Solution Manual
Book Title
Business Law with UCC Applications 14th Edition

978-0077733735 Chapter 29 Solution Manual

April 10, 2019
Chapter 29 Personal Property and Bailments
Opening Case Questions
1. In this case the bailor is the student, and the bailee is the university. The definitions of the two
2. The text tells us this: “The elements of bailment include the intent to transfer and accept the
3. In this case, the university receives no benefit from the bailment and so it is a bailment for the
benefit of the bailor (the student). It would be different were the student to pay a fee to the
5. It is more likely that the result would be different if the student were an employee, if only
because his work could then be interpreted as directly aiding the university and the storage of
A Question of Law and Ethics
Footsteps in the Night, Footprints in the Morning
Special Directions to the Instructor: Instructors often find themselves baffled when they try to
unravel the answers given by students to ethical questions. This process becomes even more rigorous
when students are given a choice as to which ethical to apply to their analysis (market value ethics,
Questions for Review and Discussion
1. Tangible personal property consists of goods, such as furniture, appliances, books clothing,
2. When personal property is owned solely by one person, it is said to be owned in severalty. When
it is owned by more than one person, it is said to be held in cotenancy. The types of cotenancies
discussed here are tenancy in common, joint tenancy, and community property. When two or more
people own personal property as tenants in common, each cotenant’s share of the property passes to his
3. Someone who finds lost property may claim ownership of it after a reasonable effort is made to
find the owner without success. Property found on the counter of a store, or on a table at a restaurant is
misplaced because it is reasonable to assume that the owner will remember where it is and return to
7. A bailment for the sole benefit of the bailor results when possession of personal property is
transferred to another for purposes that will benefit only the bailor. An example of this type of bailment
is asking a friend to take your clothes to the cleaners for you as a favor. A bailment for the sole benefit
of the bailee occurs when possession of personal property is transferred to the bailee for purposes that
8. Former law required the bailee to use great care in a bailment for the sole benefit of the bailee,
slight care in a bailment for the sole benefit of the bailor, and ordinary care in a mutual-benefit
bailment. The standard of care adopted by many courts today does away with the degrees of care.
Instead, all bailees are required to use reasonable care.
9. An innkeeper has an obligation to accept all guests. People may be turned away when all rooms
10. Innkeepers have a greater duty of care toward their guests’ property than is imposed in a usual
mutual-benefit bailment. With exceptions, innkeepers are held by law to be insurers of their guests’
property. The insured property includes all personal property brought into the hotel for the convenience
and purpose of the guests’ stay. In the event of loss, the hotelkeeper may be held liable, regardless of
the amount of care exercised in the protection of the guests’ property. Innkeepers are not liable as
insurers in four situations: (1) Losses caused by a guest’s own negligence. (2) Losses to the guest’s
property due to acts of God or acts of the public enemy. (3) Losses of property due to accidental fire in
Cases for Analysis
2. No. There is only evidence indicating that a contract existed between the parties for the rental of
three booth spaces. Standing alone, this does not create a contract of bailment. The subject matter of
4. No. A finder does not get title to anothers lost property. An effort must be made to find or
identify the real owner. State laws provide, however, that if a reasonable effort is made to locate the
5. Lane was the legal owner. For a gift to be completed, the property must be delivered to the donee.
7. Yes and no. The nineteen thoroughbred horses were tangible personal property, as the judge
correctly ruled. They were susceptible to the sense of touch, capable of ownership, and endowed with
intrinsic value. However, the cashiers check was not tangible personal property. It was intangible
8. No. Rather than the burden being on Scott, the bailor, to prove negligence on the part of the
bailee, the burden is on Purser, the bailee, to prove that he was not negligent. The trial court applied

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