Business Law, 8e: Chapter 42

Chapter 42
Personal Property and Bailments:

Your Full Name:

Your Email Address:

The Email address of an instructor to mail your quiz results:

1. James purchased a new bike. He told his friend Lou that he could have his old bike. James never gave Lou the bike despite repeated requests. Lou can successfully sue James for breach of a valid inter vivos gift.: a. True
b. False

2. Kenny is fatally injured in a car accident and believes he is about to die. He gives, Mike, a Good Samaritan passing by who calls the ambulance, a safe deposit key containing $100,000 in cash. Kenny survives the accident and makes a full recovery. Kenny has made an intervivos gift and Mike keeps the money.: a. True
b. False

3. Madeline borrowed her neighbor's laptop computer to take on a trip. Since this is a bailment for the sole benefit of the bailee, Madeline is required to use extraordinary care.: a. True
b. False

4. Joan decided to eat her lunch on a picnic table in the park. When she sat down, she found a purse. Joan gets to keep the purse because it is abandoned property.: a. True
b. False

5. The Hartford Fire Insurance Co v. Barks and Sons case involved items that were lost.: a. True
b. False

6. A constructive bailment must be in writing to be enforceable.: a. True
b. False

7. Stacey rented a locker at the water park. She put her belongings in the locker and wore the key in a necklace around her neck. The water park is a bailee of Stacey's personal possessions in the locker.: a. True
b. False

8. In remodeling her home, Jolene threw away three pictures. Todd found the pictures in the trash and took them. Subsequently, it was discovered that the pictures were worth millions of dollars. Since Jolene abandoned the pictures, Todd is entitled to keep them.: a. True
b. False

10. All but which of the following are required for a valid gift?: a. Intent to make a gift.
b. Actual or constructive delivery.
c. Consideration.
d. Acceptance.

11. A finder of lost property:: a. may throw the goods away after three days.
b. is a constructive bailee who is bound to take reasonable care of the property under the circumstances.
c. has the no liability to the owner if the property is damaged.
d. has expressly contracted to care for the goods.

12. Ian has an important job interview today. While he is eating breakfast with his friend George before the interview, Ian spills some egg on his tie. Ian is too far from home to get a new tie before the interview, so George loans him his own tie. During the day, George's tie is badly damaged while Ian is wearing it. In the unlikely event of a lawsuit concerning George's tie, Ian would be held liable if he was:: a. slightly negligent, because this is a bailee benefit bailment.
b. "ordinarily" negligent, because this is a bailee benefit bailment.
c. "ordinarily" negligent, because this is a mutual benefit bailment.
d. slightly negligent, because this is a bailor benefit bailment.

13. Assume that a state has no statute concerning whether or not bailees can restrict their liability. Tova and Riva enter into an arrangement in which Tova agrees to act as bailee for Riva's property. Tova has attempted to limit her liability. In which situation is Tova most likely to succeed in limiting her liability?: a. Tova operates a hotel, and the limitation on liability appears on a sign behind the desk.
b. Tova operates a hotel, and the limitation on liability appears in a contract signed by Riva.
c. Tova is a private bailee, and the limitation on liability appears on a printed ticket stub.
d. Tova is a private bailee, and the limitation on liability appears in a contract signed by Riva.

14. Liebowitz and Abramowitz died recently, about two days apart. There is a dispute between Liebowitz's son Lazar and Abramowitz's daughter Bella concerning Liebowitz's valuable, antique diamond tie pin. Bella claims that Liebowitz made a gift of the tie pin to Abramowitz shortly before they both died; Lazar denies that it was actually a valid gift. Liebowitz's diary, admitted into evidence at trial, clearly shows Liebowitz's intention to make the gift to Abramowitz, but does not indicate what he actually did about it. In which of the following scenarios is it most likely that a court will find that a gift was made?: a. Liebowitz mailed to Abramowitz the key to the safe deposit box in which the tie pin was stored; Abramowitz opened the envelope and put the key in his pocket.
b. Liebowitz mailed to Abramowitz the key to the safe deposit box in which the tie pin was stored; Abramowitz returned the envelope unopened.
c. Liebowitz told Abramowitz about his wish to give him the tie pin someday; Abramowitz told Liebowitz that he'd be honored to accept the gift.
d. Liebowitz told Abramowitz about his wish to give him the tie pin someday; Abramowitz told Liebowitz that it was too extravagant a present, and he couldn't possibly accept in good conscience.