Q&A Hero

Q: Jill, a minor, is living at home with her parents, but signs a lease with a landlord to rent an apartment. Jill can a. disaffirm the lease because her parents can be held liable for it. b. disaffirm the lease without liability. c. not disaffirm the lease because an apartment is a "necessary." d. not disaffirm the lease if she intended to live on her own.

Q: Land includes all of the waters on or under its surface.

Q: Rita, a minor, signs a contract to buy a sport utility vehicle (SUV) by misrepresenting her age to be twenty-one. In most states, Rita may a. disaffirm the contract. b. disaffirm the contract only if she first makes full payment. c. disaffirm the contract only if she returns the SUV in original condition. d. not disaffirm the contract.

Q: Uri discovers a boat adrift, and retrieves and anchors it. The boat features a number on its side and other evidence pointing to its owner, Vera. This is a. an involuntary bailment. b. a voluntary bailment. c. an express bailment. d. no bailment.

Q: Frenchy's Fast Fries (3F) requires that its employees wear uniforms and protective clothing while on the job. 3F provides a locker room for the employees to leave their street clothes and personal items while working. A sign on the back of the locker room door states, "Frenchy's is not re­sponsible for the loss of any property in the locker room." Grant, a 3F employee, changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his locker. When he returns after his shift, the wallet and watch are gone. Does Grant's leaving personal items in the locker room constitute a bailment? If so, what type of bailment? If not, what legal relationship is it? Does 3F's sign exculpate the com­pany for Grant's loss? Why or why not?

Q: During a storm on Blue Lake, a boat sinks, but its owner Cappy survives. Cappy plans to return to the site of wreck to salvage its equipment and his possessions, but he delays. Meanwhile, Dick, an amateur diver, discovers the wreck and strips it clean of useful items. Cappy learns of the recovery and files a suit against Dick, claiming that the items are his. Dick responds that the sunken boat was abandoned and therefore he has good title to everything to which he took possession. What is the court likely to rule, and why?

Q: Adam, a seventeen-year-old, signs a contract to sell his car to Best Used Cars. Adam receives a better offer the next day from Cars & Trucks, Inc., and accepts the new offer. Adam is a. liable to Best and must sell it a car of comparable value. b. liable to Best and must sell it his car. c. not liable to Best because he is a minor. d. not liable to Best because the sale of the car disaffirmed their deal.

Q: Stan rents a safe-deposit box at Main Street Bank under a contract that gives Stan exclusive knowledge and control over its contents. This is a. a bailment. b. accession. c. production. d. confusion.

Q: Venerable Company stores office furniture with Warehouse Storage, Inc. (WSI), under a contract that limits the warehouse company's liability for lost or damaged property to $500. Venerable declines the option to pay a higher storage rate for an increase in the liability limit. The furniture is lost through no fault of WSI. The loss is most likely suffered by a. Venerable and WSI. b. Venerable only. c. WSI only. d. neither Venerable nor WSI.

Q: Ed is fifteen. In most states, Ed would be considered a minor because he is under the age of a. sixteen. b. seventeen. c. eighteen. d. twenty-one.

Q: Emily checks her luggage at Flyaway Airlines's ticket counter before boarding her flight to Houston, Texas. Subject to a bailment is a. Emily. b. Emily's luggage. c. Emily's ticketed seat on the flight. d. none of the choices.

Q: Tab stores video equipment with U-Store-It, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to U-Store-It's negligence destroys the equipment. The loss is most likely to be imposed on a. neither Tab nor U-Store-It. b. Tab and U-Store-It. c. Tab only. d. U-Store-It only.

Q: Victor leaves his Dodge sport utility vehicle at Gordo's Auto Service for an oil change. This is a. a bailment. b. a gift. c. accession. d. production.

Q: If a contract is illegal, a court will not enforce it.

Q: Wally asks Eddie if he can store his furniture in Eddie's garage while he serves a tour of duty with the U.S. Marines Corps. Eddie agrees. This is a. a bailment. b. accession. c. a gift. d. abandoned property.

Q: An exculpatory clause in a residential property lease is usually enforceable.

