Ship Lawyer Maritime Contracts and Liens 2

Question 1

What is a 'forum selection clause' in a bill of lading and how do courts treat it?

Accepted Answer

A contractual provision designating where disputes must be litigated, generally enforced in maritime cases

Answer

Forum selection clauses in bills of lading designate a specific court or country for dispute resolution and are generally enforced by U.S. courts in maritime cases under The Bremen v. Zapata decision.

Question 2

What is the 'Himalaya clause' in maritime cargo contracts?

Accepted Answer

A clause extending the carrier's defenses and liability limits to stevedores and sub-contractors

Answer

A Himalaya clause extends the carrier's COGSA defenses and liability limitations to agents, servants, and independent contractors (like stevedores) who assist in the performance of the contract.

Question 3

What must a cargo claimant do to preserve a COGSA claim for cargo damage that is not apparent at the time of delivery?

Accepted Answer

Give written notice to the carrier within 3 days of delivery

Answer

COGSA requires written notice of non-apparent cargo damage within 3 days of delivery; otherwise, delivery is presumed to have been in good condition.

Question 4

What is the effect of a 'full and down' or 'Said to Contain' notation on a bill of lading?

Accepted Answer

It limits the carrier's liability by indicating the carrier did not verify the cargo contents

Answer

A 'Said to Contain' (STC) notation means the carrier did not verify the cargo contents, limiting the bill's evidentiary value regarding the condition of goods inside containers.

Question 5

What is a 'ship mortgage' under U.S. maritime law and what statute governs it?

Accepted Answer

A preferred ship mortgage under the Commercial Instruments and Maritime Liens Act (CIMLA)

Answer

A preferred ship mortgage is a recorded lien on a U.S.-flag vessel created pursuant to CIMLA (46 U.S.C. §§ 31321-31330), giving the mortgagee a priority claim on the vessel.

Ship Lawyer Practice Test

Ship Lawyer Practice Test

Ship Lawyer Maritime Contracts and Liens 2