Section 17.2

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 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. 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? 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. 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