Question
Reyes loans his Porsche to Yuan free of charge so that Yuan can visit her ailing mother.Reyes forgets to tell Yuan that the brakes on
Reyes loans his Porsche to Yuan free of charge so that Yuan can visit her ailing mother.Reyes forgets to tell Yuan that the brakes on the Porsche have not been working properly over the last couple of weeks.Yuan is injured when the brakes fail and she hits a tree and severely damages the Porsche.Which of the following are true with regard to the rights and obligations of Yuan and Reyes?
A.Reyes may be held liable to Yuan for her injuries due to his failure to disclose a known defect.
B.Yuan may be not be held liable to Reyes for the damage to the Porsche unless Yuan was grossly negligent in driving the Porsche at the time of the accident.
C.The parties each have liability for ordinary negligence because they created a bailment for mutual benefit.
D.A and B but not C.
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