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Current through October 23, 2012
(1) A warehouseman is liable for damages for loss of or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful man would exercise under like circumstances but unless otherwise agreed he is not liable for damages which could not have been avoided by the exercise of such care.
(2) Damages may be limited by a term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage, and setting forth a specific liability per article or item, or value per unit of weight, beyond which the warehouseman shall not be liable: Provided, however, That such liability may on written request of the bailor at the time of signing such storage agreement or within a reasonable time after receipt of the warehouse receipt be increased on part or all of the goods thereunder, in which event increased rates may be charged based on such increased valuation, but that no such increase shall be permitted contrary to a lawful limitation of liability contained in the warehouseman's tariff, if any. No such limitation is effective with respect to the warehouseman's liability for conversion to his own use.
(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the bailment may be included in the warehouse receipt or tariff.
(4) Omitted.
(Dec. 30, 1963, 77 Stat. 720, Pub. L. 88-243, § 1.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Prior Uniform Statutory Provision
Sections 3 and 21, Uniform Warehouse Receipts Act.Changes
Consolidated and rewritten; material on limitation of remedy is new.Purposes of Changes
The old uniform acts provided that receipts could not contain terms impairing the obligation of reasonable care. Whether this is violated by a stipulation that in case of loss the bailee's liability is limited to stated amounts has been much controverted. The section is intended to eliminate that controversy by setting forth the conditions under which liability is so limited. However, as subsection (4) [Not adopted in Minnesota, see Minnesota Code Comment, supra] makes clear, the states as well as the federal government may supplement this section with more rigid standards of responsibility for some or all bailees.
Cross References
Sections 7-103 and 10-103.
Definitional Cross References
"Action". Section 1-201.
"Agreed". Section 1-201.
"Goods". Section 7-102.
"Reasonable time". Section 1-204.
"Sign". Section 1-201.
"Term". Section 1-201.
"Value". Section 1-201.
"Warehouse receipt". Section 1-201.
"Warehouseman". Section 7-102.
"Written". Section 1-201.
Prior Codifications
1981 Ed., § 28:7-204.
1973 Ed., § 28:7-204.
