Shelley Opp lived in California with her husband, Richard Opp, until they sought a divorce. Ten months

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Shelley Opp lived in California with her husband, Richard Opp, until they sought a divorce. Ten months later, Shelley contacted Soraghan Moving and Storage to move her personal property from California to Illinois. Shelley told Soraghan she wanted to insure her property for its full value of $10,000. Soraghan faxed to Shelley an “Estimate/Order for Service” form which stated that Shelley intended to declare that the value of the goods shipped was $10,000. Shelley signed the form. According to Soraghan, it explained to Shelley that she or her representative must advise the mover at the time the shipment was picked up whether Shelley would like full replacement coverage of $10,000. According to Shelley, she was never informed that the person releasing her property in California would have to sign anything, declare any value for her property, or do anything other than give the movers access to her belongings. The estimate form also provided a location where Shelley could designate someone as her “true and lawful representative,” but she made no such designation. On the day of the move, the movers in California called Shelley in Illinois to tell her they would be late arriving at the California home due to a flat tire. Shelley then phoned Richard at his office and asked him to go to the house, open the door, and let the movers in. Shelley also told Soraghan that “someone” would be at the California home to give the movers access to her property. Richard met the movers at the house, and he signed the bill of lading on a line that indicated that he was Shelley’s authorized agent, and he allegedly agreed to limit the carriers’ liability for her property at 60 cents per pound. Richard also signed an inventory of the property that indicated that he was its “owner or authorized agent.” The truck carrying Shelley’s belongings was struck by a train, damaging most of her property. Shelley inspected her damaged property and estimated its full replacement value to be over $10,000. Soraghan claimed that its liability was limited by the bill of lading to $2,625 because Richard had the actual and apparent authority to sign the bill of lading as Shelley’s agent. What did the court rule?

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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

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