Fiona owns and operates 'Fiona's Futons' (an importer of bedroom furniture and accessories located in Fremantle, Western Australia). Fiona ordered 20,000 queen size futon mattresses from Jaki, a sole trader and exporter of mattresses located in Yokohama, Japan. The mattresses were to be delivered to Fiona's business premises in two instalment shipments of 10.000 mattresses each: The first instalment on board The Pacifica in July (the July shipment) and the second on board The Oceania in November (the November shipment). The parties have incorporated a clause into their contract that the law of Australia (or Western Australia, as applicable) shall be the governing law should a dispute arise.

The following issues arose:

7: 5,000 of the mattresses delivered in July were water-damaged due to improper stowage on board The Pacifica.

Discuss the obligations of the carrier and remedies available to the buyer for breach of the carrier's obligations.