Chapter 17: Personal Property

Question 1

What is Real Property?

Answer 1

Land and whatever is permanently attached to it and the associated legal rights. eg. buildings are attached to the land

Question 2

What is Personal Property?

Answer 2

Everything thats not Real Property. Can be Tangible(supplies, furniture) or Intangible(Shares, bank accounts)

Question 3

How is Ownership acquired(Land, Goods, Insurance, A/R, Intellectual Property)?

Answer 3

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

Question 4

What is Possession without Ownership?

Answer 4

Gaining possession of property of another with the intent to return it to the owner

Question 5

Who bears ultimate responsibility for protection?

Answer 5

The owner of the property

Question 6

When must you have reasonable care?

Answer 6

when it is in your possession and it isn’t yours

Question 7

How much damages are awarded?

Answer 7

the amount necessary to restore the customer to the position it would have been in had the contract been preformed properly

Question 8

What is an Insurance Contract?

Answer 8

in this case, insurance company agrees to reimburse the insured for its loss in return for payments of premiums

Question 9

What is a Bailment?

Answer 9

temporary transfer of possession of personal property from the owner(bailor) to another (bailee). Ownership is still the bailors.

Question 10

What is the bailment for value?

Answer 10

payment for use of product or a service. eg. paying to rent a car

Question 11

What is a Gratuitous Bailment?

Answer 11

No payment is involved eg. test drive a car

Question 12

Who benefit from a gratuitous bailment?

Answer 12

They benefit both bailor and bailee, usually involve bailments for value

Question 13

What does a contract of bailment normally include?

Answer 13

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

Question 14

What happens if bailment benefited bailors exclusively?

Answer 14

Bailee is required to exercise Slight Care and was liable only for gross neglect

Question 15

What happens if bailment benefitted bailee exclusively?

Answer 15

Bailee is required to exersise great care and was liable for even slight negligence

Question 16

If there was reciprocal benefits

Answer 16

Bailee is required to exercise ordinary diligence and was liable for ordinary neglect

Question 17

Who is liable for intentional wrongdoing of their employees?

Answer 17

Bailee who entrusts bailed good to an employee is personally liable of the theft of the goods by the employee

Question 18

What basis of liability does a bailee have for theft by employee?

Answer 18

Law of negligence, employer has the duty to hire honest, responsible people

Question 19

What distinction is there between buyer and lessee?

Answer 19

Lessee is not the owner and it has possession subject to limitations in the lease

Question 20

What is a Chattel Lease?

Answer 20

contract where a lessee pays for the use of a lessor’s tangible personal property

Question 21

What is an Operating Lease?

Answer 21

lease where the property is returned to the lessor when the term is up

Question 22

What is a Financing Lease?

Answer 22

Enables the lessee to finance the acquisition of tangible personal property, sometimes when the lease ends they can purchase it rather than return it

Question 23

Who is the Bailee when it comes to storage?

Answer 23

The warehouseman who has a lien over the property until the owner pays the storage fee

Question 24

What is Lien?

Answer 24

Right to retain possession of personal property until payment for service is received, they can sell property and apply to outstanding charges

Question 25

What rights and responsibilities relating to storage bailment apply ?

Answer 25

Only if arrangement meet the definition of a bailment, transfer or possession and control from the owner to another person

Question 26

How much can a repairer charge?

Answer 26

No more than a reasonable charge, repairs also have lien and can sell to make up for charges

Question 27

Who are common carriers?

Answer 27

They represent themselves to the public as carriers for reward, are prepared to transport any property for owners as long as they are paid

Question 28

What is Lodging?

Answer 28

“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,