancy between Sylvia and Tim. 
C)  The home is now owned by a tenancy in common between Sylvia and Tim. 
D)  The home is now owned by Sylvia and the state, in equal and divisible shares.

Question 9

If Susan rents a locked space in a U-Haul storage facility, she and U-Haul:

Accepted Answer

A)  have created a mutual benefit bailment. 
B)  have not created a bailment until she pays the first month's storage fee. 
C)  have not created a bailment because there was no delivery of goods. 
D)  have created a constructive bailment. 
A)  have created a mutual benefit bailment. 
B)  have not created a bailment until she pays the first month's storage fee. 
C)  have not created a bailment because there was no delivery of goods. 
D)  have created a constructive bailment.

Question 10

Which of the following is not a classification of ordinary bailments?

Accepted Answer

A)  for the sole benefit of the bailor 
B)  for the sole benefit of the bailee 
C)  for the sole benefit of the third party beneficiary 
D)  for the mutual benefit of the bailor and the bailee 
A)  for the sole benefit of the bailor 
B)  for the sole benefit of the bailee 
C)  for the sole benefit of the third party beneficiary 
D)  for the mutual benefit of the bailor and the bailee

Question 11

Tom established a bank account for his daughter Mary under the Uniform Gifts to Minors Act. Tom named himself the custodian. Later, Tom had a serious disagreement with Mary and ordered the bank to transfer the money in that account to a similar account maintained in the same bank for Tom's son Ed. The bank must:

Accepted Answer

A)  comply with Tom's order, because the custodian controls the account. 
B)  refuse Tom's order, because this would clearly not be for the benefit of Mary. 
C)  comply with Tom's order, because Uniform Gifts to Minors accounts are not final. 
D)  comply with Tom's order if Mary is under 18 years of age and refuse the order if she is over 18 years of age. 
A)  comply with Tom's order, because the custodian controls the account. 
B)  refuse Tom's order, because this would clearly not be for the benefit of Mary. 
C)  comply with Tom's order, because Uniform Gifts to Minors accounts are not final. 
D)  comply with Tom's order if Mary is under 18 years of age and refuse the order if she is over 18 years of age.

Question 12

Title to abandoned property is acquired by the first person who obtains possession and control of the property.

Accepted Answer

A) True 
 B)False

Question 13

A third person to whom a joint tenant's interest is transferred becomes a: tenant by the entirety.

Accepted Answer

A)  joint tenant. 
B)  cotenant. 
C)  tenant in common. 
D)  tenant by the entirety. 
A)  joint tenant. 
B)  cotenant. 
C)  tenant in common. 
D)  tenant by the entirety.

Question 14

Warren brought his television in for repairs. After Warren left the store, gunmen came in to rob the proprietor. As they ran out, Warren's television was knocked over and destroyed. Warren demanded that the proprietor of the store compensate him for the fair market value of the television. The bailee:

Accepted Answer

A)  is liable, since the goods were not returned to Warren in proper condition. 
B)  is liable, since the bailee did not prevent the gunmen from damaging the television. 
C)  is not liable, since this was a mutual-benefit bailment. 
D)  is not liable, since the damage was caused by the criminal act of a third party. 
A)  is liable, since the goods were not returned to Warren in proper condition. 
B)  is liable, since the bailee did not prevent the gunmen from damaging the television. 
C)  is not liable, since this was a mutual-benefit bailment. 
D)  is not liable, since the damage was caused by the criminal act of a third party.

Question 15

A bailee's interest in the bailed property can be characterized as:

Accepted Answer

A)  ownership. 
B)  a fractional proprietary interest. 
C)  possession. 
D)  constructive ownership. 
A)  ownership. 
B)  a fractional proprietary interest. 
C)  possession. 
D)  constructive ownership.

Question 16

Transfer or possession and use of bailed property without compensation is called a constructive bailment.

Accepted Answer

A) True 
 B)False

Question 17

In certain cases, real property can constitute a bailment.

Accepted Answer

A) True 
 B)False

Question 18

Most courts consider an engagement ring to be a conditional gift.

Accepted Answer

A) True 
 B)False

Question 19

Unclaimed property is often transferred to the government under the concept of escheat.

Accepted Answer

A) True 
 B)False

Question 20

Title to personal property can be acquired by gift or purchase or stolen property.

Accepted Answer

A) True 
 B)False

Exam 20: Personal Property and Bailments

In states that follow the community property tradition, property acquired after the marriage belongs solely to the party who acquired it.

If a thief sells stolen property to a good-faith buyer, the buyer acquires title to the property.

Joe rents a unit at the local Stor-More storage complex and places a lock on the unit's door. Joe has created a bailment with Stor-More.

In order for a bailment to be valid, the bailor must be the owner of the subject property.

Proper delivery of a car would be satisfied with the delivery of a key.

When a bailor sues the bailee for damages to the bailed property, who has the burden of proving fault and that such fault was the proximate cause of the bailor's loss?

Sylvia and Morris were married and owned their home as tenants by the entirety. When Morris died, his will said that he left his half of his home to his brother Tim. Who owns the home at Morris's death?

If Susan rents a locked space in a U-Haul storage facility, she and U-Haul:

Which of the following is not a classification of ordinary bailments?

Title to abandoned property is acquired by the first person who obtains possession and control of the property.

A third person to whom a joint tenant's interest is transferred becomes a: tenant by the entirety.

A bailee's interest in the bailed property can be characterized as:

Transfer or possession and use of bailed property without compensation is called a constructive bailment.

In certain cases, real property can constitute a bailment.

Most courts consider an engagement ring to be a conditional gift.

Unclaimed property is often transferred to the government under the concept of escheat.

Title to personal property can be acquired by gift or purchase or stolen property.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

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Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

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