Apply the relevant law to the facts

Assignment Help Business Law and Ethics

Reference no: EM133215930

Case: David owns a small fishing boat which he only uses for his fishing business in the summer season. When he is not using the boat, he arranges for it to be stored at a boat storage yard operated by Buck Wolf for a monthly fee. The boat storage yard is used principally for storing commercial boats, but a small number of recreational vessels are also stored there. The boat is stored on a trailer in the locked yard, and to launch the boat, Buck Wolf uses a large tractor. The tractor key is stored under the tractor's front seat when not in use. Their written agreement states that the boat is stored subject to the Terms and Conditions displayed at the boat yard. These Terms and Conditions are displayed on panels located beside the locked gates to the yard where boats are stored. David had not read them when he agreed to the contract. The Terms and Conditions include the following clauses:

Buck Wolf is not liable directly or vicariously for any damage to, theft, or loss of the boats and equipment while in the locked yard or caused by the removal of the boat by any person not authorised by the owner to remove it.

The parties agree that the Consumer Guarantees Act 1993 does not apply to the agreement.

David now discovers that a former employee of Buck Wolf had taken his boat for a private fishing trip and caused substantial damage to it. The former employee knew how to unlock the yard when he worked for Buck Wolf and had used Buck Wolf's tractor to launch the boat. David claims that Buck Wolf should pay for the damage to his boat.

Buck Wolf disagrees and denies liability for the damage pointing to the exclusion clauses included in the Terms and Conditions, which he asserts are part of their agreement

Required:

Question: Apply the relevant law to the facts and explain whether Buck Wolf is correct in thinking he has exempted himself from liability for the damage to David's boat. (New Zealand legislation)

Reference no: EM133215930

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