Question 1

Common carriers are not permitted to limit their liability for damage to bailed goods.

Accepted Answer

A) True 
 B)False

Question 2

A person who has leased personal property has ownership rights and can also subsequently sell the property to a third person.

Accepted Answer

A) True 
 B)False

Question 3

In the United States,property ownership by citizens is protected by the Constitution.

Accepted Answer

A) True 
 B)False

Question 4

Chloe took her watch to a jeweler to have it repaired.While the jeweler had possession of the watch,a thief broke into the shop.The thief stole Chloe's watch and other jewelry pieces.Which of the following is true?

Accepted Answer

A) Because this was a bailment for the benefit of the jeweler,the jeweler is strictly liable to Chloe for the value of the watch. 
B) This was a mutual benefit bailment,meaning that the jeweler is liable to Chloe if he did not use reasonable care to protect the watch. 
C) No bailment existed between Chloe and the jeweler. 
D) Because this was a bailment for the benefit of Chloe,the jeweler cannot be held liable to her. 
A) Because this was a bailment for the benefit of the jeweler,the jeweler is strictly liable to Chloe for the value of the watch. 
B) This was a mutual benefit bailment,meaning that the jeweler is liable to Chloe if he did not use reasonable care to protect the watch. 
C) No bailment existed between Chloe and the jeweler. 
D) Because this was a bailment for the benefit of Chloe,the jeweler cannot be held liable to her.

Question 5

In a bailment,the bailee is liable for loss or damage to the bailed property while it is in the hands of the bailee:

Accepted Answer

A) under all circumstances;the bailee is the "insurer" of the goods. 
B) only if the bailee did not exercise proper care. 
C) unless the bailee has given some consideration. 
D) only if he has a personal interest in the safety of the property. 
A) under all circumstances;the bailee is the "insurer" of the goods. 
B) only if the bailee did not exercise proper care. 
C) unless the bailee has given some consideration. 
D) only if he has a personal interest in the safety of the property.

Question 6

Under the Uniform Transfers to Minors Act,a minor is an individual under the age of 18.

Accepted Answer

A) True 
 B)False

Question 7

The Uniform Transfers to Minors Act:

Accepted Answer

A) permits the donor to deliver the property to a custodian who acts for the benefit of the minor under the Act. 
B) prohibits an adult from making a gift to a minor unless the minor is the child of the donor. 
C) provides a method for making gifts to minors,who are defined by the Act as children under the age of 16. 
D) provides a complicated and abstract method of transferring money to minors. 
A) permits the donor to deliver the property to a custodian who acts for the benefit of the minor under the Act. 
B) prohibits an adult from making a gift to a minor unless the minor is the child of the donor. 
C) provides a method for making gifts to minors,who are defined by the Act as children under the age of 16. 
D) provides a complicated and abstract method of transferring money to minors.

Question 8

If the bailee returns the goods in a damaged condition,there is a rebuttable presumption of negligence on the part of the bailee.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an example of personal property?

Accepted Answer

A) Land 
B) Commercial Office Building 
C) House 
D) Books 
A) Land 
B) Commercial Office Building 
C) House 
D) Books

Question 10

Arthur borrows a new pair of stereo speakers from Jim,his classmate,who stays in the campus hostel.After about a week,Arthur goes to the hostel and leaves the speakers with Ryan,who lives on the floor adjacent to Jim's,asking him to give them to Jim.Ryan forgets to do so and loses the speakers.In such a situation:

Accepted Answer

A) Ryan is liable to Jim;he should have been more careful. 
B) Arthur is liable to Jim;he is the bailee. 
C) Jim is not liable to anyone because he returned the speakers. 
D) It was Jim's responsibility to take the speakers back. 
A) Ryan is liable to Jim;he should have been more careful. 
B) Arthur is liable to Jim;he is the bailee. 
C) Jim is not liable to anyone because he returned the speakers. 
D) It was Jim's responsibility to take the speakers back.

Question 11

Which of the following is defined as the earth's crust and all things firmly attached to it?

Accepted Answer

A) Tangible property 
B) Personal property 
C) Real property 
D) Public property 
A) Tangible property 
B) Personal property 
C) Real property 
D) Public property

Question 12

A gift causa mortis is a gift made in:

Accepted Answer

A) case of a birth. 
B) anticipation of birth. 
C) fear of death. 
D) contemplation of death. 
A) case of a birth. 
B) anticipation of birth. 
C) fear of death. 
D) contemplation of death.

Question 13

Gil has stolen a "Lancer" from Yu and changed the look and interior of the car.Gil is now using it for his personal purposes.After some months,Yu comes to know about his car and demands it back.However,Gil demands for the amount he spent on modifications.Is Yu liable to pay that?

Accepted Answer

No.Yu is not liable to pay the amount wh

Question 14

What is a lien?

