Deck 25: Bailments

Question 1

A bailment is created when the parking lot attendant actually takes control of the vehicle.

Answer 1

True

Question 2

In all bailments,the bailee must return the identical goods.

Answer 2

False

Question 3

A bailment is a special kind of contract that is widely used in business and in:

A) personal affairs.
B) cultural activities.
C) academic research.
D) charitable institutions.

Answer 3

A

Question 4

A bailment for the sole benefit of a bailor requires extraordinary care in taking care of the article by the bailee.

Question 5

A carrier,in most cases,has a right to hold a shipment until payment is made.

Question 6

An agreement reached between a bailor and a bailee is a:

A) mortgage.
B) bailout.
C) bailment.
D) codicil.

Question 7

Taking clothes to a dry cleaner transfers possession,but not ownership of the clothes.

Question 8

In a bailment for the sole benefit of a bailee,both the bailor and the bailee get the benefit.

Question 9

A bailment is a special kind of contract that is widely used in business and not in personal affairs.

Question 10

In bailment for work and services,a bailor-bailee relationship is concerned with the care of the property.

Question 11

The bailor does not have the duty to warn the bailee of any defects in the property that could cause harm.

Question 12

A transaction in which an owner of a tangible personal property transfers the property to another party while still retaining ownership of such property is known as a:

A) bailment.
B) pledge.
C) hypothecation.
D) lease.

Question 13

Anyone in possession of goods can create a bailment relationship and become a(n):

A) bailee.
B) bailor.
C) executor.
D) administrator.

Question 14

Actual ownership of goods is necessary to create a bailment.

Question 15

A bailment allows an owner of a personal property to transfer possession of it to another individual for any one of the following purposes,EXCEPT:

A) sale.
B) transportation.
C) storage.
D) lease.

Question 16

There are instances in which goods are thrust upon a bailee who does not have any choice about whether or not he or she wishes to serve as bailee.

Question 17

A warehouser is not responsible for goods left in storage.

Question 18

The person who ships goods is known as a consignor.

Question 19

A bailee's lien is a claim against the property of another as security for a debt.

Question 20

The person who retains ownership and transfers possession is the bailor and the person who receives the goods is the bailee.

Question 21

The law concerning bailments provides for certain rights and duties of both bailor and bailee,depending on the:

A) amount of the transactions.
B) nature of the business.
C) kind of bailment.
D) competency in the market.

Question 22

An agreement in which a friend repairs your power drill without charging is a bailment for the:

A) sole benefit of the bailee.
B) sole benefit of the bailor.
C) benefit of both the parties.
D) benefit of bailee's heirs.

Question 23

A bailee in a bailment for work and services is entitled to hold and,if necessary,sell the property if the bailor does not pay for the services or work done.This provision of law is known as a(n):

A) bailee's lien.
B) equitable lien.
C) diem lien.
D) matthew lien.

Question 24

The common carrier delivers the goods to the party designated by the shipper,known as the:

A) warehouser.
B) innkeeper.
C) trustee.
D) consignee.

Question 25

The law requires that a common carrier must accept all shipments that it is authorized to:

A) purchase.
B) handle.
C) hypothecate.
D) pledge.

Question 26

Whenever one person turns over property to another with the understanding that certain work is to be performed on the property,a ___________ for work and services is created.

A) hypothecation
B) pledge
C) bailment
D) mortgage

Question 27

A bailment in which both the bailee and bailor derive some benefit,and,as a result,each has rights and duties,is known as a:

A) bailment for the sole benefits of the bailor.
B) mutual-benefit bailment.
C) bailment for the sole benefits of the bailee.
D) constructive bailment.

Question 28

The contractual relationship in a bailment for work and services is concerned with the kind and the quality of work done and the payment for services:

A) disaffirmed.
B) assigned.
C) ratified.
D) performed.

Question 29

Withholding payment for transportation charges enables a carrier to hold goods on the basis of:

A) carrier's lien.
B) matthew lien.
C) diem lien.
D) equitable lien.

Question 30

An individual or firm in the business of transporting goods between certain points as allowed by the various state commissions that regulate the carriers is known as a:

A) business carrier.
B) government carrier.
C) public carrier.
D) common carrier.

Question 31

An agreement in which a suitcase is left with a railroad station checkroom is a:

A) bailment for the sole benefit of the bailee.
B) bailment for the sole benefit of the bailor.
C) mutual-benefit bailment.
D) constructive bailment.

Question 32

A bailment in which only the person who borrows an article (bailee)gets the benefit is known as a:

A) bailment for the sole benefit of the bailee.
B) bailment for the sole benefit of the bailor.
C) mutual-benefit bailment.
D) constructive bailment.

Question 33

A guest whose stay is relatively uncertain is known as a:

A) traveler.
B) customer.
C) transient.
D) temporary.

Question 34

A bailment for the sole benefit of a bailee usually results in a(n):

A) borrowing/lending transactions.
B) spring transactions.
C) declarative transactions.
D) autonomous transactions

Question 35

A common carrier bailment results when a person arranges for:

A) manufacturing of goods.
B) shipment of goods.
C) insurance of goods.
D) advertising of goods.

Question 36

In general,all of the following are requirements for a bailment,EXCEPT that the:

A) bailor must be in possession of goods.
B) bailee must intend to possess goods.
C) bailee must return identical goods.
D) actual ownership of goods is necessary.

Question 37

The transfer of goods from a bailor to a________ must actually take place.

A) landlord
B) bailee
C) lessee
D) tenant

Question 38

The kind of bailment created when a friend inadvertently leaves behind an article of jewelry in your home during a visit is a(n):

A) adversarial bailment.
B) declarative bailment.
C) mutual-benefit bailment.
D) constructive bailment.

Question 39

Under common law,a hotelkeeper's liability for a property of guests was near absolute,but state statutes today limit a hotel's liability to that of a(n):

A) insolvent.
B) ordinary bailee.
C) mortgagee.
D) lessee.

Question 40

Both individuals and businesses sometimes need to place articles in storage and they,thereby,enter into a bailment known as a:

A) constructive bailment.
B) common-carrier bailment.
C) bailment for storage.
D) parking-lot bailment.

Question 41

How is an agreement of bailment created?

Question 42

List the four different kinds of bailments.

Question 43

Explain mutual-benefit bailments.