Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 1

Eastman sold a diamond ring to Roberts and arranged for FedEx to ship the ring from Beachwood, Ohio, to Roberts in Houston, Texas. Eastman contracted for FedEx's "collect on delivery" (COD) service for a cashier's check in the amount of $6,850. The COD airbill listed various terms and conditions for COD service, including that "[a]ll checks and money orders are collected at your risk." A cashier's check was delivered to FedEx in Houston, who released the ring. Eastman later learned from her bank that the check was invalid and sued FedEx. Is FedEx liable for the fraudulent check?