DECA+ Business Management and Administration Practice Exam

What does conversion refer to in legal terms?

1. Taking ownership of someone else's intellectual property

2. Given personal property to another without the owner's consent

3. Mutually agreeing to exchange personal property

4. Legally acquiring property through adverse possession

The correct answer is: Given personal property to another without the owner's consent

In legal terms, conversion refers to the unauthorized taking or use of someone else's personal property. This offense occurs when an individual interferes with the owner’s right to possess their goods, such as by taking their property without permission or by illegally disposing of it. The concept of conversion effectively protects an owner's right to control their property and ensures that others do not infringe upon those rights. The notion of giving personal property to another without the owner’s consent directly aligns with the definition of conversion, as it highlights the unauthorized nature of the action. In cases of conversion, the original owner maintains ownership rights, but the converter acts in a manner that undermines those rights. In contrast, the other options do not accurately describe conversion. Taking ownership of someone else's intellectual property pertains more to copyright infringement or patent theft rather than conversion. Mutually agreeing to exchange personal property implies consent from both parties, which contradicts the very nature of conversion. Lastly, legally acquiring property through adverse possession involves a legal process where someone can claim ownership of land after occupying it for a certain period under specific conditions, which is distinct from the concept of conversion focused on unauthorized interference with personal property rights.