Exam 47: Personal Property and Bailments

In a bailment, possession of the property is transferred to the bailee.

Jim wants to give Klio a diamond necklace that Jim has in his safe de?posit box at First National Bank. The bank is closed for a holiday. Jim gives Klio a key to the box and tells her to go to the bank after the holi?day and take the necklace. Klio does this. The next day, Jim dies unex?pectedly. Jim's heirs want the necklace. What type of gift was this? Can Klio keep it?

In most bailments, the bailee has a right to place a lien on the bailed property until he or she is fully compensated.

In most bailments, the bailor must notify the bailee of hidden defects of which the bailor knows or could have discovered with reasonable dili?gence.

The most common way to acquire personal property is to "capture" it.

Nero and Olav each buy certain quantities of oil to sell to Petro Refinery, and agree to share storage costs until Petro can take delivery. The oil is commingled so that Nero's oil cannot be distinguished from Olav's. This is

Ruth gives Seth a computer as a gift. Using the computer, Seth develops a new game, for which he obtains intellectual property protection, and forms Top Games, Inc., to make and market the game. Seth's ac?quisition of the game is by

All bailments include a bailee's right to use the bailed property.

Estray statutes determine ownership rights in fungible goods that have been com?mingled.

For an effective bailment, the bailor must deliver possession of the bailed property with its title.

Real property and personal property are subject to different types of taxes.

With Meg's permission, Nell cuts the trees growing on Meg's land. Nell sells the timber to Olin, who converts it to a variety of wood products. Personal property includes

Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Eton, but gives him the key to a safety-deposit box in First State Bank in which the stock certifi?cates are locked. Presenting the key is

Fanny buys clay to throw pottery, which is glazed and fired in a kiln. The finished products are sold to Gifte Shoppe, which sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to

Property voluntarily placed by its owner and inadver?tently forgotten is mislaid property.

During a storm on Blue Lake, a boat sinks, but its owner Cappy survives. Cappy plans to return to the site of wreck to salvage its equipment and his possessions, but he delays. Meanwhile, Dick, an amateur diver, discovers the wreck and strips it clean of useful items. Cappy learns of the recovery and files a suit against Dick, claiming that the items are his. Dick responds that the sunken boat was abandoned and therefore he has good title to whatever he took possession of. What is the court likely to rule, and why?

A fixture is not included in a sale of land unless the contract provides for it.

Uri borrows Vera's boat to enjoy with Wendell for a weekend. Uri runs the boat aground, damaging the hull. Liable for the cost of repairing the boat is

Inadvertently, Bret leaves his briefcase at Clean 'n Dry Launderers when she stops to pick up her clothes. The briefcase is

Stan can be held liable for the conver?sion of Tyler's business law textbook