Business Law 13th Edition by Frank Cross, Kenneth Clarkson, Roger LeRoy Miller

Exercise 2

Shipment Contracts. 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. (See page 403.)
(a) The first group will determine who suffers the loss in this situation.
(b) The second group will discuss whether it is it fair for a carrier to limit its liability for lost goods.