Question

1. Black was looking to buy a quality used luxury vehicle. He found a 2016 Audi at Dexter’s Audi that met his needs. He examined the car on several occasions and took it for a couple of test drives. Discussions with Dexter’s salesperson, White, were productive, and Black and White were close to making a deal. Black wanted to have the car inspected by an expert mechanic before finally agreeing to buy it, so he asked to have the car over a long weekend so he could drive it further and complete the inspection. White agreed, but required Black to sign a draft agreement and pay a deposit on the purchase price. Black signed the document “subject to satisfactory inspection.” Black took the car, but before the inspection could be done, he encountered a deer on the highway. He swerved to avoid the deer, lost control, went off the road, and hit a tree at high speed. Black was not injured but the car was demolished. Was this a bailment situation? Who is responsible for the vehicle?

Answer 1

It is a bailment situation as Black has got to use the car but not given the complete ownership which is still with Dexter's Audi . However in bailment situation , the person who is using the product would be held liable for any damage done to the product and hence Black would be responsible for the vehicle which has been damaged in the accident.