Question 1

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 Home Appliances, Inc., a company in which she owns stock. Her tangible personal property includes the
A) workshop tools.
B) Home Appliances stock.
C) patent on the gas grill and license to Home Appliances.
D) all of the choices.

Accepted Answer

The answer of Gretel, an inventor, has tools in her...

Question 2

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

Accepted Answer

Logan borrowed the bike and was responsible for any damage that occurred during the ride. Therefore, Logan is liable for the cost of repairing the bike. Morris should not be held responsible for the damages, as he was not the one using the bike at the time of the incident.

Question 3

EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is
A) EquipLease.
B) Farm Harvest.
C) the farm owners.
D) no one.

Accepted Answer

Farm Harvest would be liable for the damage since they were the ones who neglected the machine while it was in their possession. EquipLease would likely have included provisions in the lease agreement for such damage and liability may have been transferred to the lessee. The farm owners would not likely be liable unless they had also contributed to the negligence or damage.

Question 4

Orla leases a building to Pleasant Valley Residence, an assisted living facility. During the term of the lease, Orla installs a new roof and commercial kitchen appliances, and repaves the parking lot. Most likely to meet the definition of a trade fix?ture is
A) the kitchen appliances.
B) the parking lot.
C) the roof.
D) none of these choices.

Accepted Answer

A trade fixture is a piece of equipment or property that a tenant attaches to a leased space to conduct their business. In this case, the commercial kitchen appliances are the most likely to be considered a trade fixture as they are specifically used for the assisted living facility's business operations. The roof and parking lot improvements are considered building improvements and are typically the responsibility of the landlord.

Question 5

Fact Pattern 48-1B (Questions B18-B19 apply)
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 un?loads one container, the other disappears from the company's loading dock.
-Refer to Fact Pattern 48-1B. These facts give rise to
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.

Accepted Answer

Truck & Transfer Inc. had custody of the containers, and the disappearance of one container while under their care suggests negligence in their duty to safeguard the property.

Question 6

Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her considerable assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no
A) acceptance by the donee.
B) constructive delivery.
C) donative intent.
D) relinquishment of control.

Accepted Answer

Donative intent is the necessary element in a gift. If Paca was mentally incompetent at the time of the transfer, it could be argued that she did not have donative intent and the gift was not valid. Additionally, transferring assets "for safekeeping" to a friend may not constitute a true gift as it suggests that Paca intended to retain some control over the assets. Constructive delivery and relinquishment of control may also be necessary elements for a gift, but without donative intent, the transfer would still not be valid. Acceptance by the donee is not necessary for a gift to be valid.

Question 7

Oleg takes a PowerMade-brand rototiller to QuikFix Inc. for repairs. Lacking certain parts, QuikFix ships the rototiller to Repair & Parts Company. While in Repair & Parts's possession, the machine is damaged. QuikFix can recover for the damage from
A) no one.
B) Oleg.
C) PowerMade.
D) Repair & Parts.

Accepted Answer

Repair & Parts had possession of the machine when it was damaged, making them responsible for the damage and liable to QuikFix for the cost of repairs or replacement.

Question 8

GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to trans?port 500 Intelo Game consoles 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
A) GR8 Stores and Haul-Way.
B) GR8 Stores only.
C) Haul-Way only.
D) Intelo only.

Accepted Answer

Haul-Way is responsible as the common carrier for the transport of the goods and should have taken appropriate steps to ensure that the goods were transported safely. GR8 Stores may have some responsibility if they failed to package the goods properly, but ultimately the liability rests with the carrier, Haul-Way. Intelo is not responsible as they have no control over the transportation of the goods.

Question 9

Dallas asks Eddie if he can store his furniture in Eddie's garage while he serves a tour of duty with the U.S. Marines Corps. Eddie agrees. This is
A) a bailment.
B) accession.
C) a gift causa mortis.
D) abandoned property.

Accepted Answer

This is a bailment, which is a legal relationship in which person A (the bailor) gives possession of personal property to person B (the bailee) with the understanding that the property will eventually be returned to the bailor or disposed of in a certain way. In this case, Dallas (the bailor) is giving possession of his furniture to Eddie (the bailee) with the understanding that Eddie will store it until Dallas returns from his tour of duty.

