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Exam 37: Bailments

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Question 31

Multiple Choice

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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.

E) A) and D)
F) A) and B)

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Question 32

Multiple Choice

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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.

E) All of the above
F) None of the above

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Question 33

Multiple Choice

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

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.

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

A bailment agreement can be express or implied.

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

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

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

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

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

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

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

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

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

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

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

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

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