Chapter 13 Personal Property and Bailments
1.
A pencil is an example of tangible personal property. Ownership interests
in partnerships or corporations and claims against others are examples of intangible
property.
2.
A fixture is personal property that is attached to real property and becomes
part of the real property. A trade fixture, such as machinery installed by a business tenant,
does not become part of the real property and may be removed by the tenant on
termination of the tenancy.
3.
Goods include the unborn young of animals, growing crops, and things to
be removed from real property such as timber and minerals.
4.
Fungible goods.
5.
A gift is not a sale because the person receiving the gift pays no price to
the person making the gift.
6.
Express warranties come about when sellers, as part of a transaction, make
statements of fact or promises about the goods, describe them, or show samples of them.
7.
When a full warranty is given, the seller must repair or replace without
cost to the buyer defective goods or refund the purchase price. Any express warranty that
does less is a limited warranty.
8.
The warranty of merchantability is made whenever merchants sell goods.
Merchants warrant that their goods are fit for the ordinary purpose for which they are to
be used.
9.
The warranty of fitness for a particular purpose is made when a buyer
relies on any seller's skill and judgment in selecting the goods.
10.
Implied warranties may be excluded by the seller by indicating in a
conspicuous fashion that they are excluded or by writing "as is" or "with all faults" on the
sales slip.
11.
The warranty of title warrants that the title being conveyed is good and
that the transfer is rightful. It is made by all sellers of goods, whether merchants or not.
12.
A bailment occurs whenever one person places personal property in the
possession of another person without intending to transfer title to that person.
13.
It is not a bailment when someone borrows a cup of sugar from a neighbor
because the exact item that was borrowed will not be returned.
14.
Leaving a watch with a jeweler to be repaired is an example of a mutual
benefit bailment.
15.
Storing a car in a friend's garage for safekeeping while away on a trip is an
example of a bailment for the sole benefit of the bailor.
16.
The bailee in a bailment for the sole benefit of the bailor has a duty to use
only slight care because he or she is receiving no benefit from the transaction.
17.
A person who takes another's goods without authority is an example of a
tortious bailee.
Understanding Legal Concepts
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F, intangible
F, future
F, full
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F, ordinary
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Checking Terminology (Part A)
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Checking Terminology (Part B)
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Using Legal Language
Roland went shopping for an outdoor gas grill to give to his friend, Rita, for her birthday.
Broadly speaking, the grill would be called personalty, personal property, or chattels,
because it is the subject of ownership other than real property. Because it has substance
and can be touched, it is tangible personal property. It is also called goods because it is
movable. The grill that Roland looked at had a ninety-day guarantee, which is known as
a(n) express warranty in legal terminology. It was not a(n) full warranty, however,
because any defective part had to be shipped at the buyer's expense to the factory for
repair or replacement. For that reason, the guarantee is known as a(n) limited warranty.
In addition, a(n) implied warranty would exist—that is, a type of guarantee that is
imposed by law. Called the warranty of merchantability, it guarantees that the goods
are fit for the ordinary purpose for which they are to be used and is made when goods are
sold by a(n) merchant—that is, one who sells goods of the kind sold in the ordinary
course of business, This guarantee was not a(n) warranty of fitness for a particular
purpose because Roland did not rely on the seller's skill and judgment in selecting the
grill. When Roland bought the grill, it was a(n) sale because title (ownership) passed
from the seller to the buyer for a price. Had title passed at a future time, it would have
been called a(n) contract to sell. Under its warranty of title, the store guaranteed that
title to the grill was good and that its transfer was rightful. When Roland gave the grill to
Rita, he was the donor, and she was the donee. The next morning, Rita left the gas tank
in the possession of a bottled-gas company to be filled and picked up later, creating a(n)
bailment. Rita was the bailor; the bottled-gas company was the bailee. Because both
parties benefited from the transaction, it was a(n) mutual benefit bailment. The gas that
was put into the tank is known as fungible goods because any unit is the same as any like
unit. Rita paid for the gas by check, which is a(n) chose in action, or a type of intangible
personal property. Rita's neighbor, Ruth, borrowed not only her grill but also some
frozen hot dogs that Rita had in the freezer. The loan of the grill was a(n) gratuitous
bailment because no consideration was given, and the loan of the hot dogs was a(n)
mutuum because the identical ones would not be returned. Ruth moved away without
returning Rita's grill, becoming a(n) tortious bailee.
Puzzling Over What You Learned
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Caveat: Allow squares for spaces between words and punctuation (apostrophes, hyphens, etc.) when filling in
crossword.
Across
2. The right of a buyer, after breach by a seller, to purchase similar goods from someone
else.
5. Anything that is the subject of ownership other than real property.
8. A person who gives a gift.
9. The passing of title from the seller to the buyer for a price.
12. Ownership.
13. Personal property attached to real property.
14. Correct.
16. Goods such as grain or oil, of which any unit is the same as any like unit.
17. Written evidence of the transfer of personalty from one person to another.
18. A transfer in bulk of the majority of a merchant's inventory.
Down
1. Evidence of the right to property but not the property itself.
2. Anything that is the subject of ownership other than real property.
3. Anything that is movable.
4. Person who sells goods of the kind sold in the ordinary course of business.
5. Another name for personal property.
6. Personal property attached to real property necessary for business.
7. Contract under which title to goods is passed at a future time.
10. Owner of personal property that has been temporarily transferred to a bailee.
11. Goods that are not yet in existence or under
anyone's control.
15. A person who receives a gift.