Question 1

Dr.Olson is a board-certified ophthalmologist who constructs some specially designed examining tables to use in looking at his patient's eyes.The tables are firmly attached to the floor of the space he rents for his office.If Dr.Olson decides to move his office, which of the following is correct?

Accepted Answer

A)  The tables are fixtures that cannot be removed.
B)  The tables are not fixtures because Dr.Olson installed them.
C)  Dr.Olson may remove the tables if they can be removed without materially damaging the realty.
D)  All of these.

Question 2

Lack of consideration is the basic distinction between a gift and a sale.

Accepted Answer

A) True 
 B)False

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

A type of insurance in which the insured and the insurer share the risk of a loss due to fire is:

Accepted Answer

A)  coinsurance.
B)  non-forfeiture insurance.
C)  no-fault insurance.
D)  reinsurance.

Question 6

Larry leaves his hat under the seat at the movie theater.Is this a bailment?

Accepted Answer

A)  No, because the theater manager does not have physical control of the area in which Larry left the hat
B)  No, because Larry did not pay the theater to keep his hat
C)  Yes, if the theater manager finds the hat
D)  Yes, since the theater controls the building

Question 7

The basic principles of contract law apply to insurance policies.

Accepted Answer

A) True 
 B)False

Question 8

The UCC does not cover:

Accepted Answer

A)  transfer of negotiable instruments.
B)  investment securities.
C)  sales of goods.
D)  sales of copyrights.

Question 9

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

Accepted Answer

A)  misrepresentation.
B)  concealment.
C)  waiver.
D)  fidelity.

Question 10

Name and briefly describe the special features or extraordinary duties of five special types of bailments.

Accepted Answer

Five special types of bailments are or i...

Question 11

Fire insurance policies vary from state to state in the United States.

Accepted Answer

A) True 
 B)False

Question 12

Taylor Corp.rents a warehouse where it conducts a small manufacturing operation.As a condition of its lease, it pays a fire insurance premium.Taylor needs more room and rents larger quarters.Taylor then subleases its old warehouse to Mack.Taylor also assigns its already-paid insurance policy to Mack.This action is:

Accepted Answer

A)  appropriate, so long as Taylor and Mack agree to it.
B)  appropriate, so long as the landlord agrees to it.
C)  not binding on the insurer.
D)  totally within the rights of Taylor, who already paid the premium.

Question 13

In determining whether an item is a fixture, which of the following will be considered?

Accepted Answer

A)  How it is attached to the building or land
B)  Whether the item can be removed without harm to the building
C)  Whether the item is usually included in that type of real estate
D)  All of these factors may be considered.

Question 14

A transaction in which the owner gives possession of his personal property to another to secure a debt is:

Accepted Answer

A)  an extraordinary bailment.
B)  a pledge.
C)  a consignment.
D)  commercial bailment.

Question 15

Which of the following is not a function of a bill of lading?

Accepted Answer

A)  It serves as a receipt for goods.
B)  It serves as evidence that the goods specified in the bill of lading are stored in the insured building of the issuer.
C)  It is evidence of the contract of carriage.
D)  It serves as a document of title.

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

Rights represented by a stock certificate or a promissory note are examples of intangible property.

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

A gift causa mortis is contingent upon:

Accepted Answer

A)  the donee's surviving the donor.
B)  the donor's surviving the donee.
C)  the donee's death as anticipated.
D)  the donee's not revoking the gift prior to the donee's death.

Exam 47: Introduction to Property, Property Insurance, Bailments, and Documents of Title

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.

Correct Answer
verified

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.

Correct Answer
verified

Name and briefly describe the special features or extraordinary duties of five special types of bailments.

Correct Answer
verified
Five special types of bailments are or i...
View Answer

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.

Correct Answer
verified

A type of insurance in which the insured and the insurer share the risk of a loss due to fire is:

Correct Answer
verified

A gift causa mortis is contingent upon:

Correct Answer
verified

Correct Answer
verified

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.

Correct Answer
verified

The UCC does not cover:

Correct Answer
verified

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

Correct Answer
verified

Larry leaves his hat under the seat at the movie theater.Is this a bailment?

Correct Answer
verified

Dr.Olson is a board-certified ophthalmologist who constructs some specially designed examining tables to use in looking at his patient's eyes.The tables are firmly attached to the floor of the space he rents for his office.If Dr.Olson decides to move his office, which of the following is correct?

Correct Answer
verified

A transaction in which the owner gives possession of his personal property to another to secure a debt is:

Correct Answer
verified

Fire insurance policies vary from state to state in the United States.

Correct Answer
verified

In determining whether an item is a fixture, which of the following will be considered?

Correct Answer
verified

The basic principles of contract law apply to insurance policies.

Correct Answer
verified

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.

Correct Answer
verified

Which of the following is not a function of a bill of lading?

Correct Answer
verified

Lack of consideration is the basic distinction between a gift and a sale.

Correct Answer
verified

Rights represented by a stock certificate or a promissory note are examples of intangible property.

Correct Answer
verified

Exam 47: Introduction to Property, Property Insurance, Bailments, and Documents of Title

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Name and briefly describe the special features or extraordinary duties of five special types of bailments.

Correct AnswerverifiedFive special types of bailments are or i...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

A type of insurance in which the insured and the insurer share the risk of a loss due to fire is:

Correct AnswerverifiedShow Answer

A gift causa mortis is contingent upon:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The UCC does not cover:

Correct AnswerverifiedShow Answer

The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

Correct AnswerverifiedShow Answer

Larry leaves his hat under the seat at the movie theater.Is this a bailment?

Correct AnswerverifiedShow Answer

Dr.Olson is a board-certified ophthalmologist who constructs some specially designed examining tables to use in looking at his patient's eyes.The tables are firmly attached to the floor of the space he rents for his office.If Dr.Olson decides to move his office, which of the following is correct?

Correct AnswerverifiedShow Answer

A transaction in which the owner gives possession of his personal property to another to secure a debt is:

Correct AnswerverifiedShow Answer

Fire insurance policies vary from state to state in the United States.

Correct AnswerverifiedShow Answer

In determining whether an item is a fixture, which of the following will be considered?

Correct AnswerverifiedShow Answer

The basic principles of contract law apply to insurance policies.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following is not a function of a bill of lading?

Correct AnswerverifiedShow Answer

Lack of consideration is the basic distinction between a gift and a sale.

Correct AnswerverifiedShow Answer

Rights represented by a stock certificate or a promissory note are examples of intangible property.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Five special types of bailments are or i...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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