BUS 116 Chap029 personal property and bailments

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  • Nine states recognize community property, which is property (except a gift or inheritance) that is acquired by the personal efforts ofeither spouse during marriage and that, by law, belongs to both spouses equally. The states that recognize community property are the following: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Spouses can leave their half of the community property by will to whomever they choose. If they die without a will, their share passes to their surviving spouse.
  • BUS 116 Chap029 personal property and bailments

    1. 1. 1 Chapter 29 Personal Property and Bailments
    2. 2. 2 Learning Objectives 1. Give examples of tangible and intangible personal property. 2. Describe the methods of owning property with others. 3. Differentiate among lost property, misplaced property, and abandoned property. 4. Identify the requirements of a completed gift. 5. Explain the law that applies to stolen property.
    3. 3. 3 Learning Objectives (cont.) 6. Determine when a bailment occurs. 7. Name and describe the principal types of bailments . 8. Discuss the burden of proof as it relates to bailments . 9. Make clear an innkeeper’s duty to accept all guests. 10.Explain innkeepers’ duties of care to their guests and their guests’ property.
    4. 4. 4 PROPERTY those things that are commonly recognized as being the possessions of a person or group REAL Land and things affixed to land Tangible Intangible Stocks/Bonds* Accounts Receivable* Intellectual: - Copyrights - Patents - Trademarks - Trade secret * Evidentiary form (chose in action) Barbie™ dolls, money, negotiable instruments, trombone, bicycle, pet squirrel, iPod™, wigs, DNA, pencil, deodorant, Timbaland CD, robot, Glock G34™, prunes, sail boat, keg of beer, pop-up camper, diaper pail, fishing rod, heart monitor, water bed, hogs, RocaWear™ shoes, atlas, HDTV, magazine rack, pack of Winstons, fly swatter, Q-tip™, economics textbook, sweater, lava lamp, bottle of Lunesta™, flower vase, roach trap, acetylene tank, inventory, X-ray machine, birthday card, Tupperware™, gum, spare tire, mango, . . . . chattel PERSONAL
    5. 5. 5 Personal Property • Tangible personal property – has substance and can be touched – also called goods, or chattels – is movable and includes animals and crops
    6. 6. 6 Personal Property • Intangible personal property –not perceptible to the senses and cannot be touched –also called chose in action, which means evidence of the right to property but not the property itself –accounts receivable, stock certificates, damages due from a lawsuit, rights under insurance policies, intellectual property, etc.
    7. 7. 7 Ownership of Personal Property • Severalty –When personal property is owned solely by one person • Cotenancy –When it is owned by more than one person • Tenancy in common • Joint tenancy • Community property
    8. 8. 8 Types of Cotenancy • Tenants in common – Each cotenant’s share of the property passes to his or her heirs upon death • Joint tenancy (joint tenants with the right of survivorship) – Each cotenant’s share of the property passes to the surviving joint tenants upon death – One party usually can sell their interest without permission of other party, breaking the tenancy
    9. 9. 9 Types of Cotenancy • Community property (tenancy by the entirety) – Property (except a gift or inheritance) that is acquired by the personal efforts of either spouse during marriage and that, by law, belongs to both spouses equally – One party usually cannot sell their interest without permission of other party Tenancy by the entirety in NC
    10. 10. 10 Lost, Misplaced, and Abandoned Property • Lost property – finder has a legal responsibility, usually fixed by statute, to make an effort to return the property • Misplaced property – finder may not retain possession, must leave with proprietor/manager • Abandoned property – has been discarded by the owner without the intent to reclaim ownership of it. • NC unclaimed property
    11. 11. 11 Lost, Misplaced, and Abandoned Property The law of finds gives ownership to the finder if all of the following apply: (a) the property is abandoned, (b) the finder intends to acquire the property (c) the finder has possession of the property
    12. 12. 12 Lost, Misplaced, and Abandoned Property • Law of salvage gives a salvor (one who salvages) the right to compensation for assisting a foundering vessel. • Salvage – the reward given to persons who voluntarily assist a sinking ship or recover its cargo from peril or loss • http://finance.yahoo.com/news/spain-shipwreck-treasure-shown-first-time-132952966.html
    13. 13. 13 Lost, Misplaced, and Abandoned Property • If shipwreck found outside state borders, law of finds or law of salvage applies • If shipwreck found inside state borders, Abandoned Shipwreck Act of 1987 applies, and state has right of ownership • http://www.reuters.com/article/2012/02/02/us-shipwreck-platinum- idUSTRE8112D320120202
    14. 14. 14 Gifts of Personal Property Three requirements for a gift to be completed: • the donor (the one giving the gift) must intend to make a gift • the gift must be delivered to the donee (the one receiving it) • the donee must accept the gift Once the requirements are met, the donor cannot reclaim the gift
    15. 15. 15 Gifts of Personal Property • Engagement rings –Most states consider a conditional gift –Donor entitled to return if engagement broken by mutual agreement or the donee, sometimes even the donor • North Carolina – most courts say if marriage doesn’t happen, ring goes back, regardless who broke it off (no-fault rule) • What if I give one on Christmas or V-day?
