Question

In: Accounting

. Manuel takes his family to the Space Needle Restaurant for a special dinner celebration. He...

. Manuel takes his family to the Space Needle Restaurant for a special dinner celebration. He drives to the valet parking area, where the staff takes his keys and parks the car for Manuel. They give him a “claim check” for when the family is ready to pick up the car. The valet service costs $10. When Manuel and family have finished dinner, they present their claim check, but are informed that the car is missing – it must have been stolen! When Manuel complains, the valet points to the back of the claim check, where it is printed as follows: “Valet Parking is not responsible for theft or other loss of property.” Unfortunately, Manuel did have car insurance, but he had not noticed that the insurance policy had lapsed one week before this incident. If Manuel sues the Valet Parking Service for the value of his stolen vehicle, how should the judge rule?

a. The Valet Parking Service was legally responsible for returning the vehicle, under the legal doctrine of “bailment,” regardless of what the claim ticket said, so Manuel will win.

b. Manuel had a “license” to use the property – and the claim ticket clearly stated that the Valet Parking Service was not responsible for theft or other loss, so Manuel will lose.

c. Manuel had an “easement” to use the parking space – it is a temporary ownership interest in the parking space. Manuel should have gotten insurance. So Manuel will lose.

Solutions

Expert Solution

a) The Valet Parking Service was legally responsible for returning the vehicle, under the legal doctrine of “bailment,” regardless of what the claim ticket said, so Manuel will win.

What is bailment?

Bailment means the transfer of possession but not the ownership of the car for a limited or specific purpose. This means the bailor, or the valet service parking company will be responsible. In this case Mr. manual handed over the key to the staff of the parking service provider. So, the possession is handed in this case. That is why legally Valet parking service is responsible for the theft. And Mr. Manual will win.

Reason for b & c and wrong: b) if the valet parking service provider is not responsible for the theft, first they shouldn’t take the key with them. C) It is 100% not related to the Car’s insurance policy. But the valet service provider should have an insurance for his business for these kinds of losses happen. So it will not be a reason for the lose


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