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Intangible personal property may be bailed.

A) True
B) False

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True

Only physical delivery will result in the bailee's exclusive possession and control over the property.

A) True
B) False

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False

In some special types of bailments, the bailee's duty of care is extraordinary.

A) True
B) False

Correct Answer

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Most bailments are distinguished according to which party receives a benefit from the bailment.

A) True
B) False

Correct Answer

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True

A bailment need not include an agreement for the return or disposal of the property.

A) True
B) False

Correct Answer

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For delivery to occur, the bailee must be given exclusive possession and control over the property.

A) True
B) False

Correct Answer

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


A) common carriers.
B) warehouse companies.
C) ordinary bailees.
D) all of the choices.

E) B) and D)
F) None of the above

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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


A) effective.
B) not effective because it is against public policy.
C) not effective because it is an exculpatory cause.
D) not effective because an ordinary bailee cannot limit his or her liability.

E) A) and D)
F) None of the above

Correct Answer

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In a bailment for the sole benefit of the bailee , the bailee will be liable for even slight negligence in caring for the bailed property.

A) True
B) False

Correct Answer

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A person can be the subject of a bailment.

A) True
B) False

Correct Answer

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Enrico leaves his Ford sport utility vehicle at Gordo's Auto Service for an oil change. This is


A) a bailment.
B) a contract.
C) a gift.
D) conversion.

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

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Brody hires Cartage Company to transport office furniture from Brody's home office in Seattle to a branch office in Tucson. The bailee is


A) Brody.
B) Cartage.
C) the office in Tucson.
D) the home office in Seattle.

E) None of the above
F) C) and D)

Correct Answer

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Most bailments are ordinary.

A) True
B) False

Correct Answer

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For a transfer from one person to another to create a bailment, the transfer must


A) involve real or personal property, or a real person.
B) include a delivery of property.
C) mutually benefit both parties.
D) result in the disposal of the bailed property.

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

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One of the elements of a bailment is


A) it must contain only tangible , and not intangible , items.
B) non-exclusive possession of the bailed property by the bailee.
C) an agreement for the return or disposal of the bailed property.
D) conversion of the bailed property by the bailee.

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

Correct Answer

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The bailee has no right to limit his or her liability for the bailed goods.

A) True
B) False

Correct Answer

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Kim allows Lee Ann to store her trailer on Kim's property for $50 a month while Lee Ann is out of town on a job for Marketing Inc., her employer. The bailor is


A) Kim.
B) Lee Ann.
C) Marketing Inc.
D) no one.

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

Correct Answer

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If a bailee fails to take appropriate care of the bailed property, he or she may be liable for negligence.

A) True
B) False

Correct Answer

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A bailment is created even though the bailor did not voluntarily deliver the property to the bailee.

A) True
B) False

Correct Answer

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Only the bailor can recover damages from any third party for loss or damage to the property.

A) True
B) False

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