Shipping Lawyer Cargo Claims and Liability 2

Question 1

Which U.S. Act created the Federal Maritime Commission (FMC) to regulate ocean shipping?

Accepted Answer

Shipping Act of 1984

Answer

Merchant Marine Act of 1920

Answer

Ocean Shipping Reform Act of 1998

Answer

Maritime Transportation Security Act

Question 2

What is 'subrogation' in the context of cargo insurance?

Accepted Answer

The right of an insurer to pursue the responsible third party after paying a cargo claim

Answer

Transferring the bill of lading to a new holder

Answer

Substituting one cargo type for another

Answer

Assigning freight rights to a bank

Question 3

What does 'all risk' cargo insurance cover?

Accepted Answer

All physical loss or damage from any external cause

Answer

Only total loss of cargo

Answer

War and strikes only

Answer

Only named perils like fire and sinking

Question 4

Under the York-Antwerp Rules governing general average, what is a 'sacrifice'?

Accepted Answer

An intentional act causing damage to save the common maritime adventure

Answer

Payment of freight in advance

Answer

Loss of hire during repairs

Answer

A container devanning charge

Question 5

What is a 'booking confirmation' and what legal effect does it have?

Accepted Answer

A document confirming cargo space reservation that may form a binding contract

Answer

A vessel class certificate

Answer

A customs entry document

Answer

A freight invoice

Question 6

What is 'concealed damage' in cargo claims and why is it problematic?

Accepted Answer

Damage not apparent on delivery that is discovered upon unpacking

Answer

Damage hidden by the carrier to avoid liability

Answer

Damage intentionally underdeclared on the manifest

Answer

Structural vessel damage hidden from surveyors