§ 25-7-204. Duty of care; contractual limitation of warehouse's liability. - North Carolina Statutes

§ 25‑7‑204.  Dutyof care; contractual limitation of warehouse's liability.

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

(b)        Damages may belimited by a term in the warehouse receipt or storage agreement limiting theamount of liability in case of loss or damage beyond which the warehouse is notliable. Such a limitation is not effective with respect to the warehouse'sliability for conversion to its own use. On request of the bailor in a recordat the time of signing the storage agreement or within a reasonable time afterreceipt of the warehouse receipt, the warehouse's liability may be increased onpart or all of the goods covered by the storage agreement or the warehousereceipt. In this event, increased rates may be charged based on an increasedvaluation of the goods.

(c)        Reasonableprovisions as to the time and manner of presenting claims and commencingactions based on the bailment may be included in the warehouse receipt orstorage agreement.

(d)        This section doesnot modify or repeal any statute that imposes a higher responsibility upon thewarehouse or invalidates a contractual limitation that would be permissibleunder this Article. (1917, c. 37, s. 21; C.S., s. 4061; 1965, c. 700, s. 1; 2006‑112,s. 25.)