Q: BroadView Company arranges to have Carrier Corporation, a common carrier, transport 500 DVD players from New York to California. Dan is Carrier's driver. BroadView will have no cause of action against Carrier if Carrier fails to deliver the players on time because a. authori­ties are stopping and searching all trucks entering California. b. Carrier's dispatcher mistakenly delays Dan's departure. c. Carrier's truck is broken into and the players are stolen. d. Dan has to wait two days in Denver for the truck to be repaired.

Q: GR8 Vision, Inc., hires Haul-Way Company to trans­port fifty large-screen HDTVs from GR8's warehouse in San Diego to an Ideal Electronics retail store in Phoenix. The bailee is a. GR8 Vision. b. Haul-Way. c. Ideal Electronics. d. no one.

Q: A contract that exculpates one party for negligence or other wrongdoing will not usually be viewed as unconscionable.

Q: Bob rents a golf cart at Country Club Golf Course. The brakes are worn, and while Bob is driving the cart, they fail. The cart crashes into a tree, and Bob is injured. Country Club could have discovered, with rea­sonable diligence, that the brakes were worn. Liability for Bob's injuries most likely rests with a. Bob and Country Club. b. Bob only. c. Country Club only. d. neither Bob nor Country Club.

Q: Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town on a job for Plains States Sales, his employer. The bailor is a. Ben. b. Cody. c. Plains States. d. no one.

Q: Most courts are usually very concerned about the fairness of contracts.

Q: GR8 Stores, Inc., hires Haul-Way Company, a common carrier, to trans­port fifty large-screen HDTVs from San Diego to Phoenix. En route, a pothole causes the truck to crash, damaging the goods. Liability for the damage most likely rests with a. GR8 Stores and Haul-Way. b. GR8 Stores only. c. Haul-Way only. d. neither GR8 Stores nor Haul-Way.

Q: A covenant not to compete is enforceable only if it is reasonable in duration and geographic area.

Q: Uri borrows Vera's boat to enjoy for a weekend. Uri negligently runs the boat aground near Water's Edge Beach, damaging the hull. Liable for the cost of repairing the boat is a. Uri and Vera equally. b. Uri only. c. Vera only. d. the owner of Water's Edge Beach.

Q: Chatsworth loans his laptop to Zelda. This is a. a bailment. b. a tenancy in common. c. a gift. d. lost property.

Q: A covenant not to compete is never enforceable.

Q: Rhett works at Scarlett's Sandwich Café. After work, in the parking lot, Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed by a. Rhett. b. Scarlett's. c. Thalia. d. the state.

Q: Stan is liable for the conver­sion of Tyler's business law textbook a. if Tyler proves that the book was in Stan's pos­session when it disappeared. b. if Tyler proves that the book is now in a third party's pos­session. c. if Tyler proves that the book was not in his pos­session when it disappeared. d. under no circumstances.

Q: Gilbert finds an iPad on the counter at Starbucks. He takes the iPad to the police station's lost and found desk. The officer at the desk tells Gilbert that if the iPad is not claimed in a certain amount of time, Gilbert can obtain title to it. This is an example of acquiring possession by a. an estray statute. b. a bailment. c. confusion. d. production.

Q: A contract with an unlicensed professional is always enforceable.

Q: Fact Pattern 35-1Town Transport Company (TTC) agrees to pick up two containers for Unlimited Sales, Inc., and store their contents, to be delivered later. While TTC un­loads one container, the other disappears from TTC's loading dock.Refer to Fact Pattern 35-1. TTC can avoid liabilitya. by proof that TTC did not convert the goods and was not negligent.b. by proof that TTC's warehouse is located in a high-crime area.c. by proof that Unlimited Sales was negligent in hiring TTC.d. under any circumstances.

Q: Inadvertently, Brent leaves his backpack at Chat n Coffee when he stops for coffee and an hour of Facebook. The backpack is a. abandoned property. b. bailed property. c. lost property. d. mislaid property.

Q: Fact Pattern 35-1Town Transport Company (TTC) agrees to pick up two containers for Unlimited Sales, Inc., and store their contents, to be delivered later. While TTC un­loads one container, the other disappears from TTC's loading dock.Refer to Fact Pattern 35-1. These facts give rise toa. a presumption of intentional or negligent conversion by TTC.b. a presumption of theft by a third party.c. a presumption of theft by TTC.d. Unlimited Sales's liability for the container's loss.

Q: The maximum rate of interest is the same in every state.

