Deck 11: Transport of Goods

Question 1

The Harter Act has been superseded by the Hague Rules for goods shipped from one U.S. port to another U.S. port.

Answer 1

False

Question 2

The Hamburg Rules are more pro-shipper than are the Hague and Hague-Visby Rules.

Answer 2

True

Question 3

Under the Hague-Visby Rules, the "per package limitation" of a carrier's liability is set at $1,000.

Answer 3

True

Question 4

The enactment of the Carriage of Goods by Sea Act (COGSA) codified into U.S. law the Hague-Visby Rules.

Question 5

If the shipper has a fair opportunity to declare a higher value on a bill of lading and fails to do so, then the carrier's liability is limited to $500 per package under COGSA.

Question 6

A 'non-vessel operating common carrier' (NVOCC) consolidates cargo from numerous shippers into larger groups for shipment by an ocean carrier.

Question 7

A charterparty is a person or entity who leases an entire ship from the ship's owner.

Question 8

Any third party to be covered under a Himalaya clause needs to be specifically named in order for the protection of a carriage convention to be extended.

Question 9

COGSA covers a carrier's liability from the time the goods are in its possession, including prior to loading and after discharge from the ship.

Question 10

Under COGSA, a carrier is liable if does not undertake due diligence in the preparation and inspection of the ship in order to ensure its seaworthiness.

Question 11

If a ship becomes unseaworthy after leaving the port of shipment, then the carrier will be liable for all damages for loss.

Question 12

Under the Hamburg Rules, the burden of proof is on the shipper to prove that any loss is due to the fault of the carrier.

Question 13

Generally, a route deviation due to governmental intervention would not be considered a material deviation under COGSA.

Question 14

A clean bill of lading is considered prima facie evidence that goods delivered to an ocean carrier were in good condition.

Question 15

The insertion of a warehouse-to-warehouse clause will extend the 'tackle to tackle' period of responsibility for a carrier found in the Hague Rules.

Question 16

COGSA provides for liability when goods are lost, damaged, or delayed in delivery.

Question 17

If loss or damage is due to one of the enumerated exceptions under COGSA, then the carrier's liability is limited to a maximum of $500 per package.

Question 18

The ordinary action of wind and waves is enough to justify a peril of sea exception under COGSA.

Question 19

In most cases, the courts have liberally interpreted the Q clause exception in favor of the carriers.

Question 20

In order to provide a 'fair opportunity' to declare a higher value, COGSA requires a carrier to designate a place on the front of the bill of lading for the shipper to do so.

Question 21

Under the Hague Rules, a carrier is not liable for misdelivery if it delivers to the holder of a carta declaratoria.

Question 22

The 'through bill of lading' is the title document for multi-modal transports.

Question 23

Under the Warsaw Convention, carriers are generally protected from claims of material deviation.

Question 24

The Warsaw Convention provides for a two-year statute of limitations for the filing of claims.

Question 25

A marine insurance's perils clause covers the basic risks of ocean transport.

Question 26

The shipper usually obtains Hull insurance.

Question 27

A 'perils only' type of policy allows for the insured only to collect for losses due to expressly listed causes.

Question 28

A marine insurance policy that is 'free of particular average' will not cover partial losses.

Question 29

Under a 'perils policy', the burden of proof is on the insurance company to prove that the loss was due to a listed peril.

Question 30

General average claims are available to both ship owners and cargo owners.

Question 31

The alternative legal conventions that govern international ocean carriage include all of the following except:

A) Hague Rules
B) Hamburg Rules
C) Warsaw Convention
D) Hague-Visby Rules

Question 32

Third party contractors are extended carrier liability protections under the:

A) Hamburg Rules
B) Hague Rules
C) Hague-Visby Rules
D) Harter Act
E) None of the above

Question 33

Under COGSA, third party liability protection is extended through the insertion of a _______ in the bill of lading:

A) Marine extension clause
B) Himalaya clause
C) Inchmaree clause
D) ATA Carnet clause

Question 34

The Hague Rules permit parties to agree to above deck carriage through the incorporation of a:

