Frequently, the provisions for the liquidated damage clause and limitation of liability in alarm contracts come under scrutiny. The United States District Court of the District of New Jersey recently upheld an exculpatory clause in a customs broker agreement. The clause was inserted to hold the customs broker blameless if a loss resulted.
The plaintiff, Morgan Home, contracted with the defendant to serve as its customs broker to expedite the movement of imported goods through the customs process. The defendant used a standard invoice form containing contractual terms and conditions.