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:

Surety

A person, such as a cosigner on a note, who agrees to be primarily responsible for the debt of another.

Guarantor

A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. A guarantor’s liability is thus secondary.

Short Sale

A sale of real property for an amount that is less than the balance owed on the mortgage loan, usually due to financial hardship.

Judicial Foreclosure Sale

The process of selling mortgaged property under court supervision to pay off debts incurred by the property owner.