Darcy Received a Widget from Rachel Under a Bailment

question 1

Multiple Choice

Darcy received a widget from Rachel under a bailment. The widget was damaged while it was in his possession. As a result, Rachel has sued Darcy. Which of the following statements is TRUE with respect to Darcy's liability?

• A) Darcy will be treated as an insurer if the bailment was both gratuitous and for his benefit.
• B) If the bailment was for Rachel's benefit, Darcy cannot be held liable.
• C) If Darcy is a common carrier, then he may be relieved of liability if the damage was caused by an act of God.
• D) If the burden of proof shifts to Darcy, he cannot possibly avoid liability by merely proving that he exercised reasonable care.
• E) Once Rachel proves that the widget was damaged while in Darcy's possession, the burden of proof necessarily will shift.

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Definitions:

Point Method

A technique used in job evaluation that involves quantifying job elements to determine the value of a position within an organization.

Competency-Based Pay

A salary system that bases compensation on an employee's skills, abilities, and performance rather than job title or position alone.

Commission Pay

A form of compensation based on a percentage of sales or profits generated by an employee, commonly used in sales roles to motivate performance.

Profit Sharing

Any procedure by which an employer pays, or makes available to all regular employees, in addition to base pay, special current or deferred sums based on the profits of the enterprise