Problem: You have recently been hired to manage the logistics activities for a newly formed company called LumiVision (LV). LV provides full-service lighting maintenance to small, medium, and large businesses. Their specialty is to replace and upgrade lighting in warehouses, factories, parking lots, and commercial signage. Based out of Calgary Alberta, the company offer both lighting products for sale and installation services. LV operates from a single location that serves as both its office and warehouse location for receiving, storing, and shipping of product.
One of the major reasons for founding LV was a lack of responsiveness to commercial lighting issues by current service providers. Most contractors in the market provide service within three to ten business days whereas LV is guaranteeing to a two-day maximum installation for major centres and three days for locations outside of a 100-mile radius of the major cities. In addition, LV guarantees next day delivery of product (bulbs and accessories) to almost every location in Canada.
LV has invested a significant amount of resources building a network of capable subcontractors that will perform work operating as the LV brand in their geographic regions. Subcontractors will be required to install LVs product, and this will be shipped to their location using next-day service by 8am to allow for installation the day the product is received. LVs will purchase the majority of their product from a supplier in Markham Ontario in truckload quantities and will warehouse it at its Calgary location. To meet the aggressive demands of the installation guarantee, almost all of LVs products will ship outbound by small package providers. In some cases, where a customer and a subcontractor have agreed on a specific installation date that is not within the two-day commitment, LV will ship product via LTL if the shipment is large enough.
Question:
A shipper at LV asked a routine driver from an external carrier to carry a box of personal items to a family member in the destination city the driver was going to. The driver agreed and upon arrival in the destination city, wasn't able to locate the box and called the shipper apologizing, stating that the box was lost. The box weighed 20lbs and contained goods valued at $2000. Describe who is responsible for the loss, including the any level of compensation?