Question 1

A finder,in the legal sense,is

Accepted Answer

A) a keeper,if she or he owns the land the goods are found on. 
B) not bound to take possession of what he or she finds;but once he or she does,he or she becomes a bailee for the owner. 
C) obligated,regardless of how valueless the goods are,to find the owner of the goods. 
D) a keeper,as long as property has no monetary value. 
E) a gratuitous bailor of the goods found. 
A) a keeper,if she or he owns the land the goods are found on. 
B) not bound to take possession of what he or she finds;but once he or she does,he or she becomes a bailee for the owner. 
C) obligated,regardless of how valueless the goods are,to find the owner of the goods. 
D) a keeper,as long as property has no monetary value. 
E) a gratuitous bailor of the goods found.

Question 2

What defences are available to a common carrier to avoid liability against a bailor whose goods were damaged when in the possession of the common carrier?

Accepted Answer

The common carrier has the def

Question 3

Lucy brought her badly stained Persian rug in to be cleaned.The cleaners gave her a receipt in which a clause disclaimed all liability for damage arising from normal handling.When Lucy returned for the rug,it was in an advanced state of deterioration.The cleaners claimed it was exempted from damages by its written disclaimer.The courts would

Accepted Answer

A) exempt the cleaners from liability based on the exemption clause. 
B) interpret the clause most strongly against the plaintiff. 
C) side with Lucy's claim for damages. 
D) explain why the exemption clause would not apply. 
E) require a reasonable explanation as to why the damage was not the result of negligence. 
A) exempt the cleaners from liability based on the exemption clause. 
B) interpret the clause most strongly against the plaintiff. 
C) side with Lucy's claim for damages. 
D) explain why the exemption clause would not apply. 
E) require a reasonable explanation as to why the damage was not the result of negligence.

Question 4

Marcus rented some scaffolding to aid in replacing the siding of his house.This type of lease would be referred to as

Accepted Answer

A) an operating lease. 
B) a security lease. 
C) a capital lease. 
D) a performing lease. 
E) a functioning lease. 
A) an operating lease. 
B) a security lease. 
C) a capital lease. 
D) a performing lease. 
E) a functioning lease.

Question 5

Bailment

Accepted Answer

A) requires transfer of possession of personal property. 
B) arises only from a contract between bailor and bailee. 
C) is a consignment with transfer of title. 
D) alters ownership of a specific item. 
E) cannot include a chattel. 
A) requires transfer of possession of personal property. 
B) arises only from a contract between bailor and bailee. 
C) is a consignment with transfer of title. 
D) alters ownership of a specific item. 
E) cannot include a chattel.

Question 6

A leases a harvesting machine from B to be used during the harvesting season in Ontario,which is from the beginning of August to the end of September.In this case,the lease is best described as

Accepted Answer

A) a financing lease. 
B) an operating lease. 
C) a purchase or capital lease. 
D) a hire-purchase agreement. 
E) none of the above 
A) a financing lease. 
B) an operating lease. 
C) a purchase or capital lease. 
D) a hire-purchase agreement. 
E) none of the above

Question 7

The majority of chattel leases are merely forms of bailment.Discuss.

Accepted Answer

Bailment is the transfer of possession o

Question 8

Rex,a licensed contractor,rented a heavy duty brush cutter from YouRentAll Inc.Within the first few minutes of use,the blade came off and extensively damaged the shroud and housing of the machine.It was determined that the bolts that held the blade on were left loose by some previous user.YouRentAll sued Rex for the repair costs,claiming Rex should have checked out the machine before using.Assuming the lease contract did not speak to this type of situation,how would the court rule?

Accepted Answer

A) The plaintiff would win,since there is an implied condition here. 
B) The defendant would win,since there is an implied warranty of fitness. 
C) The plaintiff would win,since they are in the business of renting chattels. 
D) The defendant would win,because lessor needs to take care of all repairs. 
E) The plaintiff would win,because proper standard of care was not shown. 
A) The plaintiff would win,since there is an implied condition here. 
B) The defendant would win,since there is an implied warranty of fitness. 
C) The plaintiff would win,since they are in the business of renting chattels. 
D) The defendant would win,because lessor needs to take care of all repairs. 
E) The plaintiff would win,because proper standard of care was not shown.

Question 9

In a bailment of common carriage,where the bailor proves that the goods were given to the bailee in good condition but were returned damaged,the bailee will be held liable unless it can show that the damage was caused by

Accepted Answer

A) the default of the bailor,an act of God,or the dangerous condition of the goods. 
B) an act of God or dangerous condition of the goods only. 
C) the default of the bailor or dangerous condition of the goods only. 
D) the default of the bailor or an act of God only. 
E) none of the above 
A) the default of the bailor,an act of God,or the dangerous condition of the goods. 
B) an act of God or dangerous condition of the goods only. 
C) the default of the bailor or dangerous condition of the goods only. 
D) the default of the bailor or an act of God only. 
E) none of the above

Question 10

The notion of an "inherent vice" is a defence.

Accepted Answer

A) True 
 B)False

Question 11

A and B are neighbours.B wants to trim his hedges,but his trimmer is broken.Being close neighbours,A and B often borrow things from each other,so B borrows A's trimmer from A's garage.This is an example of

Accepted Answer

A) a bailment of storage. 
B) a bailment of common carriage. 
C) a gratuitous bailment. 
D) a bailment for reward or value. 
E) none of the above 
A) a bailment of storage. 
B) a bailment of common carriage. 
C) a gratuitous bailment. 
D) a bailment for reward or value. 
E) none of the above

Question 12

Common carriers may limit the amount of their liability when the shipper does not declare the value of goods.Usually these terms must be approved by the Canadian Transportation Agency,which has jurisdiction over the common carrier.Discuss the benefit to both the shipper and the common carrier with this arrangement.

