Quiz 22: Legal Aspects of Supply Chain Management

Business

a) False. Common carriers are liable for theft. They are only excluded from liability from disasters, public enemy (act of war), or act of the shipper b) False. The carrier's employees are responsible for the item(s) given to them to ship. Employees represent the carrier when they are carrying out the carrier's duty to ship the item(s). c) False. The carrier's employees are responsible for the item(s) given to them to ship. d) True. They are excluded from the mistakes made by shipper. For example, if the shipper packaged a fragile good recklessly and without any padding, the carrier can't be responsible for damage as a result of packaging.

The shipper entrust their shipment for the carrier in return the carrier gets payment for it. Hence, the carrier needs to be responsible from getting the good safely to destination. An effective business environment requires shipment to be on time and in the same state it was received. If carriers are not held responsible for most losses then businesses would have little trust to ship sold goods-stalling sales and growth of businesses.

a) False. A shipped good with non-negotiable bill of lading can be delivered to only a named person on the bill of lading. If bill was negotiable, delivery can be transferred to a new holder. b) False. The carrier may only deliver to the consignee, the person written to receive the good. c) False. The seller is shipping the good not receiving it. d) True. The consignee is the person named on the bill of lading to receive the shipment.

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