Question 1

Rhonda is a server in a restaurant.One day she finds a purse while clearing a table.The purse is most likely

Accepted Answer

A) lost property. 
B) mislaid property. 
C) treasure trove. 
D) abandoned property. 
A) lost property. 
B) mislaid property. 
C) treasure trove. 
D) abandoned property.

Question 2

Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant.Even though no employee of the restaurant is present,the provision of the cloakroom makes Jerry think it will be safe.In this situation,the restaurant is the bailor of Jerry's coat.

Accepted Answer

A) True 
 B)False

Question 3

In the Tannenbaum v.New York Dry Cleaning,Inc.case,

Accepted Answer

A) there was a bailment for hire, and the fact that the bailee was unable to return the bailed item except in a damaged condition created an irrebuttable presumption that the damage to the item was attributable to the bailee's negligence. 
B) the court stated that a company cannot, under New York law, use an exculpatory clause to relieve itself from liability for the consequences of its own negligence. 
C) the court found that the claimant was not bound by the terms of the dry cleaning company's limitation clause because, even if it applied to the situation before the court, the claimant had not read the clause nor had he assented to its terms. 
D) the court found that the claimant was negligent in not reading the limitation clause on the back of his claim ticket, so he could not recover the cost of his shirt. 
A) there was a bailment for hire, and the fact that the bailee was unable to return the bailed item except in a damaged condition created an irrebuttable presumption that the damage to the item was attributable to the bailee's negligence. 
B) the court stated that a company cannot, under New York law, use an exculpatory clause to relieve itself from liability for the consequences of its own negligence. 
C) the court found that the claimant was not bound by the terms of the dry cleaning company's limitation clause because, even if it applied to the situation before the court, the claimant had not read the clause nor had he assented to its terms. 
D) the court found that the claimant was negligent in not reading the limitation clause on the back of his claim ticket, so he could not recover the cost of his shirt.

Question 4

Sarah works for a company that has offered a promotion if she was willing to relocate.Sarah accepted the position and put her house on the market right away.She sold her house the first day that the realtor held an open house.The buyer agreed to pay cash for the full purchase price of the house.Sarah was thrilled,except that it meant that she would have to put her furniture in storage until she found another house in her new city.She entered into a written contract with Safe Storage,Inc.The agreement included a clause excusing Safe Storage,Inc.from any liability for loss or damage,even if the loss or damage resulted from Safe Storage's negligent acts.Because of Self Storage's negligence,a fire destroyed the warehouse and all of its contents,including Sarah's household goods and furniture.Sarah claims that Safe Storage,Inc.is liable for the full value of the contents,which is approximately $10,000.Is Sarah correct?

Accepted Answer

A) Yes, because storage warehouses are strictly liable for loss or damage, regardless of fault and regardless of exculpatory clauses. 
B) No, because there was equal bargaining power between Sarah and Safe Storage, Inc. 
C) Yes, because exculpatory clauses are illegal and never enforceable. 
D) Probably, because often a court will reject an exculpatory clause against a bailor who is a consumer. 
A) Yes, because storage warehouses are strictly liable for loss or damage, regardless of fault and regardless of exculpatory clauses. 
B) No, because there was equal bargaining power between Sarah and Safe Storage, Inc. 
C) Yes, because exculpatory clauses are illegal and never enforceable. 
D) Probably, because often a court will reject an exculpatory clause against a bailor who is a consumer.

Question 5

A bailment is different from a gift because

Accepted Answer

A) a gift requires consideration, but a bailment does not. 
B) a gift requires delivery, but a bailment does not. 
C) in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee. 
D) a gift is always a contract, but a bailment is generally not a contract. 
A) a gift requires consideration, but a bailment does not. 
B) a gift requires delivery, but a bailment does not. 
C) in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee. 
D) a gift is always a contract, but a bailment is generally not a contract.

Exam 43: Personal Property and Bailment

Rhonda is a server in a restaurant.One day she finds a purse while clearing a table.The purse is most likely

Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant.Even though no employee of the restaurant is present,the provision of the cloakroom makes Jerry think it will be safe.In this situation,the restaurant is the bailor of Jerry's coat.

In the Tannenbaum v.New York Dry Cleaning,Inc.case,

A bailment is different from a gift because

Introduction to Law

Business Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Cyberlaw and Privacy

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third Parties

Performance, Breach and Discharge

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants' Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: LLCs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant

Planning for the Future: Estates and Insurance

Filters