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Salvage and Towage Law Flashcards

6 cards from real Maritime Law practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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

    Answer: Salvage to commence immediately without negotiating detailed contract terms

    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.

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

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

    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.

  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:

    Answer: United Kingdom Standard Conditions for Towage (UKSTC) negligence exception

    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.

  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:

    Answer: Danger or peril from which it cannot extricate itself without assistance

    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.

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

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

    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.

  6. A salvage lien on a vessel or cargo is classified as which type of maritime lien under U.S. law?

    Answer: A preferred maritime lien with high priority

    Salvage liens are preferred maritime liens under 46 U.S.C. § 31301 and rank ahead of most other claims, including preferred ship mortgages, in the order of priority.