Liabilities Self-Quiz

 

 

 

 

 

 

 

Wanda, as the trustee for an apartment building, held in trust for her nephew, Taylor, signed a renewal contract with the management company that manages the building. She signed the contract: “Wanda O’Donnell, Trustee.” Wanda is personally liable on the contract?
True
False
Wesley, as co-trustee of a trust, continues to operate the settlor’s business, a retail store. A shopper is injured at the store because of negligence of an employee. Who is liable for the shopper’s injury?
Choice 1 The store’s employee.
Choice 2 The trustee.
Choice 3 The trust.
Asa is the trustee of a trust that contains negotiable securities in trust for Carla and Jeffery. For safekeeping, Asa placed the securities in a safe deposit box at the most prominent bank in town. One night burglars break into the bank and steal the securities. Asa is personally liable for this loss.
True
False
Misty is the trustee of $60,000 for Tabitha for life and then for Ileana, which Misty has invested at 3% interest. For many years Misty, who lives in Portland, OR, has been sending a regular monthly check for $150 to Tabitha, who lives in Seattle, WA. Tabitha dies but Misty does not find out about her death. Meanwhile, Misty continues to send the checks, which are cashed. Misty never looks at the returned checks in her bank statement; otherwise, she would have discovered that the endorsements were forgeries. This continues for three years after Tabitha’s death. Who was entitled to those checks?
Choice 1 Tabitha’s heirs.
Choice 2 Ileana.
Choice 3 The trust.

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