8Section Outline Bailments of Personal Property Main Types of Bailments Main Types of BailmentsBailments for Sole Benefit of BailorBailments for Sole Benefit of BaileeMutual-Benefit BailmentsTortious BaileesBurden of Proof
11Bailments of Personal Property A bailment is the transfer of possession and control of personal property to another with the intent that the same property will be returned later.
12Bailments of Personal Property Examples of bailments includerenting a videoleaving your car at the shop for repairsdropping off clothes at the cleaners
13Bailments of Personal Property The person who transfers the property is the bailor.The person to whom the property is transferred is the bailee.
14Bailments of Personal Property In a bailment, neither the bailor nor the bailee intends that title to the property should pass.The bailee has an obligation to return the same property to the bailor at a later time.
15Bailments of Personal Property When you loan goods to someone with the understanding that they will be used and later replaced with different identical goods, a mutuum has occurred.
16Pre-Learning Question What are some types of bailments?
17Main Types of Bailments There are three types of bailments:bailments for the sole benefit of the bailorbailments for the sole benefit of the baileemutual-benefit bailments
18Main Types of Bailments In the first two types, called gratuitous bailments, property is transferred to another person without either party giving or asking for payments.
19Bailments for Sole Benefit of BailorWhen a personal possession is transferred to another person for purposes that will benefit only the bailor, a bailment for the sole benefit of the bailor results.
20Bailments for Sole Benefit of BailorFor example, your friend asks you to look after her car while she is away for a week, and you agree to keep her car in your garage.
21Bailments for Sole Benefit of BailorThe bailee owes a duty to use only slight care, because the bailee is receiving no benefit from the arrangement. The bailee is required only to refrain from gross negligence (very great negligence).
22Bailments for Sole Benefit of BaileeWhen personal property is transferred for purposes that will benefit only the bailee, a bailment for the sole benefit of the bailee occurs.
23Bailments for Sole Benefit of BaileeFor example, George offered his truck to Trina, who was moving. Trina accepted the offer and used George’s truck to move. George received no payment. Only Trina received the benefit of the bailment.
24Bailments for Sole Benefit of BaileeThe bailee is required to use great care because possession of the goods is intended solely for the bailee’s benefit.
25Bailments for Sole Benefit of BaileeThe bailee is responsible for even slight negligence, which is the failure to use the care that persons of extraordinary prudence and foresight use.
26Bailments for Sole Benefit of BaileeThe bailee has the right to use the property only for the purpose for which the bailment was created.
27Mutual-Benefit Bailments A mutual-benefit bailment is one in which both the bailor and the bailee receive some benefit.
28Mutual-Benefit Bailments For example, if you leave your car at a garage to be repaired, you, the bailor, receive the benefit of a repaired car. The garage, the bailee, receives the benefit of your payment.
29Mutual-Benefit Bailments The bailee owes a duty to use reasonable care, or the degree of care that a reasonably prudent person would use in the situation.
30Mutual-Benefit Bailments The bailee is responsible for ordinary negligence, or failing to use the care that a reasonable person would use under the same circumstances.
31Mutual-Benefit Bailments 17.2Mutual-Benefit BailmentsBailmentBailorBaileeService or repairOwns the item to beserviced or repairedPerforms the repair orservice workStorage or parkingOwns the item to bestored or parkedIs responsible for thestoring or parkingSecurity for a loanPledgor, debtor—borrows moneyPledgee, creditor—lends moneyRenting or leasingRents an itemto someonePay to use an itemBailments bynecessityGives up possessionof propertyAccepts or protectsthe property
32Tortious BaileeA tortious bailee refers to a person who wrongfully keeps the lost property of another or knowingly possesses stolen property.
33Tortious BaileeOne who uses a bailed article for a purpose other than agreed upon or who refuses to return property at the termination of the bailment may also be considered a tortious bailee.
34Burden of ProofIf a bailor brings suit against a bailee because the bailed property was damaged, lost, or stolen while in the possession of the bailee, most courts place the burden of proof on the bailee.
35Burden of ProofThe reason is because the bailee is in the best position to know what happened to the bailed property.
36Pre-Learning Question What are special bailments?
37Special BailmentsCertain types of bailees have special obligations in addition to the duties imposed on all bailees. Special bailees includehotel keeperscommon carriers
38Hotel KeepersHotel keepers are special bailees because of the special nature of the their business.Hotel keepers, or innkeepers, operate a hotel, motel, or inn that regularly offers rooms to the public for a price.
39Hotel Keepers Hotel keepers have special duties. duty to accept all guestsduty of reasonable care--a minimum standard of comfort, safety, and sanitation
40Hotel Keepers must respect guests’ right of privacy have greater duty of care toward guests’ propertyby law are insurers of the guests’ property brought into the hotel
41Jordan’s bat was broken, so he borrowed Julio’s. Who is the bailor Jordan’s bat was broken, so he borrowed Julio’s. Who is the bailor? Who is the bailee?
