Question 1

Real property can not be turned into personal property by any method.​

Accepted Answer

A) True 
 B)False

Question 2

A bailment agreement must be express.​

Accepted Answer

A) True 
 B)False

Question 3

Perry gives Rachel a phone as a gift. Rachel develops a new app for the phone, obtains intellectual property protection, and forms QuikApps, LLC, to sell it. Rachel's acquisition of the app is by​

Accepted Answer

A)  ​possession. 
B)  ​a bailment. 
C)  ​gift. 
D)  ​production. 
A)  ​possession. 
B)  ​a bailment. 
C)  ​gift. 
D)  ​production.

Question 4

A hotel owner is not liable for loss or damage to its guests' personal property under any circumstances.​

Accepted Answer

A) True 
 B)False

Question 5

Constructive delivery is not necessary for gifts of intangible personal property.​

Accepted Answer

A) True 
 B)False

Question 6

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is​

Accepted Answer

A)  ​accession. 
B)  ​acquisition. 
C)  ​conversion. 
D)  ​a bailment. 
A)  ​accession. 
B)  ​acquisition. 
C)  ​conversion. 
D)  ​a bailment.

Question 7

Someone who finds abandoned property acquires title to it and that title is good against the whole world, except the original owner.​

Accepted Answer

A) True 
 B)False

Question 8

A gift is a voluntary transfer of property ownership for which consideration is given.​

Accepted Answer

A) True 
 B)False

Question 9

Ruby stores her furniture with Stow-Away, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on​

Accepted Answer

A)  ​neither Ruby nor Stow-Away. 
B)  ​Ruby and Stow-Away in equal proportions. 
C)  ​Ruby only. 
D)  ​Stow-Away only. 
A)  ​neither Ruby nor Stow-Away. 
B)  ​Ruby and Stow-Away in equal proportions. 
C)  ​Ruby only. 
D)  ​Stow-Away only.

Question 10

Common carriers can contract away their liability for damaged goods.​

Accepted Answer

A) True 
 B)False

Question 11

Neal allows Owen to store his trailer on Neal's property for $20 a month while Owen is out of town on a job for Plain States Construction, his employer. The bailor is​

Accepted Answer

A)  ​Neal. 
B)  ​Owen. 
C)  ​Plain States. 
D)  ​the trailer. 
A)  ​Neal. 
B)  ​Owen. 
C)  ​Plain States. 
D)  ​the trailer.

Question 12

Tangible personal property has physical substance.​

Accepted Answer

A) True 
 B)False

Question 13

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift​

Accepted Answer

A)  ​inter vivos. 
B)  ​causa mortis. 
C)  ​by accession. 
D)  ​by production. 
A)  ​inter vivos. 
B)  ​causa mortis. 
C)  ​by accession. 
D)  ​by production.

Question 14

Earth's Bounty Farms arranges to have Fresh Express, Inc., a common carrier, transport a load of almonds from California to Delaware. Greg is Fresh Express's driver. Fresh Express will not be liable to Earth's Bounty for failing to deliver the almonds on time if​

Accepted Answer

A)  ​authorities are stopping and searching all trucks leaving California. 
B)  ​Fresh Express's dispatcher mistakenly delays Greg's departure. 
C)  ​Fresh Express's truck is broken into and the almonds are stolen. 
D)  ​Greg has to wait two days in Sacramento for the truck to be repaired. 
A)  ​authorities are stopping and searching all trucks leaving California. 
B)  ​Fresh Express's dispatcher mistakenly delays Greg's departure. 
C)  ​Fresh Express's truck is broken into and the almonds are stolen. 
D)  ​Greg has to wait two days in Sacramento for the truck to be repaired.

Question 15

Inadvertently, Ralph leaves his backpack at Sushi Café when he stops for lunch. The backpack is​

Accepted Answer

A)  ​abandoned property. 
B)  ​bailed property. 
C)  ​lost property. 
D)  ​mislaid property. 
A)  ​abandoned property. 
B)  ​bailed property. 
C)  ​lost property. 
D)  ​mislaid property.

Question 16

The implied warranties of merchantability and fitness for a particular purpose extend to bailments that include rights to use the bailed goods.​

Accepted Answer

A) True 
 B)False

Question 17

The delivery of goods to a common carrier creates a bailment relationship between the shipper and the carrier.​

Accepted Answer

A) True 
 B)False

Question 18

Many states require a finder of lost property to make a reasonably diligent search to locate the true owner.​

Accepted Answer

A) True 
 B)False

Question 19

EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is​

Accepted Answer

A)  ​EquipLease. 
B)  ​Farm Harvest. 
C)  ​the farm owners. 
D)  ​no one. 
A)  ​EquipLease. 
B)  ​Farm Harvest. 
C)  ​the farm owners. 
D)  ​no one.

