When a bailor has a compensated bailor relationship, what is expected regarding communication about defects?

In a compensated bailor relationship, the bailor is held to a higher standard of care regarding communication about defects. This means that the bailor is expected to disclose all defects that are known or that could have reasonably been discovered through due diligence. The rationale behind this requirement is rooted in the nature of the compensated bailor's responsibility. Since the bailor is receiving compensation for the use of their property, the expectation is heightened, thus obligating them to ensure that the bailee is fully aware of any issues that could affect the use of the property.

Bailors must communicate all relevant information to prevent harm or loss to the bailee. This duty includes both known defects and those that could have been uncovered through reasonable inspection. The responsibility to disclose defects not only fosters trust in the relationship but importantly, it also helps avoid liability for any resulting injuries or damages from undisclosed defects.

By contrast, options that suggest no communication is necessary or that only serious defects must be disclosed fall short of recognizing the full scope of the bailor's duty. The notion that defects don’t matter misrepresents the legal obligations inherent in a compensated bailor relationship, as those defects are critically relevant to the value and safety of the bailment.