Lite-On Peripherals, Inc. was a California-based corporation engaged in the computer hardware business. Lite-On's parent company was

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Lite-On Peripherals, Inc. was a California-based corporation engaged in the computer hardware business. Lite-On's parent company was Silitek Corporation, a Taiwan-based corporation. On January 22, 1996, Burlington Air Express, Inc. received 1,000 cartons comprised of 5,000 computer keyboards from Silitek in Keelung, Taiwan, for transportation to Los Angeles, California. Burlington issued a bill of lading in the form of its own negotiable combined transport bill of lading. The bill provided that the goods were "consigned to order of" Reveal Computer Products, Inc. in California and were to be delivered to Reveal only upon surrender of a duly endorsed copy of said bill. The price of all 5,000 keyboards contained in the 1,000 cartons was $202,800. Despite the presence of such a provision on the face of its bill, Burlington delivered the computer keyboards to Reveal without obtaining a copy of the bill. In fact, the bill was in the hands of Lite-On, Silitek's assignee, at the time the goods were delivered to Reveal. Furthermore, type-written portions of the bill of lading provided that Lite-On was to be notified before delivery to Reveal was attempted. Burlington made no efforts to notify Lite-On. Finally, Lite-On, prior to delivery, notified Burlington by telephone and faxed letter that no delivery was to be made to Reveal as its creditworthiness was in question and the original bill of lading was in Lite-On's possession. Notwithstanding such a warning from Lite-On or the terms of the bill of lading, Burlington delivered the entire shipment to Reveal on or about February 6, 1996. Lite-On was eventually able to recover 2,495 of the 5,000 keyboards from Reveal. However, 2,505 of the items were never recovered. Reveal failed to pay Silitek or Lite-On for the computer keyboards and subsequently filed bankruptcy. The value of the 2,505 keyboards improperly delivered to Reveal and unrecoverable by Lite-On was $101,602.80. Lite-On sued Burlington for misdelivery, conversion, negligence, and breach of contract. The district court held in favor of Lite-On, and Burlington appealed. What should be the outcome on appeal?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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International Business Law And Its Environment

ISBN: 9781305972599

10th Edition

Authors: Richard Schaffer, Filiberto Agusti, Lucien J. Dhooge

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