Bài giảng Business Law (13th edition) - Chapter 23: Personal Property and Bailments

PropertyPersonal Property and BailmentsReal PropertyLandlord and TenantEstates and TrustsInsurance Law5McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Personal Property and BailmentsPAETRHC23“Few rich men own their own property. The property owns them.”Robert Green Ingersoll, in an address to the McKinley League, New York City (October 29, 1896)Learning ObjectivesNature & classifications of personal propertyAcquiring ownership of personal propertyBailments Documents of title23 - *Property refers to (a) something that may be owned, or (b) a right or interest that allows a person to exercise dominion over a thing that may be owned or possessedAmerican principles of private property developed out of Western civilizationOther cultures may have different principlesProperty is classified as real or personalProperty Overview23 - *Personal property may be classified as:Tangible – has a physical existenceExamples: cars, clothing, animals, furnitureIntangible -- has no physical existenceExamples: intellectual property (patents, copyright, trademark), stocks, and bondsClassifying Property23 - *Ownership of personal property may be acquired by: production, purchase, lease, taking possession of unowned property, will or inheritance, confusion, accession, or giftAcquiring Ownership23 - *Possession of Unowned Property23 - *First person to take possession of a wild animal normally becomes owner of animalFinder of abandoned property may claim ownershipFinder of lost property does not acquire ownership, but acquires better rights than anyone other than the true ownerFinder of mislaid property acquires no rights, but has right to hold property for true ownerAcquisition of Property 23 - *Confusion is ownership due to intermixing of different owners’ goodsAccession means increasing property value by adding materials, labor, or bothInheritance refers to transfer of property upon the death of former owner Gift is a voluntary transfer of property to a donee (recipient) from a donor (gift giver) who receives no consideration in returnBailments23 - *A bailment occurs when a bailor who owns personal property (or someone holding the right to possess it) delivers it to another (the bailee) who accepts it and is under an express or implied agreement to return it to the bailor or to someone designated by the bailorExample: bailment of car to valetDuties & Rights of The Bailee23 - *Bailee has two basic duties: (1) take care of property and (2) return it to ownerDegree of care required of bailee to protect property depends on the type of bailment:For bailor (slight degree of care)Mutual benefit (ordinary care)For bailee (high degree of care)Professional bailees held to higher standardA document of title refers to the document that identifies ownership of propertyWarehouse receipt or bill of lading may be either negotiable or non-negotiablePerson who acquires negotiable document of title generally acquires both title to the document and goodsDocuments of Title23 - *Test Your KnowledgeTrue=A, False = BA person who finds abandoned property may claim ownershipA conditional gift is not a gift.Tom found a textbook on a desk that had “S. James” written inside the cover. Tom has the right to sell the textbook. Personal property may be classified as tangible or intangible.23 - *Test Your KnowledgeTrue=A, False = BA document of title refers to the document that identifies ownership of property. A shipping company, such as UPS, is held only to a slight duty of care. A bailment is a contract.Accession means mixing property owned by several people so that the property cannot be separated and ownership is indeterminate.23 - *Test Your KnowledgeMultiple ChoiceJake borrowed Jane’s car, but dented the rear fender. Jake must: (a) Say he’s sorry, but with only a slight duty of care, he owes no further obligation to Jane(b) Return the car to Jane in the same or similar condition or pay damages (c) Replace the car (d) both B and C(e) none of the above23 - *Test Your KnowledgeMultiple ChoiceBen gave Jenn an engagement ring, but Jenn decided to break the engagement. Ben asked for the return of the ring. Which of the following is correct? (a) Jenn may keep the ring since it was a gift(b) Jenn may sell the ring and keep the money(c) Jenn must return the ring to Ben(d) Both A and B are possible options(e) none of the above23 - *Thought QuestionsHave you ever been a bailee? A bailor? What type of problems may arise in a bailment situation?23 - *