Darlene Lent Jeff Her Car to Go to a Job

question 14

Multiple Choice

Darlene lent Jeff her car to go to a job interview. She did not tell him her brakes were going out. While driving to the job interview the brakes went out on Jeff and he cause a major accident resulting in his hospitalization. Who is liable for the damages?

• A) Jeff,he was a bailee for his sole benefit.
• B) Jeff as he was driving except Darlene may be liable for the lost income because he did not get the job.
• C) Darlene is liable because she did not tell Jeff about all known defects
• D) Both Darlene and Jeff are liable as this was a bailment by agreement.

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Definitions:

Depreciation Expense

The allocated reduction in the value of a tangible asset over its useful life, recognized as an expense on the income statement.

Residual Value

The projected value that an asset is anticipated to yield when it is disposed of after its lifespan has concluded.

Depreciation Method

A systematic approach used to allocate the cost of an asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Economic Benefits

The gains derived from financial and non-financial activities, including income, improved well-being, or increased value.