Question 10

Einar owns a 1967 Ford Mustang, which Ginny customizes and details to Einar's specifications. The car earns an award at the Regional Motorsports Customizing Convention. The result of Ginny's efforts is
A) accession.
B) confusion.
C) conversion.
D) production.

Accepted Answer

Accession refers to the increase in the value of property through the efforts of another person, as in this case where Ginny customized and detailed Einar's car, resulting in it earning an award at a convention. Confusion, conversion, and production do not accurately describe the situation described.

Question 11

Randall steals a damaged, broken bike that is parked, unlocked, in a dorm bike rack. He repairs, paints, and replac?es parts on the bike un?til it is like new. The original owner, Sabi, then claims it. The bike be?longs to
A) John and Kim in equal measure.
B) John because he made substantial improvements to it.
C) the state under the applicable estray statute.
D) Kim because John stole it.

Accepted Answer

Randall (John) stole the bike, and regardless of the improvements made, the bike still legally belongs to the original owner, Sabi (Kim), because it was taken without permission.

Question 12

Mallory's sister Naomi gives Mallory a leather working kit for Christmas. Mallory uses the kit to make a saddle. Mallory's acquisition of the saddle is by
A) gift.
B) accession.
C) confusion.
D) production.

Accepted Answer

Mallory produced the saddle using the leather working kit, making it her own property. Therefore, the acquisition is through production.

Question 13

Miranda delivers her bridesmaid's dress to Nina for alterations. Nina promises that the dress will be ready within five business days. Miranda agrees to pay the charge when she picks up the dress. This is
A) an implied bailment.
B) an involuntary bailment.
C) an express bailment.
D) not a bailment.

Accepted Answer

This is an express bailment because both parties have agreed to the terms and conditions of the arrangement. Miranda is delivering her dress to Nina with the expectation that it will be returned to her after alterations are made, and Nina has agreed to do so within a certain amount of time for a fee. The fact that Miranda will pay when she picks up the dress also indicates an agreement between the parties.

Question 14

Ester sells shares in Fast Food Franchise Company to Gaye. Ester does not hand the stock certificates to Gaye, but gives her the key to a safety-deposit box in Heartland Bank in which the certifi?cates are locked. Presenting the key is
A) incomplete delivery.
B) constructive delivery.
C) production.
D) conversion.

Accepted Answer

This is an example of constructive delivery, where the key to the safety-deposit box represents the shares in the company. It is considered to be equivalent to actual physical delivery of the stock certificates.

Question 15

Nero and Omar agree to buy natural gas to sell to Power Fuel Refinery and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is
A) a bailment.
B) production.
C) confusion.
D) in violation of the law.

Accepted Answer

Confusion, in legal terms, occurs when two or more items are mixed together to the point that they cannot be distinguished from one another. This is exactly what happened with Nero's and Omar's gas, which were commingled and became indistinguishable. This is commonly seen in cases involving fungible goods, such as natural gas, where it is difficult to identify each individual unit. Therefore, confusion is the best choice for this scenario. Neither a bailment nor production is involved in this situation, and there is no indication that the agreement is in violation of the law.

Question 16

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by
A) James.
B) Kay's.
C) Lani.
D) the state.

Accepted Answer

The title to the ring is possessed by Lani, the rightful owner of the lost ring. James only possesses physical possession of the ring but does not have legal ownership rights. Kay's is not the owner of the ring as it was not part of their inventory or property. The state also does not have legal claim to the ring.

Question 17

Denny allows Elbert to store his trailer on Denny's property for $20 a month while Elbert works temporarily at a distant job site. Later, Denny no?tices rainwater collecting in the trailer and covers it with a tarp at a cost of $50. This cost is most likely borne by
A) Denny and Elbert in equal measure.
B) Denny.
C) Elbert.
D) Cody's employer.

Accepted Answer

Elbert is responsible for any maintenance or upkeep of his own trailer, including water damage. Therefore, Elbert should bear the cost of covering the trailer with a tarp.

