Question 1

Which of the following characterizes a warehouseman?

Accepted Answer

A warehouseman has the right to terminate the storage contract if the goods are about to deteriorate. However, he is not a bailor of the stored goods, as he does not own them. He also has a lien against the goods to ensure payment for the storage services provided. Finally, a warehouseman has a duty to exercise reasonable care for the stored goods to avoid damage or loss.

Question 2

Gil has stolen a "Lancer" from Yu and changed the look and interior of the car. Gil is now using it for his personal purposes. After some months, Yu comes to know about his car and demands it back. However, Gil demands for the amount he spent on modifications. Can he recover it from Gil? Is Yu liable to pay that?

Accepted Answer

The answer of Gil has stolen a "Lancer" from Yu...

Question 3

In a bailment, the bailee is liable for loss or damage to the bailed property while it is in the hands of the bailee:

Accepted Answer

The general rule in a bailment is that the bailee is held responsible for any loss or damage that occurs to the bailed property while it is in their possession. However, the bailee will not be liable for damage or loss that is caused by events outside of their control, such as natural disasters or accidents. The bailee will only be liable if they intentionally caused harm or loss to the goods.

Question 4

Watley took his old bicycle to the municipal dump. Vandelay retrieved it from the dump and repaired it. Newman stole the bicycle from Vandelay's garage, made substantial improvements to it (the bicycle), and then sold it to Banya. Banya did not know that the bicycle had been stolen. Who owns the bicycle? Explain your reasoning.

Accepted Answer

The answer of Watley took his old bicycle to the...

Question 5

Kato checked out a book (Freeloading for Fun and Profit) from the library. While he was reading it, he discovered three $50 bills that had been left in the book. Is the money lost, mislaid, or abandoned property? Why is this determination significant?

Accepted Answer

The answer of Kato checked out a book (Freeloading for...

Question 6

Nina lent her car, which she knew had bad brakes, to Heidi. However, she did not inform the latter about the defect. As Heidi was driving down the highway, she met with an accident due to the faulty brakes. In this case:

Accepted Answer

Nina had a duty to inform Heidi of the defective brakes before lending her the car. By failing to do so, she breached her duty and is therefore liable for any injuries or damages caused by the defective brakes. Heidi did not have a duty to ask Nina about the brakes as she had a right to assume that the car was safe to drive. Therefore, option A is incorrect. Option C is incorrect as Heidi was not at fault for the accident and did not damage Nina's car intentionally. Option D is also incorrect as consideration is not a requirement for liability in this situation.

Question 7

While eating dinner at a restaurant, Elvis placed his backpack on an empty chair located next to his table. When Elvis left the restaurant, he forgot to pick up the backpack. A few minutes later, Priscilla discovered the backpack and took possession of it. What rights to the backpack do Elvis, Priscilla, and the restaurant have?

Accepted Answer

The answer of While eating dinner at a restaurant, Elvis...

Question 8

Chloe took her watch to a jeweler to have it repaired. While the jeweler had possession of the watch, a thief broke into the shop. The thief stole Chloe's watch and other items of jewelry. Which of the following is true?

Accepted Answer

This was a mutual benefit bailment because both Chloe and the jeweler benefitted from the repair of the watch. Therefore, the jeweler is liable to Chloe for the loss of the watch if he did not use reasonable care to protect it.

Question 9

Arthur borrows a new pair of stereo speakers from Jim, his classmate, who stays in the campus hostel. After about a week, he goes to the hostel and leaves the speakers with Ryan, who lives on the floor adjacent to Jim's, asking him to give them to Jim. Ryan forgets to do so and loses the speakers. In such a situation:

Accepted Answer

Arthur is liable to Jim as he is the bailee and responsible for the safe return of the speakers. Even though he left them with Ryan, it was his responsibility to ensure that they were given to Jim. Ryan may also be liable to Jim for negligence, but the primary responsibility lies with Arthur as the bailee.

Question 10

You need to drive to Spokane to pick up your parents. Your car is being repaired, and is therefore unavailable. You ask your good friend Ed if he will lend you his car. You take Ed's car and drive to Spokane. This is:

Accepted Answer

The bailment was made with the sole benefit for the person who borrowed Ed's car.

Question 11

What is the best possible solution for a bailee if there is a third-party, who claims to have superior rights to those of the bailor for possession of the bailed property?

