Question 1

Hotel operators can limit their liability for any loss or damage to their guests' personal property

Accepted Answer

Hotel operators can limit their liability for any loss or damage to their guest's personal property by providing a safe for their guests' valuables in many states, under state statutes that limit liability for articles not kept in a safe, and in the absence of negligence. Therefore, all the choices are correct.

Question 2

In a bailment, in some circumstances, the dollar amount of liability for any loss or damage to bailed goods can be limited by

Accepted Answer

All of the choices listed (common carriers, warehouse companies, and ordinary bailees) can, under certain circumstances, limit their liability for loss or damage to bailed goods. This limitation is often subject to specific conditions and regulations, and may require clear communication or agreement with the bailor.

Question 3

In a bailment, strictly liable for any loss or damage to bailed goods are

Accepted Answer

Common carriers are strictly liable for any loss or damage to bailed goods. This means that they are responsible for any losses regardless of whether or not they are at fault. Warehouse companies and ordinary bailees may also be liable for losses or damages, but their level of responsibility can depend on the terms of the bailment agreement and any negligence on their part. Therefore, A is the best choice because common carriers have the highest level of liability in a bailment.

Question 4

On Demi's authorization, Engine Work Inc. repairs her car. She refuses to pay for the job. Engine Work can

Accepted Answer

Engine Work Inc. has the right to keep the car as security until Demi pays the repair bill. Placing a lien on the car is a legally permissible action. However, undoing the repair and keeping the car or using the car for any purpose is not legal.

Question 5

Arnold wants to give Beth a pearl necklace that he has in his safe deposit box at Capital Bank. The bank is closed for a holiday. Arnold gives Beth a key to the box and tells her to go to the bank after the holiday and take the necklace. Beth does this. The next day, Arnold dies unexpectedly. His heirs want the necklace. Can Beth keep the necklace? Explain.

Accepted Answer

The answer of Arnold wants to give Beth a pearl...

Question 6

Leo borrows Mae's car to drive Nina to the airport. Considering the purpose of the bailment, Leo has the right to

Accepted Answer

Leo has the right to use the bailed property (Mae's car) for the specific purpose of driving Nina to the airport. This is the purpose of the bailment and Leo has implied permission from Mae to use the car for this purpose. Therefore, Leo is not entitled to compensation from Nina (as he is not providing her with a service), nor is he entitled to reimbursement for parking costs (as this is not a necessary expense for the bailment).

Question 7

Delivery Service Inc. agrees to pick up a truckload of merchandise for Exporters Corporation and store the contents to be delivered later. Delivery's obligation to deliver the load to Exporters is excused if the contents are

Accepted Answer

The answer of Delivery Service Inc. agrees to pick up...

Question 8

Carrier Inc. agrees to pick up two truckloads of housewares for Discount Corporation and store the contents to be delivered later. After Carrier unloads the goods at its warehouse, some of them disappear from the loading dock. A court will presume that

Accepted Answer

A court will presume that Carrier was negligent because they had custody of the goods and are responsible for their safekeeping.

Question 9

Gene leaves her Honda Fit with In-Town Motors for routine maintenance. On its return, the interior of the car is greasy and the exterior is scratched and dented. Who suffers the loss and why?

Accepted Answer

The answer of Gene leaves her Honda Fit with In-Town...

Question 10

Earth Farm arranges to have Fresh Express Inc., a common carrier, transport a load of almonds. Fresh Express will be liable for any loss or damage to the almonds

Accepted Answer

The answer of Earth Farm arranges to have Fresh Express...

Question 11

A court may use the identity of the party who receives a benefit from an ordinary bailment to determine, with respect to the bailed property, the standard of

Accepted Answer

The identity of the party who receives a benefit from an ordinary bailment is important because it determines the level of care required of the bailee. If the bailee is receiving a benefit from the bailment, then he or she is expected to exercise a higher standard of care than if there is no benefit. This is known as the "standard of care of a bailee for hire." Therefore, the answer is C - care required of the bailee.

Question 12

A large sign at the entrance to Fitness Club states in bold red letters that "the club is not responsible for any loss due to theft." Most likely, with respect to limiting the club's liability, this sign is

Accepted Answer

The answer of A large sign at the entrance to...

Quiz 41: Personal Property and Bailments