Deck 14: Nature of Personal Property

Question 1

What is property?
b. May only the owner use property?

Answer 1

(a)Property:
Property is defined as the anything which is permitted by law, having the right to possess and dispose. Property is also termed as anything that is owned by an entity or a person. Types of properties include real estate property, community property, and public property
(b)The property being used only by the owner:
Yes, the property is only used by the owner as he is a person who possesses the rights of using the property legally. The legal framework determines that a specific property is used by its lawful occupants.

Question 2

What standard of care is required of a bailee in a bailment for the sole benefit of the bailor?

Answer 2

Bailment:
It is defined as an act of retaining the property under the custody and control of one another, generally by contract in which the bailee, known as the holder of the contract, is held responsible for safeguarding the property.
Standard of care required of a bailee in a bailment for the sole benefit of the bailor:
For maintaining the standard of care needed by bailee for obtaining the sole benefit:
• The bailee requires exercising slight care.• The bailee is liable only for gross negligence corresponding to the property.

Question 3

During her life, Bernice David purchased several subordinated certificates of indebtedness through West Baton Rouge Credit. Some were purchased in her name alone, some jointly with her daughter, Veronica, or son, Donald. In every case, Bernice supplied all the purchase funds. After Bernice's death, Donald consolidated seven certificates which had been titled in both his and Bernice's names, with a total principal sum of $97,749.20, into one new certificate in his name only. Veronica claimed that the certificates were property of Bernice's estate, and that Donald did not have authority to convert them to his own name because ownership had not legally transferred to him. Were the certificates registered in Bernice and Donald's name a gift to Donald?

Answer 3

A gift is passed on to owner if there is an intention of donor to gift it to owner, there is actual delivery of gift and acceptance of same by donee.The certificates registered in B and D's name were not gift to D, because it is established that B died interstate. This means B did not explicitly divided, donated or gifted the certificates through execution of will or anything lawfully recognized to effect transfer of ownership to d.Since it is clear that the certificates were part of B's estate, therefore, they should be distributed among heirs that are D and V. In such a situation, D's act of converting certificates in his own name was unauthorized and that V is entitled to return of such certificates or damages.

Question 4

Rimma Vaks and her husband arranged for a consignment sale of their furniture with Denise Ryan. The six-page agreement included descriptions of the items to be sold, the commission, and a statement that "after thirty days, any unsold or unclaimed items would become the property of Ryan without notice or payment." Approximately seventy-five percent of the items were sold on six auction days. After Vaks failed to pick up the remaining items within thirty days of the final auction date, Ryan donated them to charity. Vaks claimed breach of bailment contract with respect to the donated items. Was there really a bailment, a consignment, or a contract for sale?

Question 5

What is the most common method of acquiring personal property? What other methods are there?

Question 6

What is conversion?

Question 7

Johnson-Schmitt gave several dogs to Dispenza to find good homes for them. Dispenza did not find good homes for them, but rather kept them on his property in such deplorable conditions that they were eventually seized by the sheriff, turned over to the local SPCA, and adopted out to other families. Johnson-Schmitt later sued the county claiming an unlawful conversion of her property (the dogs). Did Johnson-Schmitt have any property right in the dogs at the time they were seized?

Question 8

Can personal property be created? If so how?

Question 9

Starko was one of many pharmacists providing prescription drugs to Medicare patients. New Mexico law provided that pharmacists would be reimbursed "the wholesale cost of the lesser expensive therapeutic equivalent drug generally available in New Mexico plus a reasonable dispensing fee of at least three dollars [and] sixty-five cents." As time passed, New Mexico, like virtually every other state, transitioned to a managed care program for pharmacy services. Starko claimed that the managed care program paid significantly less than the statutory minimum. Was the right to receive $3.65 per prescription property of the pharmacists?

Question 10

How may trade secrets be misappropriated, and how may a business legally acquire them?

Question 11

Foster owned a prize-winning stallion and entered into an agreement with Colorado State University's Equine Reproduction Laboratory (Lab) to provide certain reproductive treatments. The Lab collected several "straws" of semen and stored them in its specialized facility, pursuant to a fee paid by Foster. The Lab and most of its contents were later destroyed by fire, and Foster sued the Lab for failure to exercise reasonable care. The Lab argued that there was no contract. Was the Lab liable for the lost straws?

