True / False
1. A policy that is “free of particular average” is one that will not cover any partial and average losses.
a. True
b. False
2. Clean bill of lading is a carrier‘s guarantee, or warranty, of the condition of the goods it has delivered.
a. True
b. False
3. Where the shipper fails to declare the value of the shipment on a clean bill of lading and the carrier has knowledge
of the true value and does not advise the shipper to declare the value so, in the U.S. the carrier‘s liability will be
unlimited liability per package.
a. True
b. False
4. Goods moving under a straight bill of lading may be delivered either to the consignee or to the notify party.
a. True
b. False
5. Pilferage of goods in transit has been greatly reduced by the advent of break-bulk freight.
a. True
b. False
6. The Himalaya Clause governs the liability captains of carriers for damage to goods being transported from one U.S.
seaport to another U.S. seaport.
a. True
b. False
7. COGSA governs the liability of ocean carriers for damage to goods while the goods are held in storage warehouses
at the seaport.
a. True
b. False
8. Today, COGSA allows ocean carriers to put clauses in their bills of lading exonerating them from liability.
a. True
b. False
9. An ocean carrier is liable for its failure to use due diligence in providing a seaworthy ship at the beginning of the
voyage.
a. True
b. False
10. COGSA gives limited protection to carriers for damage to cargo resulting from being torpedoed by mistake by a
submarine of a nation involved in an armed conflict.
a. True
b. False
11. COGSA relieves carriers of liability for negligent care and handling of cargo.
a. True
b. False
12. A clean bill of lading establishes a rebuttable presumption that the goods delivered to an ocean carrier were in good
condition.
a. True
b. False
13. Ocean carriers are liable if cargo is damaged as a result of errors in the navigation of the ship.
a. True
b. False
14. Ocean carriers are liable if cargo is damaged as a result of the ship being taken over by pirates, if the seizure or
damage was foreseeable and the carrier failed to take necessary preventive measures.
a. True
b. False
15. Ocean carriers are liable if cargo is damaged because it was left exposed to rain during the journey.
a. True
b. False
16. A consignee can prove a shortage by showing that the quantity of the cargo unloaded at the destination is less than
that listed on the bill of lading.
a. True
b. False
17. In the United States, ocean carriers are not liable under the Uniform Commercial Code in amounts in excess of $500
per shipment.
a. True
b. False
18. Carriers are liable for damages equal to the value of the goods regardless of how their value is stated on the bill of
lading.
a. True
b. False
19. Goods can be stored at any location on the vessel and the decision is left to the discretion of the captain.
a. True
b. False
20. A provision in a bill of lading that extends the protection of the Hague Rules to stevedores is known as a Himalaya
Clause.
a. True
b. False
21. If A’s ocean cargo is thrown overboard in order to save a sinking ship and B’s cargo is saved as a result, B must
contribute to A for the loss.
a. True
b. False
22. If goods are sacrificed in the process of saving a ship from a substantial common danger, the owners of the goods
are said to have incurred a particular average loss.
a. True
b. False
23. The law of general average is found in the Hague Rules permits a captain of a vessel to take timely action to avoid a
disaster and claim average damages.
a. True
b. False
24. In order to recover for a general average claim, the claimant must prove that the ship was in imminent danger.
a. True
b. False
25. Only extra-ordinary risks of an ocean voyage are covered in the perils clause.
a. True
b. False
26. A carrier is liable to the buyer of cargo for a shortage if the amount of cargo in the container on arrival is less than
that stated in the seller’s commercial invoice.
a. True
b. False
27. An Inchmaree clause in a marine insurance policy provides coverage to a cargo owner when a loss is due to an
error in navigation or management of the ship.
a. True
b. False
28. The ship Darby O departed the Port of Yokohama, Japan to deliver Toyota parts to Miami, Florida through the
Panama Canal. Due civil strife within Panama, the Canal is closed due to armed conflict. The carrier is entitled to
claim increased expenses as a result to traveling the long route down South America under the “perils of the sea”?
a. True
b. False
Multiple Choice
29. What was the holding in El Al Israel Airlines v. Tseng?
a. The Warsaw Convention does not apply where the carrier waives its provisions.
b. The defendant accepted an additional rate to ship the package based on its declared additional value.
c. The Warsaw Convention limits the defendant’s liability to $9.07 per pound.
d. An international passenger may not bring a cause of action under local law against an airline when there is no
bodily injury that satisfies the Warsaw Convention.
30. According to the Warsaw Convention, an air carrier is presumptively liable for all damage to air cargo unless it can
prove:
a. The damage did not occur as a result of its negligence.
b. The loss was caused by the negligence of the shipper.
c. Either A or B.
d. None of the above, since the convention only governs baggage claims.
31. The first bill passed by the U.S. Congress defining the legal liability of an ocean carrier for the care of its cargo was
the following:
a. The Hague Rules.
b. The Uniform Commercial Code.
c. The Convention on the International Sale of Goods.
d. The Harter Act.
32. The U.S. law that governs the liability of an ocean carrier for transporting goods from one U.S. port to a foreign port
is the:
a. The Hague Rules.
b. The Uniform Commercial Code.
c. The Harter Act.
d. The Carriage of Goods by Sea Act.
33. Clauses in a bill of lading that attempt to exonerate the carrier from liability are void under which of the following:
a. The Hague Rules.
b. The Carriage of Goods by Sea Act.
c. Both A and B.
d. None of the above.
34. In the event of cargo damage, an action under COGSA must be brought within:
a. A reasonable period of time.
b. Within one year.
c. Within two years.
d. Within the time specified in the UCC.