Accepted Answer

The common carrier bases its freight cha

Question 13

Explain the difference between an operating lease and a purchase lease.

Accepted Answer

An operating lease tends to be short-ter

Question 14

Hotelkeepers and common carriers are both insurers of their customers' goods.What is the liability distinction between these two insurers?

Accepted Answer

Common carriers undertake to indemnify t

Question 15

Lila gives her watch to Josh for repair.Josh has Lila sign a work order that says that Josh's maximum liability in case the watch is lost or damaged will be $100.Josh is unable to repair the watch himself,and so takes it to Fritz,who specializes in repair of watches of this type.Unfortunately Fritz drops the watch down a heating duct,and it cannot be found.The value of the watch was $2000.Fritz has offered to pay Lila $100,but she claims he is responsible for the value of the watch.Is she correct?

Accepted Answer

A relationship of bailment exists betwee

Question 16

Some texts,like this one,separate most chattel leases from bailment,while others suggest that many forms of chattel lease are included in bailment.Based on the characteristics of both bailment and the majority of chattel leases,discuss whether the distinction between them should be maintained.

Accepted Answer

The essential elements of bailment are (

Question 17

Which of the following is true regarding bailments?

Accepted Answer

A) A change of ownership does not occur;the bailee is only putting his or her property in the bailor's custody. 
B) The courts want to keep contracts alive,so they will often rescind a bailment. 
C) Under a bailment arrangement,there can arise a time when the possessor can sell the goods against the owner's wishes. 
D) If Sally were suing her dry cleaners for the loss of her coat,Sally must prove that the dry cleaners were negligent. 
E) John put his house under the care of a neighbour until he returns from vacation.For John to take custody of it again is an example of a bailment. 
A) A change of ownership does not occur;the bailee is only putting his or her property in the bailor's custody. 
B) The courts want to keep contracts alive,so they will often rescind a bailment. 
C) Under a bailment arrangement,there can arise a time when the possessor can sell the goods against the owner's wishes. 
D) If Sally were suing her dry cleaners for the loss of her coat,Sally must prove that the dry cleaners were negligent. 
E) John put his house under the care of a neighbour until he returns from vacation.For John to take custody of it again is an example of a bailment.

Question 18

Use the facts of this situation to answer the related question that follows it. A enters into an agreement with B,an automobile dealer.A does not have the cash to buy the car,so a leasing arrangement is made under which each lease payment is a payment towards the purchase of the car.Ownership of the car remains with B until A makes the last payment,at which time it is transferred to A.
In the fact situation above,the lease is best described as

Accepted Answer

A) a hire-purchase agreement. 
B) an operating lease. 
C) a sale and purchase agreement. 
D) a security lease. 
E) none of the above 
A) a hire-purchase agreement. 
B) an operating lease. 
C) a sale and purchase agreement. 
D) a security lease. 
E) none of the above

Question 19

Regarding bailments,which of the following is true?

Accepted Answer

A) Articles held under bailment form assets available to creditors in bankruptcy. 
B) Bailments are not confined to personal property. 
C) Trusts are bailments because there is a transfer of property. 
D) Chequing accounts at the bank are a form of bailment. 
E) Contents in a safety deposit box are a form of bailment. 
A) Articles held under bailment form assets available to creditors in bankruptcy. 
B) Bailments are not confined to personal property. 
C) Trusts are bailments because there is a transfer of property. 
D) Chequing accounts at the bank are a form of bailment. 
E) Contents in a safety deposit box are a form of bailment.

Question 20

Where a licence is given,unlike with a bailment,the licensee assumes responsibility for safekeeping.

Accepted Answer

A) True 
 B)False

Exam 15: Bailment and Leasing

A finder,in the legal sense,is

What defences are available to a common carrier to avoid liability against a bailor whose goods were damaged when in the possession of the common carrier?

Marcus rented some scaffolding to aid in replacing the siding of his house.This type of lease would be referred to as

Bailment

A leases a harvesting machine from B to be used during the harvesting season in Ontario,which is from the beginning of August to the end of September.In this case,the lease is best described as

The majority of chattel leases are merely forms of bailment.Discuss.

In a bailment of common carriage,where the bailor proves that the goods were given to the bailee in good condition but were returned damaged,the bailee will be held liable unless it can show that the damage was caused by

The notion of an "inherent vice" is a defence.

A and B are neighbours.B wants to trim his hedges,but his trimmer is broken.Being close neighbours,A and B often borrow things from each other,so B borrows A's trimmer from A's garage.This is an example of

Explain the difference between an operating lease and a purchase lease.

Hotelkeepers and common carriers are both insurers of their customers' goods.What is the liability distinction between these two insurers?

Some texts,like this one,separate most chattel leases from bailment,while others suggest that many forms of chattel lease are included in bailment.Based on the characteristics of both bailment and the majority of chattel leases,discuss whether the distinction between them should be maintained.

Which of the following is true regarding bailments?

Regarding bailments,which of the following is true?

Where a licence is given,unlike with a bailment,the licensee assumes responsibility for safekeeping.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

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