Question 1

Jim's neighbour barrows a card table and four chairs for a party that Jim and his wife will be attending. Regarding the table and chairs, the neighbour

Accepted Answer

A)  has a high standard of care since he is getting the benefit. 
B)  has a low standard of care since Jim and his wife are getting benefits. 
C)  is a bailee with a medium standard of care. 
D)  has a low standard of care since they are friends. 
E)  Is a bailor with a high standard of care. 
A)  has a high standard of care since he is getting the benefit. 
B)  has a low standard of care since Jim and his wife are getting benefits. 
C)  is a bailee with a medium standard of care. 
D)  has a low standard of care since they are friends. 
E)  Is a bailor with a high standard of care.

Question 2

For $5,600, Jackstone Inc. agreed to repackage, and ship nine container loads of zipthrow toys from China. These containers from China were to be received during the next three months. Two containers arrived and were serviced according to the contract. The other seven containers never arrived and neither did any payment. What is Jackstone legally entitled to?

Accepted Answer

A)  He is entitled to quantum meruit on two containers plus loss of profits on the rest of the containers. 
B)  The entire $5,600 since a fundamental breach has occurred. 
C)  Since a lien is no longer possible, Jackstone should sue on price. 
D)  Entitled to $1,200, since that is the proportion serviced. 
E)  Since this is a service, it warrants specific performance. 
A)  He is entitled to quantum meruit on two containers plus loss of profits on the rest of the containers. 
B)  The entire $5,600 since a fundamental breach has occurred. 
C)  Since a lien is no longer possible, Jackstone should sue on price. 
D)  Entitled to $1,200, since that is the proportion serviced. 
E)  Since this is a service, it warrants specific performance.

Question 3

Which of the following statements describes when a bailee may return goods of the same description but not the identical goods?

Accepted Answer

A)  when the bailor is given a warehouse receipt 
B)  when the original goods have been destroyed by fire and it is determined that the bailee was negligent 
C)  when the goods have been pledged 
D)  when the bailor is in breach of the bailment contract 
E)  when the goods are fungible 
A)  when the bailor is given a warehouse receipt 
B)  when the original goods have been destroyed by fire and it is determined that the bailee was negligent 
C)  when the goods have been pledged 
D)  when the bailor is in breach of the bailment contract 
E)  when the goods are fungible

Question 4

Identify which of the following statements correctly describes a hire- purchase agreement?

Accepted Answer

A)  This is simply another name for a chattel mortgage on an automobile. 
B)  The contract does not create a bailment and the hirer has no contractual obligation to pay the purchase price. 
C)  The contract gives the hirer a lien on the goods preventing the owner from selling the goods to another. 
D)  The contract creates a bailment and the hirer has an option to purchase the item at the end of the stipulated term. 
E)  The contract creates a bailment but the hirer has a contractual obligation to pay the purchase price. 
A)  This is simply another name for a chattel mortgage on an automobile. 
B)  The contract does not create a bailment and the hirer has no contractual obligation to pay the purchase price. 
C)  The contract gives the hirer a lien on the goods preventing the owner from selling the goods to another. 
D)  The contract creates a bailment and the hirer has an option to purchase the item at the end of the stipulated term. 
E)  The contract creates a bailment but the hirer has a contractual obligation to pay the purchase price.

Question 5

The tax advantage in leasing arrangements is most apparent

Accepted Answer

A)  for the Lessor. 
B)  where payments are being expensed rather than capitalised. 
C)  for the Lessee. 
D)  for the government. 
E)  in the off- balance- sheet financing. 
A)  for the Lessor. 
B)  where payments are being expensed rather than capitalised. 
C)  for the Lessee. 
D)  for the government. 
E)  in the off- balance- sheet financing.

Question 6

A reason to sue for breach of a contract of bailment rather than for negligence is that in a contract of bailment:

Accepted Answer

A)  the bailee must disprove negligence 
B)  the bailee owes the bailor a higher standard of care 
C)  the bailee is strictly liable for any damage to the goods 
D)  no limitation clause will protect the bailee against liability for damage to the goods. 
E)  all of the above. 
A)  the bailee must disprove negligence 
B)  the bailee owes the bailor a higher standard of care 
C)  the bailee is strictly liable for any damage to the goods 
D)  no limitation clause will protect the bailee against liability for damage to the goods. 
E)  all of the above.

Question 7

Which of the following have the right to a lien over the goods to pay for services?

Accepted Answer

A)  an innkeeper 
B)  a warehouseman 
C)  a common carrier 
D)  a repairer 
E)  all of the above 
A)  an innkeeper 
B)  a warehouseman 
C)  a common carrier 
D)  a repairer 
E)  all of the above

Question 8

Under the rules of what general area of law is there a duty imposed on all bailees to take care of property bailed to them?

Accepted Answer

All bailees are under a duty b

Question 9

Common carriers are practically insurers for the goods they carry. Consolidated Shipping is a common carrier and is transporting two new ferry guidance systems to Singapore. During the shipping, both were damaged by corrosion. It was determined that the cause was "inadequate packaging". Is the carrier liable for these damages?

Accepted Answer

A)  No, because this is inherent vice. 
B)  Yes, since this is not an act of God nor act of war. 
C)  No, because both parties were aware of the poor packaging. 
D)  Yes, since this is not an available defence for common carriers. 
E)  No, since a standard exemption clause would protect it. 
A)  No, because this is inherent vice. 
B)  Yes, since this is not an act of God nor act of war. 
C)  No, because both parties were aware of the poor packaging. 
D)  Yes, since this is not an available defence for common carriers. 
E)  No, since a standard exemption clause would protect it.