Q: Nero and Olav each buy certain quantities of oil to sell to Petro Refinery, and agree to share storage costs until Petro can take delivery. The oil is commingled so that Nero's oil cannot be distinguished from Olav's. This is a. accession. b. confusion. c. conversion. d. irresolution.

Q: A blue law is a state statute that prohibits loans at an interest above the "blue line."

Q: Ben allows Cody to store his trailer on Ben's property for $20 a month while Cody is out of town. Later, Ben no­tices rainwater collecting in the trailer and covers it with a tarp at a cost of $40. This cost is most likely borne by a. Ben and Cody. b. Ben only. c. Cody only. d. neither Ben nor Cody.

Q: Owen takes a Paisley-made pinball machine to Quality Games, Inc., for repair. Lacking certain parts, Quality ships the game to Regal Repair Company. While in Regal's possession, the game is damaged. Quality can recover for the damage from a. no one. b. Owen. c. Paisley. d. Regal.

Q: A legal guardian cannot enter into legally binding contracts on behalf of a mentally incompetent person.

Q: Sid borrows Tony's paint sprayer to paint his house. Uma allows Vic to store his posthole digger in her shed. The party with a right to use the bailed property is a. neither Sid nor Uma. b. Sid and Uma. c. Sid only. d. Uma only.

Q: A person who enters into a contract when he or she is intoxicated can void the contract if he or she did not comprehend the legal consequences.

Q: Roy leaves his Honda sport utility vehicle at Sam's Auto Service for an oil change. This is a bailment for a. neither party's benefit. b. the parties' mutual benefit. c. the sole benefit of the bailee. d. the sole benefit of the bailor.

Q: Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional ve­hicle customizing competition shows. The result of Mike's efforts is a. accession. b. acquisition. c. conversion. d. resolution.

Q: Parents who sign a contract made by their minor child with an adult have the same option to disaffirm as the child.

Q: Failure to disaffirm an executory contract within a reasonable time after reaching the age of majority implies ratification.

Q: John steals an old, battered bicycle that is parked, unlocked, in front of a convenience store. He repairs, paints, and replac­es parts on the bike un­til it is like new. The original owner, Kim, claims the bike. The bike be­longs to a. John and Kim as tenants in common. b. John because he made substantial improvements to it. c. John because Kim claimed it only after John improved it. d. Kim because John stole it.

Q: Mona asks Ned if she can store her furniture in his garage while she serves a tour of duty with the U.S. Marines Corps. Ned agrees. This is a bail­ment for a. neither party's benefit. b. the parties' mutual benefit. c. the sole benefit of the bailee. d. the sole benefit of the bailor.

Q: A minor may disaffirm a contract for necessaries and thereby avoid liability for the reasonable value of the goods.

Q: Ruby is young and healthy when she gives Pearl a prize-winning horse. The gift meets all the requirements to be effective. This is a gift a. inter vivos. b. causa mortis. c. by accession. d. by confusion.

Q: Jill loans her laptop to Kyle. This is a bailment for a. neither party's benefit. b. the parties' mutual benefit. c. the sole benefit of the bailee. d. the sole benefit of the bailor.

Q: A minor who affirmatively misrepresents himself or herself to be an adult will not be able to disaffirm a contract in most states.

Q: In contemplation of death during risky sur­gery, Donnelly, a guitarist, gives his guitars to Cathy. The surgery is successful, and Donnelly does not die. The gift of the guitars is a. not revoked because it was a gift causa mortis. b. not revoked because it was a gift inter vivos. c. revoked because it was a gift causa mortis. d. not revoked because it was a gift largesse.

Q: Inadvertently, Bret leaves his briefcase at Clean "˜n Dry Launderers when she stops to pick up her clothes. The briefcase is a. abandoned property. b. bailed property. c. lost property. d. mislaid property.

Q: Rhett works at Scarlett's Sandwich Café. After work, in the parking lot, Rhett finds a diamond ring lost by Thalia. Title to the ring is possessed by a. Rhett. b. Scarlett's. c. Thalia. d. the state.

Q: Clothing is not something that the courts have been willing to define as "necessary."

Q: Procter, who is not in contemplation of imminent death, tells his daughter Opal that she can have his Dodge truck on his death, whenever that happens. This is a. an effective gift causa mortis. b. an effective gift inter vivos. c. an effective gift largesse. d. not an effective gift.

