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

Traditional salvage law requires that the service be voluntary (not legally required), performed in navigable waters, and result in a successful outcome saving the property.

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

No cure, no pay means the salvor's compensation is contingent on success — if the vessel or cargo is not saved, the salvor receives no remuneration regardless of effort expended.

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

SCOPIC provides salvors with a minimum rate-based compensation to encourage them to engage in environmentally sensitive salvages where the property value may be low but pollution risk is high.

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

Article 14 special compensation covers the salvor's expenses and adds an uplift for preventing environmental damage, even if the salved property value would not support a traditional award.

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

Salvage award factors under the Salvage Convention Article 13 include danger, skill, success, risk to salvors, environmental protection, and salved values — but not the nationality of the salving vessel.

Maritime Law Practice Test

Maritime Law Practice Test

Maritime Law Salvage and Towage Law