Ch 17 Personal Property

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 2275A/B
Professor
Frederick King
Semester
Fall

Description
Personal Property 12/6/2012 1:34:00 PM Chapter 17 The Context of Personal Property  Personal property – all property, other than land and what is attached to land, that can be identified by its mobility o Tangible – property that is concrete or material o Intangible – derives its value from legal rights (insurance policies, accounts receivable, etc.)  Acquisition of ownership o Land is acquired through purchase or lease o Goods are acquired by purchasing/manufacturing them o Insurance coverage is bought o Accounts receivable are created by delivering goods or services o Copyrights are owned as a result of being created  Possession without ownership o One party may gain possession of the property of another, often with the intent that the possession will ultimately be returned to the owner  Obligations o The owner of the property bears ultimate responsibility for its protection o Someone other than the owner who possess the property must take reasonable care and pay applicable charges for the use of the property until it is returned  If damaged, they will have to pay damages to the owners by way of compensation  Rights – the owner of the property can deal with it as they see fit Principles of Bailment  Bailment – a temporary transfer of possession of personal property from one person to another o Bailor – owner o Bailee – borrowing party o Ownership remains with the bailor, but possession transfers to the bailee o E.g. – short-term vehicle rental, long-term vehicle lease, delivery of property for repair, transport of property by commercial carrier, storage of property in a warehouse, shipping of an envelope by courier, movie rentals, dry cleaning, borrowing library books, etc.  Rights and obligations of bailment o Is payment involved?  Bailments for value – most commercial bailments are based on a contract requiring payment for the use of the property  Gratuitous bailment – bailment that involves no payment o Who benefits?  Bailments that benefit both the bailor and bailee are the most common  Contract of bailment o Parties a free to negotiate the details of their own agreement normally including a description of:  The services to be provided  The price to be paid and payment terms  The extent to which the bailee is liable for damage or loss  The remedies of the parties for failure to perform  Liability of bailees o Bailees are expected to exercise reasonable care in all circumstances  If the bailment is gratuitous and for the benefit of the bailor, the standard of care is low  If the bailment is gratuitous and for the benefit of the bailee, the standard is very high  The bailee’s standard is higher for more valuable property and should be appropriate for the property  A bailee for reward must show greater care than a gratuitous bailee  The contract may raise or lower the standard of care owed by the bailee  The contract may set the standard at ordinary care and diligence but limit the amount of damages for which the bailee may be held liable  Special regulations for the type of bailment that may set out the standard of care  Where the bailee is instr
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