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CN Rail Agreed to Transport $2 Million Worth of Electronic

Question 15

Multiple Choice

CN Rail agreed to transport $2 million worth of electronic parts for Sony Inc. The CN train derailed and the parts were completely destroyed. The limitation clause in the bill of lading limited CN's liability to $50,000. Sony noticed however that the bill of lading had not been signed. As a result


A) CN is fully liable for the $2 million loss as it was negligent
B) CN can use the limitation clause and is only liable for $50,000 even though it was not signed
C) Sony and CN will share the liability equally because the bill of lading was not signed
D) CN can only use the limitation clause if it brought the clause to Sony's attention when the deal was made
E) CN can only use the limitation clause if the bill of lading was signed and the clause was brought to Sony's attention

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