Section 7--204. Duty of Care; Contractual Limitation of Warehouseman's Liability  


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  • (1) A warehouseman is liable for damages for loss of or injury to  the
      goods caused by his failure to exercise such care in regard to them as a
      reasonably  careful  man  would  exercise  under  like circumstances but
      unless otherwise agreed he is not liable for  damages  which  could  not
      have been avoided by the exercise of such care.
        (2)  Damages  may  be  limited  by  a term in the warehouse receipt or
      storage agreement limiting the amount of liability in case  of  loss  or
      damage,  and  setting forth a specific liability per article or item, or
      value per unit of weight, beyond which the  warehouseman  shall  not  be
      liable; provided, however, that such liability may on written request of
      the  bailor  at  the  time of signing such storage agreement or within a
      reasonable time after receipt of the warehouse receipt be  increased  on
      part  or all of the goods thereunder, in which event increased rates may
      be charged based on such increased valuation, but that no such  increase
      shall  be  permitted  contrary  to  a  lawful  limitation  of  liability
      contained in the warehouseman's tariff, if any.  Subject  to  subsection
      (3),  no such limitation is effective with respect to the warehouseman's
      liability for conversion to his own use.
        (3) For the purpose of the last sentence of  subsection  (2),  if  the
      bailor  is a merchant with respect to the bailed goods and the goods are
      not used or  bought  for  use  primarily  for  the  personal  family  or
      household purposes of the bailor:
        (a)  establishing  only the failure of the warehouseman to deliver the
      goods as required under section 7--403 does not establish a prima  facie
      case of conversion to the warehouseman's own use; and
        (b)  the  burden  of  establishing that the warehouseman has converted
      goods to his own use is on the bailor.
        (4) Reasonable provisions as to the  time  and  manner  of  presenting
      claims  and instituting actions based on the bailment may be included in
      the warehouse receipt or tariff.