Deck 37: Bailments

Question 1

A bailee has a right to the reimbursement of costs incurred in keeping the bailed property.

Answer 1

True

Question 2

Many bailments do not include all of the elements of a contract.

Answer 2

True

Question 3

Intangible personal property may be bailed.

Answer 3

True

Question 4

For delivery to occur, the bailee must be given exclusive possession and control over the property.

Question 5

Most bailments are ordinary.

Question 6

If the property is stolen, the bailee forfeits the right to its possession.

Question 7

To create a bailment, the property must be delivered to the bailor .

Question 8

On completion of a bailment, the bailee may dispose of the property at will.

Question 9

A person can be the subject of a bailment.

Question 10

The bailee must exercise reasonable care in preserving the bailed property.

Question 11

A bailment need not include an agreement for the return or disposal of the property.

Question 12

To become a bailment, the property involved must be real property or personal property.

Question 13

A bailment is created even though the bailor did not voluntarily deliver the property to the bailee.

Question 14

The bailee has no right to limit his or her liability for the bailed goods.

Question 15

Only physical delivery will result in the bailee's exclusive possession and control over the property.

Question 16

A bailment agreement can be express or implied.

Question 17

The bailee has no right to receive some form of compensation for the bailment.

Question 18

A bailment is formed by the delivery of personal property, without transfer of title, by one person to another.

Question 19

Most bailments are distinguished according to which party receives a benefit from the bailment.

Question 20

A limit on liability for the bailed goods is contrary to public policy.

Question 21

Hotel operators are not liable for any loss or damage to their guests' personal property .

Question 22

Only the bailor can recover damages from any third party for loss or damage to the property.

Question 23

Common carriers can limit the value of the property that they will transport.

Question 24

Darryl loans his football to Evie under an agreement to return the football in a week. This is

A) a bailment.
B) a contract.
C) a gift.
D) conversion.

Question 25

In some special types of bailments, the bailee's duty of care is extraordinary.

Question 26

If a bailee fails to take appropriate care of the bailed property, he or she may be liable for negligence.

Question 27

The bailee is excused if the bailed property is destroyed through no fault of the bailee.

Question 28

Brody hires Cartage Company to transport office furniture from Brody's home office in Seattle to a branch office in Tucson. The bailee is

A) Brody.
B) Cartage.
C) the office in Tucson.
D) the home office in Seattle.

Question 29

With respect to bailed goods, common carriers are subject to a standard of reasonable care .

Question 30

Floyd delivers his suit to Goody's Laundry for dry cleaning. This is

A) a bailment and a contract.
B) a bailment, but not a contract.
C) a contract, but not a bailment.
D) none of the choices.

Question 31

Failure to give up possession at the time the bailment ends could result in an action based on the bailee's negligence.

Question 32

In a bailment for the sole benefit of the bailee , the bailee will be liable for even slight negligence in caring for the bailed property.

Question 33

Warehouse companies are only liable for loss or damage to bailed property resulting from negligence.

Question 34

If the bailed property has been lost, a court will presume that the bailee was negligent.

Question 35

Nan asks Otto if she can store her car in his garage while she serves in the U.S. Army. He agrees. This is

A) a bailment.
B) a contract.
C) a gift.
D) conversion.

Question 36

A bailment for the mutual benefit of the bailee and the bailor is the least common type of bailment.

Question 37

In a bailment for the sole benefit of the bailor , the bailee need not exercise even a slight degree of care in preserving the bailed property.

Question 38

Kim allows Lee Ann to store her trailer on Kim's property for $50 a month while Lee Ann is out of town on a job for Marketing Inc., her employer. The bailor is

A) Kim.
B) Lee Ann.
C) Marketing Inc.
D) no one.

Question 39

In a bailment for the mutual benefit of the bailee and the bailor, the bailee must exercise ordinary care in storing items or holding property.

Question 40

If the bailed property has been lost, a court will presume that the bailor was negligent.

Question 41

A court may use the identity of the party who receives a benefit from an ordinary bailment to determine, with respect to the bailed property, the standard of

A) negligence to be applied to the deal.
B) proof required to show loss or damage.
C) care required of the bailee.
D) quality expected by the bailee.

