Chapter.29 Test Bank Personal Property and Bailments

Business Law with UCC Applications, 15e (Sukys)

Chapter 29 Personal Property and Bailments

1) Intangible personal property is property that has substance and can be touched.

Difficulty: 2 Medium

Topic: Personal Property

Learning Objective: 29-01 Give examples of tangible and intangible personal property.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

2) An example of chattel would be a horse.

Difficulty: 2 Medium

Topic: Personal Property

Learning Objective: 29-01 Give examples of tangible and intangible personal property.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

3) When personal property is owned as community, it is said to be owned by both parties, 50-50.

Difficulty: 2 Medium

Topic: Personal Property

Learning Objective: 29-02 Describe the methods of owning property with others.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

4) Joe and Carol own a lot together as tenants in common. If Carol dies, Joe automatically acquires ownership of Carol's interest in the property.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-02 Describe the methods of owning property with others.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

5) Harvey finds a brand-new iPhone X in the men's room at the local Dunkin' Donuts shop. Harvey may take it home and use it, because the law is "a finder's keepers, a looser's weepers."

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

6) Elaine's diamond ring—a family heirloom—was found by Paul, a garbage man as he was dumping Elaine's trashcan into the back of the truck. Paul claims it is his because it was abandoned and found in the trash.

Difficulty: 1 Easy

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

7) A gift causa mortis can never be taken back by the donor.

Difficulty: 2 Medium

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

8) The gift of an engagement ring is a conditional gift given in contemplation of marriage.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

9) On their first date, Maria goes to the Cineplex Movies to watch the latest movie with Poncho. After the movie, Maria goes with Poncho, to the local hot spot, "El Gallo Jiro." When it comes time to pay the bill, Poncho realizes that he's lost his wallet, and realizes it must have fallen on the floor at the movies. Leaving Maria stranded at the cash register, he arrives at Cineplex only to discover that it is closed. He returns to Gallo Jiro and asks Maria to leave her driver's license at the cash register because they have no cash. The next day he discovers Cineplex has not found his wallet so he informs the manager to call him on his smartphone as soon as they find it. Poncho's wallet is lost.

Difficulty: 2 Medium

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

10) While in her third year at the NewAge School of Music in Seattle, Washington, Carolynn had a chance to borrow and use for one month, a rare Gladavostok violin played by Thomas Jefferson, and made in 1768. She returned the violin to the owner in Seattle, but telephoned her father in Austin, Texas to ask if he would buy it for her. He borrowed money from his pension fund and paid for the violin. Carolynn had exclusive possession of the violin for the next 20 years, using it in her professional career. Unfortunately, she became an alcoholic, and during one period when she was in a treatment center, she entrusted the violin to her mother for safekeeping and collateral to pay for healthcare expenses. After 3 years in treatment, Ann was released and requested return of the violin, but her mother refused. Ann owns the violin because it was a gift causa mortis from her father.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

11) Rick Link, an amateur archaeologist in Idaho, uncovered artifacts from a Native American NezPerce burial ground that was several hundred years old and belonged to the tribe. Ancestors of the present-day tribe had made the artifacts and buried them with their dead. The tribe asked a court to award to it custody of the property, which included burial pots, ornaments, and pottery. Link claimed that the property had been abandoned and that he could therefore claim title to the goods because he had taken possession of them. A court would most likely hold for Link because the property was abandoned.

Difficulty: 2 Medium

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

12) Tomas takes out Josefina to a very nice restaurant Broadway Blues, and puts his coat on the coat rack by the front door. When Tomas finishes his dinner, he returns for his coat but it is missing. He talks to the manager of the restaurant who claims Broadway Blues is not responsible for the coat. He is correct.

Difficulty: 1 Easy

Topic: Bailments

Learning Objective: 29-06 Determine when a bailment occurs.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

13) If Fidel leaves his car with the valet at a covered parking garage at the Hilton Riverwalk in San Antonio, and discovers later that it has been damaged, Hilton is liable for the damages to Fidel's car.

Difficulty: 1 Easy

Topic: Bailments

Learning Objective: 29-06 Determine when a bailment occurs.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

14) As a favor to Darrell, Alyce lets him leave his new Dodge Ram 2500 pickup truck with her in the storage shop at her ranch, while Darrell is gone for 3 weeks. Alyce is liable for any damages caused to Darrell's pickup truck.

