Question

For DT2, let's continue with personal property and bailment, considering a common fact set:

Kyle takes his truck to Jiffy Auto Repairs to have some work done. He has a bad seal in the transmission and the fluid is leaking out. Since the parts will have to be ordered, the repairs will take several days. Kyle leaves his truck there waiting for the parts and necessary repairs. One night, Kyle's truck is stolen. What is Jiffy's liability for the stolen truck? What factors would you consider in determining this liability?  

Answer 1

Answer:-

The term "Bailment" refers to transfer of property to another person for safekeeping,or for the other person to control or use temporarily.The person receiving the property is called "Bailee" and the person giving the property is called "Bailor".In the given case,Jiffy Auto Repairs is the "Bailee" and has possession and control over the property during which it is responsible to take care of the property.

In the given case, Jiffy is liable to pay the damages borne by Kyle for the lost truck.Kyle is also responsible to inform the insurance company if the truck was insured about its theft.Factors for determining Jiffy's liability would be:-

1.Market value of the truck.

2.Insurance cover of the truck,if any.

3.Fees which Kyle was about to pay for the repair and the terms and conditions of repairing the truck.

4.Situation under which truck was stolen.