N.Y. Uniform Commercial Code Law § 7-204: Duty of Care; Contractual Limitation of Warehouse's Liability

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

Liability.

(a) 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. Unless otherwise agreed, the warehouse is not liable for

damages that could not have been avoided by the exercise of that care.

(b) 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. On request of the bailor in a record at the time of

signing the storage agreement or within a reasonable time after receipt

of the warehouse receipt, the warehouse's liability 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.

(c) 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.