Kevin's Car Is in for Repairs,so Kevin Borrows Gloria's Car

question 101

Multiple Choice

Kevin's car is in for repairs,so Kevin borrows Gloria's car at no charge.While Kevin is driving on the highway,one of the tires goes flat.Kevin is disgusted and makes no effort to change the tire,although he knew how to do so.Kevin leaves the car on the highway,gets a ride,and picks up his own car.The next day,Kevin tells Gloria about the car.She goes to pick it up,but someone has stolen it.Which of the following describes Kevin's responsibility to Gloria in a state applying the traditional classifications of bailments?

• A) Kevin owed only a slight duty of to protect the bailed property, and he therefore has no responsibility to Gloria for the loss of the car.
• B) Kevin owed a duty of reasonable care to protect the property, failed to act reasonably, and is responsible to Gloria for the loss of the car.
• C) Kevin owed a great duty of care to protect the bailed property, and he is therefore liable to Gloria for the loss of the car.
• D) Kevin had no duty to Gloria.
• E) Kevin owed a duty of reasonable care to protect the property, but the act of theft by an unknown third party was an intervening event that absolved him of liability for the loss of the car.

---

Definitions:

Monopsony Outcome

A market condition where there is only one buyer for many sellers, leading to lower prices and wages due to the buyer's market power.

Market Supply

The total quantity of a good or service that is available for purchase at a given price in a market.

Deadweight Loss

The decrease in economic effectiveness happening when a good or service does not reach or cannot reach its equilibrium state.

Monopsony Power

The market power held by a single buyer in a market, allowing them to influence prices and terms of trade.