Question 1

Baksheesh owns a house. In the house, on a tile floor is a throw rug. Most likely to meet the definition of a fixture is

Accepted Answer

A fixture is a piece of personal property that is attached or affixed to real property in such a way that it becomes part of the real property. While both the house and the throw rug are personal property, the tile floor is affixed to the real property and has become part of the real property, making it more likely to be considered a fixture.

Question 2

Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Eton, but gives him the key to a safety-deposit box in First State Bank in which the stock certifi?cates are locked. Presenting the key is

Accepted Answer

Giving the key to a safety-deposit box where the stock certificates are locked is an example of constructive delivery, where symbolic possession of the shares is transferred by giving the key to a place where they are stored, rather than physically delivering the shares themselves.

Question 3

Nero and Olav each buy certain quantities of oil to sell to Petro Refinery, and agree to share storage costs until Petro can take delivery. The oil is commingled so that Nero's oil cannot be distinguished from Olav's. This is

Accepted Answer

The situation described is confusion, as the commingling of the oil means that Nero's oil and Olav's oil cannot be distinguished from one another. Accession typically refers to the acquisition of new property by adding value or combining with existing property, conversion refers to a change in the form or nature of property, and irresolution refers to a situation where there is uncertainty or indecision about a legal matter. None of these options accurately describe the situation presented in the question.

Question 4

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

Accepted Answer

The situation described is confusion, which occurs when the goods of two or more owners become so commingled that they cannot be distinguished from one another. In this case, Harvest Farms and Idyllic Fields' grain is mixed together without their consent, and Idyllic Fields gains possession of all the grain. A bailment involves the transfer of possession of personal property from one person to another, accession occurs when new property is added to an existing property, and production involves the creation of a new product from raw materials.

Question 5

Ansel owns Bar-B Ranch. Ansel's only son Cy owns Double-D Ranch in the same county. Ansel gives 90 percent of the Bar-B to Etta, a short-term employee. This gift

Accepted Answer

A gift requires "donative intent," which means that the donor must intend to make a gift and give up control over the property. Ansel's gift to Etta may be challenged if it is found that he did not have donative intent and instead intended to gift the property to his son, Cy.

Question 6

During the last years of her life, Barb's chief companion was Sylvia. Barb told Sylvia that she could have a certain painting when Barb died. Barb died without a valid will. Her family refused to give the painting to Sylvia, however, who filed a suit to obtain its possession. Based on the de?cision in Case 47.1, In re Estate of Piper, the court will most likely rule in favor of

Accepted Answer

In the absence of a valid will, the court typically requires evidence of delivery or a formal transfer of ownership for a gift to be legally recognized. Since the painting was never delivered to Sylvia, the court is likely to rule in favor of Barb's family.

Question 7

Before undergoing sur?gery that could cause paralysis, Greg, a violinist, gives his concert violin to Holly. The surgery is successful, and Greg suf?fers no pa?ralysis. Greg can

Accepted Answer

Greg gave the concert violin to Holly as a gift inter vivos, which means it was a gift made during his lifetime with no intent for it to take effect after his death. Since the surgery was successful and Greg suffered no paralysis, he cannot revoke the gift. Additionally, causa mortis gifts are gifts made in contemplation of impending death, which is not the case for Greg's situation.

Question 8

With Meg's permission, Nell cuts the trees growing on Meg's land. Nell sells the timber to Olin, who converts it to a variety of wood products. Personal property includes

Accepted Answer

Personal property includes both the timber after it has been cut and the wood products that have been made from it. The trees themselves, while they were growing on Meg's land, were considered real property.

Question 9

Fanny buys clay to throw pottery, which is glazed and fired in a kiln. The finished products are sold to Gifte Shoppe, which sells these items and others to customers who often present them as gifts. The most common way to acquire personal property is to

Accepted Answer

The most common way to acquire personal property is to buy it, which is what Fanny does when she purchases clay to make pottery. Although receiving it as a gift is also a common way to acquire personal property, it is not demonstrated in this scenario as Fanny is the one producing the pottery, not receiving it as a gift.

Question 10

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 gift causa mortis requires the donor to be in impending peril of death and the gift only becomes effective if the donor dies as a result of that peril. A gift inter vivos requires the transfer of the gift during the donor's lifetime. A gift testamentary requires the gift to be included in the donor's will. In this case, since Floyd did not include the gift in his will, it is not a valid gift.

Question 11

Faye owns the land on which Golden Spurs Ranch is situated, plus the ranch house, barn, and other structures permanently attached to the land. Faye's brother Huey owns everything else in the ranch's opera?tion-livestock, feed, and so on. The personal property is owned by

Accepted Answer

The personal property, such as livestock and feed, is owned by Huey only as stated in the scenario. Faye owns only the land and the structures permanently attached to it. Therefore, the personal property is not owned by Faye or the ranch itself, but by Huey.

Question 12

Patty's parents give her a car as a gradua?tion present. While Patty spends the sum?mer in Europe, her friend Rita agrees to keep the car in her ga?rage. On Patty's part, this is acquisition of property by

Accepted Answer

The answer of Patty's parents give her a car as...

Question 13

Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional ve?hicle customizing competition shows. The result of Mike's efforts is

Accepted Answer

Accession refers to the process by which personal property is improved or enhanced by the addition of labor or new materials, which is what Mike did by customizing and detailing the car.

Question 14

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

Real property refers to the land and everything permanently attached to it, including buildings and structures. Therefore, Chita owns the real property on which Downwind Farm is situated, and Elmo owns personal property such as the implements, seed, and other movable items. Chita is the sole owner of the real property, so the correct answer is B) Chita only.

Question 15

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 written instrument excluding the property from the donor's will is not required as an element of a legally valid inter vivos gift, according to the court in Case 47.1, In re Estate of Piper. The other three elements listed (present intention, effective delivery, and acceptance) are necessary for a gift to be considered valid.

Question 16

Ruth gives Seth a computer as a gift. Using the computer, Seth develops a new game, for which he obtains intellectual property protection, and forms Top Games, Inc., to make and market the game. Seth's ac?quisition of the game is by

Accepted Answer

Seth's acquisition of the game is by production because he developed the game himself using the computer given to him as a gift.

Question 17

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 court might conclude that the gift is not effective due to a lack of donative intent, as Ira was declared mentally incompetent and may not have had the capacity to form the intent to make a gift.

Question 18

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

Personal property includes both tangible and intangible items that can be owned by an individual, such as heavy construction equipment, tools, office furniture, patents, trademarks, and stock. Therefore, both Helen and Ilya own personal property, making choice A the correct answer.

Question 19

John steals an old, battered bicycle that is parked, unlocked, in front of a convenience store. He repairs, paints, and replac?es parts on the bike un?til it is like new. The original owner, Kim, claims the bike. The bike be?longs to

Accepted Answer

John stole the bike, so it technically never belonged to him. Any improvements he made to it do not give him ownership rights. Kim is the rightful owner and should be able to reclaim the bike.

Question 20

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 trade fixture is a piece of equipment or property that is affixed to a building but can be removed by the tenant at the end of the lease. In this scenario, the walk-in cooler is the only item that fits the definition of a trade fixture as it is a piece of equipment that can be removed by the tenant and is necessary for the operation of the diner. The roof and parking lot are considered improvements to the physical building and are therefore owned by the landlord.

Quiz 47: Personal Property and Bailments