Chapter 17: Personal Property Flashcards
What is Real Property?
Land and whatever is permanently attached to it and the associated legal rights. eg. buildings are attached to the land
What is Personal Property?
Everything thats not Real Property. Can be Tangible(supplies, furniture) or Intangible(Shares, bank accounts)
How is Ownership acquired(Land, Goods, Insurance, A/R, Intellectual Property)?
Land through purchase or lease, Goods through purchase or manufacturing them, Insurance is bought(paying premiums), A/R are created by delivering goods/services, Intellectual property through copyright owned when created and trademarks through use or registration
What is Possession without Ownership?
Gaining possession of property of another with the intent to return it to the owner
Who bears ultimate responsibility for protection?
The owner of the property
When must you have reasonable care?
when it is in your possession and it isn’t yours
How much damages are awarded?
the amount necessary to restore the customer to the position it would have been in had the contract been preformed properly
What is an Insurance Contract?
in this case, insurance company agrees to reimburse the insured for its loss in return for payments of premiums
What is a Bailment?
temporary transfer of possession of personal property from the owner(bailor) to another (bailee). Ownership is still the bailors.
What is the bailment for value?
payment for use of product or a service. eg. paying to rent a car
What is a Gratuitous Bailment?
No payment is involved eg. test drive a car
Who benefit from a gratuitous bailment?
They benefit both bailor and bailee, usually involve bailments for value
What does a contract of bailment normally include?
Services provided by the bailee, Price to be paid by the bailor and payment terms, extent to which bailee is liable for damages or loss, and remedies of the parties for failure to perform
What happens if bailment benefited bailors exclusively?
Bailee is required to exercise Slight Care and was liable only for gross neglect
What happens if bailment benefitted bailee exclusively?
Bailee is required to exersise great care and was liable for even slight negligence
If there was reciprocal benefits
Bailee is required to exercise ordinary diligence and was liable for ordinary neglect
Who is liable for intentional wrongdoing of their employees?
Bailee who entrusts bailed good to an employee is personally liable of the theft of the goods by the employee
What basis of liability does a bailee have for theft by employee?
Law of negligence, employer has the duty to hire honest, responsible people
What distinction is there between buyer and lessee?
Lessee is not the owner and it has possession subject to limitations in the lease
What is a Chattel Lease?
contract where a lessee pays for the use of a lessor’s tangible personal property
What is an Operating Lease?
lease where the property is returned to the lessor when the term is up
What is a Financing Lease?
Enables the lessee to finance the acquisition of tangible personal property, sometimes when the lease ends they can purchase it rather than return it
Who is the Bailee when it comes to storage?
The warehouseman who has a lien over the property until the owner pays the storage fee
What is Lien?
Right to retain possession of personal property until payment for service is received, they can sell property and apply to outstanding charges
What rights and responsibilities relating to storage bailment apply ?
Only if arrangement meet the definition of a bailment, transfer or possession and control from the owner to another person
How much can a repairer charge?
No more than a reasonable charge, repairs also have lien and can sell to make up for charges
Who are common carriers?
They represent themselves to the public as carriers for reward, are prepared to transport any property for owners as long as they are paid
What is Lodging?
“innkeepers”, responsibility to guests’ property is similar to common carrier, take good care of the property and ARE responsible for the loss or theft, guest share responsibility,