A) Marine extension clause
B) Himalaya clause
C) Deviated handling clause
D) Clause paramount

Question 35

Transporting non-containerized motorcycles above deck on an ocean carrier generally would be considered:

A) A lack of due diligence
B) A material deviation
C) A peril of the sea
D) None of the above

Question 36

COGSA provides a limitation period of ________ for any claim of loss, and the Hamburg Rules provide a limitation period of __________:

A) One year; one year
B) Two years, two years
C) One year, two years
D) Two years, one year
E) None of the above

Question 37

Under COGSA, there are ___ enumerated exemptions and a Q clause defense that fully exempt the common carrier from all liability for damage or loss to the goods:

A) 12 exemptions
B) 16 exemptions
C) 17 exemptions
D) 19 exemptions

Question 38

All of the following are factors that determine if a ship is considered seaworthy except:

A) It must be appropriate for the type of carriage
B) It must be properly equipped for the reception, carriage, and preservation of the goods
C) It must have a competent and properly trained crew
D) It must have proper stowage
E) It must not have latent defects not discoverable by due diligence

Question 39

Ocean carriers are exempted from liability under COGSA for all of the following except:

A) Error in the navigation of the ship
B) Acts of God
C) Improperly maintained mechanical devices
D) Neglect in the management of the ship

Question 40

The Hamburg Rules provide a presumption of carrier liability for loss except when occasioned by a:

A) Act of God
B) Strike or Riot
C) Fire
D) War
E) None of the above

Question 41

A freight forwarder's responsibilities include all of the following except:

A) Clear goods through import customs
B) Arrange for the shipment of goods with a carrier
C) Act as a freight consolidator
D) Process documentation

Question 42

Air waybills generally limit a common carrier's liability to approximately:

A) $20/kg
B) $50/kg
C) $500/kg
D) $1000/kg

Question 43

Third-party liability and contractual liability protection are provided by:

A) Protection and indemnity insurance
B) All risks insurance
C) Comprehensive general liability coverage
D) Umbrella insurance

Question 44

The clause in a marine insurance policy that provides protection for liability from damages to another vessel caused by a collision with the insured ship is known as a:

A) Inchmaree clause
B) Free of capture and seizure clause
C) Collision clause
D) Running down clause

Question 45

The clause in an insurance policy that extends the list of covered perils to include losses due to negligence of the crew and damage arising from a latent defect is known as a:

A) Running down clause
B) Inchmaree clause
C) Himalaya clause
D) Perils only clause

Question 46

All of the following types of losses are generally covered by marine insurance policies except:

A) Partial average loss
B) General average loss
C) Total loss
D) Weighted average loss

Question 47

The standards perils clause in a marine insurance clause generally covers all of the following except:

A) Fire
B) Act of war
C) Earthquake, volcano, or lightning
D) Explosion
E) Jettison or washing overboard

Question 48

The calculation of general average losses is governed by the:

A) Hague Rules
B) Hamburg Rules
C) York-Antwerp Rules
D) Hague-Visby Rules
E) None of the above

Question 49

A _______ extends the standard marine coverage to the period before the loading of the goods and the period between offloading and delivery to the consignee:

A) Umbrella insurance
B) Excess insurance
C) Warehouse-to-warehouse insurance
D) Marine extension insurance
E) Both C & D

Question 50

Under COGSA, once a general average act has occurred, a cargo owner may only avoid liability by showing that:

A) The vessel was unseaworthy at the start of the voyage
B) Unseaworthiness was the cause of the general average event
C) An error in management cause the general average event
D) Both A & B
E) All of the above

Question 51

What four parameters must be met in order for a ship to be considered seaworthy?

Question 52

Under what circumstances is the $500/package limitation of liability waived and the common carrier fully liable for any loss? Under what circumstances is the common carrier not liable for any loss?

Question 53

What does the phrase 'fair opportunity' mean in regard to carrier liability? How does it affect carrier liability?

Question 54

What are the functions of a freight forwarder? Under what, if any, circumstances do freight forwarders assume liability?

Question 55

Briefly describe some of the differences and similarities between the Hague Rules and the Warsaw Convention.