Deck 25: Bailments

Question 1

In a mutual-benefit bailment, the bailor does not have the duty to warn the bailee of any defects in the property that could cause harm.

Answer 1

False

Question 2

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

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

Answer 2

C

Question 3

In a common carrier bailment, the consignor, or shipper, turns over goods to a common carrier and a mutual-benefit bailment is created that is terminated only when the common carrier delivers the goods to the consignee.

Answer 3

True

Question 4

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

Question 5

In general in a bailment, the bailee must return the identical goods.

Question 6

Actual ownership of goods is necessary to create a bailment.

Question 7

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

Question 8

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, which is a type of a constructive bailment.

Question 9

A warehouser is not responsible for goods left in storage.

Question 10

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

Question 11

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

Question 12

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.

Question 13

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

Question 14

A bailment allows an owner of 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 15

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

Question 16

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

Question 17

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

Question 18

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

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

Question 19

A transaction in which an owner of 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 20

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

Question 21

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 22

A mutual-benefit bailment gives the carrier (the bailee) all of the following, EXCEPT:

A) the right to determine and enforce reasonable rules and requirements concerning the operation of its services.
B) the right to refuse to accept goods for any reason.
C) the right to payment for services provided.
D) the right to payment from either the consignor or consignee.

Question 23

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

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

Question 24

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 25

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 26

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

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

Question 27

In a bailment for the sole benefit of the bailee, the law generally expects the bailee to exercise ___________ care while in possession of the article.

A) great or extraordinary
B)reasonable
C) little
D) absolute

Question 28

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

Question 29

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 30

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

A) carrier's lien.
B) warehouser's lien.
C) proprietor's lien.
D) equitable lien.

Question 31

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 32

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 33

To create a bailment, the bailee must ______ to possess goods.

A) intend
B) ask
C) have ownership
D) desire

Question 34

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) promise
B) pledge
C) bailment
D) mortgage

Question 35

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) consignor's lien
D) bailor's lien.

Question 36

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 37

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

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

Question 38

An agreement in which a man borrows his friend's tuxedo 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 39

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

A) purchase.
B) handle.
C) sell.
D) lease

Question 40

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) financial positions of the parties.

Question 41

How is an agreement of bailment created?

Question 42

List the four different kinds of bailments.

Question 43

Explain mutual-benefit bailments.