1. CPA QUESTION: Which of the following requirements must be met to create a bailment?
I. Delivery of personal property to the intended bailee
II. Possession by the intended bailee
III. An absolute duty on the intended bailee to return or dispose of the property according to the bailor’s directions
A. I and II only
B. I and III only
C. II and III only
D. I, II, and III

2. Martin is a rich businessman in perfect health. Monday morning he tells his niece, Stephanie, “Tomorrow I’m going to give you my brand new Ferrari.” Stephanie is ecstatic. That afternoon, Martin is killed in a car accident. Does Stephanie get the car?
A. Stephanie gets the car because this is a valid inter vivos gift.
B. Stephanie gets the car because this is a valid gift causa mortis.
C. Stephanie gets the car because there is no reason to dispute that Martin made the promise.
D. Stephanie gets the car unless Martin left a wife or children.
E. Stephanie does not get the car.

3. Margie has dinner at Bill’s house. While helping with the dishes, she takes off her Rolex watch, and forgets to put it back on when she leaves for the night. Bill finds the watch in the morning and decides to keep it.
A. This is abandoned property and Bill is entitled to it.
B. This is lost property and Bill is entitled to it.
C. This is lost property and Margie is entitled to it.
D. This is mislaid property and Bill is entitled to it.
E. This is mislaid property and Margie is entitled to it.

4. Arriving at a restaurant, Max gives his car keys to the valet. When the valet returns the car three hours later, it has a large, new dent. The valet says he did not cause it. Max sues the valet service.
A. The burden is on the valet service to prove it did not cause the dent.
B. The burden is on Max to prove that the valet service caused the dent.
C. The valet service is strictly liable for harm to Max’s car.
D. The valet service has no liability to Max, regardless of how the dent was caused.
E. The valet service is only liable for gross negligence.

5. Car Moves hauls autos anywhere in the country. Valerie hires Car Moves to take her Porsche from Chicago to Los Angeles. The Porsche arrives badly damaged because the Car Moves truck was hit by a bus. The accident was caused by the bus driver’s negligence. If Valerie sues Car Moves for the cost of repairs
A. Valerie will win.
B. Valerie will win only if she can prove Car Moves was partly negligent.
C. Valerie will win only if she can prove that Car Moves agreed to strict liability.
D. Valerie will lose because Car Moves did not cause the accident.
E. Valerie will lose because this was a bailment for mutual benefit.