Exam 33: Personal Property and Bailments

Earline rented a drilling machine from Quatero Rental Corp.While Earline was drilling as instructed by the product manual,the drill bit snapped and injured her seriously.A thorough examination of the broken drill bit showed that it had a flaw that caused it to snap under intense heat or pressure.Under these circumstances,_____.

A promise to make a gift is usually enforceable.

Tangible property is only taxable in the state where its owner lives.

In the United States,private ownership of property is protected by the:

A conditional gift is a completed gift.

What are the basic duties of a bailee? Explain the critical elements that determine the degree of care that a bailee is required to exercise.

An involuntary bailee:

A statute that allows finders of property to clear their title to the property after taking steps to see whether the true owner can be located is known as a(n)_____.

An involuntary bailee or constructive bailee has the right to use or destroy bailed property.

While staying at Smith Hotel Corp.,Nina asked her son to take her two diamond rings to the hotel clerk for safekeeping.The rings were shown to the clerk and then placed in a "safe-deposit envelope" which was sealed.The son received a depositor's check stub,which had a number corresponding to the number on the envelope.The envelope was kept in a safe,located in the hotel's front desk,which was used to keep the hotel's cash as well as the valuables of guests.Though equipped with a combination lock,the safe was usually kept unlocked as there would always be a clerk on duty at the reception desk.The following night,the hotel was robbed by two armed men and Nina's rings were taken.She sued the hotel for the value of the rings.The hotel claimed that the robbery was an "act of a public enemy" that relieved the hotel of liability.If the safe-deposit envelope is analyzed in the way that safety deposit boxes are,was the hotelkeeper liable for the theft of property left with it for safekeeping?