[Disputed Ring] While Working in the Yard Megan Found a Beat

question 69

Multiple Choice

[Disputed Ring] While working in the yard Megan found a beat up ring. Taylor, an eighteen-year-old teenager and neighbor, came over to visit and liked the ring. Megan told her, "You can have this old thing if you would like." Taylor replied, "I really like it - Maybe it's a real diamond!" Megan laughingly told her that there was a one in a billion chance of that and that Megan was more likely to win the lottery. A few months later Taylor ran over to Megan's house and told Megan that the ring actually was a diamond worth thousands! Taylor gave Megan the ring to examine. Megan put it in her pocket and told Taylor that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Megan also told Taylor that Taylor failed legally to accept the gift because neither party knew its true value and that because Megan did not sign any document turning over title, it was impossible for legal ownership to pass. Taylor sues.
-Megan stated that she was entitled to the ring because she would not have given it to Taylor if she had known the true value. Which of the following is true regarding this statement?

• A) Megan is entitled to ownership of the ring if she can prove that she did not realize its true value.
• B) Megan is entitled to ownership of the ring only if she can prove that she did not realize its true value, and also that there was a difference of at least $1,000 between what she believed the value to be and its true value.
• C) Megan is entitled to ownership of the ring only if a jury determines that she was not negligent in failing to recognize its value.
• D) Megan is not entitled to ownership of the ring because she admitted that there was at least some chance (one in a billion) that it was a genuine diamond.
• E) Being ignorant of the value of the ring does not entitle Megan to ownership of it.

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total income of the taxpayer, indicating the burden of taxation.

Federal Personal Income Tax

A tax levied by the federal government on individuals’ earnings, varying in rate based on income level.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy the needs of the community or are used to provide public services.

Transfer Payments

These are payments made by the government to individuals, without the government receiving any goods or services in return, such as welfare or social security.