Question 42

Leon borrows Mike's car to drive Nina to the airport. Considering the purpose of the bailment, Leon has the right to

A) compensation from Nina.
B) reimbursement from Mike for any parking costs.
C) use the bailed property.
D) sell the bailed property.

Question 43

After agreeing to rent a car from Drive-a-Round Inc., Eden is given the keys to one of the agency's cars by Fess, a Drive-a-Round employee. With respect to the bailed property, this is

A) a physical delivery.
B) a constructive delivery.
C) an involuntary delivery.
D) not a delivery.

Question 44

Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is

A) a bailment.
B) a contract.
C) a gift.
D) conversion.

Question 45

Fact Pattern 37-1 Carrier Inc. agrees to pick up two truckloads of goods for Discount Corporation and store the contents to be delivered later.
Refer to Fact Pattern 37-1. Carrier's obligation to deliver the goods to Discount is excused if the goods were

A) any of the choices.
B) lost through no fault of Carrier.
C) stolen through no fault of Carrier.
D) claimed by a third party with a superior claim.

Question 46

Fact Pattern 37-1 Carrier Inc. agrees to pick up two truckloads of goods for Discount Corporation and store the contents to be delivered later.
Refer to Fact Pattern 37-1. Suppose that while Carrier unloads the goods at its warehouse, some of them disappear from the loading dock. A court will presume that

A) Carrier was negligent.
B) Discount was negligent.
C) the goods were stolen through no fault of Carrier.
D) the warehouse is in a high-crime area.

Question 47

Before entering the dining room in Ristorante Italiano, Sergio checks his coat in the lobby with a valet employed by the restaurant. In the coat's pocket is an iPhone. A bailment exists between the restaurant and its customer for

A) the coat only.
B) the phone only.
C) the coat and the phone.
D) neither the coat nor the phone.

Question 48

Kay and Lease-Away Inc. enter into a bailment involving the delivery of a moving van to Kay for her use. Unless stated otherwise, the agreement assumes that Kay will

A) return the van.
B) return the van or its equivalent.
C) retain the van.
D) none of the choices.

Question 49

The identity of the party who receives a benefit from an ordinary bailment dictates

A) the rights and liabilities of both parties.
B) the return or disposal of the bailed property at the end of the bailment.
C) the extent of the bailment period.
D) the length of the bailment period.

Question 50

Equipment Company leases a baler made by Farm Products Corporation to Great Harvest Inc., which contracts with farmers to work in their fields. The machine is damaged through Great Harvest's failure to exercise reasonable care. Most likely liable for the damage is

A) Equipment Company.
B) Great Harvest Inc.
C) both Great Harvest Inc. and Equipment Company.
D) Farm Products Corporation.

Question 51

Ollie takes a PowerMade-brand rototiller to QuikFix Inc. for repairs. Lacking certain parts, QuikFix ships the rototiller to Repair Company. While in Repair's possession, the machine is damaged by its failure to exercise the appropriate degree of care. QuikFix can recover for the damage from

A) no one.
B) Ollie.
C) PowerMade.
D) Repair Company.

Question 52

Robin stores her grain at a facility owned and operated by Silo Inc. At the end of the storage period, Silo must

A) return the exact same grain originally stored.
B) return the same grain or grain of the same type, grade, and quantity.
C) retain the grain.
D) none of the choices.

Question 53

For a transfer from one person to another to create a bailment, the transfer must

A) involve real or personal property, or a real person.
B) include a delivery of property.
C) mutually benefit both parties.
D) result in the disposal of the bailed property.

Question 54

A large sign at the entrance to Fitness Club states in bold red letters that "the club is not responsible for any loss due to theft." Most likely, with respect to limiting the club's liability, this sign is

A) effective.
B) not effective because it is against public policy.
C) not effective because it is an exculpatory cause.
D) not effective because an ordinary bailee cannot limit his or her liability.

Question 55

Tim visits Sheila. After Tim leaves, Sheila finds Tim's briefcase was left behind. This is

A) a physical bailment.
B) a voluntary bailment.
C) an involuntary bailment.
D) not a bailment.

Question 56

To become a bailment, a delivery of property from one person to another must

A) involve personal property.
B) include a transfer of title.
C) follow an exchange of consideration.
D) be subject to a written agreement.

