Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 27

Critical Thinking Legal Question. Professional Products, Inc. (PPI), bought three pallets of computer wafers from Omneon Video Graphics. (A computer wafer is a thin, round slice of silicon from which microchips are made.) Omneon agreed to ship the wafers to the City University of New York "FOB Omneon's dock." Shipment was arranged through Haas Industries, Inc. The "conditions of carriage" on the back of the bill of lading stated that Haas's liability for lost goods was limited to fifty cents per pound. When the shipment arrived, it included only two pallets. Who suffers the loss? Is it fair for a carrier to limit its liability for lost goods? Discuss.