Question 1

Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn, and other structures permanently attached to the land. Chita's brother Elmo owns everything else on the farm-implements, seed, and so on. The real property is owned by

Accepted Answer

A)   Chita and Elmo.
B)   Chita only.
C)   Downwind Farm.
D)   Elmo only. B

Question 2

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town. Later, Ben no?tices rainwater collecting in the trailer and covers it with a tarp at a cost of $40. This cost is most likely borne by

Accepted Answer

A)   Ben and Cody.
B)   Ben only.
C)   Cody only.
D)   neither Ben nor Cody. C

Question 3

An item cannot be a fixture unless it is physically attached to the land.

Accepted Answer

A) True 
 B)False  False

Question 4

GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to trans?port fifty large-screen HDTVs from San Diego to Phoenix. En route, a pothole causes the truck to crash, damaging the goods. Liability for the damage most likely rests with

Accepted Answer

A)   GR8 Stores and Haul-Way.
B)   GR8 Stores only.
C)   Haul-Way only.
D)   neither GR8 Stores nor Haul-Way.

Question 5

Frenchy's Fast Fries (3F) requires that its employees wear uniforms and protective clothing while on the job. 3F 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, "Frenchy's is not re?sponsible for the loss of any property in the locker room." Grant, a 3F 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 Grant'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 3F's sign exculpate the com?pany for Grant's loss? Why or why not?

Accepted Answer

The answer of Frenchy's Fast Fries (3F) requires that its...

Question 6

Floyd tells his daughter Glenda that she can have his Harley Davidson when he dies, but he does not add this to his will. This is

Accepted Answer

A)   a valid gift causa mortis.
B)   a valid gift inter vivos.
C)   a valid gift testamentary.
D)   not a valid gift.

Question 7

Personal property can be owned only by an individual.

Accepted Answer

A) True 
 B)False

Question 8

A finder acquires title to lost property good against the whole world, in?cluding the original owner.

Accepted Answer

A) True 
 B)False

Question 9

If confusion occurs as the act of a third party, that third party acquires ownership rights in proportion to the amount confused.

Accepted Answer

A) True 
 B)False

Question 10

According to the court in Case 47.1, In re Estate of Piper, the elements of a legally valid inter vivos gift include all of the following except

Accepted Answer

A)   the donor's present intention to make a gift.
B)   effective delivery of the property to the donee.
C)   acceptance by the donee.
D)   a written instrument excluding the property from the donor's will.

Question 11

Constructive delivery does not satisfy the delivery requirement for an ef?fective bailment.

Accepted Answer

A) True 
 B)False

Question 12

A donee must give consideration for a gift to be effective.

Accepted Answer

A) True 
 B)False

Question 13

Helen owns heavy construction equipment and the tools to service it, as well as office furniture, including computers. Ilya owns a number of pat?ents, trademarks that identify the products made under those patents, and stock in the company that sells those products. Personal property in?cludes the items owned by

Accepted Answer

A)   Helen and Ilya.
B)   Helen only.
C)   Ilya only.
D)   neither Helen nor Ilya.

Question 14

Bob rents a golf cart at Country Club Golf Course. The brakes are worn, and while Bob is driving the cart, they fail. The cart crashes into a tree, and Bob is injured. Country Club could have discovered, with rea?sonable diligence, that the brakes were worn. Liability for Bob's injuries most likely rests with

Accepted Answer

A)   Bob and Country Club.
B)   Bob only.
C)   Country Club only.
D)   neither Bob nor Country Club.

Question 15

Ira is declared mentally incompetent. Jay, Ira's son, is named his guard?ian. At Jay's insistence, Ira transfers his assets to Jay "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no

Accepted Answer

A)   acceptance.
B)   delivery.
C)   donative intent.
D)   donor's acknowledgment.

Question 16

Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S. Marines Corps. Ned agrees. This is a bail?ment for

Accepted Answer

A)   neither party's benefit.
B)   the parties' mutual benefit.
C)   the sole benefit of the bailee.
D)   the sole benefit of the bailor.

Question 17

Luna leases a commercial building to operate Mom's Diner. During the term of the lease, Luna installs a new roof and a walk-in cooler, and repaves the parking lot. Most likely to meet the definition of a trade fix?ture is

Accepted Answer

A)   the cooler.
B)   the parking lot.
C)   the roof.
D)   none of these choices.

Question 18

Grain from Harvest Farms is wrongfully commingled with grain from Idyllic Fields, which obtains possession of all of the grain. This is

Accepted Answer

A)   a bailment.
B)   accession.
C)   confusion.
D)   production.

Question 19

A gift inter vivos can never be revoked.

Accepted Answer

A) True 
 B)False

Question 20

Beta Company arranges to have Carrier Corporation, a common carrier, transport 500 DVD players from New York to California. Dan is Carrier's driver. Beta will have no cause of action against Carrier if Carrier fails to deliver the players on time because

Accepted Answer

A)   authori?ties are stopping and searching all trucks entering California.
B)   Carrier's dispatcher mistakenly delays Dan's departure.
C)   Carrier's truck is broken into and the players are stolen.
D)   Dan has to wait two days in Denver for the truck to be repaired.

Exam 47: Personal Property and Bailments

Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn, and other structures permanently attached to the land. Chita's brother Elmo owns everything else on the farm-implements, seed, and so on. The real property is owned by

Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town. Later, Ben no?tices rainwater collecting in the trailer and covers it with a tarp at a cost of $40. This cost is most likely borne by

An item cannot be a fixture unless it is physically attached to the land.

GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to trans?port fifty large-screen HDTVs from San Diego to Phoenix. En route, a pothole causes the truck to crash, damaging the goods. Liability for the damage most likely rests with

Floyd tells his daughter Glenda that she can have his Harley Davidson when he dies, but he does not add this to his will. This is

Personal property can be owned only by an individual.

A finder acquires title to lost property good against the whole world, in?cluding the original owner.

If confusion occurs as the act of a third party, that third party acquires ownership rights in proportion to the amount confused.

According to the court in Case 47.1, In re Estate of Piper, the elements of a legally valid inter vivos gift include all of the following except

Constructive delivery does not satisfy the delivery requirement for an ef?fective bailment.

A donee must give consideration for a gift to be effective.

Ira is declared mentally incompetent. Jay, Ira's son, is named his guard?ian. At Jay's insistence, Ira transfers his assets to Jay "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no

Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S. Marines Corps. Ned agrees. This is a bail?ment for

Luna leases a commercial building to operate Mom's Diner. During the term of the lease, Luna installs a new roof and a walk-in cooler, and repaves the parking lot. Most likely to meet the definition of a trade fix?ture is

Grain from Harvest Farms is wrongfully commingled with grain from Idyllic Fields, which obtains possession of all of the grain. This is

A gift inter vivos can never be revoked.

Beta Company arranges to have Carrier Corporation, a common carrier, transport 500 DVD players from New York to California. Dan is Carrier's driver. Beta will have no cause of action against Carrier if Carrier fails to deliver the players on time because