Personal Property Essay Rules

Question 1

Bailment

Answer 1

A relationship created by the transfer of possession of an item of personal property by one called the bailor to another called the bailee for the accomplishment of a certain purpose

Question 2

Bailment

Answer 2

Transfer of personal property from the one party to another party

Question 3

There is no bailment unless the bailee obtains

Answer 3

Physical custody over the property coupled with the intent to exercise control

Physical custody (left rug)
Intent to exercise control (agreed to clean it)
Consent + knowledge (of presence) (ticket)

Question 4

The bailee’s ________ to possession is required, and the bailee must have ________ or ________ knowledge of the article’s presence

Answer 4

Consent; actual; constructive

Question 5

The specific degree of negligence upon which liability rests varies with

Answer 5

The type of bailment

Question 6

T/F The nature of the bailment determines the applicable standard of care

Answer 6

True

Question 7

What determines the standard of care in a bailment situation?

Answer 7

The nature of bailment

Question 8

The specific degree of negligence upon which liability rests varies with the type of bailment

Answer 8

Sole benefit of bailor - gross negligence

Sole benefit of bailee - slight negligence

Mutual benefit of parties - ordinary due care

Question 9

T/F Argument bailee met its standard of care depends on degree of negligence

Answer 9

True

Question 10

Degree of negligence - Sole benefit of bailor

Answer 10

Gross negligence

Question 11

Degree of negligence - Sole benefit of bailee

Answer 11

Slight negligence

Question 12

Degree of negligence - Mutual benefit of parties

Answer 12

Ordinary due care

Question 13

Bailment breach - Burden of persuasion

Answer 13

Where the bailor seeks to recover for the bailee’s negligence, the bailor has the burden of persuasion that the bailee was negligent

Question 14

Who has the burden of persuasion of the bailee’s negligence?

Answer 14

Bailor

Question 15

The bailor can make out a p/f case of negligence by

Answer 15

Showing delivery of the goods to the bailee and the bailee’s failure to redeliver the goods, or redelivery of damaged goods

Question 16

Professional bailee - Limitation of liability

Answer 16

Public policy prevents a professional bailee from exempting herself from liability for her own negligence, although, she may, under proper circumstances, limit her liability.

However, a professional bailee’s limitation is not valid unless the bailee knows, or should know, of the limitation and assents to it

Question 17

T/F A professional bailee’s limitation is not valid unless the bailee knows, or should know, of the limitation and assents to it

Answer 17

True

Question 18

A professional bailee’s limitation is not valid unless the bailee

Answer 18

Knows, or should know, of the limitation and assents to it

Question 19

Most courts hold that a claim check does not evidence

Answer 19

A contract between the parties

Question 20

A claim check is generally issued for purposes of

Answer 20

Identification, and the mere fact that a would-be contract provision is contained on the claim check is not sufficient proof that the bailor actually knew, or should have known, of this term

Question 21

BFP of stolen goods versus true owner

Answer 21

A BFP of stolen goods is not protected against the claim of a true owner

Question 22

Even a BFP can be held liable as

Answer 22

A converter

Question 23

Negligence action

Answer 23

Where the bailor seeks to recover for the bailee’s negligence, the bailor has the burden of proving that the bailee was negligent

The standard of care for a bailment for the mutual benefit of the bailor and the bailee (for example, a bailment for hire) is ordinary due care

However, the bailor can make a p/f case of negligence merely by showing delivery of the goods to the bailee and the bailee’s failure to redeliver the goods or redelivery of damaged goods

Question 24

Breach of contract action

Answer 24

Where the bailor seeks to recover under a breach of contract theory, the modern rule places the duty on the bailor to show that there was a bailment contract and that the bailee failed to perform on the contract by failing to return the goods or returning them damaged

Question 25

T/F A **delivery without acceptance** by the bailee will not create a bailment, and the **mere custody of a chattel is not sufficient in law to constitute possession**

Answer 25

True

Question 26

T/F It **cannot be said a person is in possession** of an article as a bailee unless she has **knowledge or can be charged with knowledge of possession** of the article

