Exam 43: Personal Property and Bailment

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California. As a bailee, Charles is automatically entitled to use Tuan's car while Tuan is away.

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon. This is a(n)

Jake owns an old piece of exercise equipment. He has been using the equipment merely to hang his clothes on, so Jake decides to get rid of the thing. He takes the unused exercise machine to the landfill and throws it off the back of the truck. Maggie, a teenager, is at the landfill rummaging for useful items. Maggie sees the exercise equipment and decides it is just the thing to give her sister for Christmas, so she decides to take it home. As she is loading it into the back of her pickup truck, Jake stops and tries to get it back. The landfill owner sees the commotion and decides he would like to have the equipment as well. Who has the best rights in the exercise equipment?

While shopping at the mall, Everett's wallet fell out of his pocket. Jon found the wallet. The wallet is abandoned property and Jon may keep it.

Sarah works for a company that has offered a promotion if she is willing to relocate. Sarah accepts the position and puts her house on the market right away. She sells her house the first day that the realtor holds an open house. The buyer agrees to pay cash for the full purchase price of the house. Sarah is thrilled, except that it means that she will have to put her furniture in storage until she finds another house in her new city. She enters into a written contract with Safe Storage, Inc. The agreement includes a clause excusing Safe Storage, Inc. from any liability for loss or damage, even if the loss or damage results from Safe Storage's negligent acts. Because of Self Storage's negligence, a fire destroys 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?

Select the correct answer:

Dersett Trucking hauls granite for the major granite companies in Minnesota. Dersett Trucking does not make its trucking services available to the general public. Dersett Trucking is a contract carrier and does not incur strict liability.

A bailment was created for the parties' mutual benefit. This means that the bailee must use ordinary care with the property.

Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?

Bruce tells his son, "You can have my 1990 truck, but if your grades fall, I'm taking it back." Bruce

Jeannie carelessly packed her grandmother's antique glassware and had it shipped to her 30-year-old daughter, Abby, via Common Freight Carriers. When the china arrived at Abby's house, most of the pieces were broken. As between Jeannie and Common Freight Carriers, who will bear the loss?

All bailments have to be by agreement between the bailor and bailee.

Alexander loans Miko his baking dish so she can make lasagna for dinner tonight for her family. What kind of bailment is this?

Jody loaned her neighbor, Phil, her snow blower. Phil set it near his driveway and later accidentally ran over and destroyed it. In a suit to recover damages, Jody as plaintiff has the burden of proving that Phil was negligent and caused the destruction of her snow blower.

Mega Corporation, the bailor, negotiates a bailment agreement with Huge Corporation, the bailee. Huge Corporation insists that an exculpatory clause be included in the terms and conditions of the bailment agreement. Later, Huge Corporation negligently (ordinary negligence, not gross negligence) damages the property that is the subject of the bailment. Most courts will allow Huge Corp. to stand behind its exculpatory clause and deny liability.

After a meeting with his advisor to register for a class at State University, Ron forgot his calculator in the dean's outer office. Theresa, another student, found the calculator. The calculator is treasure trove and Theresa may keep it.

Lacy set her textbook under her chair in her business law class and then forgot to take it with her when she left the classroom. A janitor later discovered the textbook and gave it to the Dean of the Business College. In this situation,

Distinguish between a contract and a gift. Give an example of each.

If one party makes accessions without agreement and the improvements can be "undone" without damaging the property, the improver must undo them.

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.