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Bailments Section 17.2. Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments What You’ll Learn How to define.

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Presentation on theme: "Bailments Section 17.2. Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments What You’ll Learn How to define."— Presentation transcript:

1 Bailments Section 17.2

2 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments What You’ll Learn How to define a bailment (p. 368) How to describe kinds of bailments (p. 369)

3 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments What You’ll Learn How to explain who has the burden of proof in bailment lawsuits (p. 373) How to explain hotel keepers’ duties (p. 373)

4 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments What You’ll Learn How to identify the rights and duties of common carriers (p. 376) How to discuss the obligations of common carriers toward passengers (p. 378)

5 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Why It’s Important Understanding the law of bailments can help you avoid difficulties.

6 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Legal Terms bailment (p. 368) bailor/bailee (p. 368) mutuum (p. 368) gratuitous bailments (p. 369) gross negligence (p. 370) slight negligence (p. 371)

7 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Legal Terms reasonable care (p. 371) ordinary negligence (p. 371) tortious bailee (p. 372) carrier (p. 376) common carrier (p. 376)

8 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Bailments of Personal Property Main Types of Bailments Bailments for Sole Benefit of Bailor Bailments for Sole Benefit of Bailee Mutual-Benefit Bailments Tortious Bailees Burden of Proof Section Outline

9 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Special Bailments Hotel Keepers Common Carriers Section Outline

10 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Pre-Learning Question What is a bailment?

11 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 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. Bailments of Personal Property

12 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Examples of bailments include Bailments of Personal Property renting a video leaving your car at the shop for repairs dropping off clothes at the cleaners

13 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments The person who transfers the property is the bailor. The person to whom the property is transferred is the bailee. Bailments of Personal Property

14 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 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. Bailments of Personal Property

15 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 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. Bailments of Personal Property

16 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Pre-Learning Question What are some types of bailments?

17 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments There are three types of bailments: Main Types of Bailments 1.bailments for the sole benefit of the bailor 2.bailments for the sole benefit of the bailee 3.mutual-benefit bailments

18 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments In the first two types, called gratuitous bailments, property is transferred to another person without either party giving or asking for payments. Main Types of Bailments

19 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments When 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. Bailments for Sole Benefit of Bailor

20 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments For 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. Bailments for Sole Benefit of Bailor

21 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments The 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). Bailments for Sole Benefit of Bailor

22 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments When personal property is transferred for purposes that will benefit only the bailee, a bailment for the sole benefit of the bailee occurs. Bailments for Sole Benefit of Bailee

23 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments For 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. Bailments for Sole Benefit of Bailee

24 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments The bailee is required to use great care because possession of the goods is intended solely for the bailee’s benefit. Bailments for Sole Benefit of Bailee

25 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments The bailee is responsible for even slight negligence, which is the failure to use the care that persons of extraordinary prudence and foresight use. Bailments for Sole Benefit of Bailee

26 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments The bailee has the right to use the property only for the purpose for which the bailment was created. Bailments for Sole Benefit of Bailee

27 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Mutual-Benefit Bailments A mutual-benefit bailment is one in which both the bailor and the bailee receive some benefit.

28 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Mutual-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.

29 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Mutual-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.

30 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Mutual-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.

31 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 17.2 Mutual-Benefit Bailments BailmentBailor Bailee Service or repair Owns the item to be serviced or repaired Performs the repair or service work Performs the repair or service work Storage or parking Owns the item to be stored or parked Is responsible for the storing or parking Is responsible for the storing or parking Security for a loan Pledgor, debtor— borrows money Pledgee, creditor— lends money Pledgee, creditor— lends money Renting or leasing Rents an item to someone Pay to use an item Bailments by necessity Bailments by necessity Gives up possession of property Gives up possession of property Accepts or protects the property Accepts or protects the property

32 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Tortious Bailee A tortious bailee refers to a person who wrongfully keeps the lost property of another or knowingly possesses stolen property.

33 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Tortious Bailee One 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.

34 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Burden of Proof If 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.

35 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Burden of Proof The reason is because the bailee is in the best position to know what happened to the bailed property.

36 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Pre-Learning Question What are special bailments?

37 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Certain types of bailees have special obligations in addition to the duties imposed on all bailees. Special bailees include Special Bailments hotel keepers common carriers

38 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Hotel Keepers Hotel 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.

