Ronald Armstead worked for First American Bank as a courier. His duties included making deliveries between the bank's branches in Washington, D.C. Armstead parked the bank's station wagon near the entrance of one branch in violation of a sign saying: "No ParkingRush Hour Zone." In the rear luggage section of the station wagon were four locked bank dispatch bags containing checks and other valuable documents. Armstead had received tickets for illegal parking at this spot on five occasions. Shortly after Armstead entered the bank, a tow truck arrived and its operator prepared to tow the station wagon. Transportation Management, Inc., operated the towing service on behalf of the District of Columbia. Armstead ran out to the vehicle and told the tow truck operator that he was prepared to drive the vehicle away immediately. But the operator drove away with the station wagon in tow. One-and-a-half hours later, a bank employee paid for the car's release, but one dispatch bag, containing documents worth $107,000, was missing. First American sued Transportation Management and the District of Columbia. The defendants sought summary judgment, claiming they could not be liable. Were they correct?

1. Select

First American Bank

Ronald Armstead

First American and Ronald Armstead jointly

is the owner of the dispatch bags.

2. When Transportation Management towed the car with the dispatch bags inside, it

Select

interfered with Armstead's right to possess the bags

committed a wrongful accession

failed to exercise ordinary care

became a common carrier with respect to the dispatch bags

3. Transportation Management had which of the following rights and responsibilities with respect to the dispatch bags Select

transfer to third parties and possession

possession and redeliver to First American

ownership and redeliver to First Americanredeliver to First American and transfer to third parties

disclose known defects and ownership

disclose known defects and those that could be discovered with reasonable diligence

4. The District of Columbia and First American

Select

created a bailment by agreement because Transportation Management operated on behalf of the District of Columbia created a constructive bailment because Transportation Management operated on behalf of the District of Columbia

did not "create" a bailment because First American did not transfer the dispatch bags directly to Transportation Management did not "create" a bailment because Transportation Management, and not the District of Columbia, took actual possession of the dispatch

5. The District of Columbia can be held liable to

Select

First American for interfering with bailee rights

Armstead for interfering with bailee rights

neither First American nor Armstead because no valid bailment was created with either party

both First American and Armstead for interfering with bailee rights

6. Transportation Management is liable

Select

to First American, for failing to fulfill its duty as bailee of the dispatch bags to return the bags upon payment of the towing fee

to Armstead, for failing to fulfill its duty as bailee of the dispatch bags to return the bags upon payment of the towing fee

to First American for interfering with its bailment of the dispatch bags to Armstead

neither First American nor Armstead because a valid bailment was not created with either party