Rad Source Technologies Inc. sold a blood irradiation machine to the University of Illinois. It was to
Question:
Rad Source Technologies Inc. sold a blood irradiation machine to the University of Illinois. It was to be shipped to FOB Atlanta. After arriving in Atlanta, the irradiation unit was damaged in transit, so the university sued Rad Source. Read Source had a general liability insurance policy from Colony National Insurance Company. Colony refused to defend the lawsuit because the policy excluded damage from the assumption of liability in a contract. Read Source asked the court to declare that Colony had a duty to defend the suit and indemnify it because Rad Source had not assumed liability for the shipment of the unit. The lawsuit hinged on what Rad Source’s responsibility for the machine was during shipment. What was Rad Source’s responsibility?
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne