The Following Are Types of Bailments for Which a Bailee

question 12

Multiple Choice

The following are types of bailments for which a bailee is required to protect the goods from foreseeable harm:

• A) gratuitous bailment.
• B) bailment for reward.
• C) bailment for the benefit of the bailee and the bailor.
• D) bailment for reward and bailment for the benefit of the bailee and the bailor.
• E) All of the responses are correct.

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Definitions:

PIKs

Short for "Payment in Kind," a type of financing or loan where the borrower can pay interest or dividends with additional securities instead of cash.

Mortgage Bond

A type of bond secured by a mortgage on one or more assets, offering the bondholder a claim against the assets in case of default.

Securities

Financial instruments that represent an ownership position in a corporation (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Equipment

Tangible property other than land or buildings that is used in the operations of a business, such as machinery, tools, or vehicles.