1. Chapter 17 Personal Property and Bailment

2. Personal Property Real Property: Land and anything permanently attached to it. Personal Property: Anything that can be owned other than real property. Tangible: Property that has substance and can be touched. Intangible: Property that has no substance and cannot be touched.

3. Gifts of Personal Property Three Requirements: –Donor (one making the gift) must intend to make the gift –The gift must be delivered –Donee (one receiving the gift) must accept the gift

4. Lost Property Finder of property has the legal duty to return the property to the owner (Local laws may vary)

5. Rewards and Reimbursement Finders of lost property are entitled to any reward offered if they knew about it when returning property. No reward??? They are entitled to be reimbursed for any expenses incurred.

6. Misplaced Property If property is found “left behind” in a public or semi-public place, it is considered misplaced not lost Example: purse left in dressing room

7. Abandoned Property Property that has been discarded by the owner without intent to reclaim ownership. You have the right to keep abandoned property (may be some exceptions).

8. Stolen Personal Property A thief has no title to stolen goods An innocent purchaser of stolen goods is obliged to return it to the owner

9. Intellectual Property Original work fixed in a tangible medium of expression

10. Patents An exclusive right granted by the federal government to make, use, or sell an invention Not only on products, but may consist of a process or an article of manufacture U.S. Patent and Trademark Office = 17 years

11. Copyrights  The right granted to an author, composer, photographer, or artist to exclusively publish and sell work. Protected for life of author plus 70 years In 1989, the use of the copyright notice was made optional

12. Fair Use Doctrine: Copyrighted material may be reproduced without permission in certain cases...education. Downloading and uploading music on the Internet for others’ use is a violation of copyright law

14. Trademarks  A distinctive mark, symbol or slogan used by a business to identify goods and distinguish them from other products. Once established, others cannot use it. Example: Words, names, symbols A registered trademark continues for 10 years and may be renewed in 10 year increments.

15. Mutuum When you loan goods to someone with the understanding that they will be used and later replaced with different identical goods. i.e.: borrowing a cup of sugar

16. 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. Bailee: To whom the property is transferred Bailor: The person who transfers the property See examples 4 and 5 on p. 368.

17. Main Types of Bailments Bailments for Sole Benefit of Bailor Bailments for Sole Benefit of Bailee Mutual-Benefit Bailments Most are based on contracts; if a bailment contains consideration, then there is a valid contract.

18. Gratuitous Bailments Transfer of property without either party giving or asking for payment Usually considered favors

19. Bailments for Sole Benefit of Bailor The bailee owes a duty to use only slight care, as the bailee is receiving no benefit from the arrangement Only refrain from “Gross Negligence”

20. Bailments for Sole Benefit of Bailee The bailee is required to use great care because possession of the goods is intended solely for the bailee’s benefit Responsible for “Slight Negligence”

21. Mutual-Benefit Bailments One in which both parties receive some benefit The bailee owes a duty to use reasonable care. Responsible for “Ordinary Negligence”

22. Tortious Bailee: One who wrongfully retains possession of lost property of another or is knowingly in possession of stolen property. Burden of Proof is on the bailee.

23. Special Bailments Hotel Keeper –Duty to Accept All Guests (Civil Rights Act 1964) –Duty of Reasonable Care (See bullets top p. 376) –Lien and Credit Card Blocking

24. Special Bailments Common Carriers –Carrier: a business that transports persons, goods, or both –Common Carrier: Provides transportation to the general public Common Carriers of Goods Not Liable… –Acts of God –Acts of a public enemy –Acts of public authorities –Acts of the shipper –The inherent nature of the goods (perishable)

25. Special Bailments Common Carriers of Passengers –A carrier must use reasonable care in protecting passengers. –Not responsible if injuries are not foreseeable or preventable

26. Special Bailments Bumped Airline Passengers –When overbooked, airlines must ask for volunteers to give up their seats –Passengers “bumped” may be entitled to compensation plus the money back for the ticket –If the airline can arrange alternative travel within 1 hour…no compensation

27. Special Bailments Passengers Baggage –Carriers are obligated to accept a reasonable amount of passengers baggage –A carrier is an insurer of all luggage that is checked –Federal rules place limits… U.S. travel maximum $2,500 per passenger