Shipping Lawyer Bills of Lading and Charter Parties 1

Question 1

Which of the following is NOT a primary function of a bill of lading?

Accepted Answer

A warranty of cargo seaworthiness

Answer

A bill of lading serves as a receipt, contract of carriage, and document of title, but it is not a warranty of the cargo's seaworthiness — that obligation rests on the shipper for dangerous goods.

Question 2

What is a 'negotiable' or 'order' bill of lading?

Accepted Answer

A bill that can be transferred by endorsement, with title passing to the holder

Answer

An order bill of lading is a negotiable document that transfers title to the goods when endorsed and delivered to the new holder.

Question 3

What distinguishes a 'straight' bill of lading from an 'order' bill of lading?

Accepted Answer

A straight bill is consigned to a named party and is non-negotiable

Answer

A straight bill names a specific consignee and is non-negotiable — only that named party (or their agent) can take delivery.

Question 4

What is a 'charter party' in shipping law?

Accepted Answer

A contract for the hire of a vessel or its cargo space

Answer

A charter party is a contract between a shipowner and a charterer for the use of a vessel or cargo space, either for a specific voyage or a period of time.

Question 5

Under a bareboat (demise) charter, who is responsible for operating the vessel?

Accepted Answer

The charterer, who takes full possession and control

Answer

In a bareboat charter, the charterer takes full possession and control of the vessel, including hiring the crew and bearing all operating costs.

Shipping Lawyer Practice Test

Shipping Lawyer Practice Test

Shipping Lawyer Bills of Lading and Charter Parties 1