39 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Hotel Keepers Hotel keepers have special duties. duty to accept all guests duty of reasonable care--a minimum standard of comfort, safety, and sanitation

40 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Hotel Keepers must respect guests’ right of privacy have greater duty of care toward guests’ property by law are insurers of the guests’ property brought into the hotel

41 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 1.Jordan’s bat was broken, so he borrowed Julio’s. Who is the bailor? Who is the bailee?

42 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments ANSWER Bailor —Julio; bailee—Jordan

43 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 2.Beth left her car with Steve at CarCraft for repairs. Who is the bailor? Who is the bailee?

44 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments ANSWER Bailor—Beth; bailee—CarCraft

45 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 3.Zenobia attended a conference on global warming at the Convention Center and stayed at a nearby Red Roof Inn. Who is the bailor? Who is the bailee?

46 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments ANSWER Bailor—Zenobia; bailee—Red Roof Inn

47 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments A 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. Common Carriers

48 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments As with hotels, common carriers cannot turn away people who ask for their services. Common Carriers

49 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Common carriers of goods are liable for damages to all goods they ship, regardless of whether they are negligent. Common Carriers of Goods

50 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 17.2 Exceptions to Carrier Liability Carriers are not liable when damages occur because of A public enemy An act of God An act of public authority Fault of the shipper Inherent nature of the goods

51 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 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. Common Carriers of Passengers

52 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments A carrier’s duty of care to its passengers ends, in most cases, when the passenger leaves the carrier’s premises. Common Carriers of Passengers

53 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments A common carrier must accept all persons who seek passage, with two exceptions. Common Carriers of Passengers 1.when all available space is occupied or reserved

54 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 2.when passengers are disorderly, intoxicated, insane, or infected with a contagious disease Common Carriers of Passengers

55 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments 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. Bumped Airline Passengers

56 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Carriers are obligated to accept a reasonable amount of passengers’ baggage. Passenger Baggage

57 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments A 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. Passenger Baggage

58 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned 1. 1.What is a bailment? Who is the bailor, and who is the bailee? Section 17.2 Assessment

59 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned 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. Section 17.2 Assessment Answer

60 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned The bailor is the person who transfers the property. The bailee is the person to whom the property is transferred. Section 17.2 Assessment Answer

61 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned 2. 2.Name the three main types of bailments. Section 17.2 Assessment

62 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned Bailments for the sole benefit of bailor, bailments for the sole benefit of bailee, and mutual-benefit bailments. Section 17.2 Assessment Answer

63 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned 3. 3.Who has the burden of proof in a bailment lawsuit? Section 17.2 Assessment

64 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned The bailee—the one who is in the best position to know what happened. Section 17.2 Assessment Answer

65 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned 4. 4.What are the hotel keepers’ duties of care to their guests? Section 17.2 Assessment

66 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned They 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. Section 17.2 Assessment Answer

67 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned 5. 5.Common carriers are liable for damages to goods unless the damage comes within one of five exceptions. Name the exceptions. Section 17.2 Assessment

68 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned (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 Section 17.2 Assessment Answer

69 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned 6. 6.When does a carrier’s duty of care to its passengers end? Section 17.2 Assessment

70 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Reviewing What You Learned When the passenger leaves the carrier’s premises. Section 17.2 Assessment Answer

71 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Section 17.2 Assessment Critical Thinking Activity Living Bailments The 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.

72 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Section 17.2 Assessment Critical Thinking Activity Living Bailments Is this a bailment? What is the extent of care that applies? Explain your answer.

73 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Section 17.2 Assessment Critical Thinking Activity Answer Living Bailments Yes. Students may assume different types of bailment in this situation and therefore their answers to the extent of care will vary.

74 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Section 17.2 Assessment Legal Skills in Action Airline Responsibilities Airlines face a public relations nightmare almost every day. Planes take off late, flights are cancelled, and luggage is lost.

75 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Section 17.2 Assessment Legal Skills in Action Airline Responsibilities Most people don’t realize that common carriers have rules they follow regarding the transportation of passengers.

76 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Section 17.2 Assessment Legal Skills in Action Airline Responsibilities Using publishing software, create a brochure that outlines the airline’s responsibilities and exceptions. Include information about bumping and baggage.

77 Understanding Business and Personal Law Bailments Section 17.2 Personal Property and Bailments Section 17.2 Assessment Legal Skills in Action Answer Airline Responsibilities Brochures will vary but should include the responsibilities and exceptions covered in the text.

78 Bailments End of Section 17.2


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