Personal Property

Question 1

A bailment is…

Answer 1

… the delivery of possession of goods to a person for a limited time

Question 2

What must be established to show the existence of a bailment?

Answer 2

Bailee must:
(i) physically possess the property with the intent to exercise control over it; (ii) consent to the bailment; and (iii) be aware that the bailed goods exist.

Question 3

Explain the degrees of care for the different kind of bailments.

Answer 3

If the bailment is solely for the benefit of the bailor, then the bailee owes a duty of slight diligence, and will only be liable for his gross negligence.

When the bailor and bailee both benefit from the bailment, then the bailee owes a duty of ordinary care.

Finally, when the bailment is solely for the benefit of the bailee, then the bailee owes a duty of great diligence, and the bailee will be liable for only slight negligence.

Bailees who violate the conditions of the bailment are strictly liable for any damages that arise as a result of their violations of the terms of a bailment.

Question 4

A bailee is generally not an insurer of the bailed goods, so that if the bailee acts within the conditions of the bailment, […].

Answer 4

the bailee is not responsible for damage that occurs wholly without the fault of the bailee.

Question 5

Professional bailees—those who act as a bailee as a business—cannot waive their duty altogether, and must limit their liability […].

Answer 5

expressly.

A professional bailee may only limit his liability when the bailor** knows or should know of the limitation** and expressly consents to it.

Any limitation of liability placed on a claim check is not valid unless it can be proven that the bailor knew or should have known of the limitation.

Question 6

Personal property is abandoned when…

Answer 6

…the owner has the full intention to leave the property and give up title and possession to it.

Question 7

An owner who abandons his property…

Answer 7

…loses title to that property.

Question 8

Misplaced property is property that reasonably seems to have been…

Answer 8

…intentionally placed in a particular location, but then appears to have been forgotten.

Question 9

The finder of lost property is entitled to keep it, unless…

Answer 9

…the finder was trespassing or the true owner is identified.

When items are found in a highly private location where the public is not invited, then the owner of that location will retain possessory rights over the find.

Question 10

The finder of misplaced property [does/does not] obtain possession of the property, and the finder’s right to the misplaced property falls after that of the […] and the […].

Answer 10

[does not]

[true owner]

[owner of the property on which the misplaced item was found]

Question 11

A person wrongfully deprived of personal property may file an action for […], […], or […].

Answer 11

[detinue], [trespass], or [trover].

Question 12

Detinue is an action taken to recover…

Answer 12

…the actual property or chattel.

Question 13

In order to succeed in a claim for detinue, the plaintiff must establish:

Answer 13

(i) the plaintiff has a property right recognized by the law in the property,
(ii) the plaintiff has a right to immediate possession,
(iii) the property is capable of identification,
(iv) the property has some** value**, AND
(v) the defendant, now has, or earlier had, possession some time prior to institution of suit.

Question 14

Conversion is…

Answer 14

…an **unauthorized act **over the property of another of such nature that is inconsistent with the right of the owner.

Question 15

Using property in a way that is not described in the bailment constitutes […].

Answer 15

conversion

Question 16

Bailees are absolutely liable if…

Answer 16

…they use the goods outside the scope of the bailment, move the property from an agreed place of storage, or fail to redeliver the goods in the condition in which they were bailed after expressly or impliedly agreeing to insure the goods and failing to do so.

This also includes non-delivery and misdelivery: if the bailee delivers to the wrong party, the bailee is strictly liable for conversion.

Question 17

Under a conversion action, the plaintiff may recover damages in the amount of…

Answer 17

… the full value of the converted property at the time of the conversion.

Question 18

Treasure troves include property that…

Answer 18

…is concealed and is anticipated to be recovered at a later time.

Treasure troves are considered lost property.

Question 19

When lost items are found in a highly private location where the public is not invited, then […] will retain possessory rights over the found property.

Answer 19

the owner of that location

Question 20

A bona fide purchaser of converted property who lacks notice of the conversion can acquire good title if:

Answer 20

(i) the property is money or a negotiable instrument;
(ii) the converter acquired title by fraud in the inducement; OR
(iii) the true owner entrusted goods to a seller of goods of that kind and the purchaser is a buyer in the ordinary course of the seller’s business.

Question 21

Tortious conversion generally cannot…

Answer 21

…deny a true owner title to his property.

Question 22

Unowned property is “captured” and becomes a possession…

Answer 22

…when an individual manifests the intent to own by exercising actual or constructive dominion and control.

Question 23

Accession is the process of…

Answer 23

…adding value to property by the expenditure of labor or adding new materials

Question 24

The accession of materials to an owner’s goods, whether in the course of repairs or otherwise, transfers ownership of the materials accessed to…

Answer 24

…the owner of the original goods on which the work was done.

A willful trespasser cannot acquire title to the goods nor bring an action for compensation against the owner through accession, but the owner can seek damages for conversion or detinue.

Question 25

In accession cases when the property has been completely changed or greatly increased in value by an innocent trespasser the innocent trespasser may claim […].

Answer 25

[title to the goods]

The original owner thus may not recoup the chattel, but can sue for damages.

Question 26

A quasi-bailee is…

Answer 26

…someone who has obtained possession of property against everyone but the true owner.

Question 27

A quasi-bailee has a duty to…

Answer 27

…locate the true owner if he might know or have a reasonable means of finding out the identity of the true owner.

Question 28

The quasi-bailee must keep the goods with due care and failure to do so will render her liable in […].

Answer 28

negligence

Question 29

When one holds property that is the subject of competing claims, the stakeholder can file an […] joining all the claimants, alleging the facts, and asking the court to determine who is entitled to the property.

Answer 29

interpleader action. (In the alternative, they could seek declaratory judgement).

Although both the circuit court and general district court have jurisdiction over an interpleader action, an interpleader action brought in general district court is generally subject to its jurisdictional cap of $25,000. If the value of the property exceeds $25,000, the action must be brought in circuit court.

Question 30

What are the elements of a gift?

Answer 30

the donor must have a present intent to make a gift, the gift must be delivered to the donee or his agent, and the donee must accept the gift.

The burden is on the donee to establish the existence of these elements by clear and convincing evidence.

Question 31

Acceptance of a gift [is/is not] presumed.

Answer 31

[is]

Refusal of a gift must be by an express affirmative act

Question 32

An action for conversion can be maintained only by…

Damages are based on …

The plaintiff must establish conversion by …

Typically, an action for conversion applies to tangible personal property but may extend to intangible personal property rights that …

Answer 32

… (1) the person having the property interest in and (2) entitled to the immediate possession of the item alleged to have been wrongfully converted.

… the value of the property converted at the time and place of conversion.

… a preponderance of the evidence.

… arise from or are merged with a document such as a stock certificate, promissory note, or bond.

Question 33

Trover is…

Answer 33

… an action to recover the value of the property in addition to damages for lack of possession.

Question 34

Trespass is an action to…

Answer 34

…recover monetary damages incurred by reason of lack of possession.