13. Alston Trucking has a contract to transport a trailer load of beer from Milwaukee to Houston. However,Alston is authorized only to transport goods between Milwaukee and St. Louis. Sykes Transport Company hasthe authority to transport goods between St. Louis and Houston. Therefore, Alston agrees to turn its trailerover to Sykes Transport Company in St. Louis, and Sykes will deliver it to Houston. In the trailer interchangeagreement, Sykes assumes liability for any physical damage to the trailer. Unfortunately, the trailer wasdestroyed in a collision just outside Memphis. Sykes does not believe its driver's actions caused the collision.The trailer interchange coverage in Sykes's motor carrier policy includes only comprehensive coverage. Howshould the trailer interchange coverage of Sykes's motor carrier policy respond?Oa. The insurer should deny the claim because collision is not a covered peril.Ob. The insurer should defend Sykes and pay the claim if Syks is found liable.Oc. The insurer should deny the claim only if the collision was caused by Sykes's negligence.od. The insurer should pay the claim because Sykes assumed legal liability by contract.

Option D is correct because the trailer interchange agreement between Alston Trucking and Sykes…

Answered: 13. Alston Trucking has a contract to…

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter5: Business And The Constitution

Section: Chapter Questions

Problem 8QAP

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