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East Mississippi Community College ECON 2123 Chapter 22-LEGAL ASPECTS OF SUPPLY CHAIN MANAGEMENT TRUE/FALSE 1)The term special bailee is an historical term, but a special bailee has no greater duty than any other bailee
East Mississippi Community College
ECON 2123
Chapter 22-LEGAL ASPECTS OF SUPPLY CHAIN MANAGEMENT
TRUE/FALSE
1)The term special bailee is an historical term, but a special bailee has no greater duty than any other bailee.
- The storage of goods in a warehouse and the shipment of goods by a common carrier are examples of special bailments.
- To be engaged in warehousing, an enterprise must have appropriate storage buildings.
- A warehouser is an insurer of goods.
- The rights and duties of warehousers are regulated by the UCC.
- A public warehouser has a lien against the goods stored for reasonable costs incurred from the storage.
- A warehouse receipt is considered a document of title.
- A warehouse receipt may be either negotiable or nonnegotiable.
- A transferee of a nonnegotiable warehouse receipt acquires only the title and rights that the transferor had actual authority to transfer.
- A negotiable warehouse receipt states that the goods received will be delivered to the bearer or to the order of any named person.
- A negotiable warehouse receipt that provides for delivery of the goods to the order of Jill Jones may be negotiated by delivery of the document to the purchaser.
- If a warehouse receipt provides for the delivery of the goods “to the bearer,” the receipt may be negotiated by transfer of the document.
- The rights of a holder of a duly negotiated warehouse receipt are extinguished by the warehouser's surrender of goods to the depositor.
- The purchase of a warehouse receipt by due negotiation eliminates all prior claims.
- Field warehousing is the storage of farm crops in the field where they have been grown.
- General contract law determines whether a limitation clause is a part of the contract between the warehouser and the customer.
- Unlike warehouse receipts, bills of lading and airbills are documents of title.
- Bills of lading for intrastate shipments are governed by the UCC, while those for interstate shipments are regulated by the Federal Bills of Lading Act.
- A bill of lading will be negotiable if its terms are that the goods are to be delivered to "bearer" or to "the order of" a named person.
- The rights of a transferee of a negotiable bill of lading are defeated if the goods have been stopped in transit.
- If a common carrier delivers goods to the wrong person, the carrier is liable for breach of contract and for the tort of conversion.
- A common carrier is liable for all delays in the delivery of goods.
- Contract clauses that limit a common carrier's liability are void as contrary to public policy.
- A common carrier transporting goods under a COD shipment is liable if it takes a check in payment and the check bounces.
- A factor is a consignee.
- A sale by a factor can pass title to goods from the consignor to the purchaser.
- A person who attends a banquet given at a hotel is considered a guest for purposes of determining the liability of the hotelkeeper.
- At common law, a hotelkeeper was absolutely liable for damage to, or loss of, a guest’s property unless the hotelkeeper could show that the damage or loss was caused solely by an act of God, a public enemy, an act of a public authority, the inherent nature of the property, or the fault of the guest.
- In most states, statutes limit or provide a method of limiting the common law liability of a hotelkeeper.
- As a general rule, a hotelkeeper has a lien on the property of boarders or lodgers.
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