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Shipping and Maritime Law Flashcards

7 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. Under the Carriage of Goods by Sea Act (COGSA), what is the carrier's standard liability limit per package?

    Answer: $500 per package

    COGSA limits carrier liability to $500 per package or customary freight unit unless a higher value is declared.

  2. Which international convention governs the limitation of liability for maritime claims in the US context?

    Answer: The Limitation of Liability Act of 1851

    The US Limitation of Liability Act of 1851 allows shipowners to limit liability to the post-casualty value of the vessel plus pending freight.

  3. A bill of lading marked 'freight prepaid' means:

    Answer: The shipper has already paid the ocean freight charges

    'Freight prepaid' indicates the shipper has paid the freight charges before shipment, and the carrier cannot withhold delivery for non-payment of freight.

  4. What is 'deadfreight' in maritime commerce?

    Answer: Freight charges paid for space booked but not used

    Deadfreight is compensation paid by a charterer to a shipowner when the charterer fails to provide the agreed quantity of cargo.

  5. Under a voyage charter, who typically pays for the port costs at the loading and discharging ports?

    Answer: It depends on the charter terms (FIOST clauses)

    Port cost allocation depends on charter terms — FIOST (Free In and Out, Stowed, Trimmed) clauses specify which party bears loading, stowing, and discharge costs.

  6. The 'Notice of Readiness' (NOR) in charter party law serves what primary purpose?

    Answer: Formally informs the charterer that the vessel is ready to load or discharge

    A NOR is a formal notice from the master to the charterer that the vessel has arrived and is ready to commence cargo operations, typically triggering the laytime clock.

  7. What doctrine allows a cargo owner to hold a vessel responsible for cargo damage even if the vessel was on a deviation ordered by the government?

    Answer: The doctrine of compulsory deviation

    Compulsory deviation doctrine recognizes that deviations required by law or government order do not excuse the carrier from liability for cargo damage caused during the deviation.