Larry leaves his hat under the seat at the movie theater. Is this a bailment?
A) No, because the theater manager does not have physical possession of the goods.
B) No, because Larry did not pay the theater to keep his hat.
C) Yes, if the theater manager finds it.
D) Yes, since the theater controls the building.

Question

Quizplus · Accepted Answer

A bailment occurs when personal property is delivered to someone who must return it once the purpose of the bailment is completed. If the theater manager finds Larry's hat, it becomes a bailment because the manager then has physical possession of the hat with the obligation to return it to Larry.

Larry Leaves His Hat Under the Seat at the Movie