1. David P. Twomey - Boston College
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
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David P. Twomey - Boston College
Marianne M. Jennings - Arizona State University
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

2. Personal Property and Bailments
Chapter 21
Personal Property and Bailments
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
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in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

3. A. Personal Property 1. Personal Property in Context
2. Title to Personal Property
3. Gifts
4. Finding of Lost Property
5. Occupation of Personal Property
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

4. Personal Property 6. Escheat
7. Multiple Ownership of Personal Property
8. Community Property
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

5. A. Personal Property [LO.1-LO.3]
Personal Property in Context:
Real property means land and things embedded in land.
Personal property is movable or intangible and includes rights in these things.
Personal property consists of whole or fractional rights in tangible, movable property; claims and debts called choses in action; and intangible property rights such as trademarks.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

6. A. Personal Property Title to Personal Property: Gifts:
May be acquired in many ways and is typically purchased.
No title acquired by theft. The rightful owner may reclaim item(s) from the thief or the thief’s transferee.
Gifts:
Voluntary transfer of title by the donor without consideration from the donee.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

7. A. Personal Property Gifts:
(A) Inter Vivos Gifts. Ordinary gift between two living persons. No consideration means no enforceable contract or breach if gift is not completed.
(1) Intent. Must be an intent to transfer title.
(2) Delivery. Ordinarily involves handing over gift to the donee. May be a symbolic or constructive delivery such as delivery of keys or paperwork.  Fontane v.Colt Manufacturing Co: Public presentation of the revolver constituted a constructive form of delivery.
Failure to meet delivery requirements results in an ineffective gift.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

8. A. Personal Property Gifts:
(3) Donor’s Death. If donor dies before making an effective gift, the gift fails.
(B) Gifts Causa Mortis. Made with contemplation of imminent death. Conditional gift that may be revoked if donor does not die or revokes gift before dying or if the donee dies before the donor.
(C) Gifts and Transfers to Minors. Uniform acts provide for transfer to custodian to hold for minor’s benefit. Gift is final and irrevocable.  Heath v. Heath: Documentary compliance satisfies delivery under UGMA and signature card constitutes irrevocable gifts.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

9. A. Personal Property Gifts:
(D) Conditional Gifts. Condition(s) must be satisfied before gift takes place.  Meyer v. Mitnick : Modern trend is an engagement ring is a conditional gift completed upon marriage.
(E) Anatomical Gifts. May be made while alive (i.e. kidney donation) or postdeath. Gifts may also be made by family members, but if hospital misleads the family, they have a claim of intentional infliction of emotional distress.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

10. A. Personal Property Finding of Lost Property:
Personal property is lost when owner does not know the location but intends to retain title.
The finder acquires possession but not title and ordinarily must surrender it to the owner.
Without contract or statute, the finder is not entitled to a reward.
(A) Finding in Public Place. Finder is not entitled to possession and must give item to the manager of the public place.
(B) Statutory Changes. Some states permit finder to sell or keep the property after a stated period of time and attempt to reach owner (notice).
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

11. A. Personal Property Occupation of Personal Property:
(A) Wild Animals. Person who acquires control over a wild animal generally becomes the owner.
(B) Abandoned Personal Property. Occurs when owner voluntarily leaves property and does not intend to reclaim it. The first finder acquires title to property.  Ritz v. Selma United Methodist Church: The real estate was abandoned but the money was not.
(C) Conversion. Remedy against finder of lost goods who refuses to return them. Only applies to property that can be lost and found.  Williams v. Smith Avenue Moving Co.: Good faith not a defense for conversion. Cannot deny title as excuse to refuse to redeliver property.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

12. A. Personal Property Escheat:
Unclaimed property transfers to state after a period of time but it can be reclaimed by the rightful owner.
Many states have adopted the Uniform Unclaimed Property Act.  Presley v. City of Memphis: Presley’s estate had no legal claim to the ticket proceeds because his death discharged the contract. Under the Property Act windfalls benefit the public rather than individuals.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

13. A. Personal Property Multiple Ownership of Personal Property:
Ownership by one person, property is held in severalty.
Ownership by two or more persons, property is held in cotenancy.
(A) Tenancy in Common. Relationship when two or more persons own undivided interests in property. Interest may be transferred or inherited.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

14. A. Personal Property Multiple Ownership of Personal Property:
(B) Joint Tenancy. Ownership by two or more with right of survivorship. If a joint tenant dies, other(s) take ownership of the deceased’s share.  Auffert v. Auffert: Because of the joint tenancy, the surviving joint tenants own the certificate of deposit equally.
(C) Tenancy to Entirety. A transfer to both husband & wife. Interest cannot be transferred to a third party.
Community Property:
Property acquired during marriage in some states.
Some statutes provide for rights of survivorship, others provide that interest goes to heirs.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

15. B. Bailments 9. Definition 10. Elements of Bailment
11. Nature of the Parties’ Interests
12. Classification of Ordinary Bailments
13. Renting of Space Distinguished
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

16. B. Bailments 14. Duties and Rights of the Bailee
15. Breach of Duty of Care: Burden of Proof
16. Liability for Defects in Bailed Property
17. Contract Modification of Liability
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

17. B. Bailments [LO.4-LO.5] Definition: Elements of a Bailment:
A bailment arises when the bailor delivers tangible personal property to the bailee who is under a duty to return it or deliver or dispose of it as agreed.
Elements of a Bailment:
(A) Agreement. May be express or implied. Contains all the elements of a contract. May be any personal property but real property cannot be bailed.
(B) Delivery and Acceptance. Bailment arises when property is delivered and accepted.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

18. B. Bailments Nature of the Parties’ Interest:
(A) Bailor’s Interest. Normally the owner, but not a requirement. Physical possession is sufficient.
(B) Bailee’s Interest. Possession only.
Classification of Ordinary Bailments:
May be (1) for the sole benefit of the bailor, (2) sole benefit of the bailee or (3) of mutual benefit.
Bailments for mutual benefit include compensation.
Gratuitous bailments are without compensation.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

19. B. Bailments Classification of Ordinary Bailments:
A constructive bailment is imposed by law. Bailee must preserve & redeliver property to the owner.
Renting of Space Distinguished:
Renting a space in a locker or building does not constitute a bailment, but renting a safe deposit box or space in a bank vault does.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

20. B. Bailments Duties and Rights of Bailee:
Duty of care for the bailed property which differs based on terms of “benefit”.
A bailee’s lien gives the bailee the right to keep possession of bailed property until storage or repair charges are paid.
Breach of Duty of Care: Burden of Proof:
Based on tort principles.  Hadfield v. Gilchrist: Tow company has a constructive bailment. Once bailor proves a case, bailee must show the use of ordinary care in the storage and safekeeping of the property.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

21. B. Bailments Liability for Defects in Bailed Property:
Bailor has duty to inform bailee of known defects in bailed property.
In mutual benefit bailments the bailor must make reasonable investigation for defects.
Contract Modification of Liability:
Ordinary bailee may limit liability (except for willful misconduct) by agreement or contract.
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22nd Ed.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.