Legal Definitions - warehouseman

A warehouseman (also commonly referred to as a warehouser) is an individual or business entity that operates a warehouse or storage facility and takes possession of goods belonging to others for safekeeping. In this role, the warehouseman assumes a legal duty to exercise reasonable care over the stored items, acting as a bailee. They are typically compensated for their storage services and issue a warehouse receipt, which serves as proof of ownership and outlines the terms of the storage agreement.

Here are some examples illustrating the role of a warehouseman:

• Example 1: Retail Inventory Storage

  A large electronics retailer anticipates a significant shipment of new televisions and gaming consoles for the holiday season, exceeding the capacity of their in-store stockrooms. They contract with a third-party logistics company that operates a massive distribution center to temporarily store the excess inventory until it's needed in stores. The logistics company receives the goods, logs them into their system, and places them in designated storage areas.

  Explanation: The third-party logistics company, by accepting and storing the retailer's electronics in its facility, is acting as a warehouseman. They are responsible for the security and proper handling of the televisions and consoles while they are in their care, fulfilling the duties associated with storing goods for another party.

• Example 2: Archiving Business Records

  A law firm needs to store thousands of client files and legal documents that are no longer actively used but must be retained for several years due to regulatory requirements. They hire a specialized document storage company that collects the boxes, catalogs them, and stores them in a secure, climate-controlled facility designed for long-term archiving.

  Explanation: The document storage company functions as a warehouseman. They take physical possession of the law firm's sensitive records, providing a service of safekeeping and ensuring the documents are protected from damage or unauthorized access, which is a core responsibility of a warehouseman.

• Example 3: Agricultural Product Storage

  After a successful harvest, a cooperative of local farmers needs to store a large quantity of grain before it can be sold to distributors. They deliver their crops to a commercial grain elevator facility, which is equipped to store bulk agricultural products in large silos, maintaining optimal conditions to prevent spoilage.

  Explanation: The commercial grain elevator facility acts as a warehouseman for the farmers. It accepts the grain for storage, issues receipts, and is responsible for preserving the quality and quantity of the crops until the farmers arrange for their sale or retrieval, demonstrating the role of a warehouseman in agricultural contexts.