Maritime Law Maritime Contracts and Charter Parties 2

Question 1

A bill of lading issued under a charter party serves primarily as:

Accepted Answer

A receipt for cargo and document of title

Answer

When issued under a charter party, the bill of lading functions as a receipt for goods and a document of title, while the charter party itself is the contract of carriage between owner and charterer.

Question 2

The Carriage of Goods by Sea Act (COGSA, 46 U.S.C. § 30701) applies by default to international cargo shipments:

Accepted Answer

From or to U.S. ports under bills of lading

Answer

COGSA applies by operation of law to all bills of lading for international cargo shipments to or from U.S. ports.

Question 3

Under COGSA, the carrier's liability for loss or damage is limited to:

Accepted Answer

$500 per package or customary freight unit

Answer

COGSA caps carrier liability at $500 per package or per customary freight unit unless the shipper declares a higher value.

Question 4

Which clause in a charter party or bill of lading requires disputes to be resolved in a specific jurisdiction or by arbitration?

Accepted Answer

Paramount clause

Answer

A paramount clause incorporates COGSA or the Hague Rules into the contract, while dispute resolution is handled by jurisdiction/arbitration clauses; however among the options, the paramount clause is not the right answer — the Himalaya clause extends defenses to third parties, the Jason clause preserves the carrier's right to general average even if negligent in navigation.

Question 5

The 'Himalaya clause' in a bill of lading extends carrier defenses and liability limits to:

Accepted Answer

Servants, agents, and sub-contractors of the carrier

Answer

A Himalaya clause extends the carrier's COGSA defenses and liability limitations to employees, agents, and independent contractors acting in performance of the contract of carriage.

Maritime Law Practice Test

Maritime Law Practice Test

Maritime Law Maritime Contracts and Charter Parties 2