Exam 48: Personal Property and Bailments

Fact Pattern 48-1​ Truck & Transfer Inc. agrees to pick up two containers for United Home Products Corporation and store their contents, to be delivered later. While Truck & Transfer unloads one container, the other disappears from the company's loading dock. -Refer to Fact Pattern 48-1. Truck & Transfer can avoid liability​

Property that is leased from a bailor must be fit for the intended purpose of the bailment.​

Confusion of fungible goods results in the owners' loss of their rights in the property.​

Ester sells stock in Fast Food Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is​

Real property can be the subject of a bailment.​

A gift causa mortis does not become absolute until the donor dies from the contemplated illness or other peril.​

Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston. Subject to a bailment is​

Gary tells his daughter Heidi that she can have his restored 1932 Ford Coupé when he dies, but he does not add this to his will. This is​

Nan asks Otto if she can store her car in his garage while she serves in the U.S. Army. He agrees. This is​

Rob steals a damaged, broken bike that is parked, unlocked, in a bike rack. He repairs, paints, and replaces parts on the bike until it is like new. The original owner, Sue, then claims it. The bike belongs to​

When a passenger boards a plane, he or she becomes the subject of a bailment.​

A finder of lost property can claim title to the property against the whole world-including the true owner.​

Accession occurs when someone adds value to an item of personal property by the use of labor or materials.​

For estray statutes to apply, property must be mislaid, not merely lost.​

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

A gift is effective whether or not it is accepted.​

Businesses often pay taxes on the personal property they own, use, or lease.​

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by​

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is​

During a storm in Tornado Alley, a house is destroyed, but its owner Dorothy survives. Dorothy plans to return to the site to salvage her possessions, but she delays. Meanwhile, Elliott combs through the ruins and removes all useful items. Dorothy learns of the recovery and files a suit against Elliott, claiming that the items are hers. Elliott responds that the destroyed house was abandoned and therefore he has good title to whatever he took possession of. What is the court likely to rule, and why?​