Business Law Chapter 20 and 21 Questions

I will send you a link to access the textbook that contains the Chapter 20 and Chapter 21 readings. There are also attached PowerPoints to help your understanding.

Using these materials, answer questions (case problems) 2-15 for EACH chapter (Questions 2-15 for  Chapter 20 and Questions 2-15 for Chapter 21). Answers should include in-text chapter citations (for example: Chap 1, pg 34, Par 8) indicating the textbook’s statements as your legal defense of your answers.

David P. Twomey – Boston College
Marianne M. Jennings – Arizona State University
Stephanie Greene – Boston College
nd
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22
Ed.
© 2017 Cengage Learning. All Rights Reserved.
© 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.
1
Chapter 20
Personal Property and Bailments
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
2
LEARNING OUTCOMES
1 Explain how title to personal property is
acquired
2 List and explain the various types of gifts
3 Explain the legal theory whereby an owner can
recover his or her property from the wrongful
exclusionary retention of another
4 Identify the elements necessary to create a
bailment
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
3
LEARNING OUTCOMES
5 Explain the standard of care a bailee is
required to exercise over bailed property
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
4
20-1 Personal Property
20-1a 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 rights in
tangible, movable property; claims and
debts (called choses in action); and
intangible property rights.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
5
20-1 Personal Property
20-1b Title to Personal Property
– 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.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
6
20-1 Personal Property
20-1c Gifts
– Voluntary transfer of title by the donor
without consideration from the donee
– Inter Vivos Gifts: Ordinary gift between
two living persons.
•
•
Intent: Must be an intent to transfer title.
Delivery: Ordinarily involves handing over gift
to the donee. May be a symbolic or
constructive delivery.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
7
20-1 Personal Property
20-1c Gifts, Continued
– Donor’s Death: If donor dies before
making an effective gift, the gift fails.
– Gifts Causa Mortis: Made with
contemplation of imminent death.
– Gifts and Transfers to Minors: Uniform
acts provide for transfer to custodian to
hold for minor’s benefit. Gift is final and
irrevocable.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
8
20-1 Personal Property
20-1c Gifts, Continued
– Conditional Gifts: Condition(s) must be
satisfied before gift takes place.
– Anatomical Gifts: May be made while alive
(i.e. kidney donation) or post death. 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/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
9
20-1 Personal Property
20-1d Finding of Lost Property
– Finding in Public Place: Finder is not
entitled to possession and must give item
to the manager of the public place.
– 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/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
10
20-1 Personal Property
20-1e Occupation of Personal Property
– Wild Animals: Person who acquires control
over a wild animal becomes the owner.
– Abandoned Personal Property: Occurs
when owner voluntarily leaves property
and does not intend to reclaim it. The first
finder acquires title to property.
– Conversion: Remedy against finder of lost
goods who refuses to return them.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
11
20-1 Personal Property
20-1f 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.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
12
20-1 Personal Property
20-1g Multiple Ownership of Personal Property
– Tenancy in Common: Two or more persons
own undivided interests in property.
– 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.
– Tenancy by Entirety: A transfer to both
husband and wife. Interest cannot be
transferred to a third party.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
13
20-1 Personal Property
20-1h 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/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
14
20-2 Bailments
20-2a Definition
– When the bailor delivers tangible personal
property to the bailee, who is under a duty to
return it, deliver or dispose of it as agreed
20-2b Elements of a Bailment
– Agreement. May be express or implied.
Contains all the elements of a contract.
– Delivery and Acceptance: Bailment arises
when property is delivered and accepted.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
15
20-2 Bailments
20-2c Nature of the Parties’ Interests
– Bailor’s Interest: Normally the owner, but
not a requirement. Physical possession is
sufficient.
– Bailee’s Interest: Possession only.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
16
20-2 Bailments
20-2d Classifications of Ordinary Bailments
– Bailments for mutual benefit: Provide
compensation.
– Gratuitous bailments: Without
compensation.
– Constructive bailment: Imposed by law,
bailee must preserve and redeliver property
to the owner.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
17
20-2 Bailments
20-2e 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.
20-2f Duties and Rights of the Bailee
– Duty of care for the bailed property which
differs based on terms of “benefit”
– Bailee’s lien: The bailee’s right to keep
possession of property until charges are paid.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
18
20-2 Bailments
20-2g Breach of Duty of Care: Burden of Proof
– Based upon tort principles
20-2h 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.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
19
20-2 Bailments
20-2i Contract Modification of Liability
– Ordinary bailee may limit liability (except for
willful misconduct) by agreement or
contract.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
20
David P. Twomey – Boston College
Marianne M. Jennings – Arizona State University
Stephanie Greene – Boston College
nd
Twomey – Jennings, Anderson’s Business Law and the Legal Environment, 22
Ed.
© 2017 Cengage Learning. All Rights Reserved.
© 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.
1
Chapter 21
Legal Aspects of Supply Chain
Management
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
2
LEARNING OUTCOMES
1 Identify and explain all of the features of a
