Maritime Law Salvage and Towage Law 2

Question 1

Lloyd's Open Form (LOF) is used in salvage primarily because it allows:

Accepted Answer

Salvage to commence immediately without negotiating detailed contract terms

Answer

LOF is a widely used standard form salvage contract that allows salvage operations to begin on a 'no cure, no pay' basis without delay, with the award amount determined by Lloyd's arbitration afterward.

Question 2

In towage contracts, the key distinction from salvage is that towage services are provided:

Accepted Answer

Under a pre-existing contract when the vessel is not in peril

Answer

Towage is a contracted service provided to a vessel not in peril, whereas salvage arises from a voluntary service to a vessel in genuine danger.

Question 3

The standard towage contract clause that transfers liability for damage from the tug to the tow owner during harbor towage is known as the:

Accepted Answer

United Kingdom Standard Conditions for Towage (UKSTC) negligence exception

Answer

Under UK Standard Towage Conditions, the tow owner assumes risk of damage caused by the tug's negligence during harbor towage, effectively reversing the normal tortfeasor liability rule.

Question 4

A key requirement for a service to qualify as 'salvage' under the 1989 Salvage Convention is that the vessel or property must be in:

Accepted Answer

Danger or peril from which it cannot extricate itself without assistance

Answer

The danger requirement is fundamental to salvage — the vessel must face a real threat from which it needs outside assistance, though the danger need not be immediate or certain.

Question 5

In the United States, wreck removal obligations for vessel owners in navigable waters are primarily governed by:

Accepted Answer

The Rivers and Harbors Act and the Wreck Act (33 U.S.C. § 409)

Answer

33 U.S.C. § 409 (Wreck Act, part of the Rivers and Harbors Act) requires the owner of a sunken vessel to mark and remove it from navigable waters and imposes liability for obstruction.

Maritime Law Practice Test

Maritime Law Practice Test

Maritime Law Salvage and Towage Law 2