Tab stores video equipment with U-Store-It,Inc.,under a contract that excuses the warehouser from liability for any damage.A fire due to U-Store-It's negligence destroys the equipment.The loss is most likely to be imposed on
A)neither Tab nor U-Store-It.
B)Tab and U-Store-It.
C)Tab only.
D)U-Store-It only.

Question

Quizplus · Accepted Answer

The contract between Tab and U-Store-It excuses the latter from liability in case of damage. However, if the fire was caused by U-Store-It's negligence, the exemption clause may be unenforceable, and U-Store-It may be liable for the loss of equipment. Therefore, the loss is most likely to be imposed on U-Store-It only.

Tab Stores Video Equipment with U-Store-It,Inc