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TexLaw, Attorney
Category: Business Law
Satisfied Customers: 4430
Experience:  Internationational Commercial Attorney
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We purchased a new central heat unit and the freight company

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We purchased a new central heat unit and the freight company essentially destroyed the unit in transport. The unit we purchased was an overstock item that is no longer available. Is the freight company required to purchase us a "like kind" or just what we have invested in the now destroyed unit?

Thank you for your question.

The law provides that where the freight company is liable for such damages, the amount that they are liable for is the fair market value of the good damaged.

Thus, if the fair market value of the central heat unit is actually more than what you paid for it, they must cover the increase.

Have they disputed that they owe you more than what you paid? Are you saying that the unit is no longer manufactured at all?
Customer: replied 4 years ago.

I haven't contacted the freight company yet just trying to get an idea. Didn't want them to say here is a check for what you payed now you have to pay for the difference.


After just getting off the phone the seller said they ordered the unit and the customer never picked the unit up and had it for a year. They were trying to get out of the unit because it can only be used for a business because of the power requirements and sold it to us at their cost minus the deposit put down on the unit. We paid $1400 for the unit and to get a replacement we will be looking at $3500-$4000. We just do not want to screw up handling the freight company.

Understood. It's fair market value. So what you tell the freight company is the only the fair market value (not what you paid for it). You would also tell them that the seller no longer has the unit, but that you have located it at a different seller for $4000 (or what have you). I'd be ready to supply them with a quote for the same unit from an alternative seller, as they will likely want to have some sort of evidence supporting the amount you are asking for.
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