Law Ch 17

Front 1

Remmie owns the associated rights to property, the buildings, and everything affixed to them located on that property, and the property itself. How is this particular asset likely to be classified?

Back 1

as real property

Front 2

Which of the following hampers the utility of a registration system for personal property?

Back 2

the transportability and mobility of personal property

Front 3

What is the term “choses in action” synonymous with in law?

Back 3

intangible property

Front 4

ImaBigBank has extended an operating line of credit to Vandenbergers Bulbs Ltd. In exchange, Vandenbergers had to provide an assignment of the corporation’s accounts receivable from its seasonal city garden contracts. What is the bank’s position?

Back 4

It acquired ownership of the right to collect the assigned accounts.

Front 5

Why is a short-term lease or rental of property an attractive way for a business to acquire the use of equipment for a particular task or period of time?

Back 5

It makes little sense to purchase something that is not needed for a long period, unless, of course, the rental charges approach the cost of buying.

Front 6

Which of the following exemplifies possession without ownership?

Back 6

granting a licence for use of a bio-waste technology

Front 7

What most often drives the decision to create a temporary split of ownership and possession with respect to personal property?

Back 7

The arrangement meets the business needs of both parties.

Front 8

Which of the following is a distinguishing characteristic of the requirement to take reasonable care with respect to the obligations arising from ownership and possession of property?

Back 8

It is applicable regardless of the absence of a contractual arrangement.

Front 9

Geoffrey made arrangements for storing his houseboat for the winter at BoatsRStored4U Inc. What is the most immediate legal question that Geoffrey should be clear on before he allows the storage company to take physical possession of his boat?

Back 9

Who will bear the risk of loss or damage and have the obligation to purchase insurance?

Front 10

What feature distinguishes bailment from a contract of purchase and sale?

Back 10

A bailor retains ownership upon transfer of possession to the bailee.

Front 11

What aspect would normally be described in a contract for services in circumstances involving a bailment of value?

Back 11

the parties’ remedies for failure to perform

Front 12

What should be included in the standard form contract in order for a lessor to maximize its ability to minimize its exposure for damage caused to a leased vehicle in the lessee’s possession?

Back 12

the bailee identified as the party to be paid in the event of loss for insurance

Front 13

What is most likely to result if a bailment is without reward and for the benefit of the person possessing the property?

Back 13

The bailee’s standard of care will be very high.

Front 14

Which of the following is typically reflected by a higher expectation placed on a business offering a specific type of bailment?

Back 14

the expertise of the business offering bailment for reward

Front 15

Which of the following is reflected by the requirement that a business offering bailment for value appropriately stores perishable items placed in its possession?

Back 15

a standard of care based on the nature of the property

Front 16

What is the most relevant factor when a business entrusts bailed goods to an employee who then pilfers those goods?

Back 16

The employer is subject to personal liability.

Front 17

What is the most common cause for a bailor to incur liability with respect to goods provided under a contractual bailment?

Back 17

the breach of bailor’s warranty to provide a bailed chattel fit for its intended use

Front 18

What is the legal term for a defect that no one in a distribution chain could reasonably have foreseen?

Back 18

a latent defect

Front 19

A court is hearing an argument from plaintiff’s counsel regarding a matter involving serious injury to a downhill skier. Counsel contends the cause of his client’s injuries was that the rental skis were outfitted with either defective or improperly secured bindings. Which of the following will cause the onus of proof to shift to the bailor, with respect to the responsibility for preventing this mishap and damages for ensuing harms?

Back 19

The bailee’s reasonable manner of use of the skis has been established.

Front 20

What is the focus of the standard of care required of a gratuitous bailor?

Back 20

It must be determined whether the bailor or bailee is receiving the benefit of the bailment.

Front 21

What is the most significant aspect of a bailment contract?

Back 21

It limits the liability that common law rules of bailment create.

Front 22

Which of the following is a valid criticism of the use of contractual clauses to limit bailment liability?

Back 22

They are vulnerable to various common law challenges.

Front 23

Which of the following distinguishes a commercial bailment contract from a consumer bailment contract?

Back 23

the court’s inclination to apply differing standards to each

Front 24

What is the primary source of the requirement that a lessor’s property be reasonably fit for its intended use?

Back 24

implied common law term

Front 25

Which of the following is a distinguishing characteristic of a commercial chattel lease?

Back 25

It is regulated by the general law of contract.

Front 26

What is an attractive way for a business to acquire the use of equipment for a specified period of time?

Back 26

through an operating lease

Front 27

Which of the following is a valid criticism of a three-party financing lease arrangement?

Back 27

It shields the financier from normal lessor’s obligations relating to the property.

Front 28

Under what circumstances is it most likely that the obligation to make payments is tied to the suitability and performance of equipment?

Back 28

in a financing lease

Front 29

Which of the following would be the result of a commercial customer’s limited means of monitoring a storage facility’s treatment of the property given to it for storage?

Back 29

The law imposes a high level of accountability for the treatment of the bailor’s property.

Front 30

What is the name used to describe the individual who has the right to enforce a lien over property until such time as storage fees have been paid?

Back 30

warehouseman

Front 31

Under what circumstances do the rights and responsibilities relating to a storage bailment apply?

Back 31

when the arrangement meets the definition of a bailment

Front 32

Shawna received a factory recall notice from her GM dealership. She accepted the dealership’s offer to drive her to work when she brings the car in for the service recall. What will be the certain result when Shawna hands the dealership her car keys?

Back 32

An incidental storage bailment will be created.

Front 33

What is most likely to be the result in circumstances involving an outstanding payment for the repair and subsequent storage of a sailboat?

Back 33

the retained possession and sale by right of lien, if needed

Front 34

Which of the following is a characteristic of a common carrier bailment arrangement where possession of the goods rests with the bailee?

Back 34

a presumption of carrier’s liability

Front 35

What is the most significant effect of the responsibility of the standard of care placed on common carriers with respect to the property they carry?

Back 35

Carrier liability for mishaps is severely limited.

Front 36

Which of the following is a difference between a warehouseman’s lien and a common carrier’s lien?

Back 36

Common carriers have a common law lien right without the right to sell property.

Front 37

Colleen booked two weeks’ lodging with a bed and breakfast beginning on June 30. What is the legal term used to describe the individual who takes the booking?

Back 37

innkeeper

Front 38

Which of the following is most prominent in bailment transactions?

Back 38

transfer of risk

Front 39

Which of the following is a distinguishing characteristic of the legislated ability of innkeepers to post liability limits in their establishments?

Back 39

It is lost due to innkeepers’ negligent or deliberate acts or the deposit of the property for safekeeping.

Front 40

How is ownership of intellectual property acquired?

Back 40

through creation, registration, or purchase