Deck 21: Bailments and the Storage, Shipment, and Leasing of Goods

Question 1

A carrier is anyone who possesses a document of title that is drawn to his order, indorsed to him, or made out "to bearer."

Answer 1

False

Question 2

In a bailment case, the plaintiff bailor has the burden of proving that a loss was caused by the defendant bailee's failure to exercise due care.

Answer 2

True

Question 3

The warehouser has no rights concerning the bailed goods.

Answer 3

False

Question 4

While a warehouser can have a lien, the carrier cannot.

Question 5

Bank safe deposit boxes are not bailments because both the bank and the bank customer must use their own keys to open the box.

Question 6

A warehouse receipt is a nonnegotiable document of title.

Question 7

If a document of title is negotiable and is duly negotiated, the purchaser can obtain rights greater than those of the storer or shipper.

Question 8

A delivery order is a document of title.

Question 9

The Calvin Klein Ltd. v. Trylon Trucking Corp case is about the liability of carrier.

Question 10

The warehouse must keep separate goods including fungible goods, covered by each warehouse receipt.

Question 11

The shipper is the entity hiring the one who transports the goods.

Question 12

A bailment is the relationship established when someone entrusts his property temporarily to someone else without intending to give up title.

Question 13

The carrier's absolute liability does not end when it has delivered the goods to the consignee's residence or place of business, unless the agreement states otherwise.

Question 14

A carrier who voluntarily delivers or unjustifiably refuses to deliver the goods loses its lien.

Question 15

To transfer title effectively through negotiation of the document of title, it must be "duly negotiated."

Question 16

A bailee owns the bailed property but only until title is revested in the goods' owner.

Question 17

A bailment may involve both goods and real estate.

Question 18

A warehouser may sell stored goods to pay for storage charges.

Question 19

In a bailment, the bailee acquires possession and must return the identical object.

Question 20

Roger finds a rowboat floating down the stream in his back yard. Roger is a bailee.

Question 21

A _____ is a written description, identification, or declaration of goods authorizing the holder, usually a bailee, to receive, hold, and dispose of the document and the goods it covers.

A) commodity paper
B) bill of lading
C) waybill
D) delivery order
E) letter of credit

Question 22

Roxanne rented a floor sander from Hardware Store. A consumer rental does not create a bailment.

Question 23

The _____ governs receipts for stored agricultural products.

A) Underwood Tariff Act
B) Agricultural Act of 1954
C) United States Warehouse Act
D) Agricultural Appropriation Act, 1940
E) Agriculture Regulatory Act

Question 24

A(n) _____ is a company who undertakes for hire to transport the goods of another.

A) holder
B) warehouser
C) common carrier
D) shipper
E) private carrier

Question 25

A bailor cannot be liable to the bailee regarding the bailed goods.

Question 26

Warehouse receipts may pass through the channels of commerce like cash.

Question 27

The Calvin Klein Ltd. v. Trylon Trucking Corp. is a case about _____.

A) storage of goods
B) mechanic's lien
C) carrier's liability
D) bailee's compensation
E) rights of a warehouser

Question 28

The Carr v. Hoosier Photo Supplies, Inc. case is about _____.

A) storage of goods
B) mechanic's lien
C) limitations of a liability
D) bailee's liability
E) rights of a warehouser

Question 29

A _____ is the entity hiring the one who transports the goods.

A) warehouser
B) shipper
C) bailee
D) holder
E) carrier

Question 30

A _____ is anyone who possesses a document of title that is drawn to his order, indorsed to him, or made out "to bearer."

A) bailee
B) carrier
C) holder
D) shipper
E) warehouser

Question 31

Connie left her coat on a coat rack near the booth in a café where she had lunch. The café is a bailee.

Question 32

"If the bailment is for the sole benefit of the owner (the bailor), the bailee is answerable only for gross neglect or fraud: the duty of care is slight." Which of the following examples best illustrates this statement?

A) You take your suit jacket to a dry cleaner.
B) You park your car in a commercial parking lot.
C) A friend asks if she can borrow your party canopy.
D) Your neighbor allows you to store your antique car in her garage..
E) Your neighbor asks you to let him borrow your car because his car is in the shop.

Question 33

In law, a _____ is the hold that someone has over the property of another.

A) document of title
B) lien
C) bill of lading
D) bearer paper
E) bail

Question 34

Explain the tripartite division of responsibility that most courts use.

Question 35

A _____ takes on the burden of being responsible to return the goods to their owner.

A) warehouser
B) shipper
C) bailee
D) holder
E) common carrier

Question 36

A _____ is defined by the Uniform Commercial Code as a person engaged in the business of storing goods for hire.

A) bailor
B) carrier
C) shipper
D) warehouser
E) holder

Question 37

Daniel took his tuxedo to the dry cleaner but when he returned for it, it could not be found. Daniel, as the plaintiff, has the burden of proof to show the dry cleaner was negligent.

Question 38

A carpenter builds a room next to the garage of your house. In case you fail to pay him, he can start foreclosure proceedings. What is this an example of?

A) A bearer's bond
B) A bailment
C) An enforcement
D) A negotiation
E) A mechanic's lien

Question 39

Due negotiation is:

A) an encumbrance upon property to secure payment.
B) a claim allowed to one who furnishes labor, services, or materials to improve property.
C) a loan or cash advance secured by commodities, bills of lading, or warehouse receipts.
D) the transfer of commercial paper to a legitimate transferee, usually by indorsement.
E) a written document for items warehoused, serving as evidence of title to the stored goods.

Question 40

A _____ is any document that evidences the receipt of goods for shipment issued by a person engaged in the business of transporting or forwarding goods.

A) waybill
B) letter of credit
C) packing list
D) delivery order
E) bill of lading

Question 41

What is a "lien"?