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PART THREE
PERSONAL PROPERTY
Teaching Suggestions
1. Have the students make an inventory of their major personal property and classify it with regard to
whether it is tangible or intangible.
Group Projects
1. Assign groups of students to make up bailment situations. They should have two persons from each
2. Divide the class into groups and assign each group a different state. Have the students research how
abandoned property is treated in their assigned states.
CHAPTER 14
NATURE OF PERSONAL PROPERTY
Answers to Learning Objectives
1. Property is anything that may be owned. The two kinds of personal property are tangible and
intangible property. Property can be acquired by purchase, will, descent, gift, accession or
confusion.
Chapter 14 Nature of Personal Property
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1. Property is anything which may be owned. The law protects not only the right to own property but
also the right to use it. Property may be classified according to its movability. If it is movable, it is
personal property.
5. A bailment is the transfer of possession, but not the title, of personal property on condition that the
identical property will be returned or appropriately accounted for at a future date.
6. The person who gives up possession is called the bailor. The bailor usually is the property owner.
The person who acquires possession, but not title, is called the bailee.
7. The bailment agreement, like most other contracts, may be either express or implied.
8. The delivery and the acceptance may be actual or constructive.
9. The bailee must return the identical goods unless there is a bailment of fungible goods, when there
is a consignment, or when the property is repaired.
Comments on Cases
(p. 149) Just because an item is attached to land, it might not lose its classification as personal
property. Oldja v. Warm Beach Christian Camps and Conference Center, 793 F.Supp.2d
1208 (W.D. Wash.)
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(p. 152) The court stated that the principal aim of Grokster and StreamCast was use of the software to
download copyrighted works. They did not simply encourage infringement, but they distributed
the tool intended for the infringing use. Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd.,
545 U.S. 913
(p. 154) While the court pointed out that bailments normally arise as the result of an express contractual
relationship, one can arise by operation of law. When a person has lawfully acquired possession
of another’s personal property and holds it under circumstances whereby it should be kept safely
and returned there is a constructive bailment. Aegis Investigative Group v. Metropolitan
Government of Nashville and Davidson County, 98 S.W.3d 159 (Tenn. Ct. App.)
(p. 157) In this case the court pointed out that the mere fact that the bailment existed and damage
occurred to the bailed property is prima facie evidence of negligence on the part of the bailee.
Dado v. Jeeninga, 743 N.E.2d 291(Ind. Ct. App.)
Answers to Questions
(Page 158)
1. a. Property is anything that may be owned.
b. A person may enter into a contract with the owner to use property without becoming the owner
of the property.
2. The most common way in which property is acquired is through purchase. This occurs when the
buyer pays the seller, and the seller conveys the property to the buyer. Property may be acquired by
Chapter 14 Nature of Personal Property
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5. The Internet has generated problems for owners of intellectual property because it allows
individuals to violate copyright law by quickly and easily copying and distributing huge amounts of
intellectual property illegally.
6. The difference between abandoned and lost property lies in the intention of the owner to part with
title to it.
Answers to Case Problems
(Page 158)
1. Yes. The court found that the agreement stated it was a consignment, and while bailment and
consignment are related, there were no facts to indicate Vaks anticipated the return of any of the
determinative. Where the crew was nowhere to be found, no signs or ropes instructed passers-by to
stay away, and the boat had been aground for at least a month, the court found insufficient evidence
to prove the property had not been abandoned, and Tait’s conviction was reversed. Tait v. U.S., 763
F.Supp.2d 786 (E.D. Va.)
4. Yes. The court found that the language of the statute created a protected property right in the
dispensing fee and cost of medication. Interests in government benefits will be recognized as
property if the person is entitled to them. Starko, Inc. v. Presbyterian Health Plan, Inc., 276 P.3d
252 (N.M. Ct. App.)
5. Yes. The court held that when Pelvit put his garbage at the edge of the alley for collection he had
abandoned it. It stated that it was common to see people, pets and wildlife rummaging through
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returned the horse to the stable, control reverted to the stable which assumed exclusive actual
possession and primary control over the animal, so the bailment resumed. LaPlace v. Briere, 962
A.2d 1139 (N.J. Super. Ct. App. Div.)
8. No. The court said that the fact that the money was found in a drawer supported the conclusion that
it was intentionally placed there rather than carelessly or inadvertently dropped; therefore it was