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Chapter 47. Introduction to Property, Property Insurance, Bailments, and Documents of Title
1. The same item may not be the object of both tangible and intangible property rights.
a. True
b. False
2. A straight bill of lading under which goods are deliverable only to a person named in the bill may be transferred by
assignment or negotiation.
a. True
b. False
3. The transfer of personal property involves formalities not required in the transfer of real property.
a. True
b. False
4. Clara receives a telephone call from her Aunt Mary in which Mary says she has decided to give Clara her pet
python as a gift. Clara may refuse to accept, making the intended gift invalid.
a. True
b. False
5. Barbara put her old clothes in a box in the bedroom of her roommate. The roommate now owns the clothes, because
they are presumed to be a gift.
a. True
b. False
6. An example of a bailment for the bailor’s sole benefit is when Sherri, without compensation, lends her Cappuccino
maker to Ed for Ed’s party.
a. True
b. False
7. If Harold buys a tomato plant, he owns the tomatoes produced by the plant based on "confusion."
a. True
b. False
8. A thief stole Martin's car and installed a tape deck in it. Later the police caught the thief and returned the car to
Martin. Martin now owns the tape deck by accession.
a. True
b. False
9. Mark finds a camera on a park bench at Disneyland. Mark cannot keep the camera, because it is mislaid property.
a. True
b. False
10. A trade fixture is not intended to become part of the realty.
a. True
b. False
11. A bailment may be made of either real or personal property.
a. True
b. False
12. Rights represented by a stock certificate or a promissory note are examples of intangible property.
a. True
b. False
13. Terry’s loan of his lawnmower to his neighbor cannot be a bailment if Terry receives no compensation for the use.
a. True
b. False
14. The Uniform Commercial Code covers all the issues involving ownership and transfer of title to personal property.
a. True
b. False
15. Although Trina has paid her annual insurance premium, her insurance company sends her a written notification that it
is cancelling her policy, which should have had four more months of coverage. The insurer need do nothing more to
effect the cancellation.
a. True
b. False
16. Lessees of property and holders of security interests have insurable interests in property.
a. True
b. False
17. Property insurance policies are freely assignable before, but not after, a loss occurs.
a. True
b. False
18. A bailee is required to return the identical goods bailed, in the same condition as when the bailee received them.
a. True
b. False
19. A bailee has the exclusive right to possess the property for the term of the bailment.
a. True
b. False
20. An heir of a person who dies receives title to the property of the decedent by reason of a gift.
a. True
b. False
21. Ronald says in the presence of three other people that he is giving his automobile to his nephew, and then hands the
keys to the car to the nephew. Delivery of the auto has taken place.
a. True
b. False
22. A negotiable electronic document of title running to the order of a named person or bearer is negotiated by delivery
which, according to Revised Article 7 of the UCC, means a voluntary transfer of control.
a. True
b. False
23. Clay in its natural form is real property.
a. True
b. False
24. Clay that has been made into pottery is personal property.
a. True
b. False
25. An easement is not considered to be real property.
a. True
b. False
26. A lease for office space is considered to be personal property.
a. True
b. False
27. Patent rights are considered to be personal property.
a. True
b. False
28. A carrier or warehouser who receives goods from a thief and later delivers them to a person to whom the thief
ordered them to be delivered is liable to the true owner of the goods.
a. True
b. False
29. A common carrier is under a duty to serve the public to the limits of its capacity.
a. True
b. False
30. The anthropology department of Towers University is doing an excavation on property that belongs to Farmer
Brown. If in the process of excavation the university finds some valuable lost items, they will belong to Farmer
Brown and not to the university.
a. True
b. False
31. Property insurance policies are frequently written for periods of at least five years.
a. True
b. False
32. The McCarran-Ferguson Act, enacted in 1945, left the regulation of insurance to the states.
a. True
b. False
33. If Keisuki insures his building for $300,000 and at the time of its total loss the property is valued at $250,000, under
an open policy Keisuki would recover $300,000.
a. True
b. False
34. A friendly fire is one that is contained in its intended place such as a fireplace, stove, or barbecue grill.
a. True
b. False
35. An ordinary bailee becomes liable to the bailor for any loss or injury to the goods, regardless of the cause and
without regard to the question of his care or negligence.
a. True
b. False
36. Lack of consideration is the basic distinction between a gift and a sale.
a. True
b. False
37. Estoppel means that a person is prevented by his own conduct from asserting a position inconsistent with such
conduct, on which another person justifiably relied.
a. True
b. False
38. A document of title symbolizes ownership of the goods it describes; its transfer transfers the ownership or control of
the goods without necessitating the physical transfer of the goods themselves.
a. True
b. False
39. Fire insurance policies vary from state to state in the United States.
a. True
b. False
40. The basic principles of contract law apply to insurance policies.
a. True
b. False
41. Which of the following is characteristic of a bailment?
a. There is a separation of ownership and possession
b. A bailment must be a contract
c. It must last for an indefinite time
d. All of these
42. What is the method by which title to new property is acquired when an article of personal property that belongs to
one person has a natural increase?
a. Gift
b. Will or descent
c. Purchase
d. Accession
43. Which of the following is tangible real property?
a. Corn harvested and stored in a grain bin
b. The mortgage on an office building
c. A copyright
d. The freight elevator in an office building
44. A warehouse receipt:
a. is not a document of title.
b. is a receipt issued by a person engaged in the business of storing goods for hire.
c. grants a lien enabling a warehouser to sell goods only at a public sale.
d. All of these.
45. The finder of lost property is considered to be the owner as against everyone except the true owner by reason of:
a. confusion.
b. accession.
c. possession.
d. gift.
46. Mixing identical goods from different owners is:
a. confusion.
b. accession.
c. possession.
d. gift.
47. Sales of copyrights and patents are governed by:
a. the UCC.
b. common law.
c. federal statute.
d. real estate law.
48. Which of the following is a requirement of a valid gift?
a. An adult donor
b. Payment of money
c. A writing
d. Delivery
