KRS 355.7-204: Duty of care -- Contractual limitation of warehouse's liability.

(1) A warehouse is liable for damages for loss of or injury to the goods caused by its

failure to exercise care with regard to the goods that a reasonably careful person

would exercise under similar circumstances. However, unless otherwise agreed, the

warehouse is not liable for damages that could not have been avoided by the

exercise of that 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 beyond which the

warehouse is not liable. Such a limitation is not effective with respect to the

warehouse's liability for conversion to its own use. The warehouse's liability, on

request of the bailor in a record at the time of signing such storage agreement or

within a reasonable time after receipt of the warehouse receipt, may be increased on

part or all of the goods covered by the storage agreement or the warehouse receipt.

In this event, increased rates may be charged based on an increased valuation of the

goods.

(3) Reasonable provisions as to the time and manner of presenting claims and

commencing actions based on the bailment may be included in the warehouse

receipt or storage agreement.