    16. 16. 16 Uniform Transfers to Minors Act • Establishes a procedure for gifts to be made to minors – Minors are assured that gifts to them will either be used for their benefit or made available to them when they become adults – Allows property to be transferred to a custodian for the minor’s benefit. – Once minor reaches age of majority (21 or 18), custodianship ends • UTMA in NC statutes
    17. 17. 17 Gift in Causa Mortis • Gift in Causa Mortis – A gift given during one’s lifetime, in contemplation of death from a known cause – Considered a conditional gift, ineffective if: • Donor does not die as expected • Death caused by circumstances other than those feared
    18. 18. 18 Stolen Personal Property • The title to stolen goods remains with the original owner • Even an innocent buyer who purchases the goods at market value has no title to the goods. • Possession may be regained by the true owner, no matter who has the goods at the time.
    19. 19. 19 Bailments of Personal Property • Bailment – the transfer of possession and control of personal property to another with the intent that the same property will be returned later • Bailor – The person who transfers the property • Bailee – The person to whom the property is transferred
    20. 20. 20 Bailments of Personal Property • Neither party intends for title to property to pass in a bailment • Bailee has responsibility to return same property to the bailor (or someone the bailor designates) • If person in possession of property has no control over it, no bailment occurs
    21. 21. 21 Bailments of Personal Property • Mutuum – When an individual loans goods to another with the intention that the goods may be used and later replaced with an equal amount of different goods
    22. 22. 22 Principal Types of Bailments • Three principle types: – Bailments for sole benefit of bailor – Bailments for sole benefit of bailee – Mutual benefit bailments Gratuitous Bailments
    23. 23. 23 Principal Types of Bailments • Gratuitous bailments – Property is transferred to another person without either party’s giving or asking for payment of any kind – Lack consideration, so may be rescinded at any time by either party
    24. 24. 24 Principal Types of Bailments • Bailments for the sole benefit of the bailor – When possession of personal property is transferred to another for purposes that will benefit only the bailor – Bailee required to use only slight care, and would be responsible only for gross negligence – Bailee has no right to use the bailor’s property – Use without permission could result in tort of conversion
    25. 25. 25 Principal Types of Bailments • Bailments for the sole benefit of the bailee – Bailee required to use great care, would be responsible for slight negligence – Bailee may use property for purposes for which bailment was created – Use for other purposes or for longer than provided in the bailment would make bailee responsible for damages
    26. 26. 26 Principle Types of Bailments • Bailments for the sole benefit of the bailee (cont.) – Bailee responsible for ordinary and expected expenses – Bailor responsible for unusual, unexpected, or damages not caused by bailee’s negligence
    27. 27. 27 Principal Types of Bailments • Mutual-benefit bailment – Both parties benefit – Bailee has duty to use reasonable care, and is responsible for ordinary negligence
    28. 28. 28 Principal Types of Bailments • Consignment contract – type of mutual benefit bailment in which the consignor entrusts goods to the consignee for the purpose of selling them – if not sold, property returned to owner
    29. 29. 29 Standard of Care • Many courts today apply the reasonable standard of care to all types of bailments • Even if for sole benefit of bailor or bailee – In NC: (Raymond Clott v. Greyhound Lines, INC. 1971) • “the degree of care required in all classes of bailments is, in truth, the care of the man of ordinary prudence as adapted to the particular circumstances. The care must be "commensurate care" having regard to the value of the property bailed and the particular circumstances of the case.”
    30. 30. 30 Burden of Proof • Most courts shift the burden of proof in bailment cases to the one who is in the best position to know what happened - the bailee • When items in the possession of a bailee are damaged, lost, or stolen, the burden is on the bailee to prove that it was not negligent
    31. 31. 31 Special Bailments • Innkeeper – the operator of a hotel, motel, or inn that holds itself out to the public as being ready to entertain travelers, strangers, and transient guests. • Transient – a guest whose length of stay is variable.