Question 10

If goods are damaged while in the possession of a bailee, the bailee is strictly liable.

Accepted Answer

A) True 
 B)False

Question 11

Hilda rented a hospital bed from Medical Leasing Co. for her bedridden father. In the contract she was referred to as the and Medical Leasing was referred to as the .

Accepted Answer

A)  leasor; leasee 
B)  owner; renter 
C)  bailor; bailee 
D)  lessee; lessor 
E)  lessor; lessee 
A)  leasor; leasee 
B)  owner; renter 
C)  bailor; bailee 
D)  lessee; lessor 
E)  lessor; lessee

Question 12

Regarding bailments, which of the following is TRUE?

Accepted Answer

A)  Chequing accounts at the bank are a form of bailment. 
B)  Trusts are bailments since there is a transfer of property. 
C)  Bailments are not confined to personal property. 
D)  Contents in a safety deposit box is a form of bailment. 
E)  Articles held under bailment form assets available to creditors in bankruptcy. 
A)  Chequing accounts at the bank are a form of bailment. 
B)  Trusts are bailments since there is a transfer of property. 
C)  Bailments are not confined to personal property. 
D)  Contents in a safety deposit box is a form of bailment. 
E)  Articles held under bailment form assets available to creditors in bankruptcy.

Question 13

Lucy brought her badly stained Persian rug in to be cleaned. The cleaners gave her a receipt in which a clause disclaimed all liability for damage arising from normal handling. When Lucy returned for the rug, it was in an advanced state of deterioration. The cleaners claimed it was exempted from damages by its written disclaimer. The courts would

Accepted Answer

A)  exempt the cleaners from liability based on the exemption clause. 
B)  side with Lucy's claim for damages. 
C)  explain why the exemption clause would not apply. 
D)  require a reasonable explanation as to why the damage was not the result of negligence. 
E)  interpret the clause most strongly against the plaintiff. 
A)  exempt the cleaners from liability based on the exemption clause. 
B)  side with Lucy's claim for damages. 
C)  explain why the exemption clause would not apply. 
D)  require a reasonable explanation as to why the damage was not the result of negligence. 
E)  interpret the clause most strongly against the plaintiff.

Question 14

Define Bailment.

Accepted Answer

Bailment is a transfer or deposit of per

Question 15

A work associate leaves his bike each day in your garage while both of you commute to work in your car. (This associate pays $5 per day for riding in your car.) One day the bike is stolen out of your locked garage. Are you responsible for the loss of this bike?

Accepted Answer

A)  No, since it was gratuitous bailment with a low standard of care. 
B)  Yes, since it was stolen from your property. 
C)  No, because you met the standard of care required. 
D)  Yes, because your home owner's insurance will pay for it. 
E)  No, because your work associate automatically assumed this risk. 
A)  No, since it was gratuitous bailment with a low standard of care. 
B)  Yes, since it was stolen from your property. 
C)  No, because you met the standard of care required. 
D)  Yes, because your home owner's insurance will pay for it. 
E)  No, because your work associate automatically assumed this risk.

Question 16

Which of the following is TRUE regarding bailments?

Accepted Answer

A)  A change of ownership does not occur; the bailee is only putting his property in the bailor's custody. 
B)  The courts want to keep contracts alive so they will often rescind a bailment. 
C)  If Sally were suing her dry cleaners for the loss of her coat, Sally must prove that the dry cleaners were negligent. 
D)  John put his house under the care of a neighbour until he returns from vacation. For John to take custody of it again is an example of a bailment. 
E)  Under a bailment arrangement there can arise a time when the possessor can sell the goods against the owner's wishes. 
A)  A change of ownership does not occur; the bailee is only putting his property in the bailor's custody. 
B)  The courts want to keep contracts alive so they will often rescind a bailment. 
C)  If Sally were suing her dry cleaners for the loss of her coat, Sally must prove that the dry cleaners were negligent. 
D)  John put his house under the care of a neighbour until he returns from vacation. For John to take custody of it again is an example of a bailment. 
E)  Under a bailment arrangement there can arise a time when the possessor can sell the goods against the owner's wishes.

Exam 17: Leasing and Bailment

Jim's neighbour barrows a card table and four chairs for a party that Jim and his wife will be attending. Regarding the table and chairs, the neighbour

Which of the following statements describes when a bailee may return goods of the same description but not the identical goods?

Identify which of the following statements correctly describes a hire- purchase agreement?

The tax advantage in leasing arrangements is most apparent

A reason to sue for breach of a contract of bailment rather than for negligence is that in a contract of bailment:

Which of the following have the right to a lien over the goods to pay for services?

Under the rules of what general area of law is there a duty imposed on all bailees to take care of property bailed to them?

If goods are damaged while in the possession of a bailee, the bailee is strictly liable.

Hilda rented a hospital bed from Medical Leasing Co. for her bedridden father. In the contract she was referred to as the and Medical Leasing was referred to as the .

Regarding bailments, which of the following is TRUE?

Define Bailment.

A work associate leaves his bike each day in your garage while both of you commute to work in your car. (This associate pays $5 per day for riding in your car.) One day the bike is stolen out of your locked garage. Are you responsible for the loss of this bike?

Which of the following is TRUE regarding bailments?

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

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Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

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Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

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Government Regulation of Business

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