Difficulty: 2 Medium

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

15) Suppose that Darrell leaves his new Dodge Ram 2500 pickup truck with Alyce, while he is on business in another country. Darrell and Alyce agree that she will store the pickup truck in her shop, but she has permission to use it if she needs to. One day Alyce, while using the pickup, hits a fence causing nearly $10,000 in damages to the truck. Alyce is not liable to Darrell because this was a gratuitous bailment.

Difficulty: 2 Medium

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

16) A constructive bailment occurs when property is transferred to another person without either party giving or asking for payment of any kind.

Difficulty: 2 Medium

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

17) In a bailment for the sole benefit of the bailee, any ordinary and expected expense incurred in the use of the bailor's property must be borne by the bailor.

Difficulty: 2 Medium

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

18) Suppose Lynne puts her grandmother's sewing machine on consignment at Sewing4You, in Boise. By placing the sewing machine on consignment, Lynne as the bailor, has created a bailment for the benefit of the bailor.

Difficulty: 2 Medium

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

19) When booking a $150 one-night stay at Marriott, Marriott places a $250 "block" on Jasmine's credit card. She is outraged and alleges that Marriott cannot do that. Jasmine is correct.

Difficulty: 2 Medium

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

20) HerbsRUs, Inc. hired CMT Trucking Inc to transport 100 pallets of fresh herb plants to stores in eastern Oregon and southwest Idaho. Each pallet held at least 25 plants. The truck experienced significant delays because of wildfires and unexpected detours along I-84. All of the plants perished in CMT's trailer, causing over $10,000 in losses. CMT is not liable because the wildfires and detours were acts of God.

Difficulty: 1 Easy

Topic: Bailments

Learning Objective: 29-09 Make clear an innkeeper's duty to accept all guests.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

21) A(n) ________ is an example of tangible property.

A) promissory note

B) iPhone

C) share of corporate stock

D) account receivable

Difficulty: 1 Easy

Topic: Personal Property

Learning Objective: 29-01 Give examples of tangible and intangible personal property.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

22) Mashevida and Mei-Ling own a house as tenants in common. When Mei-Ling dies, her share of the house:

A) passes to Mashevida.

B) passes to whomever the probate court designates.

C) passes to Mashevida's heirs.

D) escheats to the state in which the house is located.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-02 Describe the methods of owning property with others.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

23) If Phil finds an iPhone in the men's room at a restaurant, it is most likely ________ and Phil should ________.

A) lost; leave it with the restaurant manager

B) abandoned; leave it with the restaurant manager

C) stolen; personally return it to the owner

D) misplaced; leave it with the restaurant manager

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

24) If Patsy finds a set of car keys on the floor of a cafeteria, most likely the keys are ________ and Patsy ________.

A) lost; keeps them while looking for the true owner

B) abandoned; should leave them with the cafeteria manager

C) stolen; should leave them with the cafeteria manager

D) misplaced; keeps them while looking for the true owner

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

25) Jason has observed an old car parked in the alley behind his apartment for three months. It has no license plates on it and the tires are flat. Jason concludes that the car has been abandoned and takes possession of the car, gets it running, and decides to use it in a demolition derby. At this point, Alex claims that the car is his. To have title to the car, Jason must prove:

A) Alex deserted the car.

B) Alex did not intend to return for the car.

C) Alex deserted the car and did not intend to return for it.

D) Alex had promised the car to Jason as a gift.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

26) If an abandoned shipwreck is found outside the boundaries of a state, what law applies?

A) Only the Abandoned Shipwreck Act

B) Only the law of finds

C) Only the law of salvage

D) Either the law of finds or the law of salvage

Difficulty: 2 Medium

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

27) ________ is the reward given to persons who voluntarily assist a sinking ship or recover its cargo from peril or loss.

A) Gift in causa mortis

B) Chose in action

C) Salvage

D) Severalty

Difficulty: 1 Easy

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

28) Sue receives a $5,000 engagement ring from Tau, but unfortunately Tau dies before the marriage can occur. Tau's parents, as his heirs, want the engagement ring, but Sue wants to keep it. In most states, ________ is/are entitled to the ring because ________.

A) Tau's parents; the ring was a conditional gift

B) Sue; Tau (the donor) is dead

C) Tau's parents; Tau did not state that Sue was to have the ring if he were to die

D) Sue; the engagement was not broken by mutual agreement or by Sue

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

29) Vanessa has received gifts subject to the provisions of the Uniform Transfer to Minors Act. When Vanessa graduates from high school at age 17 and moves away from home, she wants to terminate the custodianship. At what age does the custodianship terminate?

