A trailer back-up assist apparatus comprises an obstacle sensing system operable to output information characterizing proximity of an object adjacent to a vehicle-trailer combination while the vehicle-trailer combination is being backed toward a targeted location and a trailer back-up assist system correction apparatus coupled to the obstacle sensing system. The trailer back-up assist system uses the information characterizing proximity of the object to determine if a path of the vehicle-trailer combination needs to be altered to limit a potential of the vehicle-trailer combination colliding with the object and implements a path correction action to alter the path of travel of the vehicle-trailer combination to reduce the potential for the vehicle-trailer combination colliding with the object.