Chapter 21: Special Bailees and Carriers

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What is a Special Bailee?

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A Special Bailee, or Extraordinary Bailee, is subject to greater liability than an ordinary bailee due to providing unique or specialized services.

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What is a Common Carrier?

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A Common Carrier is a person or company publicly licensed to provide transportation of goods or persons to the general public on regular routes, with strict liability for goods.

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What is Strict/Extraordinary/Absolute Liability? (ONLY for common carrier)

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It is liability without fault, where the common carrier is liable for any damage to shipped goods, even if caused by accident or a third party's willful act.

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What are exceptions to a Absolute/Extraordinary liability?

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Exceptions include:
Act of God/Nature.
Act of a Public Enemy.
Act/Order of Public Authority. (does NOT include delay by traffic stop).
Act of the Shipper.
Inherent Nature of the Goods. (if delivered on time)

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Can Common Carriers limit their liability?

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Common carriers can't exculpate absolute liability but can limit monetary damages, provided they offer higher liability for a higher fee and notify the shipper.

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What is a Contract Carrier?

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A Contract Carrier is a person or company that makes separate contracts to transport with chosen shippers and is not obligated to accept any contract.

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What is a Warehouser?

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A Warehouser is a company or person in the business of storing property for compensation. A professional bailee.

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Can Warehousers limit their liability?

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Yes, warehousers can limit dollar liability but must offer higher liability for a higher fee and notify the bailor.

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Who is a Bailor?

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A Bailor is the depositor of goods.

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Who is a Bailee in the context of warehousing?

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A Bailee is the warehouse receiving goods for storage.