A) 17

B) 18

C) 21

D) The age is decided on case-by-case basis.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

30) Rare art was stolen from the Zerba Art Museum during a war and thirty years later is located in the Alpha Art Museum in another country. Who has title to the art, if Alpha did not know the art was stolen?

A) Alpha, since it is innocent of wrong doing

B) Zerba, since the art was stolen

C) Alpha, since Zerba has relinquished title in the thirty years

D) Zerba, since it had not sent the art voluntarily

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

31) Jenna hangs her fur coat on a rack in the unattended waiting room of Physicians Associated Office. After her visit with Dr. Wong, Jenna prepares to leave, but discovers her fur coat is missing. What liability, if any, do Physicians Associated and Dr. Wong have for the missing coat?

A) None, since they had no control over the coat.

B) Physicians Associated is liable, since the coat rack was in its waiting room.

C) Dr. Wong is personally liable as Jenna had come to meet him.

D) None, since it was a mutual benefit bailment.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-06 Determine when a bailment occurs.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

32) Agnes borrowed a cup of sugar from her next-door neighbor. She intended to return the sugar the next day. This transaction was a:

A) bailment for the sole benefit of the bailor.

B) mutuum.

C) mutual-benefit bailment.

D) bailment for the sole benefit of the bailee.

Difficulty: 2 Medium

Topic: Bailments

Learning Objective: 29-06 Determine when a bailment occurs.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

33) Tammy leaves her car under Emilia's carport while flying to visit her grandmother. Emilia allowed Tammy to do so as a favor. Emilia uses the car to go to her office though she had not been given any permission to do so. One day she meets with an accident and the car is damaged. Which of these is correct?

A) Emilia is not liable because she let Tammy leave the car as a favor.

B) Emilia is liable because she did not have permission to drive the car.

C) Emilia is not liable because she would have the implied right to drive the car.

D) Emilia is liable because this is a bailment for the sole benefit of the bailor.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Analyze

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

34) Jim borrowed Sally's car to get to class when his car did not start. After attending the class, he uses the car to visit his grandmother. While on his way, he enters an intersection when the light is just turning from yellow to red and meets with an accident. What is the Jim's legal position regarding the car?

A) Jim is only liable for reasonable care of the car.

B) Jim is only liable if he committed gross negligence.

C) Jim is only liable if he committed slight negligence.

D) Jim has no liability.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

35) Elaine asked Meredith if she could borrow Meredith's iPhone to text her mom pictures of an awards ceremony. Meredith gave Elaine the iPhone and asked for nothing in return for this favor. This transaction was most likely a:

A) bailment for the sole benefit of the bailor.

B) mutuum.

C) mutual-benefit bailment.

D) bailment for the sole benefit of the bailee.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

36) Cato rented a chain saw from Rental Warehouse to cut firewood for his home fireplace. When it was time for lunch, Cato left the chain saw in the woods while he went home to eat. When he returned, the saw had been stolen. Cato is ________ to Rental Warehouse based on his ________.

A) liable; duty to use reasonable care

B) not liable; duty to exercise care against gross negligence

C) liable; duty to exercise care against slight negligence

D) not liable; duty of mutuum

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-07 Name and describe the principal types of bailments.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

37) Viola checked her mink coat at the Landmark Theatre cloakroom while attending a play and was given a claim ticket. After the play, she handed the ticket to the person at the counter, but her mink coat could not be found. What must be proven concerning negligence?

A) Viola must prove that Landmark was negligent.

B) Landmark must prove that Viola was negligent.

C) Viola must prove that she was not negligent.

D) Landmark must prove that it was not negligent.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-08 Discuss the burden of proof as it relates to bailments.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

38) Vernon parked his gasoline tanker truck at Moonbeam Hotel while seeking lodging for the night. Moonbeam employees went to the gasoline truck to assist in finding a satisfactory parking place, smelled gasoline, noticed a small drip from the truck, and refused to rent a room to Vernon. Is that action lawful?

A) No, because rooms were available in the hotel.

B) Yes, because the presence of the truck would frighten other guests.

C) No, because the innkeeper cannot discriminate on the basis of social status.

D) Yes, because there is a danger to other guests and the hotel.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-09 Make clear an innkeeper's duty to accept all guests.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

39) Paulina rented a room at the Desert Inn Hotel and left her diamond ring on the dresser in her room when she went to dinner. When she returned, the ring was gone. Paulina discovered that the room door did not automatically lock when she closed it; instead it required her to use her key. Is Desert Inn liable for her loss?

A) Yes, since innkeepers are insurers of their guests' property.

B) No, since Paulina was negligent in determining that her room door was not locked.

