Documentation & Legal Requirements Flashcards
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Read the first 7 Documentation & Legal Requirements flashcards as text
What distinguishes a negotiable (order) bill of lading from a straight bill of lading?
Answer: A negotiable bill can be transferred by endorsement and delivery
A negotiable (order) bill of lading represents title to goods and can be transferred by endorsement, while a straight bill is non-negotiable and delivers only to the named consignee.
A 'clean' bill of lading indicates that:
Answer: The carrier received the goods in apparent good order and condition
A clean bill of lading means the carrier received the goods without noting any exceptions to their condition, quantity, or packaging.
Under the Carmack Amendment, what is the standard measure of damages for cargo loss or damage?
Answer: Fair market value at destination minus salvage value
The Carmack Amendment establishes the measure of damages as the actual loss, generally the fair market value at destination minus any salvage value recovered.
A 'claused' (foul) bill of lading is one that:
Answer: Notes exceptions or reservations about the condition or quantity of goods received
A claused or foul bill of lading contains notations by the carrier indicating defects in the goods' condition, packaging, or quantity at the time of receipt.
Under COGSA (Carriage of Goods by Sea Act), what is the carrier's standard per-package liability limit?
Answer: $500 per package or customary freight unit
COGSA limits ocean carrier liability to $500 per package or customary freight unit unless the shipper declares a higher value and pays the applicable ad valorem rate.
A through bill of lading is primarily used when:
Answer: Goods move under a single document covering multiple carriers or transportation modes
A through bill of lading covers an entire movement from origin to final destination even when multiple carriers or modes are involved, providing the shipper one document for the entire transit.
Under COGSA, what is the statute of limitations for filing suit against an ocean carrier for cargo loss or damage?
Answer: 1 year from delivery or expected delivery
COGSA imposes a one-year statute of limitations for cargo claims against ocean carriers, running from the date of delivery or expected delivery.