negotiable warehouse receipt
2 List and explain the differences between the
three types of motor carriers of goods
3 Explain a common carrier’s liability for loss
or damage to goods
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
3
LEARNING OUTCOMES
4 Identify and explain the role of each persons
or business entities involved in the sale of
goods on consignment
5 Describe a hotelkeeper’s liability for loss of a
guest’s property
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
4
21-1 Warehouses
21-1a Definitions
– A warehouse is an entity engaged in
business of storing goods for others for
compensation.
– Public warehouses serve the public
generally without discrimination.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
5
21-1 Warehouses
21-1b Rights and Duties of Warehouses
– Statutory Regulation: UCC Article 7
– Lien of Warehouse: Public warehouses
have a specific lien against goods for
reasonable storage fees.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
6
21-1 Warehouses
21-1c Warehouse Receipts
– Written acknowledgement by a warehouse
(bailee) that certain property has been
received for storage by a depositor (bailor)
– Receipt is a memo of the contract between
the issuer (warehouse) and depositor.
– Considered a document of title that can be
bought or sold and used as security for
loan
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
7
21-1 Warehouses
21-1d Rights of Holders of Warehouse Receipts
– Nonnegotiable warehouse receipts: Goods
will be delivered to a specified person.
– Negotiable warehouse receipts: Not
limited to a specific person.
•
•
Negotiation: “To the bearer” receipts may be
negotiated by transfer. “To the order of ”
documents must be indorsed and delivered.
Due Negotiation: Holder acquires title to the
document and the goods.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
8
21-1 Warehouses
21-1d Rights of Holders of Warehouse Receipts,
Continued
– Warranties: Transferor makes certain
implied warranties to the transferee.
21-1e Field Warehousing
– Done to create warehouse receipts that
an owner of goods may pledge as security
for loans
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
9
21-1 Warehouses
21-1f Limitation of Liability of Warehouses
– A warehouse may limit its liability by
including a provision in the warehouse
receipt.
– Customer must be given the choice to
store goods without the limitation for a
higher rate.
– The limitation must be stated for each
item or unit of weight.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
10
21-2 Common Carriers
21-2a Definitions
–
–
–
–
Carrier of goods undertakes transportation.
Cosignor delivers the goods for shipment.
Cosignee receives the goods.
Common carrier furnishes transportation for
pay to all members of the public.
– Contract carrier transports goods under
individual contracts.
– Private carrier: Owned by the shipper.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
11
21-2 Common Carriers
21-1b Bills of Lading
– Contents of Bill of Lading: Regulated by
agencies.
– Negotiation: A negotiable bill of lading
goods is delivered to the bearer. A
nonnegotiable/straight bill of lading
consigns goods to a named person
– Warranties: Implied by the transferor.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
12
21-2 Common Carriers
21-2c Rights of Common Carrier
– Right to make necessary rules, charge fair
rates, and have a lien on goods it
transports
21-2d Duties of Common Carrier
– Receive, ship and deliver goods in
accordance with the shipping contract
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
13
21-2 Common Carriers
21-2e Liabilities of Common Carrier
– Carrier’s Liability for Delay: Liable for losses
from failure to deliver goods in reasonable
period of time.
– Limitation of Liability of Carrier: Common
carriers can generally limit their liability by
contract. The Carmack Amendment
provides exclusive remedy for loss or
damage to the goods.
– Notice of Claim: Claims for damages must
be within 9 months.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
14
21-2 Common Carriers
21-2e Liabilities of Common Carrier, Continued
– COD Shipment: No delivery without
payment. If delivery is made, carrier is
liable for loss.
– Rejected Shipments: If consignee refuses
to accept delivery, common carrier
becomes a warehouse until new shipping
instructions received.
– Complexities in Intercontinental and
Domestic Shipping
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
15
21-3 Factors and Consignments
21-3a Definitions
– Selling on consignment: Entrusting a person
with property to sell it.
– The owner is the consignor.
– The agent is the factor, consignee or
commission merchant.
– A consignee’s compensation is a
commission or factorage.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
16
21-3 Factors and Consignments
21-3b Effect of Factor Transaction
– Treated as a sale or return under Article 2
(UCC)
– Consignee has authority to sell & pass title.
– If a thief delivers stolen goods to the factor,
a sale passes no title and is an unlawful
conversion.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
17
21-4 Hotelkeepers
21-4a Definitions
– Hotelkeeper: Offers living accommodations
to transients.
– Guest: A transient who engages a room at a
hotel and stays there overnight. Guests of
registered occupants who stay without the
knowledge or consent of management are
not guests, nor are persons who enter the
hotel to attend a meeting or banquet.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
18
21-4 Hotelkeepers
21-4b Duration of Guest Relationship
– Relationship begins when a person is
received as a guest by the hotelkeeper.
– Relationship terminates when guest leaves
or ceases to be a transient.
– When a hotel assumes an obligation to
deliver packages to a guest from a nonguest, the hotelkeeper has a bailee’s liability
for the care of the packages.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
19
21-4 Hotelkeepers
21-4c Hotelkeeper’s Liability for Guest’s Property
– Most states provide a method for limiting
liability.
21-4d Hotelkeeper’s Lien
– On baggage for agreed on or reasonable
charges. Terminated by payment,
conversion or good return.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
20
21-4 Hotelkeepers
21-4e Boarders or Lodgers
– Hotelkeeper has no lien on property absent
agreement or state legislation.
Twomey /Jennings/Greene: Anderson’s Business Law, 23rd Edition
© 2017 Cengage Learning. All Rights Reserved.
21