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

The Shipping Act of 1984 created the modern regulatory framework for U.S. ocean shipping and established FMC oversight of ocean common carriers.

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

Subrogation gives the cargo insurer who paid the claimant the right to 'step into the shoes' of the insured and pursue recovery from the responsible carrier or third party.

Question 3

What does 'all risk' cargo insurance cover?

Accepted Answer

All physical loss or damage from any external cause

Answer

All risk cargo insurance covers physical loss or damage from any external cause unless specifically excluded, providing the broadest marine cargo coverage.

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

In general average, a sacrifice is an intentional act, such as jettisoning cargo or cutting away masts, done to preserve the ship and remaining cargo from a common peril.

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 booking confirmation from a carrier confirms reservation of space and may constitute an enforceable contract for carriage before the bill of lading is issued.

Shipping Lawyer Practice Test

Shipping Lawyer Practice Test

Shipping Lawyer Cargo Claims and Liability 2