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Dominion Carriage Inc (DCI) Is a Common Carrier

Question 1

Multiple Choice

Dominion Carriage Inc (DCI) is a common carrier.In exchange for payment of a price, it agreed to transport Milo's widgets from Halifax to Vancouver.DCI's ship was to head south along America's east coast, pass through the Panama Canal, and then head north along America's west coast.The goods unfortunately were damaged en route.Because he has suffered a loss of $100 000, Milo has sued.DCI seeks to avoid or limit liability on various grounds.Which of the following statements is most likely to be TRUE?


A) Under the concept of "inherent vice," Milo's claim will fail if his widgets were unavoidably dangerous because they could easily explode.
B) If the parties' contract contains an exclusion clause, that clause must have the approval of the Canadian Transport Commission.
C) Under the concept of "shipper's fault," DCI will be held liable if it carelessly caused the widgets to be damaged.
D) DCI would not be liable if the widgets were damaged as a result of an act of God, such as an earthquake.In contrast, the company cannot possibly avoid liability if the widgets were damaged by acts of war because Panama was experiencing a revolution when the ship passed through.
E) Because the terms of a contract between a common carrier and a customer are determined by legislation, the contract that Milo and DCI created cannot have an exclusion clause.

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