Documentation & Legal Requirements Flashcards

An ACORD 25 Certificate of Liability Insurance issued to a certificate holder:

Answer: Serves as evidence of insurance but does not confer rights or amend policy terms

An ACORD 25 certificate is informational only — it evidences the existence of insurance but expressly states it does not amend, extend, or alter the coverage afforded by the underlying policy.

Under the Montreal Convention governing international air cargo, a carrier's per-kilogram liability limit can be exceeded when:

Answer: The shipper declares a higher value and pays any applicable supplementary charge

Under the Montreal Convention, shippers can break the per-kilogram limit by making a special declaration of value at the time of delivery to the carrier and paying any applicable surcharge.

For international ocean shipments, which document serves as evidence of the contract of carriage and receipt of goods by the carrier?

Answer: Bill of lading or sea waybill

The bill of lading (or sea waybill for non-negotiable shipments) is the primary document evidencing the ocean contract of carriage, the receipt of goods, and, if negotiable, title to the cargo.

Under COGSA, a consignee who discovers non-apparent cargo damage must give the ocean carrier written notice within:

Answer: 3 days of delivery

COGSA Section 3(6) requires written notice of non-apparent loss or damage within three days of delivery; failure to give notice creates a presumption (not conclusive) that delivery was made in good condition.

A 'to order' bill of lading in ocean shipping means the bill is:

Answer: Negotiable and can be transferred by endorsement, controlling delivery of the goods

A 'to order' bill of lading is a negotiable instrument; the holder who endorses and presents the original controls release of the cargo, making it essential for documentary-credit transactions.

Which document must a property freight broker maintain on file for each transaction under 49 CFR Part 371?

Answer: A record of each transaction including the carrier's name, origin/destination, commodity, rate, and charges

49 CFR § 371.3 requires freight brokers to keep records of each transaction showing the carrier's name and DOT number, shipper name, load details, and the rate paid — shippers and carriers have the right to inspect these records.

Under the Hague-Visby Rules (applicable to many international ocean shipments), what is the time limit for filing suit against the ocean carrier for cargo loss or damage?

Answer: 1 year from delivery or expected delivery

The Hague-Visby Rules Article III Rule 6 establishes a one-year time bar for cargo suits against the carrier, running from the date of delivery or the date the goods should have been delivered.