List the types of ordinary bailments...

Sole Benefit Bailor (i.e. asking neighbor to store lawn mower) Sole Benefit Bailee (i.e. borrowing item for free) Mutual Benefit Bailment [business] (i.e paid storage)

What are the general duties of a bailee?

A bailee must exercise proper care. Use the property only for the agreed purpose. Return the property to the bailor or specified third party.

What are the rights of a bailor?

A bailor has the right to have the property returned. To have the bailee use proper care. To have the bailee use the property only as allowed. May be entitled to compensation.

What are the general duties of a bailor?

A bailor must refrain from delivering property with hidden defects without notice and inform the bailee of all known defects. Depends on bailor context, how much they use it, if they're professional etc.

Which of the parties does the burden of proof fall on if there is a breach of duty of care ?

The bailor must prove delivery and failure to return, then the burden shifts to the bailee to prove no negligence.

What is the liability for defects in bailed property?

A bailee is generally not liable for unknown defects unless they are an expert who should have discovered the defect.

Can parties modify the standard of care by contract?

Yes, parties can modify the standard of care by contract, but cannot contract away liability for gross negligence or willful misconduct.

What are exculpatory clauses in bailment contracts?

Exculpatory clauses attempt to free parties from liability for negligence or breach of contract, but are generally not enforceable.

What are the ways to terminate a bailment?

Bailment can be terminated by mutual agreement. Lapse of time. Unilateral termination. Accomplishment of purpose. Any act inconsistent with the terms of the bailment (i.e using it wrong).

What is proper care for a bailee under a Sole Benefit Bailor Bailment?

Slight care/Less than ordinary care

What is due care for a bailor giving a good to bailee in a Sole Benefit of the Bailor Bailment?

Bailor MUST inform the bailee of all defects and a duty of reasonable investigation to disclose defects. (doesn't include latent defects)

What is due care for a bailor giving a good to bailee in a Sole Benefit of the Bailee Bailment?

A bailor has no duty to inspect and is only liable when it is shown that the bailor actually knew of the defect and didn't notify the bailee.

What is due care for a bailor giving a good to bailee in a Mutual Benefit Bailment?

Bailor has the duty to inspect and notify the bailee of any defects in the property that the bailor actually or should know of.

True or false: Loss or destruction of property is enough to find the bailee liable.

False. Proof of loss or destrcution of property in it of itself is not enough. The action of lack of care must be proved.

What determines due care? (4 things)

Value of Bailed Property. Degree property is susceptible to injury or theft. Amount of experience the bailee, or bailor, has dealing with similar property. Context/Industry Standard

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?

Bailment for the sole purpose of the bailee. No known defects, had to disclose known defects, no liability

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-of-liability 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[Allright, Inc. v. Schroeder[ , 551 S.W.2d 745 (Tex. Civ. App.)]

Mutual benefit bailment, keys were given, bailee had control and possession. Exculpatory clause must be conspicuous, this was not. They were liable for the stolen car. Clause was also given in the form of a receipt, not in the contract.

For a disclaimer or an exculpatory clause to have a fighting chance in court what is needed....

Conspicuous. Need proof that the bailor actually read it. Must be on the contract (receipts are NOT contracts).

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?

John had a mutual benefit bailment with the restaurant by turning over possession, Lynn did not have a bailment, no posession or control to bailee. John would win, Lynn wouldn’t.

Rhodes parked his car in the self-service park- and-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 bail- ment? [Rhodes v. Pioneer Parking Lot, Inc., 501 S.W.2d 569 (Tenn.)]

There was no bailment, possession was kept by Rhodes. Renting a space is NOT a bailment. The lot is not liable.

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 S.E.2d 253 (Ga. App.)]

No bailment, Newman retained a degree of control on the necklaces due to the pegs being in the same room.

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 precau- tions 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 shut- down, 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 negli- gent 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 (S.D. Miss.)]

Mutual benefit bailment created. Proper care for professional is higher than ordinary person, even so, less than ordinary care was taken. Marco was liable for the damaged fabric.

Chapter 20-2 Bailments Flashcards

Student preview

33 questions

Show all answers

1.

FLASHCARD QUESTION

Front

What is bailment?

Back

Bailment is the temporary transfer of possession of personal property from one person (bailor) to another (bailee) for a specific purpose. Ownership remains with the bailor.

2.

FLASHCARD QUESTION

Front

Who retains ownership in a bailment?

Back

The bailor retains ownership in a bailment.

3.

FLASHCARD QUESTION

Front

What rights does a bailee have in a bailment?

Back

Right to Posession
Right to Use
Right to Compensation
Right to legally protect any interference with possession

4.

FLASHCARD QUESTION

Front

What are the elements of bailment?

Back

Delivery of possession of personal property to the bailee.
Acceptance of possession by the bailee.
An agreement that the property will be returned to the bailor when the purpose is accomplished.

5.

FLASHCARD QUESTION

Front

What is constructive bailment?

Back

Constructive bailment occurs when a misplaced item is found, creating a bailment between the finder and the owner, which is then transferred to the owner of the establishment.

6.

FLASHCARD QUESTION

Front

What is constructive acceptance in bailment?

Back

Constructive acceptance means that what you would normally expect to be in a container that is bailed would also be reasonably bailed.

7.

FLASHCARD QUESTION

Front

What distinguishes renting space from bailment?

Back

Renting space, such as a storage unit, is not a bailment because there is no transfer of possession and control to the owner of the facility.

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