Business Law Unit 4

A bailment may end

• a) if the bailed property is destroyed,
• b) if one party declares bankruptcy,
• c) if the parties mutually agree to end it,
• d) any of these.

When the bailee will be strictly liable for any damage, loss, or injury to the goods, the duty of care is

• a) extraordinary,
• b) fungible,
• c) minimal,
• d) ordinary.

Distinguishing real and personal property requires a determination of whether

• a) the property is permanently attached to the land,
• b)f an item is built into the wall of a structure,
• c) crops are harvested less frequently than one year,
• d) all of these.

The ownership of real property is transferred through a will

• a) by adverse possession,
• b) by dedication,
• c) by deed,
• d) by inheritance.

Easements that do not benefit neighboring land, but benefit a person or business are called

• a) easement appurtenant,
• b) easement in gross,
• c) easement by necessity,
• d) easement by prescription.

A leasehold for a definite period of time identifying a specific date for the ending of the lease is

• a) a periodic tenancy,
• b) tenancy at sufferance,
• c) tenancy for years,
• d) tenancy at will.

The most important tenant duty is paying the rent on time, but a tenant also has a duty

• a) of care to those who enter the property,
• b) of reasonable care to return the property in same condition,
• c) of maintaining public areas,
• d) both a and b.

Automobile insurance; burglary, robbery, theft, and larceny insurance; disability, accident, or health insurance; and liability insurance all fall under the major insurance classification of

• a) casualty,
• b) fidelity,
• c) inland marine,
• d) social.

A will can be completely revoked, rather than being amended

• a) by doing something to the will that clearly indicates intent to revoke it, such as destroying or defacing it,
• b) by a written revocation in a later will,
• c) by divorce,
• d) either a or b.

Goods such as one’s car, clothing, or watch are

• a) intangible personal property,
• b) tangible personal property,
• c) real property,
• d) intellectual property.