1. Section 17.2

2. What You’ll Learn
How to define a bailment (p. 368)
How to describe kinds of bailments
(p. 369)

3. 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. 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. Why It’s Important
Understanding the law of bailments can help you avoid difficulties.

6. 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. Legal Terms
reasonable care (p. 371)
ordinary negligence (p. 371)
tortious bailee (p. 372)
carrier (p. 376)
common carrier (p. 376)

8. Section Outline Bailments of Personal Property Main Types of Bailments
Main Types of Bailments
Bailments for Sole Benefit of Bailor
Bailments for Sole Benefit of Bailee
Mutual-Benefit Bailments
Tortious Bailees
Burden of Proof

9. Section Outline
Special Bailments
Hotel Keepers
Common Carriers

10. Pre-Learning Question
What is a bailment?

11. Bailments 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.

12. Bailments of Personal Property
Examples of bailments include
renting a video
leaving your car at the shop for repairs
dropping off clothes at the cleaners

13. Bailments of Personal Property
The person who transfers the property is the bailor.
The person to whom the property is transferred is the bailee.

14. Bailments 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.

15. Bailments 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.

16. Pre-Learning Question
What are some types of bailments?

17. Main Types of Bailments
There are three types of bailments:
bailments for the sole benefit of the bailor
bailments for the sole benefit of the bailee
mutual-benefit bailments

18. Main 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.

19. Bailments for Sole Benefit
of Bailor
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.

20. Bailments for Sole Benefit
of Bailor
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.

21. Bailments for Sole Benefit
of Bailor
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).

22. Bailments for Sole Benefit
of Bailee
When personal property is transferred for purposes that will benefit only the bailee, a bailment for the sole benefit of the bailee occurs.

23. Bailments for Sole Benefit
of Bailee
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.

24. Bailments for Sole Benefit
of Bailee
The bailee is required to use great care because possession of the goods is intended solely for the bailee’s benefit.

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

26. Bailments for Sole Benefit
of Bailee
The bailee has the right to use the property only for the purpose for which the bailment was created.

27. Mutual-Benefit Bailments
A mutual-benefit bailment is one in which both the bailor and the bailee receive some benefit.

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

32. Tortious Bailee
A tortious bailee refers to a person who wrongfully keeps the lost property of another or knowingly possesses stolen property.

33. 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. 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. Burden of Proof
The reason is because the bailee is in the best position to know what happened to the bailed property.

36. Pre-Learning Question
What are special bailments?

37. Special Bailments
Certain types of bailees have special obligations in addition to the duties imposed on all bailees. Special bailees include
hotel keepers
common carriers

38. 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. 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. 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. Jordan’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?

42. ANSWER
Bailor —Julio;
bailee—Jordan

43. Beth left her car with Steve at CarCraft for repairs. Who is the bailor? Who is the bailee?

44. ANSWER
Bailor—Beth;
bailee—CarCraft

45. 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. ANSWER
Bailor—Zenobia;
bailee—Red Roof Inn

47. Common Carriers
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.

48. Common Carriers
As with hotels, common carriers cannot turn away people who ask for their services.

49. Common Carriers of Goods
Common carriers of goods are liable for damages to all goods they ship, regardless of whether they are negligent.

50. Exceptions to Carrier Liability
17.2
Exceptions to Carrier Liability
Carriers are
not liable when
damages occur
because of
A public
enemy
Fault of
the
shipper
An act
of God
An act of
public
authority
Inherent
nature of
the
goods

51. Common 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.

52. Common Carriers of Passengers
A carrier’s duty of care to its passengers ends, in most cases, when the passenger leaves the carrier’s premises.

53. Common Carriers of Passengers
A common carrier must accept all persons who seek passage, with two exceptions.
when all available space is occupied or reserved

54. Common Carriers of Passengers
when passengers are disorderly, intoxicated, insane, or infected with a contagious disease

55. Bumped 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.

56. Passenger Baggage
Carriers are obligated to accept a reasonable amount of passengers’ baggage.

57. Passenger Baggage
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.

58. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
What is a bailment? Who is the bailor, and who is the bailee?

59. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
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.

60. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
The bailor is the person who transfers the property. The bailee is the person to whom the property is transferred.

61. Reviewing What You Learned Name the three main types of bailments.
Section Assessment
Reviewing What You Learned
Name the three main types of bailments.

62. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
Bailments for the sole benefit of bailor, bailments for the sole benefit of bailee, and mutual-benefit bailments.

63. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
Who has the burden of proof in a bailment lawsuit?

64. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
The bailee—the one who is in the best position to know what happened.

65. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
What are the hotel keepers’ duties of care to their guests?

66. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
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.

67. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
Common carriers are liable for damages to goods unless the damage comes within one of five exceptions. Name the exceptions.

68. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
(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

69. Reviewing What You Learned
Section Assessment
Reviewing What You Learned
When does a carrier’s duty of care to its passengers end?

70. Reviewing What You Learned Answer
Section Assessment
Reviewing What You Learned
Answer
When the passenger leaves the carrier’s premises.

71. Critical Thinking Activity Living Bailments
Section 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. Critical Thinking Activity Living Bailments
Section Assessment
Critical Thinking Activity
Living Bailments
Is this a bailment? What is the extent of care that applies? Explain your answer.

73. Critical Thinking Activity Answer Living Bailments
Section 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. Legal Skills in Action Airline Responsibilities
Section 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. Legal Skills in Action Airline Responsibilities
Section 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. Legal Skills in Action Airline Responsibilities
Section 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. Legal Skills in Action Answer
Section Assessment
Legal Skills in Action Answer
Airline Responsibilities
Brochures will vary but should include the responsibilities and exceptions covered in the text.

78. End of Section 17.2