Question 20

Yogi loans his laptop to Zoey. This is​

Accepted Answer

A)  ​a bailment. 
B)  ​acquiring ownership by possession. 
C)  ​a gift. 
D)  ​accession. 
A)  ​a bailment. 
B)  ​acquiring ownership by possession. 
C)  ​a gift. 
D)  ​accession.

Exam 48: Personal Property and Bailments

Real property can not be turned into personal property by any method.​

A bailment agreement must be express.​

Perry gives Rachel a phone as a gift. Rachel develops a new app for the phone, obtains intellectual property protection, and forms QuikApps, LLC, to sell it. Rachel's acquisition of the app is by​

A hotel owner is not liable for loss or damage to its guests' personal property under any circumstances.​

Constructive delivery is not necessary for gifts of intangible personal property.​

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is​

Someone who finds abandoned property acquires title to it and that title is good against the whole world, except the original owner.​

A gift is a voluntary transfer of property ownership for which consideration is given.​

Ruby stores her furniture with Stow-Away, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on​

Common carriers can contract away their liability for damaged goods.​

Neal allows Owen to store his trailer on Neal's property for $20 a month while Owen is out of town on a job for Plain States Construction, his employer. The bailor is​

Tangible personal property has physical substance.​

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift​

Earth's Bounty Farms arranges to have Fresh Express, Inc., a common carrier, transport a load of almonds from California to Delaware. Greg is Fresh Express's driver. Fresh Express will not be liable to Earth's Bounty for failing to deliver the almonds on time if​

Inadvertently, Ralph leaves his backpack at Sushi Café when he stops for lunch. The backpack is​

The implied warranties of merchantability and fitness for a particular purpose extend to bailments that include rights to use the bailed goods.​

The delivery of goods to a common carrier creates a bailment relationship between the shipper and the carrier.​

Many states require a finder of lost property to make a reasonably diligent search to locate the true owner.​

EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is​

Yogi loans his laptop to Zoey. This is​

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Business and the Constitution

Business Ethics

Tort Law

Strict Liability and Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Writing Requirement in Our Digital World

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance and Breach of Sales and Lease Contracts

Warranties

International and Space Law

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Mergers and Takeovers

Investor Protection, Insider Trading, and Corporate Governance

Administrative Agencies

Consumer Law

Environmental Protection

Antitrust Law

Professional Liability and Accountability

Real Property and Landlord-Tenant Law

Insurance

Wills and Trusts

The Legal Environment of Business

Torts and Crimes

Contracts and E-Contracts

Domestic and International Sales and Lease Contracts

Negotiable Instruments

Creditors Rights and Bankruptcy

Agency and Employment

Business Organizations

Government Regulation

Real property can not be turned into personal property by any method.

A bailment agreement must be express.

Perry gives Rachel a phone as a gift. Rachel develops a new app for the phone, obtains intellectual property protection, and forms QuikApps, LLC, to sell it. Rachel's acquisition of the app is by

A hotel owner is not liable for loss or damage to its guests' personal property under any circumstances.

Constructive delivery is not necessary for gifts of intangible personal property.

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional vehicle customizing competition shows. The result of Mike's efforts is

Someone who finds abandoned property acquires title to it and that title is good against the whole world, except the original owner.

A gift is a voluntary transfer of property ownership for which consideration is given.

Ruby stores her furniture with Stow-Away, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on

Common carriers can contract away their liability for damaged goods.

Neal allows Owen to store his trailer on Neal's property for $20 a month while Owen is out of town on a job for Plain States Construction, his employer. The bailor is

Tangible personal property has physical substance.

Angela is in good health and sound mind when she gives Brianna a quarter horse. Brianna accepts. This is a gift

Earth's Bounty Farms arranges to have Fresh Express, Inc., a common carrier, transport a load of almonds from California to Delaware. Greg is Fresh Express's driver. Fresh Express will not be liable to Earth's Bounty for failing to deliver the almonds on time if

Inadvertently, Ralph leaves his backpack at Sushi Café when he stops for lunch. The backpack is

The implied warranties of merchantability and fitness for a particular purpose extend to bailments that include rights to use the bailed goods.

The delivery of goods to a common carrier creates a bailment relationship between the shipper and the carrier.

Many states require a finder of lost property to make a reasonably diligent search to locate the true owner.

EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is

Yogi loans his laptop to Zoey. This is