Question
Old McDonald had a farm, and on that farm, he grew apples. Donna owns and operates a business that makes juice. McDonald and Donna agree
Old McDonald had a farm, and on that farm, he grew apples. Donna owns and operates a business that makes juice. McDonald and Donna agree that Donna will charge $1.00 to process every bushel of McDonald's apples, and return to McDonald one gallon of apple juice for every two bushels of apples. McDonald delivers 2,000 bushels of apples to Donna for juicing. After Donna presses McDonald's apples, she is able to produce 1,500 gallons of juice. Donna delivers 1,000 gallons of juice to McDonald and sells the remaining 500 gallons to Pete.
Old McDonald sues Donna, claiming that the agreement he had with Donna was a bailment that required Donna to return all the product from the apples he delivered to her for juicing.
Was the agreement a bailment? Is Donna liable to Old McDonald for the value of the 500 gallons of juice she sold to Pete?
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