Exam 34: Personal Property and Bailments

Gabrielle buys silver and jade to make jewelry. The finished products are sold to Hand Crafts, a shop that sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to

Logan borrows Morris's bike to ride over mountain trails. The bike is damaged during the ride. Liable for the cost of repairing the bike is​

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. QuikFix can recover for the damage from​

A hotel owner may be strictly liable for any loss or damage to their guests' personal property.

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

Faye owns the land on which Golden Spurs Ranch is situated, plus the ranch house, barn, and other structures permanently attached to the land. Faye's brother Huey owns everything else in the ranch's operation-livestock, feed, and so on. The personal property is owned by

Constructive delivery is always necessary for gifts of intangible personal property.

Bristol discovers a boat adrift, and retrieves and anchors it. The boat features a number on its side and other evidence pointing to its owner, Cedric. This is​

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

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

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

Barney's Burgers requires that its employees wear uniforms and protective clothing on the job. Barney's provides a locker room for the employees to leave their street clothes and personal items while working. A sign on the back of the locker room door states, "Barney's is not responsible for the loss of any property in the locker room." Chuck, a Barney's employee, changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his locker. When he returns after his shift, the wallet and watch are gone. Does Chuck's leaving personal items in the locker room constitute a bailment? If so, what type of bailment? If not, what legal relationship is it? Does Barney's sign exculpate the company for Chuck's loss? Why or why not?​

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

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

Pearl gives Raphael a smartphone as a gift. Raphael develops a new app for the phone. She obtains intellectual property protection, and forms QuikApps, LLC, to make and market the app. Raphael's acquisition of the app is by​

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

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

Only tangible personal property can be bailed.

Property voluntarily placed by its owner and inadvertently forgotten is lost property.

Fact Pattern 34-1 ​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 34-1. Truck & Transfer can avoid liability​