CAIB 2 Chapter 5 Study Guide Questions with
Answers
- Drycleaners
- Garages
- Jewellers
- Furriers
- Trucking firms
- Couriers. - ✔✔Examples of businesses that have a bailee's exposure.
One who has temporary custody of the personal property of another for a purpose other than
sale, and who is compensated as a condition of the custody. - ✔✔"Bailee for hire."
Ordinary care. - ✔✔The level of care required of bailees by law.
The legal duty imposed on bailees that requires them to take the same care of goods of others
as would be taken by a prudent and diligent owner of such goods. - ✔✔"Ordinary care."
Stock. - ✔✔The coverage that bailee's exposure is usually insured by under most commercial
property policies.
1) Legal liability policy;
2) A special Bailees Customers Policy that insures direct loss or or damage to customers'
property, regardless of fault. - ✔✔Two other types of bailee's policies.
1) In transit;
2) During delay incidental to transit. - ✔✔Two coverage areas normally provided by Inland
Transportation policies.
, 1) Whether the owner or carrier is responsible for loss to the property; and
2) To what extent. - ✔✔The two factors to determine whether the owner or the carrier should
purchase insurance on a shipment.
Includes airlines, railroads, trucking companies and others that provide transportation to any
member of the public. - ✔✔"Common carrier."
One that carries, for pay, the goods of certain customers only. - ✔✔"Contract carrier."
One who hauls their own goods or goods entrusted to them as bailees or lessees; includes
shippers who own or lease their vehicles and carry their own goods. - ✔✔"Private carrier."
The safe delivery of goods entrusted to them. - ✔✔The responsibility owed to property owners
by common carriers.
- Acts of God or natural phenomena not reasonably foreseeable;
- Acts of public enemies;
- Acts of a public authority;
- Neglect or default of the shipper;
- Inherent vice in the good transported. - ✔✔Exceptions to the responsibility owed to property
owners by common carriers.
Used to reflect (and limit) the amount that the common carrier is legally liable for. -
✔✔"Standard (ordinary) bill of lading."
Increases the carrier's liability; usually requested by the owner when the value of the goods
exceeds the value stated in the standard bill of lading. - ✔✔"Valued bill of lading."
Answers
- Drycleaners
- Garages
- Jewellers
- Furriers
- Trucking firms
- Couriers. - ✔✔Examples of businesses that have a bailee's exposure.
One who has temporary custody of the personal property of another for a purpose other than
sale, and who is compensated as a condition of the custody. - ✔✔"Bailee for hire."
Ordinary care. - ✔✔The level of care required of bailees by law.
The legal duty imposed on bailees that requires them to take the same care of goods of others
as would be taken by a prudent and diligent owner of such goods. - ✔✔"Ordinary care."
Stock. - ✔✔The coverage that bailee's exposure is usually insured by under most commercial
property policies.
1) Legal liability policy;
2) A special Bailees Customers Policy that insures direct loss or or damage to customers'
property, regardless of fault. - ✔✔Two other types of bailee's policies.
1) In transit;
2) During delay incidental to transit. - ✔✔Two coverage areas normally provided by Inland
Transportation policies.
, 1) Whether the owner or carrier is responsible for loss to the property; and
2) To what extent. - ✔✔The two factors to determine whether the owner or the carrier should
purchase insurance on a shipment.
Includes airlines, railroads, trucking companies and others that provide transportation to any
member of the public. - ✔✔"Common carrier."
One that carries, for pay, the goods of certain customers only. - ✔✔"Contract carrier."
One who hauls their own goods or goods entrusted to them as bailees or lessees; includes
shippers who own or lease their vehicles and carry their own goods. - ✔✔"Private carrier."
The safe delivery of goods entrusted to them. - ✔✔The responsibility owed to property owners
by common carriers.
- Acts of God or natural phenomena not reasonably foreseeable;
- Acts of public enemies;
- Acts of a public authority;
- Neglect or default of the shipper;
- Inherent vice in the good transported. - ✔✔Exceptions to the responsibility owed to property
owners by common carriers.
Used to reflect (and limit) the amount that the common carrier is legally liable for. -
✔✔"Standard (ordinary) bill of lading."
Increases the carrier's liability; usually requested by the owner when the value of the goods
exceeds the value stated in the standard bill of lading. - ✔✔"Valued bill of lading."
