# Business Law and the Legal Environment Study Set 1

## Quiz 21 :Personal Property and Bailments

Question Type
Newman underwent physical therapy at Physical Therapy Associates of Rome, Inc. (PTAR), in Rome, Georgia, for injuries sustained in an auto accident. At a therapy session on February 6, it was necessary for Newman to take off two necklaces. She placed one of the necklaces on a peg on the wall in the therapy room, and the therapist placed the other necklace on another peg. After the session, Newman forgot to retrieve her jewelry from the wall pegs. When she called the next day for the forgotten jewelry, it could not be found. She sued PTAR for the value of the jewelry on a bailment theory. PTAR raised the defense that there was no bailment because Newman retained the right to remove the jewelry from the wall pegs. Decide. [Newman v Physical Therapy Associates of Rome, Inc. 375 SE2d 253 (Ga App)]
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Essay

Refer to the case Newman v Physical Therapy Associates of Rome, Inc. (375 SE2d 253) to answer question as below.
Trial court held for defendant, the physical therapy, plaintiff appealed.
This case concern whether an actual bailment was created.
Relevant Terms, Laws, and Cases
Bailment - transfer of property from bailor to bailee. Bailee has duty of care for the property transferred to them.
Opinion
Higher court affirmed the decision. No actual bailment was created.
The court defined a bailment as a bailee having "independent and exclusive possession of the property". In this case the plaintiff could've retrieved her property at any point; hence, the defendant doesn't have exclusive possession over it. Since bailment is not created they do not have duty of care.

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Rhodes parked his car in the self-service parkand- lock lot of Pioneer Parking Lot, Inc. The ticket that he received from the ticket meter stated the following: "NOTICE. THIS CONTRACT LIMITS OUR LIABILITY. READ IT. WE RENT SPACE ONLY. NO BAILMENT IS CREATED." Rhodes parked the car himself and kept the keys. There was no attendant at the lot. The car was stolen from the lot. Rhodes sued the parking lot on the theory that it had breached its duty as a bailee. Was there a bailment? [Rhodes v Pioneer Parking Lot, Inc. 501 SW2d 569 (Tenn)]
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Essay

Refer to the case Rhodes v Pioneer Parking Lot (501 SW2d 569) to answer question as below.
Trial court held for plaintiff, owner of the stolen car, from defendant's parking lot. Defendant appealed.
The issue at hand is whether defendant had a duty for plaintiff's car even though they forewarned their limit to liability.
Relevant Terms, Laws, and Cases
Limitation of liability clause - provision in contract that limits liability amounts.
Bailment - transfer of property from bailor to bailee. Bailee has duty of care for the property transferred to them.
Opinion
Higher court reversed the decision. The case is dismissed.
The higher court held that no actual bailment has been created-the defendant had no duty of care, as they are not a bailee. The court defined bailment as a bailee having possession and control over the property, which contrast with this case. The defendant had no control over the plaintiff's car, for the plaintiff kept his key. On the other hand, the court argued that when a parking lot has an attendant on hand to keep a car owner's key, and thence will it be a bailee-bailor relationship.

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Martin Acampora purchased a shotgun at a garage sale years ago, never used the weapon, and did not know of any defects in it. His 31-year-old son Marty borrowed the shotgun to go duck hunting. As Marty attempted to engage the safety mechanism, the shotgun fired. The force of the shotgun's firing caused it to fall to the ground and to discharge another shot, which struck Marty in the hand. Classify the bailment in this case. What duty of care was owed by the bailor in this case? Is Martin liable to his son for the injury?
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The son borrowed a weapon for hunting from his father. Assuming the father received nothing in return then this is a gratuitous bailment for the sole benefit bailee , the son. The bailor, father, only had a duty of care to warn son of known defects. Hence, the son should be more careful with his use.

