1. Property Ownership Chapter 10

2. Motor Vehicle Ownership Real Property – land and permanent attachments. Personal Property – Anything that is not permanently affixed to real property. –Example = Car or jewelry. How do we determine ownership? –Possession?

3. Warranties Implied Warranty of Title: implied warranty that the seller has a right to transfer title Implied Warranty Against Encumbrance: implied warranty that no one has any claims against the property being transferred Implied Warranty of Merchantability: states the property is of usual quality and is fit for usual usage. –Can be disclaimed. (Total disclaimer needed) “As is” or “with all faults” Magnuson-Moss Warranty Act – if a seller of consumer goods makes any warranties, the seller cannot disclaim the warranty of merchantability. –Can limit the time.

4. Lemon Laws Generally you have a right to inspect goods delivered under a contract –Inspection depends on circumstances. The harder it is to find the defect, the longer you have to discover it. Lemon Law: statutes designed to assist the buyer of seriously defective goods to obtain replacement or refund. –Lemon laws generally give a seller a reasonable amount of attempts to remedy the situation

5. What is a lease? Bailment: the entrusting of property to another without transfer of title. –A lease is a bailment. A lease is the contractual right to use a piece of property in exchange for specified consideration. –Cars are frequently leased. Mr. Y pays two hundred dollars a month and he get the possession of a Chrysler 300M. Lease or Buy – What is better?

6. Product Liability Strict Liability for manufacturers –Who can sue for harm sustained? –The only thing that the plaintiff need to show is that the product was in the same condition as when it left the manufacturer Seller must be in the business of selling the goods. Certificate of ownership and a certificate of registration. What is the difference? Legal owner is the one who has legal title. Equitable owner is the one who has an ownership interest but possibly not legal title. –Who is responsible for torts committed?

7. Repo Dude – Where’s my Car! –Creditor has a right to collateral in the even of default –No breach of peace may occur Generally no domestic disturbances or breaking/entering –I only owed $2000 and the car was worth $10,000. Now what?

8. I Can’t Drive 55! Right to drive is not constitutional –Right to freely move from one place to another within the states is. –Iowa’s laws have changed during the past few years. Negligence rules apply to the operation and ownership of a vehicle. –Negligence per se – has to bear some relationship Just a presumption – defendant can rebut

9. Vicarious Liability Employers responsible for employees driving employer owned vehicles In some states – owners are responsible for family members Maybe liable for children or minors. Some states imply liability when you let someone borrow your car Dramshop Acts

10. DUI’s Guest statutes –Relieves drivers of liability to guests unless the accident is intentional or a result of intoxication. (Not very common). Driving under the influence –Can refuse a sobriety test This may create a presumption that you are intoxicated when and if the case goes to court Also may revoke your license –Average DUI will cost about 2 Grand

11. Bailments Bailor = one who transfers property Bailee = one who rightfully receives temporary possession of property Elements –Need personal property to be transferred –Need delivery –Bailee must have complete control over property –Bailee must accept property –Bailment agreement Parking Garages? Renting a car?

12. Miscellaneous Items Common carriers such as airlines are held to a higher standard –Airlines have to ask for volunteers to stay behind in the event of an overbooked flight. Some states require you to report serious accidents

13. Insurance Liability – covers the costs of a driver’s negligence incurred by others up to a specified amount Medical Insurance coverage can be purchased also. Collision coverage – covers all accidents no matter who is at fault Comprehensive – covers all losses except those caused by comprehensive Uninsured motorist coverage – covers losses sustained by uninsured motorists Insurance may cover family members even if they drive another’s car.

14. Acquiring Ownership Possession – its in your possession Title – you have title Production – you produced it. Gifts –Need donative intent –Need delivery Constructive Or actual –Need Acceptance

15. Mislaid, Lost or Abandoned Mislaid – voluntarily placed but forgotten –Finder becomes bailee Lost – involuntarily placed and forgotten –Finder gets title –States often change this common law rule by statute Abandoned – voluntarily placed and not forgotten –Finders - keepers.