654 Business Law Today: The Essentials Business Scenarios and Case Problems 23-1
ID: 375945 • Letter: 6
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654 Business Law Today: The Essentials Business Scenarios and Case Problems 23-1. Gifts. Jaspal has a severe heart attack and is taken to the hospital. He is aware that he is not expected to live. Because he is a bachelor with no close relatives nearby, Jaspal gives his car keys to his close friend Friedrich, telling Friedrich that he is expected to die and that the car is Friedrich's. Jaspal survives the heart attack, but two months later he dies from pneumo nia. Sam, Jaspal's uncle and the executor of his estate, wants Friedrich to return the car. Friedrich refuses, claiming that the car was a gift from Jaspal. Discuss whether Friedrich will be required to return the car to Jaspal's estate. (See Acquiring Ownership of Personal Property.) 23 23-2. Duties of the Bailee. Orlando borrows a rototiller from his neighbor, Max. Max has not used the rototiller for two years Orlando has never owned a rototiller and is not familiar with using one. Max previously used this rototiller often, and if he had made a reasonable inspection, he would have discovered that a blade was loose. Orlando is injured when the blade becomes detached while he is rototilling his garden. (See Bailments.) 1. Can Orlando hold Max liable for his injuries? Why or why not? 2. Would your answer be different if Orlando had rented the rototiller from Max and paid a fee? Explain. 23-3. Timing of Insurance Coverage. On October 10, Joleen Vora applied for a $50,000 life insurance policy with Magnum Life Insurance Co. She named her husband, Jay, as the benef ciary. Joleen paid the insurance company the first year's pre mium on making the application. Two days later, before she had a chance to take the physical examination required by the insurance company and before the policy was issued, Joleen was killed in an automobile accident. Jay submitted a claim to the insurance company for $50,000. Can Jay collect? Explain (See Insurance.)Explanation / Answer
Answer:- A gift mainly results when the below stated three conditions are fulfilled:-
Donative intent on the part of the donor
Delivery of the product
Acceptance by the donor.
In case of Jaspal, all the above-stated conditions were met. But apart from these conditions, there is one rider that gift Is not absolute until the death of the donor from the stated event. As in the case, Jaspal survived the heart attack thus gift CAUSA MORTIS is revoked and thus there is no right of Friedrich on the car.
Answer:- A:- In this case, the benefits are received by Orlando as rototiller is given by Max to Orlando and it resulted in the convenience of Orlando. There was no insight about the losing of the ledger to Max and thus no liability lies on Max as the benefits which are received by this exchange belongs to only Orlando.
B:- If the machine was rented by Max to Orlando then the treatment of this case will be different. Then both the parties will be receiving the benefits of exchange. Max will receive monetary benefits while Orlando will be having the benefits of convenience. In this case, it will be the responsibility of Max to inspect the machine and reveal any information which can result in the harm to Orlando physically or otherwise. Thus if the machine was rented by Max then Orlando has the right to sue Max under the negligence theory of tort law.
Answer:- As per insurance laws, parties may have an agreement that the insurance can be enforced at the time when the insurerd pays the first premium or the policy may be expressly contingent on the applicant’s success in the physical examination. But if the first premium is paid to the insurance company and insure dies before the physical examination, then for collecting the insurance amount, the nominee has to prove that the physical status of the insured was perfect before the death and has she not dies, she would be able to pass the health examination.
Thus in order to collect the insurance amount, Jay has to prove that his wife was physically fit and would have been able to pass the health examination had she still alive.
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