Question 57

On Demi's authorization, Engine Work Inc. repairs her car. She refuses to pay for the job. Engine Work can

A) place a lien on it until Demi pays.
B) undo the repair.
C) use the car for any purpose.
D) none of the choices.

Question 58

Before going on a business trip involving a long plane flight, Gina leaves the key to her apartment with Harry. A bailment is created when

A) Gina delivers the key to Harry.
B) Harry enters Gina's apartment.
C) Gina arrives at the airport.
D) Harry returns the apartment to Gina.

Question 59

Ralph owns equipment, a pick-up truck, and stock in Rangeland Corporation, which owns and operates the Big R Ranch. Things capable of being involved in a bailment are

A) the equipment, the truck, and the stock.
B) the truck and the stock.
C) the equipment and the truck.
D) the truck only.

Question 60

One of the elements of a bailment is

A) it must contain only tangible , and not intangible , items.
B) non-exclusive possession of the bailed property by the bailee.
C) an agreement for the return or disposal of the bailed property.
D) conversion of the bailed property by the bailee.

Question 61

Logan borrows Morris's bike to ride over mountain trails on Steve's property . The bike is damaged during the ride by Logan's failure to exercise the required degree of care. Liable for the cost of repairing the bike is

A) Logan and Morris in equal measure.
B) Logan.
C) Morris.
D) Steve.

Question 62

Frenchy's Fast Fries (3F) requires that its employees wear uniforms and protective clothing while on the job. 3F provides a locker room for the employees to leave their street clothes and personal items while working. Grant, a 3F employee, changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his locker. Does Grant's leaving personal items in the locker room constitute a bailment? For whose benefit are the lockers provided and used?

Question 63

Eden Farms arranges to have Fresh Express Inc., a common carrier, transport a load of almonds. Fresh Express will be liable for any loss or damage to the almonds

A) under any circumstances.
B) unless the carrier exercised reasonable care.
C) unless the loss or damage is caused by a natural disaster.
D) under no circumstances.

Question 64

Mike delivers his shoes to Nathan for resoling. Nathan promises that the shoes will be ready within five business days. Mike agrees to pay the charge when he picks up the shoes. This is

A) an implied bailment.
B) an inferred bailment.
C) an express bailment.
D) not a bailment.

Question 65

Hotel operators can limit their liability for any loss or damage to their guests' personal property

A) in many states, by providing a safe for their guests' valuables.
B) under state statutes that limit the liability for articles not kept in a safe.
C) in the absence of negligence.
D) all of the choices.

Question 66

Dean discovers a fishing boat adrift, and retrieves and anchors it. The boat features a name and a number on its side and other evidence indicating its owner, Evelyn. This is not a bailment.

A) an involuntary bailment.
B) a voluntary bailment.
C) an express bailment.
D) not a bailment.

Question 67

Grey buys a bus ticket at a window in the Hound Dog Depot before checking his backpack and boarding a bus to Idaho. Subject to a bailment is

A) Grey.
B) Grey's backpack.
C) Grey's seat on the bus.
D) Hound Dog Depot.

Question 68

One morning, Ron agrees to lend his bike to Sam, who promises to return it in the evening. This is

A) a constructive bailment.
B) an involuntary bailment.
C) an express bailment.
D) not a bailment.

Question 69

Gene leaves her Honda Fit with Intown Motors for routine maintenance. On its return, the interior of the car is greasy and the exterior is scratched and dented. Who suffers the loss and why?

Question 70

Ruby stores her furniture with Stow-Away, Inc., under a contract that limits the dollar amount of its liability. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on

A) neither Ruby nor Stow-Away.
B) Ruby and Stow-Away in equal proportions.
C) Ruby only.
D) Stow-Away, subject to the contractual limitation.

Question 71

In a bailment, in some circumstances, the dollar amount of liability for any loss or damage to bailed goods can be limited by

A) common carriers.
B) warehouse companies.
C) ordinary bailees.
D) all of the choices.

Question 72

In a bailment, strictly liable for any loss or damage to bailed goods are

A) common carriers.
B) warehouse companies.
C) ordinary bailees.
D) all of the choices.