Professional Products, Inc. (PPI), bought three pallets of computer wafers from

Question

Professional Products, Inc. (PPI), bought three pallets of computer wafers from Omneon Video Graphics. (A computer wafer is a thin,round slice of silicon from which microchips are made.) Omneon agreed to ship the wafers to the City University of New York "FOB Omneon's dock." Shipment was arranged through Haas Industries, Inc. The "conditions of carriage" on the back of the bill of lading stated that Haas's liability for lost goods was limited to fifty cents per pound. When the shipment arrived, it included only two pallets. Who suffers the loss? Is it fair for a carrier to limit its liability for lost goods? Discuss.

Explanation / Answer

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Answer:-
The condition was FOB (It means free on board), Omneon Video is a seller and is only responsible to deliver coputer wafers till Omneon Dock. Seller Omneon video had got bill of lading from the ship master for three pellets and hence they are no longer in the game.
There onwards it is Professional products, Inc is responsible for any further damage. Haas Industries is appointed to take pellets from Omneon's dock to City University of New York.(On its way it was Professional products, Inc was responsible). However, Haas industries had agreed only to pay fifty cents for each pound goods damaged.
When consignment reaches NewYork and it has only pellets it is Professional products, Inc responsibilty for the loss of a pellet. They can claim for fifty cents per pound goods damaged from the Haas industries as it was mentioned in the bill of lading.

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