If a Bailment Is Intended to Benefit Only the Bailor,which

question 26

Multiple Choice

If a bailment is intended to benefit only the bailor,which of the following statements is accurate?

• A)The bailee is liable for harm to the bailed property arising only out of the bailee's gross negligence only.
• B)The bailee is liable for harm to the bailed property arising out of either the bailee's ordinary or gross negligence.
• C)The bailee is liable for harm to the bailed property caused by even the slightest lack of due care on the part of the bailee.
• D)The bailee is not liable for harm to the bailed property because of the doctrine of assumption of the risk.
• E)The bailee is strictly liable for harm to the bailed property.

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Definitions:

Indirect Material Cost

Costs of materials that are part of the production process but are not directly traceable to a finished product.

Lubricants

Substances applied to reduce friction between surfaces in mutual contact, which ultimately decreases the heat generated when the surfaces move.

Period Cost

Expenses incurred by a business that are not directly tied to production activities, such as administrative and selling expenses.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the total production cost.