    32. 32. 32 Innkeeper’s Duty of Care • Use reasonable care in protecting guests from harm • Respect guest’s rights of privacy • They are insurer’s of guest’s property (with exceptions) – Caused by guest’s own negligence – Acts of God or the public enemy – Accidental fire where innkeeper was not negligent – If property has characteristics which cause its own deterioration
    33. 33. 33 Innkeeper Statutes in NC • http://www.ncga.state.nc.us/gascripts/statutes/st atutelookup.pl?statute=72
    34. 34. 34 Special Bailments • Carriers – businesses that undertake to transport persons, goods, or both. • Common carrier – a carrier that holds itself out to the general public to provide transportation for compensation
    35. 35. 35 Carriers • Common carriers are insurers of goods accepted for shipment, making them liable for damage, unless damage caused by: – Acts of God – Acts of the public enemy – Acts of public authorities – Acts of the shipper – The inherent nature of the goods
    36. 36. 36 Interstate Commerce Act • Common carriers may only refuse or require special rates if: – Not equipped to carry the goods – Inherently dangerous, creating hazards beyond the control of the carrier’s usual safety facilities – The carrier doesn’t represent itself as hauling that type of goods – Goods improperly packed – Goods not delivered at the proper place and time
    37. 37. 37 Common Carriers • Not excused from liability for losses due to strikes, mob violence, fire, and similar causes • May limit the amount of their liability on the bill of lading • If shipment charges not paid, carrier has right to sell goods at public sale
    38. 38. 38 Common Carriers of Passengers • Passenger – a person who enters the premises of a carrier with the intention of buying a ticket for a trip. • One continues to be a passenger as long as one continues the trip.
    39. 39. 39 Common Carriers of Passengers • The Federal Aviation Administration (FAA) has established regulations that require the screening of passengers and property before they enter an aircraft to search for dangerous weapons, explosives, and other destructive substances. • Passengers who do not consent to the screening must be refused transportation. • http://www.tsa.gov/traveler-information
    40. 40. 40 Common Carriers of Passengers • Racial profiling – the act of targeting a person for criminal investigation primarily because of racial or ethnic characteristics – may not be a motivating factor in a carrier’s decision to refuse transportation
    41. 41. 41 Special Bailments • Warehouser – a person engaged in the business of storing goods for hire • Warehouse – a building or structure in which any goods, but particularly wares or merchandise, are stored • Warehouse receipt – a receipt issued by a person engaged in the business of storing goods for hire.
    42. 42. 42 Special Bailments • Public warehouser – one that owns a warehouse in which any member of the public who is willing to pay the regular charge may store goods • Private warehouser – warehouser whose warehouse is not for general public use
    43. 43. 43 Special Bailments • Warehousers must use reasonable care – Failure to do so could make them liable for loss/damages – Amt. of liability can be limited in storage agreement or warehouse receipt • Warehouser’s lien – Right to retain possession of the goods until the satisfaction of the charges imposed on them – Lien may be enforced at public or private sale, as long as proper notice is given
    44. 44. 44 Question? What type of property has substance and can be touched? A. Intangible B. Tangible C. Touchable D. Corporeal
    45. 45. 45 Question? What type of property is not perceptible to the senses and cannot be touched? A. Intangible B. Tangible C. Touchable D. Corporeal
    46. 46. 46 Question? What is the transfer of possession and control of personal property to another with the intent that the same property will be returned later? A. Bailment B. Lien C. Mortgage D. Pawn
    47. 47. 47 Question? When an individual loans goods to another with the intention that the goods may be used and later replaced with an equal amount of different goods it is known as ________. A. Bailment B. Bailor C. Lien D. Mutuum
    48. 48. 48 Question? What is a person engaged in the business of storing goods for hire? A. Warehouser B. Common carrier C. Passenger D. Consignor
    49. 49. 49 Question? What is the right to retain possession of the goods until the satisfaction of the charges imposed on them? A. Carrier right B. Warehousing C. Warehouser’s FOB D. Warehouser’s lien
    50. 50. 50 Question? When personal property is transferred to a bailee with the intent that both parties will benefit it is called ___________. A. Bailments for the sole benefit of the bailor B. Bailments for the sole benefit of the bailee C. Mutual-benefit bailment D. Bailments for the sole benefit of the consignee
    51. 51. 51 Question? Personal property owned solely by one person is called _________. A. Cotency B. Possession C. Severalty D. Chattel
    52. 52. 52 Question? What are businesses that undertake to transport persons or goods? A. Freighters B. Container transport C. Carriers D. Common transport
    53. 53. 53 Question? The law of __________ gives a salvor the right to compensation for assisting a foundering vessel. A. Finds B. Salvage C. Abandoned property D. Abandonment

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