TRIP Documentation & Legal Requirements 2

Question 1

What distinguishes a negotiable (order) bill of lading from a straight bill of lading?

Accepted Answer

A negotiable bill can be transferred by endorsement and delivery

Answer

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.

Question 2

A 'clean' bill of lading indicates that:

Accepted Answer

The carrier received the goods in apparent good order and condition

Answer

A clean bill of lading means the carrier received the goods without noting any exceptions to their condition, quantity, or packaging.

Question 3

Under the Carmack Amendment, what is the standard measure of damages for cargo loss or damage?

Accepted Answer

Fair market value at destination minus salvage value

Answer

The Carmack Amendment establishes the measure of damages as the actual loss, generally the fair market value at destination minus any salvage value recovered.

Question 4

A 'claused' (foul) bill of lading is one that:

Accepted Answer

Notes exceptions or reservations about the condition or quantity of goods received

Answer

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.

Question 5

Under COGSA (Carriage of Goods by Sea Act), what is the carrier's standard per-package liability limit?

Accepted Answer

$500 per package or customary freight unit

Answer

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.

(TRIP) Transportation Risk and Insurance Professional Practice Test

(TRIP) Transportation Risk and Insurance Professional Practice Test

TRIP Documentation & Legal Requirements 2