Question 12

What difference does it make whether confusion of property is willful or by accident?

Question 13

High Mountain, LLC managed condominium units owned by John and Diane Mullin. It would collect and deposit rental income and send the Mullins the net rental income after High Mountain's fees and expenses were deducted. The Mullins sued High Mountain for failure to forward $32,989.36 in rental income and obtained a judgment, but High Mountain declared bankruptcy. Travelers Indemnity Company of Connecticut insured High Mountain, so the Mullins sued Travelers for the amount of the judgment. Travelers argued that it was not obligated to pay the default judgment because the policy covered only money High Mountain was legally obligated to pay because of property damage to which the policy applied. The policy defined "property damage" as loss of use of tangible property that is not physically injured. Did the Mullins suffer a loss of use of tangible property that was not physically injured when High Mountain did not forward the rental payments to them?

Question 14

What is the key factor in determining whether property is lost or abandoned?

Question 15

Michael LaPlace owned a horse named Park Me In First. He entered into a verbal agreement with Pierre Briere Quarter Horses for the care, maintenance, and training of his horses, which, two years later, included Park Me In First. Briere stable was responsible for providing shelter, food, water, training, and grooming to the horses when they were there. Briere stable would also arrange for shoeing and veterinary care for horses at the stable. LaPlace would from time to time remove the horse from the stable in order to ride it and take it to horse shows. While LaPlace was at a horse show, Park Me In First died while being exercised at Briere stable. LaPlace sued the stable, asserting breach of a bailment agreement. Briere said there was no bailment because he did not have complete and exclusive control over the horse. Briere argued that LaPlace had complete access and control over the horse; he would ride it and transport it to shows at his discretion at any time. Briere said at most there was joint control of the horse between the stable and LaPlace, hence no bailment. Was there a bailment?

Question 16

If the owner of a car has it in B's garage for protection from the weather, and then later gives the keys to C with instructions to get the car, is there a bailment?

Question 17

While Tait and her boyfriend were spending the day at Chincoteague National Wildlife Refuge, they came upon a large fishing boat that had run aground, half in the water, half in the sand. There were already a number of people playing on and around the boat. Tait decided to cut a length of rope from a line, one end of which was in the sand and the other in the water. She then noticed a buoy floating in the water, not attached to the boat, but bearing the same name as the boat. She also picked up the buoy before driving away. A National Park Service Ranger later asked Tait whether he could look into the bed of her truck. The Ranger seized the rope and buoy and cited Tait for removal of private property in violation of federal law. Was Tait entitled to cut the rope and pick up the buoy?

Question 18

Give an example of a bailment where the bailee is not expected to return the bailed property in its original condition.

Question 19

Charlie operated a restaurant and pub, offering the customary variety of fried, greasy foods. From time to time, Charlie (or his employee) took the accumulated dirty bar rags down the street to Egypt Laundromat to wash and dry them. On one occasion, an employee washed the rags, started them in the dryer, and then left the Laundromat. Some minutes later, the rags began to smolder and eventually burst into flames, causing damage not only to the rags, but to the dryer and the Laundromat. Egypt Laundromat argued the relationship was a bailment for mutual benefit, and as a result, the restaurant, as bailee, owed a duty of ordinary care to Egypt Laundromat, as bailor, to ensure its laundry did not spontaneously combust in the dryer. Was Charlie liable for the cost of the fire?

Question 20

Patricia Amich and John Adiutori were married in February. In May, Patricia petitioned for a declaration of the invalidity of the marriage. She had left their home but failed to remove her jewelry, which was in a jewelry box in the home. John still lived in the home. On May 11, Patricia went to the home to remove her personal belongings, but she did not remove the jewelry box. That was the last time she saw the box. While living there, John had last seen it on June 14, before he was removed from the property. After he was removed, Patricia obtained a key, but the jewelry box could not be found. Was John a bailee of the jewelry, and, if so, what kind of bailment was it?