Jurg Was Hosting a Luncheon When His Punchbowl Broke

question 24

Multiple Choice

Jurg was hosting a luncheon when his punchbowl broke. He went next door and asked his neighbour, Ethan, if he could borrow his. Ethan reluctantly agreed, commenting that the punchbowl was a family heirloom. This made Jurg a little nervous. On his way back home, he was wondering what his responsibility would be in relation to the bowl. Which one of the following statements is true?

• A) Because this is a gratuitous bailment, Jurg has no legal obligation in relation to the punchbowl.
• B) Because this is a gratuitous bailment for Jurg's benefit, Jurg must be reasonably careful that no harm or damage comes to the punchbowl.
• C) Because Ethan lent the punchbowl to him reluctantly, the rules of an involuntary bailment apply.
• D) Because Jurg borrowed the punchbowl, he must return it in the same condition and is liable for any damage howsoever caused.
• E) Because the punchbowl is valuable, the rules of a bailment for value will be enforced.

---

Definitions:

Average Total Cost

Total cost divided by the number of units produced, representing the cost per unit of output.

Average Total Costs

The sum of all the production costs divided by the quantity of output produced, representing the per-unit cost of production.

Average Variable Costs

Costs that vary with the level of output, divided by the quantity of output produced, indicating the variable cost per unit.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales in a company.