Answer 26

True

Question 27

In VA, the right to appeal a decision to the CC is fairly broad. The ground applicable is that a decision of the GDC may be appealed to the CC within the same geographical area when the amount in controversy exceeds

Answer 27

$20

Question 28

Lost property

Answer 28

When the owner has **accidentally and involuntarily** parted with its possession and **does not know where to find it**

Question 29

A person who reduces lost property to possession becomes

Answer 29

It's finder

Question 30

Generally, the finder is entitled to possession of the property as against all except

Answer 30

The true owner

Question 31

The true owner retains title unless

Answer 31

A **sufficient time has run for the goods to be deemed abandoned** and the possessor has a duty to find the owner

Question 32

Although the normal bailment is consensual, a constructive bailment is created when

Answer 32

A person lawfully acquires possession of another's personal property, other than by a bailment contract, and holds it under such circumstances that the law imposes on him the obligation to keep the property safe and redeliver it to its owner

Question 33

A **constructive bailment** is created when

Answer 33

A person finds the lost property of another

Question 34

Final judgment and decrees in cases originating in circuit courts can be appealed directly to the supreme court except when

Answer 34

1) The amount in controversy is purely pecuniary and the amount involved on appeal is less than $500, or 2) Appellate jurisdiction is assigned to the court of appeals, which includes cases involving circuit court review of administrative decisions, domestic relations cases, workers' compensation cases, and some criminal cases

Question 35

Abandoned property

Answer 35

Owner **voluntarily relinquishes ownership** with **intent to give up both title and possession/control**

Question 36

Title to abandoned property acquired if finder has

Answer 36

**Possession** w **intent to assert title and control**

Question 37

Lost property

Answer 37

Owner accidentally and involuntarily parted w possession Owner doesn't know where to find property

Question 38

Mislaid property

Answer 38

Intentionally placed but thereafter forgotten Owner took some voluntary act in placing property down, and then left it behind

Question 39

Who gets property if mislaid?

Answer 39

Owner/occupier of premises on which property is found prevails over finder

Question 40

Who gets property if lost?

Answer 40

Generally, finder prevails over owner/occupier of premises Exceptions: Trespasser - if finder of lost property is trespasser, owner/occupier prevails Employer/employee - if employee finds due to act direct by employer, employer acquires rights of possession and prevails over employee Highly private locus - if found in place not open to public, owner/occupier prevails over finder

Question 41

T/F The true owner prevails over **both finder and owner/occupier** w lost or mislaid property

Answer 41

True

Question 42

Requirements for gift inter vivos

Answer 42

Donative intent, delivery, and acceptance

Question 43

Donative intent

Answer 43

**Present mental capacity** and **intent to pass title now** [Easier to find when donor/donee are closely related] ["The silver medal is for your sister"]

Question 44

T/F A third party intermediary is **presumed to be acting for the donee**, unless the facts show otherwise

Answer 44

True

Question 45

T/F There is support under VA law, for proposition that donee cannot accept a gift that she is unaware of

Answer 45

True [Preferred conclusion: inter vivos gift was completed. Thus, silver medal was not in Grandmother's estate when she died]

Question 46

T/F Intending to give medal to Jackson in the future (the following week) = no present donative intent; and no delivery

Answer 46

True

Question 47

Delivery - actual physical delivery

Answer 47

Donor hands gift over to donee [If donee already in possession - donor doesn't need to repossess and return article to donee]

Question 48

Delivery - symbolic/constructive delivery

Answer 48

Donor hands over some object that's symbolic of the gift or surrenders as much control over the subject matter of gift as they presently possess

Question 49

Requirements for gift causa mortis (gift made in contemplation of death)

Answer 49

Nature of peril must be fair degree of certainty or likelihood of death that is imminent or likely to occur

Question 50

Revocation of gift causa mortis

Answer 50

1) Donor can revoke by affirmative act 2) Donee predeceases donor, or 3) Donor recovers