Accepted Answer

Bringing the third-party claimant into a lawsuit along with the bailor is the best possible solution for a bailee if there is a third-party claiming possession of the bailed property. This way, the court can determine who has superior rights to the bailed property and the bailee can avoid liability for delivering the property to the wrong party. Giving the property to either the third-party or the bailor without resolving the conflict could result in the bailee being held liable for conversion by one of the parties involved. It is not always guaranteed that the bailee will get possession of the bailed property in such a situation.

Question 12

What is a lien?

Accepted Answer

A lien is a legal claim against a property that provides security for the payment of a debt or obligation. This means that if the debtor fails to repay the debt, the creditor may force the sale of the property to recover the owed amount. It is used as a way to ensure that the creditor is repaid for their services, such as when a bank issues a mortgage loan for a property or a mechanic fixes a car but the owner fails to pay for the repairs. A lien can also be placed by a government entity for unpaid taxes or fines.

Question 13

A hotelkeeper is liable for loss or damage to property if it can be proved that it was caused by:

Accepted Answer

The bailee, in this case the hotelkeeper, is liable for loss or damage to property only if it was caused by their own conduct, meaning their negligence or intentional act. The other options listed do not apply.

Question 14

In which of the following circumstances would the bailee be expected to exercise ordinary care?

Accepted Answer

When the bailment is a bailment for mutual benefit,the bailee is expected to exercise ordinary or reasonable care.

Question 15

What level of care must a bailee exercise in a bailment for his own exclusive benefit?

Accepted Answer

When a bailee is benefiting exclusively from a bailment, he/she is considered a gratuitous bailee. In this situation, the bailee owes a higher duty of care to the bailed property than ordinary care, which means the bailee must exercise a greater level of care than he/she would with his/her own property.

Question 16

Marjorie leaves her bag in the checkroom of a hotel which has an attendant. When she returns a few hours later, she finds her bag missing, the attendant on another duty, and a new sign outside the checkroom stating "Goods left at owner's risk". Which of the following is true if Marjorie tries to recover damages from the hotel?

Accepted Answer

A bailee's ability to be relieved of liability for negligence is limited.Any disclaimer must be communicated to the bailor at the time of the bailment,not after it.

Question 17

Which of the following characterizes common carriers?

Accepted Answer

Common carriers are typically near-absolute insurers of the goods they carry, meaning they are responsible for any losses or damages that may occur during transport. Private carriers, on the other hand, have a lower degree of responsibility and are not typically held to the same standard as common carriers. Additionally, common carriers often require a government license in order to operate legally. The ability to carry perishable goods is not necessarily tied to whether or not a carrier is a common carrier.

Question 18

Davidson borrowed a motorcycle from his friend, Harley. Harley did not know that the motorcycle had a defect that could cause the brakes to malfunction. While Davidson was riding the motorcycle, the brakes malfunctioned. This caused an accident and Davidson was injured. What duty of care, if any, did Harley owe to Davidson under the traditional common law rule?

Accepted Answer

Under the traditional common law rule, a bailor owes a duty to inform a bailee of any known defects in the property bailed when the bailment is for the benefit of the bailee. In this case, Harley loaned the motorcycle to Davidson, which was a bailment for the benefit of Davidson. Therefore, Harley had a duty to inform Davidson of any known defects in the motorcycle, including the potential brake malfunction.

Question 19

Wilma, who thought she had a terminal disease, signed over the title to her new Cadillac to her cousin, Kenny, and told him that she wanted him to have the car "after I'm gone." Kenny took the keys and began to use the car. A week later, Wilma was told that her diagnosis had been an error, and that she was not terminally ill. Wilma wants her car back. Can she recover it from Kenny? Why or why not?

Accepted Answer

The answer of Wilma, who thought she had a terminal...

Question 20

Boris borrowed Martha's lawnmower to cut his grass. Boris will be liable for damage to the lawnmower if he:

Accepted Answer

Boris will be liable for damage to the lawnmower if he did not use greater than ordinary care to protect it. This is because Boris has a duty to take reasonable care of someone else's property that has been entrusted to him. If he fails to take such care and damages the property, he will be liable for the cost of repair or replacement.

Quiz 23: Personal Property and Bailments