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Exam 37: Bailments

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Question 21

True/False

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Warehouse companies are only liable for loss or damage to bailed property resulting from negligence.

A) True
B) False

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Question 22

Multiple Choice

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Eden Farms 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

A) under any circumstances.
B) unless the carrier exercised reasonable care.
C) unless the loss or damage is caused by a natural disaster.
D) under no circumstances.

E) B) and D)
F) A) and C)

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Question 23

Multiple Choice

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Ruby stores her furniture with Stow-Away, Inc., under a contract that limits the dollar amount of its liability. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on

If the bailed property has been lost, a court will presume that the bailee was negligent.

Gene leaves her Honda Fit with Intown 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?

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

The identity of the party who receives a benefit from an ordinary bailment dictates

To become a bailment, the property involved must be real property or personal property.

If the property is stolen, the bailee forfeits the right to its possession.

Fact Pattern 37-1 Carrier Inc. agrees to pick up two truckloads of goods for Discount Corporation and store the contents to be delivered later. Refer to Fact Pattern 37-1. Carrier's obligation to deliver the goods to Discount is excused if the goods were

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

The bailee must exercise reasonable care in preserving the bailed property.

To become a bailment, a delivery of property from one person to another must

The bailee is excused if the bailed property is destroyed through no fault of the bailee.

Nan asks Otto if she can store her car in his garage while she serves in the U.S. Army. He agrees. This is

After agreeing to rent a car from Drive-a-Round Inc., Eden is given the keys to one of the agency's cars by Fess, a Drive-a-Round employee. With respect to the bailed property, this is

To create a bailment, the property must be delivered to the bailor .

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

Mike delivers his shoes to Nathan for resoling. Nathan promises that the shoes will be ready within five business days. Mike agrees to pay the charge when he picks up the shoes. This is

Common carriers can limit the value of the property that they will transport.