Which of the Following Statements Is Correct with Respect to the Creation

question 49

Multiple Choice

Which of the following statements is correct with respect to the creation of a bailment?

• A) For a bailment to be created, it is necessary for the parties to have anticipated that the property would be returned at the end of the bailment period.
• B) For a bailment to be created, the property must be given with the understanding that payment would be given for the service.
• C) Bailments can only be created through contracts.
• D) A bailment is not created when the transfer of the property is only done incidentally, such as leaving a watch with a watchmaker for repair.
• E) A bailment is the process provided for releasing people from jail before trial.

---

Definitions:

Flat Tax

A tax system with a constant marginal rate, usually applied to individual or corporate income.

Federal Reserve Board

The governing body of the Federal Reserve System, which is responsible for setting monetary policy in the United States.

Tools

Devices or implements, often hand-held, used to carry out a particular function or task.

Taxation Systems

The structured methods by which governments finance their expenditure by imposing charges on citizens and corporate entities.