ACCT 324 Final Exam Professor Hughes This exam is not cumulative and will only be on the following chapters Chapter 48 Personal Property and Bailments Chapter 49 Real Property Chapter 50 Landlord and Tenant Chapter 51 Insurance Chapter 52 Wills Chapter 12 Intellectual Property Chapter 8 Tort Chapter 7 Criminal All Questions come from connect All Questions come from connect All Questions come from connect All Questions come from connect In this study guide all topics from class are defined and elaborated on based on the book Additionally all topics from each chapter not discussed in class that may or may not be on the test are outlined and defined Some of you asked me how to study such a large amount of information for the last test I like to make notecards for the chapters that do not have connect questions to learn them really well Then I just read over my outline and do the connect questions a few times for the other chapters Chapter 48 Personal Property and Bailments I The Nature and Classification of Property A Property the set of rights and interests in relation to others with reference to a tangible or intangible object Basically anything that you can own B Real Property Land or anything attached to the land such as trees or buildings C Personal Property property not attached to land or movable property D Fixture Sometimes property is initially movable but then becomes attached to the land Personal Property II A Types ject object Ex stock 1 Tangible property can be identified by the senses because it is a physical ob 2 Untangible Property cannot be seen or touched because it is not a physical B Voluntary Transfer of Property as a result of purchase or a gift it is the most common way property is acquired 1 Title ownership of property Title transfers when parties so intend 2 Purchase When the transfer is by purchase the acquiring party provides con 3 sideration Inter vivos Gift is made by a person during his lifetime and requires delivery donative intent and acceptance a Delivery the girt must be physically presented or constructively presented presentation of something that gives the person access to the gift b Donative intent The delivery must have been made by the donor for the purpose of turning over ownership at the time of delivery c Acceptance the donee must willingly take over ownership of the property 4 Causa mortis is a gift that is made in contemplation of one s immediate death Each step above must also occur to complete transfer of property be fore the death of the owner C Involuntary Transfer of Personal Property occurs when property has been aban doned lost or mislaid The finder of such property may acquire ownership rights to such property through possession 1 Abandoned property that the original owner has discarded 2 Lost Property is property that the original owner has accidentally lost or left somewhere The finder has title to the lost good again all except the true owner 3 Mislaid property differs from lost property in that the owner intentionally placed the property somewhere but has forgotten its location The person who owns the realty on which the mislaid property was placed has the right to hold the mislaid property Acquires title to all except the true owner D Other Means of Acquiring Ownership of property 1 Creation if a person creates a piece of property 2 Court order ex divorce case 3 confusion fungible foods are goods for which one unit of the good is essen tially the same as every other unit If each party s bags of grain accidentally were combined each would be entitled to the percentage that he contributed a However if one of the parties was responsible for combining and that per son could not prove his percentage the innocent party acquires title to all goods III Bailment express or implied a bailment of personal property is a relationship that arises when one party the bailor transfers possession of personalty to an other the bailee to be used by the bailee in an agreed on manner for an agreed on period of time Determining who benefits from a bailment is important for determin ing the standard of care owed by the bailee Bailments longer than one year must be written under the statute of frauds Consider the following a scale that goes deeper then three levels of who benefits Sometimes both may benefit but one ben efits more then the other A Only Bailor is benefited you check you coat for free the bailee is liable for dam age to the property caused by the bailee s gross negligence B Only the Bailee is benefited let someone use your coat for free the bailee is re sponsible for harm to the property caused by even the slightest lack of sue care C Mutual benefit you pay to check your coat the bailee is liable for harm to the property arising out of the bailee s ordinary or gross negligence D These liabilities can be limited or expanded by contract IV Rights and Duties of the Bailor A In general the Bailor has the right to expect the bailee to 1 take reasonable care of the bailed property repairing and maintaining it as necessary 2 Use the bailed property only as stipulated in the bailment agreement 3 not alter the bailed property in any unauthorized manner 4 return the bailed property in good condition at the end of the bailment B Duties 1 The duty of compensation and reimbursement requires the bailor to provide the bailee with any agreed on compensation for the bailment Must reim burse the bailee any necessary costs incurred by the bailee in keeping and maintaining the bailed property unless a contract stipulates otherwise 2 To provide the bailee with property that is free from hidden defects that could harm the bailee It benefit is mutual the bailor must want the bailee of an known defects or any that could have been discovered through reasonable in vestigation If solely for the benefit of the bailee the standard is slightly lower and the bailor must warn of known defects V Rights and Duties of the Bailee A Rights 1 2 the right to possess the bailed property during the term of the bailment the right to use the property in a manner consistent with the terms and pur pose of the bailment 3 unless the bailment is gratuitous the bailee has the right to be compensated in accordance with the terms of the bailment regardless of the type he has the right to be reimbursed for keeping and maintenance if the bailee is to receive compensation the bailee may retain possession of the bailed property until the payment is made 4 B Duties 1 Bailee must keep and