Chap023 - Chapter 023 : Bailments Chapter 023 : Bailments...

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Chapter 023 : Bailments Chapter 023 : Bailments Student: ___________________________________________________________________________ 1. A bailment is a special kind of contract that is widely used in business and not in personal affairs. BT: Knowledge PO: 1 True False 2. Taking clothes to a dry cleaner transfers possession, but not ownership of the clothes. BT: Analysis PO: 1 True False 3. The person who retains ownership and transfers possession is the bailor and the person who receives the goods is the bailee. BT: Knowledge PO: 2 True False 4. Actual ownership of goods is necessary to create a bailment. BT: Knowledge PO: 2 True False 5. In all bailments, the bailee must return the identical goods. BT: Knowledge PO: 2 True False
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6. In a bailment for the sole benefit of a bailee, both the bailor and the bailee get the benefit. BT: Comprehension PO: 3 True False 7. A bailment for the sole benefit of a bailor requires extraordinary care in taking care of the article by the bailee. BT: Knowledge PO: 3 True False 8. A warehouser is not responsible for goods left in storage. BT: Knowledge PO: 3 True False 9. The bailor does not have the duty to warn the bailee of any defects in the property that could cause harm. BT: Knowledge PO: 3 True False 10. A bailment is created when the parking lot attendant actually takes control of the vehicle. BT: Knowledge PO: 3 True False 11. In bailment for work and services, a bailor-bailee relationship is concerned with the care of the property. BT: Knowledge PO: 3 True False 12. A bailee's lien is a claim against the property of another as security for a debt. BT: Knowledge PO: 3 True False
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13. The person who ships goods is known as a consignor. BT: Knowledge PO: 3 True False 14. A carrier, in most cases, has a right to hold a shipment until payment is made. BT: Knowledge PO: 3 True False 15. There are instances in which goods are thrust upon a bailee who does not have any choice about whether or not he or she wishes to serve as bailee. BT: Comprehension PO: 3 True False 16. A bailment is a special kind of contract that is widely used in business and in: A. personal affairs. B. cultural activities. C. academic research. D. charitable institutions. 17. A transaction in which an owner of a tangible personal property transfers the property to another party while still retaining ownership of such property is known as a: A. bailment. B. pledge. C. hypothecation. D. lease. 18. A bailment allows an owner of a personal property to transfer possession of it to another individual for any one of the following purposes, EXCEPT: A. sale. B. transportation. C. storage. D. lease.
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19. An agreement reached between a bailor and a bailee is a: A. mortgage. B. bailout.
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This note was uploaded on 09/25/2011 for the course GENB 4350 taught by Professor Louis during the Spring '11 term at Houston Baptist.

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Chap023 - Chapter 023 : Bailments Chapter 023 : Bailments...

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