B1. Faye owns the land on which Golden Spurs Ranch is situated, plus the ranch house, barn, and other structures permanently attached to the land. Faye’s brother Huey owns everything else in the ranch’s opera¬tion—livestock, feed, and so on. The personal property is owned by

a.         Faye and Huey.

b.         Faye only.

c.         Golden Spurs Ranch.

d.         Huey only.

ANSWER:    D                              PAGE:     960                          TYPE:      N

                        NAT: AACSB Reflective                  AICPA Legal

A1. Helen owns heavy construction equipment and the tools to service it, as well as office furniture, including computers. Ilya owns a number of pat¬ents, trademarks that identify the products made under those patents, and stock in the company that sells those products. Personal property in¬cludes the items owned by

a.         Helen and Ilya.

b.         Helen only.

c.         Ilya only.

d.         neither Helen nor Ilya.

ANSWER:    A                              PAGE:     960                          TYPE:      N

                        NAT: AACSB Reflective                   AICPA Legal

B20. Common carriers are held to a standard of care based on strict liability in protecting bailed property in their possession.

ANSWER:    T         PAGE:                    973           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

A20. Unlike an ordinary bailee, a warehouse company cannot limit its liability.

ANSWER:    F         PAGE:                    975           TYPE:                     +

                        NAT: AACSB Analytic                     AICPA Legal

B19. All bailments include a bailee’s right to use the bailed property.

ANSWER:    F         PAGE:                    971           TYPE:                     N

                        NAT: AACSB Analytic                     AICPA Legal

A19. In most bailments, the bailor must notify the bailee of hidden defects of which the bailor knows or could have discovered with reasonable dili¬gence.

            ANSWER:    T                              PAGE:     973                          TYPE:      =

                        NAT: AACSB Analytic                     AICPA Legal

B18. In most bailments, the bailee has a right to place a lien on the bailed property until he or she is fully compensated.

ANSWER:    T         PAGE:                    971           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

A18. In an ordinary bailment, a bailee has the right to limit his or her liability.

ANSWER:    T         PAGE:                    972           TYPE:                     N

                        NAT: AACSB Analytic                     AICPA Legal

B17. In a gratuitous bailment, a bailee has a right to be compensated for costs incurred in keeping bailed property.

ANSWER:    T         PAGE:                    971           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

A17. Constructive delivery does not satisfy the delivery requirement for an ef-fective bailment.

ANSWER:    F         PAGE:                    969           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

B16. A bailment must be in writing to be valid.

ANSWER:    F         PAGE:                    970           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

A16. For an effective bailment, the bailor must retain control, but not necessarily possession, of the bailed property.

ANSWER:    F         PAGE:                    969           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

B15. In a bailment, possession of the property is transferred to the bailee.

ANSWER:    T         PAGE:                    969           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

A15. For an effective bailment, the bailor must deliver possession of the bailed property with its title.

ANSWER:    F         PAGE:                    969           TYPE:                     N

                        NAT: AACSB Analytic                     AICPA Legal



Click here to get all Chapters 1 - 52 Business Law Texts & Cases




Click here to get all Chapters 1 - 52 Business Law Texts & Cases

B14. Estray statutes determine ownership rights in fungible goods that have been com¬mingled.

ANSWER:    F         PAGE:                    966           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

A14. Property voluntarily placed by its owner with no intention of reclaiming it is abandoned property.

ANSWER:    T         PAGE:                    968           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

B13. Property voluntarily placed somewhere by its owner and inadver¬tently forgotten is lost property.

ANSWER:    F         PAGE:                    965           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

A13. A finder acquires title to lost property good against the whole world, in-cluding the original owner.

ANSWER:    F         PAGE:                    965           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

B12. A person acquires title to fungible goods by mixing them.

            ANSWER:    F                              PAGE:     965                          TYPE:      +

                        NAT: AACSB Analytic                     AICPA Legal

A12. Property voluntarily placed by its owner and inadver¬tently forgotten is mislaid property.

ANSWER:    T         PAGE:                    965           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

B11. A gift causa mor¬tis is effective only if the donor dies and the donee lives.

            ANSWER:    T                              PAGE:     964                          TYPE:      =

                        NAT: AACSB Analytic                     AICPA Legal

A11. If confusion occurs as the act of a third party, that third party acquires ownership rights in proportion to the amount confused.

ANSWER:    F         PAGE:                    965           TYPE:                     N

                        NAT: AACSB Analytic                     AICPA Legal

B10. Constructive delivery occurs when property is physically transferred.

           

            ANSWER:    F                              PAGE:     963                          TYPE:      =

                        NAT: AACSB Analytic                     AICPA Legal

A10. A gift to a dying donee is a gift causa mortis.

ANSWER:    F         PAGE:                    964           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

B9. A gift is effective whether or not it is accepted.

ANSWER:    F         PAGE:                    962           TYPE:                     N

                        NAT: AACSB Analytic                     AICPA Legal

A9. A gift inter vivos can never be revoked.

ANSWER:    F         PAGE:                    964           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

B8. Production is a means of acquiring ownership of personal property.

ANSWER:    T         PAGE:                    962           TYPE:                     =

                        NAT: AACSB Analytic                     AICPA Legal

A8. Delivery of intangible personal property must be done by sym­bolic delivery.

            ANSWER:    T                              PAGE:     963                          TYPE:      =

                        NAT: AACSB Analytic                     AICPA Legal