Question 51

Bailor's rights in bailed chattel - actions against bailee where, due to bailee's wrongful act, goods were lost or damaged

Answer 51

1) Damages in tort or contract 2) Detinue 3) Conversion

Question 52

Bailee's duty with respect to bailed goods: contract limits on liability - exculpatory clauses

Answer 52

Bailee can limit liability for ordinary negligence if bailor has received effective notice of limitation

Question 53

Bailee's duty with respect to bailed goods: **strict liability** if

Answer 53

**Unauthorized use** - any intentional authorized use of goods or departure from terms of bailment that results in loss or damage **Misdelivery** - bailee fails to deliver or misdelivers chattel [Exception: Misdelivery of vehicle in parking garage to someone w forged claim check]

Question 54

Common carrier requirements

Answer 54

1) Holding out to perform service for those who apply 2) Carriage must be **for hire** 3) The service must be one **for carriage**

Question 55

What liability does a common carrier have for loss or damage?

Answer 55

Common carrier is generally insurer of goods and is **liable for loss/damage under any circumstances** Exceptions: - Act of God - Act or fault of shipper - Inherent nature of goods (e.g., perishable goods)

Question 56

Liability of common carrier commences when goods are

Answer 56

Delivered to and accepted by carrier for immediate transportation

Question 57

Special bailment situations - safe deposit boxes

Answer 57

Generally regarded as bailment, even though bank usually has no idea what's in box

Question 58

Special bailment situations - parking lots and garages

Answer 58

If lot/garage keeps keys - car is bailed If self-park where driver keeps keys - car not bailed

Question 59

Special bailment situations - bankruptcy

Answer 59

Items on consignment are bailed [Bailed items can't be included in bankruptcy estate of bailee]

Question 60

Where an employer is found liable for his employee's torts under the doctrine of respondeat superior, the employer may to then recover that amount in a lawsuit against the employee

Answer 60

False Where an employer is found liable for his employee’s torts under the doctrine of respondeat superior, the employer has an indemnification claim against the tortfeasor employee

Question 61

Where parties enter into a commercial relationship and there is a bailment of mutual benefit, the bailee will be liable for damage or loss only if:

Answer 61

His actions constitute ordinary or gross negligence Virginia follows the common law approach of basing the standard of care upon a determination of who benefits from the bailor-bailee relationship. In a commercial relationship such as this one, the benefit is typically considered to be mutual, and an ordinary standard of care applies. Thus negligence or gross negligence will incur liability, but slight negligence likely will not

Question 62

A principal subsequently ratifies the contract signed and entered into by someone claiming to be his lawful agent when:

Answer 62

Principal takes no action to repudiate or dispute the contract Principal knows the material terms of the K or is aware of his lack of knowledge of the specific terms [Principal does not have to hold agent out as his representative] The principal knows the material terms of the contact, or is aware of the contract’s existence and his lack of knowledge of the specific terms, and takes no action. In other words, a principal cannot avoid ratification by relying on his ignorance of the contract terms where he was deliberately ignorant of those terms. Additionally, silence may constitute ratification where a person would be expected to speak

Question 63

T/F An agent acts with actual authority where a third party reasonably believes, based on manifestations of the principal, that the agent is authorized, even if the agent has not actually been authorized

Answer 63

False An agent acts with apparent authority where the third party reasonably believes, based on manifestations of the principal, that the agent is authorized.

Question 64

In order to bind a principal in a contract, the agent must act with either

Answer 64

Actual or apparent authority, or the principal must subsequently ratify the contract

Question 65

Actual authority may be either

Answer 65

Express or implied

Question 66

Actual authority may be either express or implied, and it is based on

Answer 66

The principal's communications with the agent and the agent's reasonable belief that he is authorized

Question 67

T/F An agent acts with apparent authority where the third party reasonably believes, based on manifestations of the principal, that the agent is authorized

Answer 67

True

Question 68

T/F In order to ratify the actions of the agent, the principal must know the material terms of the contract, or be aware of his lack of knowledge. Additionally, silence may constitute ratification where a person would be expected to speak

