Rohan Created a Bailment by Providing Goods to Hi- Way

question 64

Multiple Choice

Rohan created a bailment by providing goods to Hi- way Transport Co (HTC) , which is a common carrier. The goods were damaged during the bailment. Which of the following statements is TRUE?

• A) The bailor is treated as an insurer.
• B) HTC may be held liable only if there is proof that it was at fault.
• C) If Rohan's goods are covered by first party insurance, his insurer may eventually be entitled to receive money from HTC.
• D) HTC cannot be considered a common carrier if it occasionally turns away business because it lacks space.
• E) Given the nature of the parties' relationship, HTC cannot be protected by an exclusion clause.

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Definitions:

Debtor

An individual or entity that owes money or other forms of obligations to another party, known as the creditor.

Perfection

A legal process by which a secured creditor establishes a priority claim on a debtor's asset over others, often through a public registration.

Legal Steps

The procedures or actions required by law to achieve a certain outcome, such as filing a lawsuit or executing a contract.

Collateral

Property or other assets that a borrower offers a lender to secure a loan.