Thomas Electronics manufactures flat screen televisions for KG of New Zealand at its Hayesville, Ohio location. Thomas stores it televisions at Ashland Public Warehouse (APW), LLC awaiting shipment. While unloading Thomas's truck, an APW employee knocked over a stack of televisions sitting on the warehouse dock. Nine hundred flat screen televisions manufactured by Thomas Electronics were completely destroyed, valued at $600,000, forcing Thomas to work four additional shifts, at a cost of $80,000, to replace the televisions promised for shipment. APW's warehouse receipt does not have a liability coverage provision. KG employs Smith Business Partners as it's American agent to arrange distribution for its flat screen televisions to retailers. Smith Business Partners utilized Dauch Transportation Services located in Ashland, Ohio to administer the transportation process. Dauch entered a Broker Transportation Agreement (BTA) with Valley Transportation, a common carrier, to transport the televisions from Ashland, Ohio to retailers across the country on a regular basis. The BTA included Valley Transportations standard insurance provisions which gives, shippers the option of selecting Acme Insurance's (Valley's insurance carrier) full-value coverage for the shipment at a higher premium or Acme's limited liability coverage of a maximum of $200,000 per truckload shipment for a cheaper premium. In its contact with KG, Smith Business Partners notified KG that Valley preferred to limit their liability for loss and stated that it would request full valuation coverage only upon specific written instructions from KG. KG remained silent on Smith Business Partners request and simply relied on Smith Business Partners to handle shipping issues. On November 8, 2023, a shipment of 8,200 flat screen televisions valued at $1,400,000 was stolen from one of Valley Transportation's trucks parked in the Holiday Inn's parking lot in St. Louis, MO. Valley's truck driver had stopped there for an evening's lodging. Valley contended that it owed a maximum liability of $200,000 under its contract. KG's insurer, Mansfield Insurance, is suing Valley for the full value of the shipment, contending that contracts issued downstream by Smith Business Partners and Valley Transportation cannot be imputed back to KG-and that the cargo owner KG had not been given the opportunity to choose between two or more levels of insurance as required by the BTA. 3. KG sues Smith Business Partners, and Holiday In for Breach of contract.

a. Prepare a legal argument that allows Smith Business Partners to win this law suit. Be sure to use legal principles from the text to support your conclusion.

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