Bailments

What are the three key elements of a bailment?

• Ownership, control, and return of property

• Delivery of possession, mutual agreement, intent to return or dispose of the item

• Money, written contract, and insurance

• Temporary use, no obligation, and freedom to keep the item

Which of the following is NOT an example of a bailment?

• Leaving your car at a repair shop

• Giving your backpack to a friend for the weekend

• Lending your friend a $20 bill

• Checking your coat at a restaurant

A bailor is the person who _______.

• Receives and temporarily holds the item

• Owns the item and temporarily gives it to another person

• Buys the item permanently from another person

• Sells an item for someone else

What type of bailment occurs when you leave your clothes at a dry cleaner?

• Bailment for hire

• Bailment for sale

• Bailment for services

• Bailment for transport

What type of bailment occurs when you ship a package through FedEx?

• Bailment for services

• Bailment for hire

• Bailment for sale

• Bailment for transport

Which of the following correctly describes how bailments end?

• The item is returned, destroyed, or disposed of based on an agreement

• The bailee permanently keeps the item

• The bailor gives the item as a gift

• The bailee pays for the item and takes ownership

A bailment always requires a written contract.

• True

• False

If a friend borrows my phone for the weekend, it is automatically a bailment.

• True

• False

A bailment only applies when the bailee is paid for holding the item.

• True

• False

Parking in a self-serve parking lot is NOT a bailment.

• True

• False