Question 1

Rhonda is a server in a restaurant.One day she finds a purse while clearing a table.The purse is most likely:
A) lost property.
B) mislaid property.
C) treasure trove.
D) abandoned property.

Accepted Answer

Mislaid property is property that is temporarily misplaced or forgotten by the owner, such as leaving a purse on a table in a restaurant. The owner is likely to return to the location where they last had the property and look for it, making it distinct from abandoned property. Lost property, on the other hand, is property that the owner doesn't know they've lost and is unlikely to come looking for. Treasure trove is a legal term that refers to valuable items that have been deliberately hidden or buried and whose ownership is determined by the state.

Question 2

Ed wants to give Howard his old car,but Howard says he doesn't want it.Howard later reconsiders and tells Ed he does want the car.His previous repudiation means there is no gift,and Howard has no rights in the car.

Accepted Answer

True

Question 3

After a meeting with his advisor to register for a class at State University,Ron forgot his calculator in the dean's outer office.Theresa,another student,found the calculator.The calculator is treasure trove and Theresa may keep it.

Accepted Answer

It is not ethical to keep someone else's lost property without attempting to return it to the rightful owner. Theresa should try to find Ron and return his calculator.

Question 4

Dersett Trucking hauls granite for the major granite companies in Minnesota.Dersett Trucking does not make its trucking services available to the general public.Dersett Trucking is a contract carrier and does not incur strict liability.

Accepted Answer

The statement is true.

Question 5

The level of care a bailee is held to depends on who receives the benefits of the bailment

Accepted Answer

The level of care required by a bailee does indeed depend on who benefits from the bailment. For example, if the bailment is for the benefit of the bailor, the bailee must exercise reasonable care to prevent damage or loss to the property. If the bailment is for the mutual benefit of both parties, a higher level of care is required, such as taking extraordinary precautions to protect the property. If the bailment is for the sole benefit of the bailee, the highest level of care is required, such as assuming complete responsibility for the safekeeping of the property.

Question 6

In January,Erwin told David,his nephew,that he would give him a car when he graduates from college.David graduated in May.If Erwin refuses to give David a car,David can sue him for breach of an inter vivos gift.

Accepted Answer

An inter vivos gift requires delivery, acceptance, and intent to give at the time of the gift, not a promise to give something in the future. Erwin's statement is a promise, not an immediate gift, so it does not constitute an inter vivos gift.

Question 7

Percival takes his computer to a repair shop to have the disk drive repaired.This is most likely a:
A) bailor benefit bailment.
B) bailee benefit bailment.
C) mutual benefit bailment.
D) leasehold arrangement.

Accepted Answer

A mutual benefit bailment occurs when both the bailor (owner) and bailee (repair shop) receive some benefit from the arrangement. In this case, the bailor benefits from having their computer repaired, while the bailee benefits from earning money for providing repair services. Therefore, choice C, mutual benefit bailment, is the best option.

Question 8

Buck,fearing death from severe injuries suffered in a machinery accident,assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl,a friend,who gladly accepts.Buck ends up recovering from the injuries.Why must Pearl give the certificate of deposit back to Buck?
A) This type of gift is known as a gift causa mortis.It is a conditional gift which is conditioned on Buck's actually dying.Because Buck recovered,the gift is automatically revoked.
B) This is an inter vivos gift because Buck was still alive when the gift was made.Any inter vivos gift is revocable because there is no consideration to make Buck's delivery of the certificate binding under contract law.
C) This is an inter vivos gift and due to state laws,gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute.
D) This gift is an ordinary gift,but it is revocable because we don't know if the certificate of deposit has matured or not.

Accepted Answer

The gift given by Buck is known as a gift causa mortis which is a conditional gift conditioned upon Buck dying. Since Buck recovered from his injuries, the gift is automatically revoked and Pearl must give the certificate of deposit back to Buck.

Question 9

The difference between an inter vivos gift and a gift causa mortis is that the inter vivos gift is made during the donor's lifetime and a gift causa mortis is a gift is made after the donor's lifetime by the donor's estate.

Accepted Answer

The statement is incorrect. An inter vivos gift is made during the donor's lifetime while a gift causa mortis is made by the donor during their lifetime but only takes effect upon their death. Therefore, it is not made after the donor's lifetime by their estate.

Question 10

Stephen wants to give his niece,Dawn,a piece of jewelry as a gift.Stephen gives Tracy,his agent,the bracelet to take to Dawn.The delivery element of making a gift has been completed.

Accepted Answer

The answer of Stephen wants to give his niece,Dawn,a piece...

Question 11

Jody loaned her neighbor,Phil,her snow blower.Phil set it near his driveway,and later accidentally ran over and destroyed it.In a suit to recover damages,Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

Accepted Answer

The answer of Jody loaned her neighbor,Phil,her snow blower.Phil set...

Question 12

In a bailment the one who delivers the goods is the bailee and the one receiving them is the bailor.

Accepted Answer

In a bailment, the one who delivers the goods is the bailor and the one receiving them is the bailee.

Question 13

If property is mislaid,the finder of the property will have a superior claim to possession of the property against everyone except the true owner.

Accepted Answer

The answer of If property is mislaid,the finder of the...

Question 14

A bailment was created for the parties' mutual benefit.This means that the bailee must use ordinary care with the property.

Accepted Answer

When a bailment is created for the parties' mutual benefit, the bailee is required to exercise ordinary care with the property.

Question 15

While shopping at the mall,Everett's wallet fell out of his pocket.Jon found the wallet.The wallet is abandoned property and Jon may keep it.

Accepted Answer

Jon has a legal obligation to try and find the owner of the wallet by turning it into mall security or the police. If the owner is not found after a certain period of time, then the wallet may be considered abandoned property and Jon may be allowed to keep it.

Question 16

Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant.Even though no employee of the restaurant is present,the provision of the cloakroom makes Jerry think it will be safe.In this situation,the restaurant is a bailee of Jerry's coat.

Accepted Answer

The answer of Jerry enters a restaurant and hangs his...

Question 17

All bailments have to be by agreement between the bailor and bailee.

Accepted Answer

Some bailments can occur by operation of law without an explicit agreement between the bailor and bailee, such as when property is lost and someone finds it.

Question 18

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California.As a bailee,Charles is automatically entitled to use Tuan's car while Tuan is away.

Accepted Answer

As a bailee, Charles is only entitled to use Tuan's car if Tuan explicitly grants him permission to do so. The default is that bailees do not have such permission.

Question 19

In order to constitute a valid gift:
A) the donor must intend to transfer ownership of property immediately.
B) the donee must accept the gift.
C) the donor must deliver the gift property to the donee.
D) All of the above are necessary for a valid gift.

Accepted Answer

All of the above are necessary for a valid gift. The donor must have the intention to transfer ownership of the property immediately, the donee must accept the gift, and the donor must deliver the gift property to the donee. If any of these elements are missing, the transfer of ownership may not be considered a valid gift.

Question 20

Mislaid property is distinguished from lost property by the intent of the true owner.

Accepted Answer

Mislaid property is property that was intentionally placed somewhere by the owner but was then forgotten or misplaced. In contrast, lost property is property that was unintentionally separated from its owner. Thus, the distinction between mislaid and lost property is based on the intent of the owner.

Quiz 30: Personal Property and Bailment

Rhonda is a server in a restaurant.One day she finds a purse while clearing a table.The purse is most likely: