Deck 32: Nature and Types of Bailments

Question 1

A college that operates a dormitory is considered a hotelkeeper.

Answer 1

False

Question 2

For a bailment to exist, there must be

A) a transfer of possession.
B) a transfer of title.
C) a transfer of real property.
D) none of these.

Answer 2

A

Question 3

Hotelkeepers often provide a safe in which guests can store valuables, money, jewelry, or important documents.

Answer 3

True

Question 4

Rental of any type of personal property is a bailment.

Question 5

A special bailee is never responsible for damage resulting from a natural disaster.

Question 6

If a bailor fails to pack goods properly, a common carrier would not be liable for damage that results from the improper packing.

Question 7

If you rent a television set and then take it in for repairs, you are

A) a bailor.
B) a bailee.
C) both bailor and bailee.
D) none of these.

Question 8

A bailment transfers both possession and ownership of the property.

Question 9

Taking your clothes or other personal belongings to a dry cleaner is an example of a mutual benefit bailment.

Question 10

A common carrier is one that transports goods or passengers for anyone who wishes to hire it.

Question 11

Both parties benefit from a gratuitous bailment.

Question 12

A special bailee can limit its liability for damage to bailed property provided it notifies the bailor.

Question 13

If the bailed property is severely damaged or if it is destroyed, the bailment is ended.

Question 14

In a bailment, the

A) bailor must own the bailed property.
B) bailed property must be personal property.
C) title to the goods is temporarily transferred.
D) bailee must be an adult.

Question 15

Contract carriers are special bailees.

Question 16

You drive your car to a service station for repairs. This is

A) a bailment for the benefit of the bailee.
B) a bailment for the benefit of the bailor.
C) a mutual benefit bailment.
D) a gratuitous bailment.

Question 17

A bailment by necessity is a constructive bailment.

Question 18

Bailments can be created only by express agreements of the parties.

Question 19

The subject of a bailment could be

A) a bicycle.
B) a jacket.
C) a set of china.
D) all of these.

Question 20

Both real and personal property can be the subject of a bailment.

Question 21

An example of an act of God is a

A) loss of electric power.
B) hurricane.
C) bridge collapse.
D) fire.

Question 22

By exercising a(n) ____________________, the bailee may retain possession of the bailed property until paid for work or services.

Question 23

A hotelkeeper's right to keep the property of a guest until paid is known as

A) hotelkeeper's bailment.
B) demurrage.
C) hotelkeeper's lien.
D) innkeeper's judgment.

Question 24

A boardinghouse keeper's obligations include

A) those of an ordinary bailee.
B) offering accommodations to permanent residents.
C) the right not to accept everyone who applies.
D) all of these.

Question 25

A bailment usually ends

A) when the agreement provides.
B) when the parties agree it should end.
C) when the bailed property is destroyed.
D) in any of these situations.

Question 26

An independent trucker is classified as a

A) consignor.
B) consignee.
C) contract carrier.
D) public carrier.

Question 27

If bailed property is destroyed because of the bailee's negligence, the result is that the

A) bailment ends.
B) bailment continues.
C) bailee is liable to the bailor for damages.
D) bailment ends and that the bailee is liable to the bailor for damages.

Question 28

A railroad would not be liable as an insurer of a passenger's baggage if the baggage were stolen or destroyed by

A) an invading army.
B) a group of angry rioters.
C) railroad employees.
D) hijackers.

Question 29

A person who rents a room from a hotelkeeper for a short time is called a

A) transient.
B) business guest.
C) boarder.
D) patron.

Question 30

A common carrier's liability begins when the goods are

A) delivered to the carrier.
B) placed on the truck, train, or airplane.
C) en route.
D) unloaded by the consignee.

Question 31

A bailment implied in fact arises by

A) written agreement.
B) oral agreement.
C) both written and oral agreement.
D) acts of the parties.

Question 32

Depositing money in a checking account at the bank results in a(n) ____________________ relationship.

Question 33

A constructive bailment means

A) that the bailee must exercise reasonable care.
B) that the bailee must return lost or stolen property to its rightful owner.
C) that the bailee may sell the property if it is not claimed.
D) all of these.

Question 34

During a three-day stay at the Empire Hotel, Liz Bailey, a guest, suffered the loss of her traveling case and a suit from her room. The Empire Hotel will be liable for this loss if it resulted from

A) theft by a public enemy.
B) Bailey's failure to lock her room.
C) fire caused by lightning.
D) theft by a hotel employee.

Question 35

A bailment in which only one party to the bailment, but not both benefits is called a(n) ____________________.

Question 36

A railroad would not be liable for injuries to a passenger caused by

A) a washout of the tracks by a tornado.
B) an accident resulting from defective brakes.
C) failure of the engineer to spot a vehicle on the tracks.
D) all of these.

Question 37

The degree of care imposed on a special bailee is

A) great care.
B) slight care.
C) reasonable care.
D) extraordinary care.

Question 38

A bailment implied by law

A) is a result of an express agreement.
B) must contain all the essential elements of a contract.
C) occurs when you check a coat with a cloakroom attendant.
D) occurs when you find a lost necklace.

Question 39

A bailment that benefits only one party is known as a(n) ____________________ bailment.

Question 40

Renting a store would not be a bailment because it involves ____________________ property.

Question 41

A carrier may make a special charge called a(n) ____________________ for delays caused by the consignor or the consignee.

Question 42

Harris Manufacturing delivered goods to a railroad for shipment to a customer. While in transit, the goods were destroyed in a fire caused by lightning. Is the railroad liable for the loss?

Question 43

A person who enters a hotel simply to have dinner in its restaurant is considered to be a(n) ____________________.

Question 44

A hotelkeeper is prohibited from discriminating against potential guests by the ____________________ Act.

Question 45

The receipt a consignor receives upon shipping goods is a(n) ____________________.

Question 46

Barnett went to the library and took out four books to read within two weeks. Has Barnett entered into a bailment?

Question 47

Evans failed to pay his hotel bill. The manager of the hotel took possession of Evans's belongings and refused to give them back until the bill was paid. What are Evans's rights?

Question 48

Special bailees are required to use ____________________ care.

Question 49

Vinson left a sewing machine with Adams Repair Shop to have the motor replaced. In spite of a burglar alarm system, thieves broke into the shop and stole most of the items, including Vinson's sewing machine. Is the repair shop liable for the loss of the sewing machine?

Question 50

Blair took his motorcycle to Ace Services for repair. If Blair fails to pay for the repairs, what action may Ace take and on what basis?