Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Manufacturers acquire ownership of their work through production.

Accepted Answer

A) True 
 B)False  True

Question 3

Only tangible personal property can be bailed.

Accepted Answer

A) True 
 B)False  False

Question 4

All transactions involving the delivery of property from one person to another create a bailment.

Accepted Answer

A) True 
 B)False

Question 5

If the bailed property has been lost or is returned damaged,a court will presume that the bailee was negligent.

Accepted Answer

A) True 
 B)False

Question 6

Yogi loans his laptop to Zoey. This is

Accepted Answer

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

Question 7

When you board a plane as a passenger,a bailment is created.

Accepted Answer

A) True 
 B)False

Question 8

In a bailment of fungible goods,the bailee must return the identical goods given by the bailor.

Accepted Answer

A) True 
 B)False

Question 9

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.
-These facts give rise to

Accepted Answer

A)  a presumption of negligence by Truck & Transfer.
B)  a presumption of theft by a third party.
C)  a presumption of theft by Truck & Transfer.
D)  United Home's liability for the container's loss.

Question 10

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.

Question 11

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is

Accepted Answer

A)  a bailment.
B)  accession.
C)  a gift.
D)  abandoned property.

Question 12

Accession occurs when someone adds value to an item of personal property by the use of labor or materials.

Accepted Answer

A) True 
 B)False

Question 13

Businesses do not usually pay taxes on the personal property they own,use,or lease,including office or farm equipment and supplies.

Accepted Answer

A) True 
 B)False

Question 14

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.

Question 15

A finder of lost property can claim title to the property against the whole world-except the true owner.

Accepted Answer

A) True 
 B)False

Question 16

Mallory's sister Naomi gives Mallory a leather working kit. Mallory uses the kit to make a saddle. Mallory's acquisition of the saddle is by

Accepted Answer

A)  gift.
B)  accession.
C)  confusion.
D)  production.

Question 17

One morning,Roche agrees to lend his bike to Shelley,who promises to return it in the evening. This is

Accepted Answer

A)  a constructive bailment.
B)  an involuntary bailment.
C)  an express bailment.
D)  no bailment.

Question 18

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

Accepted Answer

A)  Logan and Morris in equal measure.
B)  Logan.
C)  Morris.
D)  all of the choices.

Question 19

Gretel,an inventor,has tools in her workshop,including hammers,a table saw,and drills. She has a patent on her most recent invention,a kitchen gas grill. She licenses the patent to Housewares,Inc. Her tangible personal property includes

Accepted Answer

A)  the tools.
B)  the license.
C)  the patent.
D)  all of the choices.

Question 20

The most common way to acquire personal property is by producing it.

Accepted Answer

A) True 
 B)False

Exam 41: Personal Property and Bailments

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

Manufacturers acquire ownership of their work through production.

Only tangible personal property can be bailed.

All transactions involving the delivery of property from one person to another create a bailment.

If the bailed property has been lost or is returned damaged,a court will presume that the bailee was negligent.

Yogi loans his laptop to Zoey. This is

When you board a plane as a passenger,a bailment is created.

In a bailment of fungible goods,the bailee must return the identical goods given by the bailor.

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. -These facts give rise to

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

Nancy asks Octavio if she can store her car in his garage while she serves in the U.S. Peace Corps. Octavio agrees. This is

Accession occurs when someone adds value to an item of personal property by the use of labor or materials.

Businesses do not usually pay taxes on the personal property they own,use,or lease,including office or farm equipment and supplies.

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

A finder of lost property can claim title to the property against the whole world-except the true owner.

Mallory's sister Naomi gives Mallory a leather working kit. Mallory uses the kit to make a saddle. Mallory's acquisition of the saddle is by

One morning,Roche agrees to lend his bike to Shelley,who promises to return it in the evening. This is

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

Gretel,an inventor,has tools in her workshop,including hammers,a table saw,and drills. She has a patent on her most recent invention,a kitchen gas grill. She licenses the patent to Housewares,Inc. Her tangible personal property includes

The most common way to acquire personal property is by producing it.