Twomey Jennings Andersons Business Law and the Legal
Twomey Jennings Anderson’s Business Law and the Legal Environment, Comprehensive 20 e Anderson’s Business Law and the Legal Environment, Standard 20 e Business Law: Principles for Today’s Commercial Environment 2 e Chapter 22 Legal Aspects of Supply Chain Management Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning
Warehousers • A warehouser stores the goods of others for compensation and has the rights and duties of a bailee in an ordinary mutual benefit bailment. • A warehouser issues a warehouse receipt to the depositor of the goods. – This receipt is a document of title that ordinarily entitles the person in possession of the receipt to receive the goods. 2 Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning
Warehouse Receipts Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 3
Rights of Holders of Warehouse Receipts • In some cases, a warehouse receipt can be bought, sold, or used as security to obtain a loan. – A nonnegotiable warehouse receipt states that the goods received will be delivered to a specified person. – A negotiable warehouse receipt states that the goods will be delivered “to the bearer” or “to the order of” a named person. 4 Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning
Due Negotiation of Receipt WAREHOUSER (Issuer) (Bailee) GOODS SELLER (Depositor) (Bailee) WAREHOUSE RECEIPT BUYER WAREHOUSE RECEIPT right to goods or right to negotiate further Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Indorsement and delivery value/good faith due negotiation PURCHASER OF WAREHOUSE RECEIPT 5
Limitation of Liability of Warehouser • A warehouser may limit its liability for loss or damage to goods due to its own negligence to an agreed valuation of the property stated in the receipt. • The depositor must be given the right to store the goods without the limitation at a higher storage rate. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 6
Types of Carriers • Common Carriers – Furnish transportation of goods for a price; available to the general public. • Contract Carriers – Furnish transportation of goods according to a specific contract with a specific party. • Private Carriers – Transport goods owned by the carrier’s owners. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 7
Common Carriers • A common carrier of goods transports goods received from the general public, and issues a bill of lading or an airbill. – Bills of lading are documents of title and provide rights similar to a warehouse receipt. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 8
Common Carriers • A common carrier is absolutely liable for loss or damage to the goods unless the loss was caused solely by an act of God, an act of a public enemy, an act of a public authority, an act of the shipper, or the inherent nature of the goods. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 9
Common Carriers • Warranties. • Rights of Common Carrier. – Security lien interest on goods that it transports. – Right to compensation per agreement. • Duties of Common Carriers. – Deliver the goods as agreed. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 10
Liabilities of Common Carrier • A common carrier is absolutely liable for loss or damage to the goods. • Exceptions: – Loss was caused solely by an act of God, – Act of a public enemy, – Act of a public authority, – Act of the shipper, or – Inherent nature of the goods. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 11
Liabilities of Common Carrier • Carrier’s Liability for Delay. • Limitation of Liability of Carrier by contract. • Notice of Claim. • COD Shipment. – No delivery without first receiving payment. – If not, then it is liable to shipper for loss. • Rejected Shipments. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 12
Factors and Consignments • A factor is a special type of bailee who has possession of someone else’s property for the purpose of selling it. • This arrangement is commonly called selling on consignment, and the owner is called a consignor. • The factor, or consignee, receives a commission on the sale. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 13
Hotelkeepers • A hotelkeeper provides accommodations to transient persons called guests. • Subject to exceptions, at common law hotelkeepers were absolutely liable for loss or damage to their guests’ property. • Most states, however, provide a method of limiting this liability. • A hotelkeeper has a lien on the property of the guest for the agreed charges. 14 Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning
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