1. How does a sale of goods differ from a gift or a loan?
2. Sales of personal property are required under the UCC to have only one term in the contract. What is that term?
3. Has a bailment been created when a passenger checks luggage with an airline? Is a bailment created when a passenger places luggage in the overhead compartment above the passenger’s seat? Explain your answers.
4. Has a bailment been created when a traveler parks his or her car and keeps the car keys prior to departing on a flight from JFK Airport in New York City? Has a bailment been created when a malfunctioning stoplight on the way to JFK Airport in New York City causes a traveler to be so late for his or her flight that the traveler gives the car keys to a JFK Airport valet and has the valet park the car and retain the keys until the traveler returns from the trip? Explain your answers.
5. Starving artist, George O’Keefe, asks tavern owner, Sam Malone, whether O’Keefe may display his painting of Sam’s wife in Sam’s tavern. George gave Sam the painting and remarked that Sam should display it because it might make Sam’s bar famous. Sam begrudgingly allows George to display the painting with a $100 price tag and George’s name and phone number on it.A year later, George’s other painting are displayed in the Metropolitan Museum of Art, and George is recognized as “one of America’s finest new artists.” George then asks Sam to return the painting of Sam’s wife, but Sam refuses to do so. Was a bailment created? Is George entitled to damages, and, if so, how much? Could Sam successfully charge George for the storage of the painting? Explain your answers.
6. Larry Fine needed money to purchase a toupee for a good friend’s birthday present. So, Larry took his violin to Moe’s EZ Pawn Shop where Moe advised him that he would loan him $50. Moe provided Larry with $50 in cash along with a pawn ticket indicating that Larry had 30 days to reclaim his violin. One week after Larry pawned his violin, Moe realize that it was a Stradivarius and worth $50,000. Moe then sold Larry’s violin to the conductor of the local symphony orchestra for $50,000. Shortly before the 30 day time limit, Larry returned to Moe’s EZ Pawn Shop with cash to reclaim his violin. Moe obviously did not produce the violin to Larry but rather told Larry that he could “keep the $50.”Was a bailment created? Does Larry have a valid claim and lawsuit against Moe? Is Moe liable to Larry for $50,000 or $50 plus interest? Would Larry’s damages be any different if the violin was not “one of a kind” and irreplaceable? Explain your answers.
7. After work last night Mary Smith and her friends went to “happy hour” at a swank local restaurant. Prior to sitting with her friends around the dinner table, Mary gave her Calvin Klimbe Fedora along with a $1 tip to the attendant in the restaurant’s coat check room. The attendant then gave Mary a claim receipt for her hat. After “happy hour” was over, Mary returned to the coat check room and noticed that the room was dark and that there was no sign of the attendant. Mary showed her claim receipt to the restaurant manager and asked him to assist in finding her Fedora, but after searching for an hour, the Fedora could not be found. Was a bailment created? What are Mary’s damages, if any? Explain your answers.
8. Diane and Albert Jones celebrated their 20th wedding anniversary at the elegant Ritzy Hotel in Beverly Hills. Over the entrance to the restaurant at the Ritzy there was a sign indicating that “No Overcoats or Hats are Allowed in the Dining Area.” After reading the sign, Diane checked her imitation ermine overcoat and hat with the coat check attendant, and the attendant gave Diane a claim check for the coat and the hat. After dinner Diane presented her claim check to the attendant, and the attendant gave Diane her ermine coat and hat. When Albert and Diane were in the Ritzy parking lot, Diane reached into the pocket of the ermine coat to retrieve her lighter. Unfortunately, Diane’s heirloom solid gold, diamond-studded cigarette lighter was not in any coat pocket. She and Albert vividly recall examining the beautiful lighter and discussing how it had been in Diane’s family for two generations as they entered the Ritzy prior to their dinner. Has a bailment been created regarding the coat, hat, and cigarette lighter? Is Diane entitled to any damages? Explain your answers.
9. Irma McDonald is a farmer who toiled all season growing and harvesting her grains. As she does each year, Irma transported the grain to market for sale. Acme Grain Storage, Inc., placed the grain in their grain elevators. According to Acme, Irma’s grain was worth $5000. When Irma requested a receipt from Acme verifying the weight, bushels, and value of the grain, and Acme employee informed Irma that the computer was “down” and that they could only provide her with a receipt once the computer was functioning. The next day Irma returned to the Acme grain storage facility and asked for $5000 for her grain. A different Acme employee told Irma that he could only give her a check if she had a receipt. Irma explained that the Acme computers were malfunctioning when she had brought in the grain. The Acme employee retorted that the computers had “never malfunctioned” and did not provide Irma with her check. Had a bailment been created? What are Irma’s damages, if any, and what tangible or intangible evidence could Irma potentially produce that would corroborate her story? Explain your answers.
10. Which of the following agreements, if any, would have to be in writing to be enforceable? (There may be more than one.) Explain the doctrine upon which you have based your answer(s).