Special Bailments o Special bailments are those involving common carriers, warehouse companies, and innkeepers. o A common carrier is a company that is licensed by the state or federal government to provide transportation services to the general public. Most airlines, trucking companies, and railroad companies are common carriers. A company doing business as a common carrier must do business with the public on a nondiscriminatory basis. Strict Liability o Contrary to ordinary bailments, the carrier is absolutely liable to the shipper for damage to or loss of the goods. In other words, usually the carrier’s liability is not based upon negligence or other fault. There are, however, several narrow categories of circumstances in which the carrier is not liable. If the goods are damaged, stolen, lost, or destroyed during shipment, the carrier has the burden of proving that the situation falls within one of these categories Act of God. The carrier is not liable if it can show that the loss was caused by an unexpected force of nature that was of such magnitude that damage to the goods could not have been prevented. The term Act of God is interpreted very strictly (simple flood not enough) Act of a Public Enemy This term is also interpreted very narrowly, and is usually applied only to a situation in which the goods were damaged, destroyed, or seized by a foreign nation at war with the United States. Act of a Public Authority
The term public authority is much broader, and applies to actions by various local, state, or federal government officials. Examples would include the seizure of an illegal drug shipment by law enforcement officers Act of the Shipper The carrier is not responsible if the shipper’s own actions are shown to have caused the loss. For example, the carrier is not liable for the death of the shipper’s chickens if the shipper’s improperly ventilated crates caused those deaths The Inherent Nature of the Goods The carrier is not liable if the loss is caused by an inherent characteristic of the goods themselves that the carrier had no control over. This category also is construed very strictly. For example, it would not be sufficient for the carrier to show that a shipment of fruit spoiled and that fruit is prone to spoilage. To escape liability, the carrier would have to prove that the fruit spoiled for a very specific reason, such as the fact that it was overripe at the time of shipment, and that the carrier could not have prevented the spoilage Weed and Business Entities Why do you need to know this? Taxes and Liability Owning a business Working with others How do I get started Partnership An association of two or more persons to carry on as co-owners a business for profit Association o The term association indicates that a partnership is a voluntary arrangement formed by agreement Person o The term person includes not only individuals but also corporations, other partnerships, and other types of associations
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- Spring '08
- Types of business entity, Deed