(Chapter 16- bailments) vocab and questions

If you rent a locker at an airport, put your luggage in it, and keep the key to the locker, a bailment of your luggage has been created. True or False?

False

If a farmer stores a particular grade of potatoes in a warehouse, the warehouse must return the same potatoes to the farmer. True or False?

False

The fees a common carrier receives for use of its vehicle in the event that it is not loaded or unloaded at the agreed upon time is called

• (a) a waiting fee

• (b) a carrier’s lien

• (c) demurrage

(c) demurrage

A bailment that is imposed by law in certain situations, such as on the finder of a lost article, is referred to as an actual bailment. True or False?

False

In a bailment relationship, the party who accepts possession and control of the property is the

• (a) bailor

• (b) bailee

Bailee

A publisher lent one of its authors a computer to use in producing her manuscript. Unfortunately, she suffered a severe personal loss several months into the job and was declared insane. Did the bailment end at that point?

Yes or No?

Yes

In a consignment, the retailer is a bailee.

True or False?

True

In a bailment for services, the person providing the services is strictly liable for any damage to the bailed property until it is returned to the bailor.

True or False?

False

The level of care a bailee must exercise over the goods is determined by…

• (a) the value of the bailed property

• (b) whether a bailor is a merchant or not

• (c) the type of the bailment

(c) the type of the bailment

When both parties benefit from a bailment, it is a mutual-benefit bailment and the bailee’s duty of care is ordinary.

True or False?

True

When the bailment is only for the sole benefit of the bailor, the duty of care is minimal.

True or False?

True

The bailee in an extraordinary bailment is strictly liable for loss or damage to the bailed goods.

True or False?

True

Accepts possession and control of another’s personal property

Bailee

Duty of care when the bailment is involuntary

Minimal care

Bailment in which a person with possession of personal property holds it in such a manner or situation that the law imposes upon him or her a bailee’s duty to deliver it to another

Constructive bailments

Allows a bailee to hold goods until paid

Carrier’s lien

Enterprise that undertakes, for hire, to transport goods or passengers for anyone who applies

Common carrier

Fee for delay in loading or in unloading goods shipped by common carrier

Demurrage

Control of another’s personal property, under the owner’s direction

Bailment

Bailment in which one party receives no benefit

Gratuitous bailment

Bailment that arises without the consent of the bailee

Involuntary bailment

Party who gives up temporary possession and control of personal property

Bailor

The type of bailment formed when a bailor leaves personal with a hotelkeeper or a common carrier

extraordinary bailment

Sign, label, or warning reducing the bailee’s duty of care

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