Business Law I- Special Bailments

1. Chapter 15 Special Bailments By Alicia Koval and Liz Adams

2. Huber Notes – Chapter 16 2 What is a Bailment? Have you ever been involved in one… Lend a pen to a friend Borrow some eggs to a neighbor Find a $20 bill Rent a movie or video game If so…. You became a party to a legal relationship called a bailment. Definition: the transfer of possession of personal property without the transfer of ownership Bailor—is the party who gives up possession of the property Bailee—is the party who accepts possession.

3. There are several types of mutual-benefit bailments in which the bailee, under common law is held to a higher than normal standard of care for the bailed property. The bailments, sometimes called extraordinary bailments, include common carriers and hotel keepers. What does a carrier do? A carrier engages in the business of transporting goods or persons or both. A carries of goods is a bailee. Because a carrier charges a fee for such service, the bailment exists for the mutual benefit of both parties.

4. Classification of Carriers-1. Private Carriers2. Common Carriers Private Carriers Transports goods or persons for a fee, under special circumstances and can refuse any unprofitable transaction Examples: Moving vans, shipping or delivery services Their contracts are mutual-benefit bailments and the general law of bailments govern them Are liable from failure to exercise ordinary care

6. Common carries are not required to transport

7. 1. any person which requires unusual attention, such as an invalid, unless accompanied by a caretaker

8. 2. Any person with intent to harm or injure the carrier or passenger

9. 3. Any passenger that may be offensive to other passengers, such as an intoxicated person

10. Some examples are trains, buses, airplanes, ships and subways

12. Contractual Limitations on Liability- A common carrier may attempt to limit or escape liablitityimposted by law by entering into a contract between the shipper and carrier. 1. A carrier may limit it’s loss by agreement to a specified sum or percentage of value of the goods. A carrier must give the shipper choice of shipping at lower rates subject to the limited liability or at a higher rate without limitation on liability. 2. Most states permit carriers to exempt themselves from liability because of certain named hazards including fire, leakage, breakage, or losses due to riots, strikes and robbers

13. Bills of Landing A bill of landing is a contract between a shipper and a carrier and is also a document of title. Transfering a bill of landing may transfer title to the goods described in it to the purchaser. Two types of bills of landing 1. Straight, or non-neotiable bill of landing 2. Order, or negoriable bills of landing

14. Duties of Common Carriers of People1. Duty to provide reasonable accommodations and services2. Duty to provide reasonable protection to it’s passengers

15. Hotelkeepers Duties Include: 1. To serve all who apply 2. To protect a guest’s person 3. To care for the guest’s property

16. Hotelkeeper’s Lien A hotel keeper has a lien on the baggage of guests for the value of services rendered. If hotel charges are not paid at a reasonable time, the hotelkeeper may sell the baggage to pay the charges. The lien terminates if the property is returned to the guest, even though the charges are unpaid.