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This entry was published on 2014-12-26
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Duty of Care; Contractual Limitation of Warehouse's Liability
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 2
Section 7--204. Duty of Care; Contractual Limitation of Warehouse's


(a) A warehouse is liable for damages for loss of or injury to the
goods caused by its failure to exercise care with regard to the goods
that a reasonably careful person would exercise under similar
circumstances. Unless otherwise agreed, the warehouse is not liable for
damages that could not have been avoided by the exercise of that care.

(b) 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 beyond which the warehouse is not liable. Such a limitation is
not effective with respect to the warehouse's liability for conversion
to its own use. On request of the bailor in a record at the time of
signing the storage agreement or within a reasonable time after receipt
of the warehouse receipt, the warehouse's liability may be increased on
part or all of the goods covered by the storage agreement or the
warehouse receipt. In this event, increased rates may be charged based
on an increased valuation of the goods.

(c) Reasonable provisions as to the time and manner of presenting
claims and commencing actions based on the bailment may be included in
the warehouse receipt or storage agreement.