Griffith Manufacturing Ships 40 Crates of Goods by Trusty Shipping,a

question 35

Multiple Choice

Griffith Manufacturing ships 40 crates of goods by Trusty Shipping,a common carrier.Trusty offers Griffith a shipping rate of $725 for a limited liability of $5,000 or a rate of $975 for full liability for any harm to the goods.Griffith chooses the $725 rate.In transit,Trusty's driver has an accident during an ice storm and all of Griffith's goods are destroyed,causing a loss of $12,000.If Griffith sues Trusty,

• A)Trusty will be liable for only $5,000 because a common carrier is allowed to limit its liability by contract.
• B)Trusty will be liable for the full $12,000 because common carriers have strict liability.
• C)Trusty will automatically be liable for the full $12,000 under the Carmack Amendment.
• D)Trusty is subject to normal bailment rules and can escape liability for any damage to the goods by proving that it exercised due care of the property and that the loss was caused by an act of God.

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Definitions:

Retroactive Interference

A memory problem that occurs when newly learned information interferes with the recall of previously learned information.

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.

Anterograde Amnesia

A condition characterized by an inability to form new memories following the onset of an amnesia-causing event, though long-term memories from before the event may remain intact.

Declarative Memory

A type of long-term memory that involves the capacity to recall factual information, such as events, facts, and concepts.