Around June 2005, PPI purchased three pallets of computer wafers from Omneon Vid

Question

Around June 2005, PPI purchased three pallets of computer wafers from Omneon Video Graphics. PPI requested that Omneon ship the wafers directly to the City University of New York, the end purchaser of the goods. Omneon and PPI agreed that Omneon would ship the wafers FOB Omneon's docks. Somewhere between the loading dock and City University, one pallet of the wafers disappeared. Who bears the loss for the lost pallet and why? [OneBeacon ins. Co. v. Hass Industries Inc., 634 F.3d 1092 (9th Cir. 2011)]

Explanation / Answer

The transporter will bear the responsibility. When the pallet left the omneon's dock, omenon fullfilled its duty to ship the wafers FOB from omneon's docks. The carrier is responsible for “the actual loss or injury to the property"

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