Future Business Leaders of America (FBLA) Business Law Practice Exam

What defines a bailment for the sole benefit of the bailee?

1. Gratuitous bailment

2. Mutual benefit bailment

3. Special bailment

4. Constructive bailment

The correct answer is: Special bailment

A bailment for the sole benefit of the bailee refers specifically to a situation where one party (the bailor) delivers personal property to another party (the bailee) for the bailee's exclusive use, without receiving compensation in return. This type of bailment is established when the bailee gets sole advantage from the agreement, typically in a scenario where someone borrows an item without the owner expecting any benefit in return. The key characteristic of this type of bailment is that the bailee has a high level of responsibility to care for the property since they are the sole beneficiary of it. An example of this can be seen when a friend lends a personal item, like a book or a tool, to another without any payment involved; the borrower (bailee) benefits entirely from the arrangement. The other options deal with different types of bailments. A gratuitous bailment also refers to a non-commercial arrangement but does not necessarily imply the sole benefit of the bailee. A mutual benefit bailment involves both parties deriving some benefit, common in business transactions. Constructive bailment typically refers to a situation where property is under the control of one party but not intentionally bailed, often in legal contexts or for the protection of property. Thus