Quiz 32: Nature and Types of Bailments

Both real and personal property can be the subject of a bailment.

Taking your clothes or other personal belongings to a dry cleaner is an example of a mutual benefit bailment.

A bailment transfers both possession and ownership of the property.

Rental of any type of personal property is a bailment.

Bailments can be created only by express agreements of the parties.

Both parties benefit from a gratuitous bailment.

If the bailed property is severely damaged or if it is destroyed, the bailment is ended.

A bailment by necessity is a constructive bailment.

A college that operates a dormitory is considered a hotelkeeper.

A special bailee can limit its liability for damage to bailed property provided it notifies the bailor.

If a bailor fails to pack goods properly, a common carrier would not be liable for damage that results from the improper packing.

A special bailee is never responsible for damage resulting from a natural disaster.

Hotelkeepers often provide a safe in which guests can store valuables, money, jewelry, or important documents.

A common carrier is one that transports goods or passengers for anyone who wishes to hire it.

Contract carriers are special bailees.

If you rent a television set and then take it in for repairs, you are A) a bailor. B) a bailee. C) both bailor and bailee. D) none of these.

The subject of a bailment could be A) a bicycle. B) a jacket. C) a set of china. D) all of these.

For a bailment to exist, there must be A) a transfer of possession. B) a transfer of title. C) a transfer of real property. D) none of these.

In a bailment, the A) bailor must own the bailed property. B) bailed property must be personal property. C) title to the goods is temporarily transferred. D) bailee must be an adult.

You drive your car to a service station for repairs. This is A) a bailment for the benefit of the bailee. B) a bailment for the benefit of the bailor. C) a mutual benefit bailment. D) a gratuitous bailment.

A bailment implied in fact arises by A) written agreement. B) oral agreement. C) both written and oral agreement. D) acts of the parties.

A bailment implied by law A) is a result of an express agreement. B) must contain all the essential elements of a contract. C) occurs when you check a coat with a cloakroom attendant. D) occurs when you find a lost necklace.

A bailment usually ends A) when the agreement provides. B) when the parties agree it should end. C) when the bailed property is destroyed. D) in any of these situations.

If bailed property is destroyed because of the bailee's negligence, the result is that the A) bailment ends. B) bailment continues. C) bailee is liable to the bailor for damages. D) bailment ends and that the bailee is liable to the bailor for damages.

A constructive bailment means A) that the bailee must exercise reasonable care. B) that the bailee must return lost or stolen property to its rightful owner. C) that the bailee may sell the property if it is not claimed. D) all of these.

The degree of care imposed on a special bailee is A) great care. B) slight care. C) reasonable care. D) extraordinary care.

A railroad would not be liable as an insurer of a passenger's baggage if the baggage were stolen or destroyed by A) an invading army. B) a group of angry rioters. C) railroad employees. D) hijackers.

A railroad would not be liable for injuries to a passenger caused by A) a washout of the tracks by a tornado. B) an accident resulting from defective brakes. C) failure of the engineer to spot a vehicle on the tracks. D) all of these.

An example of an act of God is a A) loss of electric power. B) hurricane. C) bridge collapse. D) fire.

A person who rents a room from a hotelkeeper for a short time is called a A) transient. B) business guest. C) boarder. D) patron.

A boardinghouse keeper's obligations include A) those of an ordinary bailee. B) offering accommodations to permanent residents. C) the right not to accept everyone who applies. D) all of these.

During a three-day stay at the Empire Hotel, Liz Bailey, a guest, suffered the loss of her traveling case and a suit from her room. The Empire Hotel will be liable for this loss if it resulted from A) theft by a public enemy. B) Bailey's failure to lock her room. C) fire caused by lightning. D) theft by a hotel employee.

A hotelkeeper's right to keep the property of a guest until paid is known as A) hotelkeeper's bailment. B) demurrage. C) hotelkeeper's lien. D) innkeeper's judgment.

An independent trucker is classified as a A) consignor. B) consignee. C) contract carrier. D) public carrier.

A common carrier's liability begins when the goods are A) delivered to the carrier. B) placed on the truck, train, or airplane. C) en route. D) unloaded by the consignee.

A bailment in which only one party to the bailment, but not both benefits is called a(n) ____________________.

By exercising a(n) ____________________, the bailee may retain possession of the bailed property until paid for work or services.

Renting a store would not be a bailment because it involves ____________________ property.

A bailment that benefits only one party is known as a(n) ____________________ bailment.

Depositing money in a checking account at the bank results in a(n) ____________________ relationship.

Special bailees are required to use ____________________ care.

A person who enters a hotel simply to have dinner in its restaurant is considered to be a(n) ____________________.

A hotelkeeper is prohibited from discriminating against potential guests by the ____________________ Act.

The receipt a consignor receives upon shipping goods is a(n) ____________________.

A carrier may make a special charge called a(n) ____________________ for delays caused by the consignor or the consignee.

Vinson left a sewing machine with Adams Repair Shop to have the motor replaced. In spite of a burglar alarm system, thieves broke into the shop and stole most of the items, including Vinson's sewing machine. Is the repair shop liable for the loss of the sewing machine?

Blair took his motorcycle to Ace Services for repair. If Blair fails to pay for the repairs, what action may Ace take and on what basis?

Barnett went to the library and took out four books to read within two weeks. Has Barnett entered into a bailment?

Harris Manufacturing delivered goods to a railroad for shipment to a customer. While in transit, the goods were destroyed in a fire caused by lightning. Is the railroad liable for the loss?

Evans failed to pay his hotel bill. The manager of the hotel took possession of Evans's belongings and refused to give them back until the bill was paid. What are Evans's rights?