Q: Grain from Harvest Farms is wrongfully commingled with grain from Idyllic Fields, which obtains possession of all of the grain. This is a. a bailment. b. accession. c. confusion. d. production.

Q: Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Eton, but gives him the key to a safety-deposit box in First State Bank in which the stock certifi­cates are locked. Presenting the key is a. real delivery. b. constructive delivery. c. delivery by agent . d. no delivery.

Q: If a minor disaffirms a contract, he or she must disaffirm the entire contract.

Q: Ira is declared mentally incompetent. Jay, Ira's son, is named his guard­ian. At Jay's insistence, Ira transfers his assets to Jay "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no a. acceptance. b. delivery. c. donative intent. d. donor's acknowledgment.

Q: Idaho Farms mistakenly puts its potatoes in Jackson Co-op's storage bin, which already contains Kelly Spud Farm's potatoes. It is impossible to tell which potatoes originally belonged to which party. This is a. a bailment. b. accession. c. confusion. d. production.

Q: An adult may disaffirm a contract entered into with a minor.

Q: Mallory's sister gives Mallory a leather working kit for Christmas. Mallory uses the kit to make a saddle. Mallory's acquisition of the saddle is by a. a bailment. b. accession. c. confusion. d. production.

Q: Nero and Olav each buy certain quantities of oil to sell to Petro Refinery, and agree to share storage costs until Petro can take delivery. The oil is commingled so that Nero's oil cannot be distinguished from Olav's. This is a. accession. b. confusion. c. conversion. d. irresolution.

Q: When a minor disaffirms a contract, he or she can keep whatever property is in his or her possession as a result of the contract.

Q: Marcy goes hunting out of season and shoots an endangered species of deer in a national park. Marcy's acquisition of the deer is a. by production. b. illegal. c. by confusion. d. by possession.

Q: Lauren owns a 1967 Ford Mustang, which Mike customizes and details to Lauren's specifications. The car earns several awards at regional ve­hicle customizing competition shows. The result of Mike's efforts is a. accession. b. acquisition. c. conversion. d. resolution.

Q: A minor may accept and validate a contract with an adult.

Q: Derrick buys a hunting license and goes hunting. He shoots a deer, cleans it, and takes it back to his truck. He takes the deer to town and has the meat processed. Derrick's acquisition of the deer is by a. possession. b. a bailment. c. confusion. d. production.

Q: A covenant not to compete between ongoing businesses is always enforceable.

Q: If the purpose of a licensing statute is to raise government revenues, a contract with an unlicensed professional will normally be enforceable.

Q: John steals an old, battered bicycle that is parked, unlocked, in front of a convenience store. He repairs, paints, and replac­es parts on the bike un­til it is like new. The original owner, Kim, claims the bike. The bike be­longs to a. John and Kim as tenants in common. b. John because he made substantial improvements to it. c. John because Kim claimed it only after John improved it. d. Kim because John stole it.

Q: Fred and Joanne are married. Joanne purchases a car. Fred and Joanne each technically own an undivided one-half interest in the car. This is a. a joint tenancy. b. fee simple ownership. c. community property. d. illegal.

Q: Before undergoing sur­gery that could cause death, Donnelly, a guitarist, gives his of guitars to Cathy. The surgery is successful, and Donnelly does not die. The gift of the guitars is a. not revoked because it was a gift causa mortis. b. not revoked because it was a gift inter vivos. c. revoked because it was a gift causa mortis. d. not revoked because it was a gift largesse.

Q: A lender who makes a loan at a rate above the lawful maximum commits usury.

Q: Rocco gives Sequoia a smartphone as a gift. Sequoia develops a new game app for the phone. She obtains intellectual property protection, and forms Titan Games, LLC, to make and market the game. Sequoia's ac­quisition of the game is by a. gift. b. accession. c. confusion. d. production.

Q: An executed contract entered into on Sunday in a state having a Sunday law cannot be rescinded.

Q: Procter, who is not in contemplation of imminent death, tells his daughter Opal that she can have his Dodge truck on his death, whenever that happens. This is a. a valid gift causa mortis. b. a valid gift inter vivos. c. a valid gift largesse. d. not a valid gift.

Q: Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death of either owner, that owner's interest in the stock passes to the surviving owner. This is a. a joint tenancy. b. community property. c. a tenancy in common. d. ownership in fee simple.