Kevin asked Paula if he could store his lawnmower in her garage until his shed was repaired. Paula agreed. Paulas garage burnt down, destroying the lawnmower. The fire started because Paula was a little careless with some old rags covered in paint thinner. Under the historical rules, would Paula have been liable for the loss?

Yes. Paula would have been liable because she was careless.

Yes. Because Kevins lawnmower was in Paulas care, any damage has always been considered her fault and she would have been held liable.

No. Paula, as the bailee, would have to have been negligent to be liable.

No. Because Kevin was receiving the benefit of the bailment, Paula would only have been liable if she was grossly negligent.

No. As the parties both benefitted, Paula would have to have failed to be diligent to be liable.