Question

In this Question problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question. In answering the following question, you should not rely on any rule(s) except the rule(s) that are supplied for problem. Further, you should not assume any fact other than 'those stated in the problem. The aim is to test your ability to properly apply a rule to a given set of facts, even when the result is absurd or unacceptable for any other reason. It is not the aim to test any knowledge of law you may already possess. 

Rule: 
Whoever finds an unattended object can keep it unless the true owner claims that object. This does not affect the property owner's right to the ownership of the property on which the object is found. The right to ownership of a property does not include the right to ownership of unattended objects on that property. 

Facts: 
Elizabeth is the CEO of a global management services company in Chennai and is on her way to Ranchi to deliver the convocation address at India's leading business school on the outskirts of Ranchi. Flying business class on Dolphin Airlines, she is entitled to use the lounge owned by the airline in Chennai Airport while waiting for her flight. She finds a diamond ear-ring on the floor of the lounge and gives it to the staff of Dolphin Airlines expressly stating that in the event of nobody claiming the ear-ring within six months, she would claim it back. The airline sells the ear-ring after eight months and Elizabeth files a case to recover the value of the ear-ring from the airline when she is informed about its sale. To the original fact scenario, the following fact is added: In the lounge there are numerous signboards which proclaim 'Any unattended item will be confiscated by Dolphin Airlines'. In this case, you would:

Options

• Order the airline to pay compensation to Elizabeth because the board in the lounge cannot grant property rights over unattended objects to the airline.

• Deny Elizabeth compensation because the signboard makes it evident that the airline, as owner of the lounge, is exercising all rights over all unattended items in the lounge and the ear-ring is one such item.

• Deny Elizabeth compensation because she knew any unattended item belonged to the airline.

• Order the airline to pay compensation to Elizabeth because the property rights of the airline are relevant only if the item is unattended. The moment Elizabeth found the earring, it belonged to her.

Answer 1

Order the airline to pay compensation to Elizabeth because the board in the lounge cannot grant property rights over unattended objects to the airline.