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This entry was published on 2014-12-26
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Duty of Care; Contractual Limitation of Carrier's Liability
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 3
Section 7--309. Duty of Care; Contractual Limitation of Carrier's


(a) A carrier that issues a bill of lading, whether negotiable or
nonnegotiable, shall exercise the degree of care in relation to the
goods which a reasonably careful person would exercise under similar
circumstances. This subsection does not affect any statute, regulation,
or rule of law that imposes liability upon a common carrier for damages
not caused by its negligence.

(b) Damages may be limited by a term in the bill of lading or in a
transportation agreement that the carrier's liability may not exceed a
value stated in the bill or transportation agreement if the carrier's
rates are dependent upon value and the consignor is afforded an
opportunity to declare a higher value and the consignor is advised of
the opportunity. However, such a limitation is not effective with
respect to the carrier's liability for conversion to its own use.

(c) Reasonable provisions as to the time and manner of presenting
claims and commencing actions based on the shipment may be included in a
bill of lading or a transportation agreement.