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Journal Entry – Chapter 23
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Chapter 23: Personal Property, Bailments, and Insurance – Chapter 23 – Journal Entry
Vanessa Denai purchased forty acres of land in rural Louisiana with a 1,600-square-foot house on it and a metal barn near the house. Seven months later, Denai met Lance Finney, who had been seeking a small plot of rural property to rent. After several meetings, Denai invited Finney to live on a corner of her property in exchange for Finney’s assistance in cutting wood and tending her property. Denai agreed to store Finney’s sailboat in her barn. With Denai’s consent, Finney constructed a concrete and oak foundation on Denai’s property. Finney then purchased a 190-square-foot dome from Dome Baja for $3,395. The dome was shipped by Doty Express, a transportation company licensed to serve the public. When he received it, Finney installed the dome frame and fabric exterior so that the dome was detachable from the foundation. A year after Finney installed the dome, Denai wrote Finney a note stating, “I’ve decided to give you four acres of land surrounding your dome as drawn on this map.” This gift violated no local land-use restrictions.
- Is the dome real property or personal property? Explain.
- Is Denai’s gift of land to Finney a testamentary gift, a gift causa mortis, or a gift inter vivos?
- What type of bailment relationship was created when Denai agreed to store Finney’s boat? What degree of care was Denai required to exercise in storing the boat?
- What standard of care applied to the shipment of the dome by Doty Express?
FOR TWO BONUS POINTS:
Common carriers should not be able to limit their liability. Those who use common carriers for shipping should not have to worry about what happens if a parcel is lost or damaged. After all, customers of common carriers do not control in what manner their parcels are handled during shipping. Liability should be shouldered uniquely by the carrier.