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Can a creditor of both the husband and wife under the same obligation obtain an execution against a Winnebago mobile home owned by the husband and wife in tenancy by entirety?
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John Hayes and Lynn Magosian, auditors for a public accounting firm, went to lunch at the Bay View Restaurant in San Francisco. John left his raincoat with a coatroom attendant, but Lynn took her new raincoat with her to the dining room, where she hung it on a coat hook near her booth. When leaving the restaurant, Lynn discovered that someone had taken her raincoat. When John sought to claim his raincoat at the coatroom, it could not be found. The attendant advised that it might have been taken while he was on his break. John and Lynn sued the restaurant, claiming that the restaurant was a bailee of the raincoats and had a duty to return them. Are both John and Lynn correct?
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Charter Apparel, Inc., supplied fabric to Marco Apparel, Inc., in December to manufacture finished articles of clothing at its Walnut Grove, Mississippi, facilities. The fabric arrived just before the Christmas holiday shutdown and was stacked on cutting tables in the old building, which was known to have a roof that leaked. The evidence showed that no precautions were taken to cover the fabric and no guard was posted at the plant during the shutdown. Severe weather and freezing rain occurred during the shutdown, and it was discovered that the rain had leaked through the roof and destroyed more than $400,000 worth of the fabric. Marco denied that it was negligent and argued that it exercised ordinary care. It offered no evidence to rebut Charter's prima facie case or to rebut Charter's evidence of negligence. It asserted, however, that as a bailee it was not an insurer of goods against severe weather conditions. Decide. [California Union Ins. v City of Walnut Grove 857 F Supp 515 (SD Miss)] Essay Answer: Tags Choose question tag Schroeder parked his car in a parking lot operated by Allright, Inc. On the parking stub given him was printed in large, heavy type that the lot closed at 6:00 P.M. Under this information, printed in smaller, lighter type, was a provision limiting the liability of Allright for theft or loss. A large sign at the lot stated that after 6:00 P.M. patrons could obtain their car keys at another location. Schroeder's car was stolen from the lot sometime after the 6:00 P.M. closing, and he sued Allright for damages. Allright defended on the basis of the limitation-ofliability provision contained in the parking stub and the notice given Schroeder that the lot closed at 6:00 P.M. Decide. [Allright, Inc. v Schroeder 551 SW2d 745 (Tex Civ App)] Essay Answer: Tags Choose question tag New York's banking law provides that a presumption arises that a joint tenancy has been created when a bank account is opened in the names of two persons "payable to either or the survivor." While he was still single, Richard Coddington opened a savings account with his mother, Amelia. The signature card they signed stated that the account was owned by them as joint tenants with the right of survivorship. No statement as to survivorship was made on the passbook. Richard later married Margaret. On Richard's death, Margaret claimed a share of the account on the ground that it was not held in joint tenancy because the passbook did not contain words of survivorship and because the statutory presumption of a joint tenancy was overcome by the fact that Richard had withdrawn substantial sums from the account during his life. Decide. [Coddington v Coddington 391 NYS2d 760 (Sup Ct App Div)] Essay Answer: Tags Choose question tag Mona found a wallet on the floor of an elevator in the office building where she worked. She posted several notices in the building about finding the wallet, but no one appeared to claim it. She waited for six months and then spent the money in the wallet in the belief that she owned it. Jason, the person who lost the wallet, subsequently brought suit to recover the money. Mona's defense was that the money was hers because Jason did not claim it within a reasonable time after she posted the notices. Is she correct? (Assume that the common law applies.) Essay Answer: Tags Choose question tag Joyce Clifford gave a check for$5,000 to her nephew Carl to help with living expenses for his last year of college. The face of the check stated, "As a loan." Years later, Carl wrote to his aunt asking what he should do about the loan. She responded on her Christmas card simply, "On money-keep it-no return." After Joyce's death, her administrator sued Carl after discovering the "As a loan" canceled check. Decide.
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Joe obtained a box of antique Lenox china dishes that had been left at the Mashpee town dump. He supplemented the sizable but incomplete set of dishes with other Lenox pieces found at antique dealers. At dinner parties, he proudly told of the origin of his china. When Marlene discovered that Joe had taken her dishes from the dump, she hired an attorney to obtain their return. What result?
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Baena Brothers agreed to reupholster and reduce the size of the arms of Welge's sofa and chair. The work was not done according to the contract, and the furniture when finished had no value to Welge and was not accepted by him. Baena sued him for the contract price. Welge counterclaimed for the value of the furniture. Decide. [Baena Brothers v Welge 3 Conn Cir 67, 207 A2d 749]
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Charles and Nicolette went to Italy in November 2008, where Charles proposed marriage and presented Nicolette with a diamond ring. She accepted the proposal and the ring. On the same day, Nicolette asked Charles where he had purchased the ring. She became disappointed when he told her where he bought it, and she gave him back the ring, suggesting a different style she would like. He returned the ring to the jeweler and received a refund of $5,000. He then purchased a new ring for$12,000. Charles testified that near the end of November he "reproposed" and presented the second ring to Nicolette. The relationship soon soured and in late February 2009 Charles asked for the return of the ring. Contrary to Charles' testimony that he gave the second ring as an engagement ring in late November, Nicolette testified that he gave the second ring to her a few days before Christmas as a holiday gift. Was it an engagement ring or a holiday gift? What legal significance is there to how the gift is classified? Decide. [ Miller v. Chiaia, 2011 WL 1367050 (Conn. Superior)]
Essay
In 1971, Harry Gordon turned over $40,000 to his son, Murray Gordon. Murray opened two$20,000 custodial bank accounts under the Uniform Gifts to Minors Act for his minor children, Eden and Alexander. Murray was listed as the custodian of both accounts. On January 9, 1976, both accounts were closed, and a single bank check representing the principal of the accounts was drawn to the order of Harry Gordon. In April 1976, Murray and his wife, Joan, entered into a separation agreement and were later divorced. Thereafter, Joan, on behalf of her children, Eden and Alexander, brought suit against Murray to recover the funds withdrawn in January 1976, contending that the deposits in both accounts were irrevocable gifts. Murray contended that the money was his father's and that it was never intended as a gift but was merely a means of avoiding taxes. Decide. [Gordon v Gordon 419 NYS2d 684 (App Div)]