47Common CarriersA carrier is a business that transports persons, goods, or both.A common carrier is a carrier that is compensated for providing transportation to the general public.
48Common CarriersAs with hotels, common carriers cannot turn away people who ask for their services.
49Common Carriers of Goods Common carriers of goods are liable for damages to all goods they ship, regardless of whether they are negligent.
50Exceptions to Carrier Liability 17.2Exceptions to Carrier LiabilityCarriers arenot liable whendamages occurbecause ofA publicenemyFault oftheshipperAn actof GodAn act ofpublicauthorityInherentnature ofthegoods
51Common Carriers of Passengers A passenger is a person who enters the premises of a carrier with the intention of buying a ticket for a trip.A carrier must use reasonable care in protecting passengers.
52Common Carriers of Passengers A carrier’s duty of care to its passengers ends, in most cases, when the passenger leaves the carrier’s premises.
53Common Carriers of Passengers A common carrier must accept all persons who seek passage, with two exceptions.when all available space is occupied or reserved
54Common Carriers of Passengers when passengers are disorderly, intoxicated, insane, or infected with a contagious disease
55Bumped Airline Passengers Airlines are required to establish and publish priority rules for determining which passengers holding confirmed reservation space may be denied boarding on an oversold flight.
56Passenger BaggageCarriers are obligated to accept a reasonable amount of passengers’ baggage.
57Passenger BaggageA carrier is an insurer of all luggage that is checked through the baggage desk but is not responsible for items that you keep at your seat or in overhead compartments.
58Reviewing What You Learned Section AssessmentReviewing What You LearnedWhat is a bailment? Who is the bailor, and who is the bailee?
59Reviewing What You Learned Answer Section AssessmentReviewing What You LearnedAnswerA bailment is the transfer of possession and control of personal property to another with the intent that the same property will be returned later.
60Reviewing What You Learned Answer Section AssessmentReviewing What You LearnedAnswerThe bailor is the person who transfers the property. The bailee is the person to whom the property is transferred.
61Reviewing What You Learned Name the three main types of bailments. Section AssessmentReviewing What You LearnedName the three main types of bailments.
62Reviewing What You Learned Answer Section AssessmentReviewing What You LearnedAnswerBailments for the sole benefit of bailor, bailments for the sole benefit of bailee, and mutual-benefit bailments.
63Reviewing What You Learned Section AssessmentReviewing What You LearnedWho has the burden of proof in a bailment lawsuit?
64Reviewing What You Learned Answer Section AssessmentReviewing What You LearnedAnswerThe bailee—the one who is in the best position to know what happened.
65Reviewing What You Learned Section AssessmentReviewing What You LearnedWhat are the hotel keepers’ duties of care to their guests?
66Reviewing What You Learned Answer Section AssessmentReviewing What You LearnedAnswerThey must use reasonable care in protecting their guests from harm. They are responsible for injuries to their guests caused by the hotel’s negligence or the negligence of employees.
67Reviewing What You Learned Section AssessmentReviewing What You LearnedCommon carriers are liable for damages to goods unless the damage comes within one of five exceptions. Name the exceptions.
68Reviewing What You Learned Answer Section AssessmentReviewing What You LearnedAnswer(1) acts of God; (2) acts of public enemy; (3) acts of public authorities; (4) acts of the shipper; and (5) the inherent nature of the goods
69Reviewing What You Learned Section AssessmentReviewing What You LearnedWhen does a carrier’s duty of care to its passengers end?
70Reviewing What You Learned Answer Section AssessmentReviewing What You LearnedAnswerWhen the passenger leaves the carrier’s premises.
71Critical Thinking Activity Living Bailments Section AssessmentCritical Thinking ActivityLiving BailmentsThe agricultural class at your school raises small animals such as hamsters, rabbits, and guinea pigs. Every weekend several students take the animals home to feed them.
72Critical Thinking Activity Living Bailments Section AssessmentCritical Thinking ActivityLiving BailmentsIs this a bailment? What is the extent of care that applies? Explain your answer.
73Critical Thinking Activity Answer Living Bailments Section AssessmentCritical Thinking Activity AnswerLiving BailmentsYes. Students may assume different types of bailment in this situation and therefore their answers to the extent of care will vary.
74Legal Skills in Action Airline Responsibilities Section AssessmentLegal Skills in ActionAirline ResponsibilitiesAirlines face a public relations nightmare almost every day. Planes take off late, flights are cancelled, and luggage is lost.
75Legal Skills in Action Airline Responsibilities Section AssessmentLegal Skills in ActionAirline ResponsibilitiesMost people don’t realize that common carriers have rules they follow regarding the transportation of passengers.
76Legal Skills in Action Airline Responsibilities Section AssessmentLegal Skills in ActionAirline ResponsibilitiesUsing publishing software, create a brochure that outlines the airline’s responsibilities and exceptions. Include information about bumping and baggage.
77Legal Skills in Action Answer Section AssessmentLegal Skills in Action AnswerAirline ResponsibilitiesBrochures will vary but should include the responsibilities and exceptions covered in the text.