Maritime Law Salvage and Towage Law

Question 1

Under the International Salvage Convention 1989 (implemented in the U.S. via 46 U.S.C. §§ 80101–80107), a traditional salvage award requires:

Accepted Answer

A voluntary service that results in a successful outcome

Answer

A pre-existing contract between the salvor and vessel owner

Answer

The salvor to be a licensed commercial salvage company

Answer

Government authorization before commencing salvage operations

Question 2

The 'no cure, no pay' principle in salvage means:

Accepted Answer

The salvor is only paid if the salvage operation is successful

Answer

The salvor cannot charge if the vessel owner refuses assistance

Answer

Medical salvage of crew is excluded from compensation

Answer

The vessel owner need not pay if the vessel was already a constructive total loss

Question 3

The Special Compensation P&I Club (SCOPIC) clause modifies 'no cure, no pay' by providing a salvor with:

Accepted Answer

A minimum safety net payment even when the salvage operation fails to save property

Answer

Guaranteed profit sharing on successful salvage awards

Answer

Immunity from pollution liability during salvage operations

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Priority over other maritime lienholders for payment

Question 4

Article 14 of the 1989 Salvage Convention introduced 'special compensation' to incentivize salvors to:

Accepted Answer

Prevent or minimize environmental damage even when property value is minimal

Answer

Rescue crew members in distress situations

Answer

Undertake salvage in international waters beyond 200 miles

Answer

Save vessels carrying hazardous cargo subject to HAZMAT regulations

Question 5

The factors a court considers when assessing a salvage award include all of the following EXCEPT:

Accepted Answer

The nationality of the salvage vessel

Answer

The degree of danger to the vessel and cargo

Answer

The skill and efforts of the salvors

Answer

The value of the property salved

Question 6

Under U.S. law, which category of workers is generally NOT entitled to claim a salvage award?

Accepted Answer

Crew members of the vessel in distress

Answer

Crew of a passing vessel that voluntarily assists

Answer

Professional salvors under a Lloyd's Open Form

Answer

Coast Guard personnel acting in their official duty