C) Yes, since innkeepers are in a bailment relationship regarding guests' property.

D) No, since Paulina must inquire about Desert Inn's security system.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-10 Explain innkeepers' duties of care to their guests and their guests' property.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

40) Polonius registered for five nights at Cloud Hotel at $200 per night. Cloud requested Polonius' credit card number when he registered. When Polonius went to a restaurant, his credit card was denied, since it was at the authorized credit limit. Why was Polonius' credit card limit likely reached by registering at Cloud Hotel?

A) Cloud charged the card the full amount of his stay.

B) Cloud charged the card $1,200 with the 20% overage allowed to cover possible damages.

C) Cloud blocked Polonius' credit card when he registered.

D) Cloud made use of the card for payments other than paying the hotel tariff.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-10 Explain innkeepers' duties of care to their guests and their guests' property.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

41) Carlos, Maria, and Justus own land near a developing city as joint tenants. Maria would like to sell her part of the land to Big Sky Development Co., but Carlos and Justus do not want to sell. Carefully discuss if Maria can sell her interest in the land.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-02 Describe the methods of owning property with others.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

42) Anna finds a ring on the sink ledge of a restroom for use by customers of Red Barn Restaurant. Discuss who has legal custody of the ring.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

43) Matthew opens a checking account with Big Bank in the state of Blue. His National Guard unit is activated for military duty, and Matthew is sent abroad. He makes no deposits to or withdrawals from the account for fifteen months. Matthew gets married and moves to the state of Red when released from active service. May Big Bank or Blue lawfully assert a claim to Matthew's checking account?

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-03 Differentiate among lost property, misplaced property, and abandoned property.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

44) While visiting her uncle, Jackson remarked that she admired her uncle's collection of rare books. Her uncle then said to her, "I've been meaning to tell you that I want you to have them. Instead of leaving them to you in my will, I'm going to give them to you right now. You can consider the books yours. However, please keep them here on my shelves so that my library looks full." Would a court hold that Jackson owns the books? Explain.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

45) Crystal is 86 years old and enters the hospital for observation after having fainted. Crystal is depressed and, while in the hospital, gives her antique wedding ring to Autumn, a good friend, saying to Autumn, "I won't be long in this world." After a change in medication, Crystal improves and returns home, living another three years before dying in a bus wreck while going on a fall foliage tour. Her will leaves her antique wedding ring to her granddaughter, Sarah. Discuss who is entitled to ownership of the ring with Autumn in possession of the ring.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-04 Identify the requirements of a completed gift.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

46) When Tammy purchased a television from her neighbor, Andy, she paid a fair market price. Andy moved shortly thereafter to an unknown location, and Tammy was shocked to learn that her television was a stolen article. It had actually belonged to Olive. Tammy believes that she will not have to surrender the television or at least Olive should share the financial loss by paying her half of what she paid Andy, since Tammy asserts that she is an innocent victim. Carefully discuss Tammy's beliefs.

Difficulty: 3 Hard

Topic: Personal Property

Learning Objective: 29-05 Explain the law that applies to stolen property.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

47) Viva ships livestock via Cattle Truck Co. to an out of state feed lot. The cattle are held at the state line for a week, while the state's agricultural department determines that the livestock is not diseased. Can Viva require Cattle Truck to pay for the extra expense and lost profits if Cattle did not inform Viva of this possible delay when it accepted the shipment?

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-10 Explain innkeepers' duties of care to their guests and their guests' property.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

48) Jason Jets, Inc. asked Southern Transport, a common carrier, to carry extremely hazardous jet fuels to one of its bases in another state. Was Southern within its rights when it refused to transport the fuel? Why or why not?

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-10 Explain innkeepers' duties of care to their guests and their guests' property.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

49) Alexander Warehouse Co. stores boxes of china for Crystal Import Co., but stacks the boxes too high so that lower boxes collapse and break the china contents. Alexander asserts that this is Crystal's responsibility for not having stronger boxes, and Crystal asserts that Alexander improperly stacked the boxes. Discuss what party is responsible for the damage.

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-10 Explain innkeepers' duties of care to their guests and their guests' property.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

50) Quinlan picked up the goods that he had stored in Dana's warehouse, promising to pay Dana the following week. Several months passed, and Quinlan still had not paid Dana for storing the goods. Dana claimed that she had a warehouser's lien on the goods that were stored in her warehouse. Was Dana correct? Why or why not?

Difficulty: 3 Hard

Topic: Bailments

Learning Objective: 29-10 Explain innkeepers' duties of care to their guests and their guests' property.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation