Section 17.2
Bailments
Section 17.2 Bailments
What You’ll Learn
How to define a bailment (p. 368)
How to describe kinds of bailments
(p. 369)
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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)
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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)
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Why It’s Important
Understanding the law of bailments can help
you avoid difficulties.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Legal Terms
bailment (p. 368)
bailor/bailee (p. 368)
mutuum (p. 368)
gratuitous bailments (p. 369)
gross negligence (p. 370)
slight negligence (p. 371)
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Legal Terms
reasonable care (p. 371)
ordinary negligence (p. 371)
tortious bailee (p. 372)
carrier (p. 376)
common carrier (p. 376)
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section Outline
Special Bailments
Hotel Keepers
Common Carriers
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Pre-Learning Question
What is a bailment?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Bailments of Personal Property
The person who transfers the property
is the bailor.
The person to whom the property is
transferred is the bailee.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Pre-Learning Question
What are some types of bailments?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Main Types of Bailments
There are three types of bailments:
1. bailments for the sole benefit of
the bailor
2. bailments for the sole benefit of
the bailee
3. mutual-benefit bailments
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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).
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Mutual-Benefit Bailments
A mutual-benefit bailment is one in
which both the bailor and the bailee
receive some benefit.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
17.2 17.2 Bailments
Section
Mutual-Benefit Bailments
Bailment
Service or repair
Bailor
Bailee
Owns the item to be Performs the repair or
serviced or repaired
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
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Tortious Bailee
A tortious bailee refers to a person
who wrongfully keeps the lost property
of another or knowingly possesses
stolen property.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Burden of Proof
The reason is because the bailee is in
the best position to know what
happened to the bailed property.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Pre-Learning Question
What are special bailments?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Hotel Keepers
Hotel keepers have special duties.
duty to accept all guests
duty of reasonable care--a minimum
standard of comfort, safety, and
sanitation
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
1. Jordan’s bat was broken, so he
borrowed Julio’s. Who is the bailor?
Who is the bailee?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
ANSWER
Bailor —Julio;
bailee—Jordan
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
2. Beth left her car with Steve at
CarCraft for repairs. Who is the
bailor? Who is the bailee?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
ANSWER
Bailor—Beth;
bailee—CarCraft
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
3. 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?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
ANSWER
Bailor—Zenobia;
bailee—Red Roof Inn
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Common Carriers
As with hotels, common carriers
cannot turn away people who ask for
their services.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Common Carriers of Goods
Common carriers of goods are liable
for damages to all goods they ship,
regardless of whether they are
negligent.
Understanding Business and Personal Law
Personal Property and Bailments
17.2 17.2 Bailments
Section
Exceptions to Carrier Liability
A public
enemy
Carriers are
not liable when
damages occur
because of
An act
of God
Understanding Business and Personal Law
An act of
public
authority
Fault of
the
shipper
Inherent
nature of
the
goods
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Common Carriers of Passengers
A common carrier must accept all
persons who seek passage, with two
exceptions.
1. when all available space is
occupied or reserved
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Common Carriers of Passengers
2. when passengers are disorderly,
intoxicated, insane, or infected with
a contagious disease
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Passenger Baggage
Carriers are obligated to accept a
reasonable amount of passengers’
baggage.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
1. What is a bailment? Who is the
bailor, and who is the bailee?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
2. Name the three main types of
bailments.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
Answer
Bailments for the sole benefit of bailor,
bailments for the sole benefit of bailee, and
mutual-benefit bailments.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
3. Who has the burden of proof in a
bailment lawsuit?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
Answer
The bailee—the one who is in the best
position to know what happened.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
4. What are the hotel keepers’ duties
of care to their guests?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
5. Common carriers are liable for
damages to goods unless the
damage comes within one of five
exceptions. Name the exceptions.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 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
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
6. When does a carrier’s duty of care
to its passengers end?
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Reviewing What You Learned
Answer
When the passenger leaves the carrier’s
premises.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Critical Thinking Activity
Living Bailments
Is this a bailment? What is the extent of
care that applies? Explain your answer.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Legal Skills in Action
Airline Responsibilities
Most people don’t realize that common
carriers have rules they follow regarding
the transportation of passengers.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 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.
Understanding Business and Personal Law
Personal Property and Bailments
Section 17.2 Bailments
Section 17.2 Assessment
Legal Skills in Action Answer
Airline Responsibilities
Brochures will vary but should include the
responsibilities and exceptions covered in
the text.
Understanding Business and Personal Law
Personal Property and Bailments
End of Section 17.2
Bailments