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Exam 20: The Law of Bailment

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Question 1

True/False

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Sandra leaves her car in a commercial parking lot and pockets the keys.She sees a sign that reads "Use of space only-not responsible for loss or damage however caused." Her car is damaged by persons unknown and she sues the operator.The operator relies on his warning.He will likely succeed.

A) True
B) False

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Question 2

Multiple Choice

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Perishable goods were carried by a common carrier.The goods arrived in an unsaleable condition because a bridge washed out by flooding during transport.The occurrence was in no way foreseeable or avoidable by the bailer.The bailee will be required to

A) pay nothing because the event was unforeseeable.
B) compensate for the value of the goods because it was a bailee for reward.
C) compensate for the value of the goods because he is,in fact,an insurer.
D) None of the responses are correct.

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

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Question 3

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Since there is no Common Law right for a warehouse operator to hold goods until storage charges are paid,the operator must rely on either express provisions in the storage contract,or statutory provisions for lien.

Once the goods are delivered by the ________ into the charge of the ________,the bailment is ________.

Gord was on a ski trip and staying at the Alpine Lodge,a bed and breakfast.To prevent damage to the rooms,the Alpine Lodge did not allow skis in the guest rooms.It provided a ski rack outside the front doors where the guests were required to store them.No extra fee was charged.Guests were provided with complimentary locks.What type of bailment is this?

Don loans his jet ski to his friend Sasha for the weekend.While driving to the lake the jet ski fell off the trailer and was badly damaged.Don loaded the jet ski on the trailer.Who is liable for the damage?

The following are types of bailments for which a bailee is required to protect the goods from foreseeable harm:

Under no circumstance may a valid sub-bailment be made without the consent of the original bailor.

The liability of innkeepers has a long history evolving out of necessity.Briefly explain the development of this form of liability and discuss its context in modern society.

Henry and Oliver left their car at a parking lot and deposited their keys with the attendant.They then left the lot and carried on with their day's business.On return to the lot the pair realized that their car was not there.They approached the attendant and brought the situation to his attention.Fearing reprisal for the theft from his lot,the attendant flipped Henry's pay stub over and showed him the limitation of liability printed on the back.This warning is sufficient to protect the parking lot from any liability under the law of bailment.

A way to avoid liability is for all bailees to say "I will treat these goods as prudently as I would treat my own in similar circumstances."

The Mobile Garage advertised automobile repairs by "Licensed Mechanics." Terrance,a car owner,took his automobile to the Mobile Garage for repairs.The garage owner Fred examined the car and indicated that expensive repairs were required.Terrance left his car with Fred who sent the car to ABC Engines Ltd.for specific work.There the repairs were carried out by another licensed mechanic,Rodney,an employee of ABC.Terrance paid $1,500 for the repairs,but on his way home discovered that the repairs had been negligently made,and had ruined the engine.

Mrs.Rich took her mink coat and fox jacket to Fun Fur Ltd.for summer storage.She also requested that Fun Fur clean the furs and make some minor repairs.Fun Furs,not having proper facilities,sent the items out to Kleen-All for the cleaning and repair work.In September,Mrs.Rich returned to Fun Furs to pick up her coats and pay for storage and repair costs.Fun Furs discovered that the items had never been returned by Kleen-All.On telephoning Kleen-All they were informed that the furs had been stolen although no one knew exactly when or how.Discuss the rights and liabilities,if any,of the parties involved if legal action was taken,and determine the outcome.

Henry parked his automobile in Allison's Car Park,and was requested by the attendant to leave the keys in the car and the car unlocked.Henry received a receipt for the parking which contained the following note on the reverse side of the ticket."Proprietor of lot will not be responsible for damage to car or contents." A similar sign was located at the entrance to the car parking area.When Henry returned to the lot he discovered that his car had a damaged front fender.Even if Henry was fully aware of the disclaimer of liability,Allison's Car Park would be liable for the damage to his car.

Gord was on a ski trip and staying at the Alpine Lodge,a bed and breakfast.The Alpine Lodge did not allow skis in the guest rooms and provided a ski rack outside the front doors where the guests were required to store them.Guests were provided with complimentary locks.Who has possession of the skies when they are in the rack?

Douglas,a businessman,rented a car from Lemon's Auto Rental.He intended to use the car to distribute products from his business to those of his customers.In the course of his commuting around the city,Douglas encountered many streets laden with "potholes." Just before returning the car to the rental lot the car suffered a breakdown resulting from problems with the suspension system.Three weeks later Douglas received a bill for the repair of the car he had rented.Douglas appealed his bill to the company stating that they should be responsible for the repair.The company replied that the rental agreement stated that the lessee is responsible for problems created by normal "wear and tear." Discuss the relevant issues of bailment in light of this situation.

Jane shipped a parcel with a passenger bus company acting as a private carrier.The parcel contained semi-breakable gifts for her parents in another city.When the parcel arrived Jane's parents notified her of damage to the parcel's contents.Jane visited the bus station to complain.An employee of the bus company who dealt with her complaint told her she should have used a courier and,as a private carrier,the company had no obligation to exhibit reasonable care of shipped goods.

Carl requested Simple Delivery Service to pick up a refrigerator at his home and deliver it to his cottage,some 160 kilometres away.Simple Delivery picked up the refrigerator,but through a mix up in delivery bills,lost the refrigerator.Simple Delivery Service would not be liable for the loss if it could prove that the refrigerator was destroyed as a result of an act of God.

Bailments can arise in a wide variety of situations and may provide vastly different benefits for the contracting parties.Discuss the differing standards of care associated with bailments and explain the rationale for each.

An important distinction is that between a bailment and a licence.While a bailment requires the transfer of possession and a Common Law duty of safekeeping and return,the licence