Storel,Inc.,a warehouse company,offers storage solutions for businesses.A Storel warehouse is hired by Trendy Apparels for a large consignment of goods.Trendy Apparels,however,failed to reclaim the goods from the warehouse,and it also failed to pay Storel for the expenses related to storage and handling.Which of the following is true of Storel's rights to claim the charges?

Question

Quizplus · Accepted Answer

Storel has the right to sell the goods in its possession to cover the expenses incurred for storage and handling. This is known as a warehouseman's lien, which gives the warehouse owner the right to retain possession of the goods until the charges are paid or the goods are sold to cover the charges. As Trendy Apparels has failed to reclaim the goods and pay for the expenses, Storel can exercise its right to sell the goods to recover its charges.