Question 18

In contemplation of death during sur?gery, Donnelly gives his guitars to Ezri. The surgery is successful, and Donnelly recovers from the operation. The gift of the guitars is
A) not revoked because it was a gift causa mortis.
B) not revoked because it was a gift inter vivos.
C) revoked because it was a gift causa mortis.
D) revoked because it was a gift inter vivos.

Accepted Answer

A gift causa mortis is a gift made in contemplation of imminent death. If the donor survives, the gift is automatically revoked. Since Donnelly survived the surgery, the gift is revoked.

Question 19

Fact Pattern 48-1B (Questions B18-B19 apply)
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 un?loads one container, the other disappears from the company's loading dock.
-Refer to Fact Pattern 48-1B. Truck & Transfer can avoid liability
A) by proof that Truck & Transfer was not negligent.
B) by proof that Truck & Transfer's loading dock is in a high-crime area.
C) by proof that United Home was negligent in hiring TTC.
D) under any circumstances.

Accepted Answer

Truck & Transfer can avoid liability by proving that they were not negligent in the disappearance of the container. They have a duty to exercise reasonable care in the handling and storage of United Home's property. If they can show that they took all necessary precautions, such as having adequate security measures in place, then they can avoid liability. The fact that the loading dock is in a high-crime area or that United Home may have been negligent in hiring Truck & Transfer are not relevant to Truck & Transfer's duty of care in this situation.

Question 20

Luther leaves his pick-up truck at Midtown Auto Service for an oil change. This is
A) a bailment.
B) accession.
C) none of the choices.
D) production.

Accepted Answer

Luther leaving his pick-up truck at Midtown Auto Service for an oil change constitutes a bailment. A bailment occurs when one person (the bailor) entrusts his or her property to another person (the bailee) for a specific purpose.

Quiz 48: Personal Property and Bailments

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 Home Appliances, Inc., a company in which she owns stock. Her tangible personal property includes the

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

EquipLease Company leases a thresher to Farm Harvest, Inc., a firm that contracts with farm owners to harvest their crops. The machine is seriously damaged through Farm Harvest's neglect. Most likely liable for the damage is

Orla leases a building to Pleasant Valley Residence, an assisted living facility. During the term of the lease, Orla installs a new roof and commercial kitchen appliances, and repaves the parking lot. Most likely to meet the definition of a trade fix?ture is

Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her considerable assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no

Oleg takes a PowerMade-brand rototiller to QuikFix Inc. for repairs. Lacking certain parts, QuikFix ships the rototiller to Repair & Parts Company. While in Repair & Parts's possession, the machine is damaged. QuikFix can recover for the damage from

GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to trans?port 500 Intelo Game consoles 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

Dallas asks Eddie if he can store his furniture in Eddie's garage while he serves a tour of duty with the U.S. Marines Corps. Eddie agrees. This is

Einar owns a 1967 Ford Mustang, which Ginny customizes and details to Einar's specifications. The car earns an award at the Regional Motorsports Customizing Convention. The result of Ginny's efforts is

Randall steals a damaged, broken bike that is parked, unlocked, in a dorm bike rack. He repairs, paints, and replac?es parts on the bike un?til it is like new. The original owner, Sabi, then claims it. The bike be?longs to

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

Miranda delivers her bridesmaid's dress to Nina for alterations. Nina promises that the dress will be ready within five business days. Miranda agrees to pay the charge when she picks up the dress. This is

Ester sells shares in Fast Food Franchise Company to Gaye. Ester does not hand the stock certificates to Gaye, but gives her the key to a safety-deposit box in Heartland Bank in which the certifi?cates are locked. Presenting the key is

Nero and Omar agree to buy natural gas to sell to Power Fuel Refinery and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by

Denny allows Elbert to store his trailer on Denny's property for $20 a month while Elbert works temporarily at a distant job site. Later, Denny no?tices rainwater collecting in the trailer and covers it with a tarp at a cost of $50. This cost is most likely borne by

In contemplation of death during sur?gery, Donnelly gives his guitars to Ezri. The surgery is successful, and Donnelly recovers from the operation. The gift of the guitars is

Luther leaves his pick-up truck at Midtown Auto Service for an oil change. This is