Answer 68

True

Question 69

In order to ratify the actions of the agent, the principal must know ________, or ________

Answer 69

The material terms of the K; be aware of his lack of knowledge

Question 70

Implied authority (versus apparent authority)

Answer 70

When agent reasonably believes principal authorized him In fact, authority to act on behalf of principal

Question 71

Apparent authority (versus implied authority)

Answer 71

Involves someone else (neither agent or principal) Agent entering into K with third party *Third party has to believe this person is an agent not based on the agent's own statements or representations but because of the principal's representations to him

Question 72

T/F Even if express, implied, or apparent authority is absent, the principal might ratify actions of agent if he knows material terms of the transaction or K or aware of the transaction or K and willfully blind, and does not object

Answer 72

True

Question 73

In order to bind a principal in K, the agent must act with either

Answer 73

Actual or apparent authority, or the principal must subsequently ratify the K

Question 74

T/F Actual authority may be either express or implied and it is based on the principal's communications with the agent and the agent's reasonable belief that he is authorized

Answer 74

True

Question 75

T/F An agent acts with apparent authority where the third party reasonably believes, based on manifestations of the principal that the agent is authorized Apparent authority arises out of the principal's holding out of the agent as authorized

Answer 75

True

Question 76

T/F Apparent authority arises out of the principal's holding out of the agent as authorized

Answer 76

True

Question 77

T/F Merely holding Elmer out as an employee is not manifestation that Elmer had authority to contract for the repairs nor was there a sufficient basis for Fred to reasonably believe that Elmer was authorized [Thus, Elmer did not act with apparent authority]

Answer 77

True

Question 78

T/F Ratification is a subsequent affirmation of an unauthorized contract

Answer 78

True

Question 79

Ratification is

Answer 79

A subsequent affirmation of an unauthorized contract

Question 80

T/F In order to ratify, the principal must know the material terms of the K, or be aware of his lack of knowledge In other words, a principal cannot avoid ratification by relying on his ignorance of the K terms where he was deliberately ignorant of those terms Additionally, silence may constitute ratification where a person would be expected to speak

Answer 80

True

Question 81

In order to ratify, the principal must

Answer 81

Know the material terms of the K, or be aware of his lack of knowledge In other words, a principal cannot avoid ratification by relying on his ignorance of the K terms where he was deliberately ignorant of those terms Additionally, silence may constitute ratification where a person would be expected to speak [Alvin's nod was not ratification bc he did not yet know the material terms of the K] [Stronger argument that his subsequent silence, or failure to object, constituted ratification. However, he clearly did not have actual knowledge of the K terms, as he did not read the work order closely. Fred will argue that he should have read the work order, but it doesn't seem from the facts that Alvin was even aware of his lack of knowledge]

Question 82

Silence or failure to object may constitute ratification where

Answer 82

A person would be expected to speak

Question 83

T/F In a commercial bailment relationship, the benefit is mutual, so an ordinary standard of care applies

Answer 83

True

Question 84

T/F A bailment relationship requires delivery by the bailor and consent by the bailee

Answer 84

True

Question 85

T/F VA follows the common law approach of basing the standard of care upon who benefits from the relationship

Answer 85

True

Question 86

T/F In a commercial relationship the benefit is typically considered mutual, and an ordinary standard of care applies

Answer 86

True

Question 87

Under the doctrine of respondeat superior, an employer is liable for the torts of his employee that are committed

Answer 87

Within the scope of employment

Question 88

T/F Courts generally hold the employer liable for the employees' minor deviations, often referred to as a "detour"

Answer 88

True

Question 89

T/F The court will likely not find the recital about the parking attendants' status as an agent of the bailor to be binding. Maddie did not assent to that provision. Additionally, disclaimers of an agency relationship are not binding under agency law

Answer 89

True

Question 90

T/F Neither the thief of the sword nor anyone taking from the thief had title; their title was void, not voidable It is irrelevant that subsequent transferees were acting in good faith

Answer 90

True