Accepted Answer

A) Compensation by a bailee for any damages to the bailed property. 
B) The charges for delivery of any bailed property. 
C) A charge against property to secure the payment of a debt. 
D) A bailment for mutual benefit. 
A) Compensation by a bailee for any damages to the bailed property. 
B) The charges for delivery of any bailed property. 
C) A charge against property to secure the payment of a debt. 
D) A bailment for mutual benefit.

Question 15

Which of the following statements about ownership of a wild animal is false?

Accepted Answer

A) If a person fatally wounds a wild animal,he becomes the owner. 
B) If a captured wild animal escapes and is caught by a second person,it still belongs to the first capturer,regardless of whether the second capturer was aware of prior ownership. 
C) Wild animals caught in a trap or net are considered to be the property of the person who set the trap or net. 
D) The first person to take possession of a wild animal normally becomes the owner. 
A) If a person fatally wounds a wild animal,he becomes the owner. 
B) If a captured wild animal escapes and is caught by a second person,it still belongs to the first capturer,regardless of whether the second capturer was aware of prior ownership. 
C) Wild animals caught in a trap or net are considered to be the property of the person who set the trap or net. 
D) The first person to take possession of a wild animal normally becomes the owner.

Question 16

The warehouse receipt or the bill of lading must be nonnegotiable.

Accepted Answer

A) True 
 B)False

Question 17

A bailment is the delivery of personal property by the owner of the property rights to another individual who accepts it under conditions to return it later to the owner or to a designated third party.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following characterizes a warehouseman?

Accepted Answer

A) He is a bailor of the stored goods. 
B) He does not have a lien against the bailee of the stored goods. 
C) He need not exercise care for the stored goods,as it is the bailee's responsibility to do so. 
D) He can terminate the contract if the goods are about to deteriorate. 
A) He is a bailor of the stored goods. 
B) He does not have a lien against the bailee of the stored goods. 
C) He need not exercise care for the stored goods,as it is the bailee's responsibility to do so. 
D) He can terminate the contract if the goods are about to deteriorate.

Question 19

Davidson borrowed a motorcycle from his friend,Harley.Harley did not know that the motorcycle had a defect that could cause the brakes to malfunction.While Davidson was riding the motorcycle,the brakes malfunctioned.This caused an accident and Davidson was injured.What duty of care,if any,did Harley owe to Davidson under the traditional common law rule?

Accepted Answer

A) The duty of reasonable care-the same duty a bailor owes to a bailee in a bailment for mutual benefit. 
B) The highest duty of care because this was a bailment for the benefit of the bailor. 
C) A duty to tell Davidson of any known defects in the motorcycle because this was a bailment for the benefit of the bailee. 
D) No duty of care,because this was a gratuitous bailment. 
A) The duty of reasonable care-the same duty a bailor owes to a bailee in a bailment for mutual benefit. 
B) The highest duty of care because this was a bailment for the benefit of the bailor. 
C) A duty to tell Davidson of any known defects in the motorcycle because this was a bailment for the benefit of the bailee. 
D) No duty of care,because this was a gratuitous bailment.

Question 20

If the bailee delivers the bailed property to the third-party claimant and the claimant is not entitled to possession,the bailee is not liable to the bailor.

Accepted Answer

A) True 
 B)False

Exam 23: Personal Property and Bailments

Common carriers are not permitted to limit their liability for damage to bailed goods.

A person who has leased personal property has ownership rights and can also subsequently sell the property to a third person.

In the United States,property ownership by citizens is protected by the Constitution.

Chloe took her watch to a jeweler to have it repaired.While the jeweler had possession of the watch,a thief broke into the shop.The thief stole Chloe's watch and other jewelry pieces.Which of the following is true?

In a bailment,the bailee is liable for loss or damage to the bailed property while it is in the hands of the bailee:

Under the Uniform Transfers to Minors Act,a minor is an individual under the age of 18.

The Uniform Transfers to Minors Act:

If the bailee returns the goods in a damaged condition,there is a rebuttable presumption of negligence on the part of the bailee.

Which of the following is an example of personal property?

Which of the following is defined as the earth's crust and all things firmly attached to it?

A gift causa mortis is a gift made in:

Gil has stolen a "Lancer" from Yu and changed the look and interior of the car.Gil is now using it for his personal purposes.After some months,Yu comes to know about his car and demands it back.However,Gil demands for the amount he spent on modifications.Is Yu liable to pay that?

What is a lien?

Which of the following statements about ownership of a wild animal is false?

The warehouse receipt or the bill of lading must be nonnegotiable.

A bailment is the delivery of personal property by the owner of the property rights to another individual who accepts it under conditions to return it later to the owner or to a designated third party.

Which of the following characterizes a warehouseman?

If the bailee delivers the bailed property to the third-party claimant and the claimant is not entitled to possession,the bailee is not liable to the bailor.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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