Question 1

Erin owns and operates a computer design business that employs twenty people. She recently purchased business interruption insurance and key person insurance. What was her likely purpose in doing so?

Accepted Answer

Basic property insurance would allow Eri...

Question 2

As defined in Chapter 17, a "licence" is

Accepted Answer

A)   always granted by a government official.
B)   always applies with respect to an interest in land.
C)   a right to inflict a financial loss upon another party.
D)   allows a person to act in a way that otherwise would be considered wrongful.
E)   an obligation to act reasonably.F) A) and B)
G) A) and C)

Question 3

Acme Corp owns an expensive widget. Which of the following statements is TRUE?

Accepted Answer

A)   If Acme Corp intentionally abandons the widget, you will be entitled to keep it for yourself only if you take possession of it without actual knowledge that it had been abandoned.
B)   If you take the widget in the reasonable belief that it belongs to you, Acme Corp will not be able to sue you for the tort of conversion.
C)   If Acme Corp loses the widget, and you find it but are unable to determine its true owner, you will be able to sue me for the tort of conversion if I forcibly take it from you.
D)   If a thief steals the widget and sells it to you, Acme Corp can sue you for the tort of conversion, unless you acted honestly.
E)   If Acme Corp created the widget, then the widget will not have an owner unless and until someone buys it from the company.F) C) and D)
G) B) and C)

Question 4

Honoria recently tried to buy first party insurance with respect to a diamond ring. The insurance company refused to sell a policy to her on the basis that she did not have an insurable interest. Explain the insurance company's decision in more detail and identify the policy reason why a person who does not have an insurable interest cannot buy a insurance policy.

Accepted Answer

Property insurance is based on the conce...

Question 5

Pan- Canada Delivery Inc is a common carrier. It accidentally damaged an expensive shipment of goods. Nevertheless, it cannot possibly be held liable if

Accepted Answer

A)   the goods were damaged by an inherent vice.
B)   the damage was caused by a rainstorm.
C)   it exercised as much care as possible.
D)   the shipper provided consideration in exchange for Pan- Canada's services.
E)   the shipping contract contains a clause that says that "liability will not be imposed for lost goods, whether or not the loss was caused by the carrier's carelessness or fault" and no more.F) A) and E)
G) C) and D)

Question 6

Alameda owned a painting. The painting was totally destroyed in a fire. The law will say that he lost his property rights in the painting even if he has first party insurance.

Accepted Answer

A) True 
 B)False

Question 7

Rohan created a bailment by providing goods to Hi- way Transport Co (HTC) , which is a common carrier. The goods were damaged during the bailment. Which of the following statements is TRUE?

Accepted Answer

A)   The bailor is treated as an insurer.
B)   HTC may be held liable only if there is proof that it was at fault.
C)   If Rohan's goods are covered by first party insurance, his insurer may eventually be entitled to receive money from HTC.
D)   HTC cannot be considered a common carrier if it occasionally turns away business because it lacks space.
E)   Given the nature of the parties' relationship, HTC cannot be protected by an exclusion clause.F) A) and B)
G) A) and C)

Question 8

Taj borrowed a widget from Dhanna. Even though the relationship was a bailment, rather than a sale, both Taj and Dhanna may be required to exercise "reasonable care" in some sense.

Accepted Answer

A) True 
 B)False

Question 9

Trans- Geo Inc is a business that operates in a number of different ways. Most commonly, however, it moves goods for customers from one part of the country to another. It necessarily will be considered a common carrier whenever it does so.

Accepted Answer

A) True 
 B)False

Exam 17: Personal Property: Bailment and Insurance

Rohan created a bailment by providing goods to Hi- way Transport Co (HTC) , which is a common carrier. The goods were damaged during the bailment. Which of the following statements is TRUE?

Correct Answer
verified

As defined in Chapter 17, a "licence" is

Correct Answer
verified

Erin owns and operates a computer design business that employs twenty people. She recently purchased business interruption insurance and key person insurance. What was her likely purpose in doing so?

Correct Answer
verified
Basic property insurance would allow Eri...
View Answer

Pan- Canada Delivery Inc is a common carrier. It accidentally damaged an expensive shipment of goods. Nevertheless, it cannot possibly be held liable if

Correct Answer
verified

Acme Corp owns an expensive widget. Which of the following statements is TRUE?

Correct Answer
verified

Taj borrowed a widget from Dhanna. Even though the relationship was a bailment, rather than a sale, both Taj and Dhanna may be required to exercise "reasonable care" in some sense.

Correct Answer
verified

Correct Answer
verified
Property insurance is based on the conce...
View Answer

Alameda owned a painting. The painting was totally destroyed in a fire. The law will say that he lost his property rights in the painting even if he has first party insurance.

Correct Answer
verified

Trans- Geo Inc is a business that operates in a number of different ways. Most commonly, however, it moves goods for customers from one part of the country to another. It necessarily will be considered a common carrier whenever it does so.

Correct Answer
verified

Exam 17: Personal Property: Bailment and Insurance

Rohan created a bailment by providing goods to Hi- way Transport Co (HTC) , which is a common carrier. The goods were damaged during the bailment. Which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

As defined in Chapter 17, a "licence" is

Correct AnswerverifiedShow Answer

Erin owns and operates a computer design business that employs twenty people. She recently purchased business interruption insurance and key person insurance. What was her likely purpose in doing so?

Correct AnswerverifiedBasic property insurance would allow Eri...View AnswerShow Answer

Pan- Canada Delivery Inc is a common carrier. It accidentally damaged an expensive shipment of goods. Nevertheless, it cannot possibly be held liable if

Correct AnswerverifiedShow Answer

Acme Corp owns an expensive widget. Which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

Taj borrowed a widget from Dhanna. Even though the relationship was a bailment, rather than a sale, both Taj and Dhanna may be required to exercise "reasonable care" in some sense.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedProperty insurance is based on the conce...View AnswerShow Answer

Alameda owned a painting. The painting was totally destroyed in a fire. The law will say that he lost his property rights in the painting even if he has first party insurance.

Correct AnswerverifiedShow Answer

Trans- Geo Inc is a business that operates in a number of different ways. Most commonly, however, it moves goods for customers from one part of the country to another. It necessarily will be considered a common carrier whenever it does so.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Basic property insurance would allow Eri...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Property insurance is based on the conce...
View Answer

Correct Answer
verified

Correct Answer
verified