Ruby stores her furniture with Stow-Away, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on
A) neither Ruby nor Stow-Away.
B) Ruby and Stow-Away in equal proportions.
C) Ruby only.
D) Stow-Away only.

Question

Ruby stores her furniture with Stow-Away, Inc., under a contract that excuses the warehouser from liability for any damage. A fire due to Stow-Away's negligence destroys the furniture. The loss is most likely to be imposed on​
A) ​neither Ruby nor Stow-Away.
B) ​Ruby and Stow-Away in equal proportions.
C) ​Ruby only.
D) ​Stow-Away only.

Quizplus · Accepted Answer

The contract excuses Stow-Away from liability, but this provision may be unenforceable if Stow-Away was negligent. Therefore, Stow-Away is most likely to have to bear the loss.

Ruby Stores Her Furniture with Stow-Away, Inc