Property I - Section Z
Professor Amana
Midterm Exam Spring 2003

General Instructions

1. This exam consists of six (6) pages.

2. You have one (1) hour and fifteen (15) minutes to complete this exam.

3. This is a partially open book exam The only materials allowed for this exam is a personally prepared outline. No commercial outline can be used.

4. The exam consists of 3 parts: Total value of midterm is 25% of your grade.

5. Using a #2 pencil, darken the letter corresponding to the correct answer on the ParScore answer sheet. If you change your answer, please be sure that your erasures are complete. The exa.m will be scored by a machine and any ambiguities will be counted as a wrong answer.

6. Write your exam number on your exam envelope, at the top of the exam question packet, and on the ParScore form. Also, write your exam number on the Blue Book. Do not use your name, student ID number, or Social Security Number on any exam materials.

7. At the conclusion of the exam, return all test materials to the exam envelope and submit it to the proctor.

Good Luck!


PART III:
DISCUSSION QUESTION

In 1998, N. Ron Hooligan broke into Ima Snobb's home in Elitas, West Dakota, and stole an uninsured diamond necklace worth $75,000. Ima was embarrassed that she had forgotten to renew her homeowner's insurance and never reported the theft to the: police. Three months later, Ima hired Sam Spade, a private investigator, to track down the stolen necklace. Ima paid Sam a handsome price for his services, but neither the necklace nor the thief was ever found.

In 1999, N. Ron offered to sell the necklace to Gill Bates for $25,000. Gill, unaware the necklace was stolen, knew it was a bargain at $25,000 and bought it for his wife, Gilda. Gilda was a rising star in Hollywood, and Gill decided to keep his purchase a secret until Gilda's first Oscar nomination. Two years later, Gilda received a nomination for best new actress. Gill presented Gilda with the necklace, which he had kept locked in his office safe for just this occasion. Gilda wore the necklace to the awards ceremony on July 1, 2001. A week later, Gilda's photograph appeared on the cover of Celebrity Magazine.

Ima saw the photograph while buying groceries. Astonished to find her necklace after so many years, Ima immediately contacted Gilda. Ima told Gilda the necklace had been stolen from her home and demanded that Gilda return it to her at once. Gilda refused. The applicable West Dakota statute provides that an action to recover possession of personal property must be brought within three years of the date the cause of action accrued. West Dakota follows the majority rule regarding whether possession is hostile and under claim of right. Last month, Ima sued Gilda for return of the necklace.

Who is most likely to prevail and why?

End of Exam