Deck 11: Transportation

Question 1

Incoterms are trade terms published by the International Chamber of Commerce.

Answer 1

True

Question 2

A bill of lading is a document of title.

Answer 2

True

Question 3

Bills certifying that the goods have been properly loaded on board are known as claused bills of lading.

Answer 3

False

Question 4

The transfer of a straight bill gives the transferee greater rights than those of his transferor.

Question 5

The Hague and Hague-Visby Rules do not apply to charterparties unless a bill of lading issued by the shipowner comes into the hands of a third party.

Question 6

The transferee of an order bill of lading acquires both the rights and the liabilities of his transferor.

Question 7

The Himalaya Clause says that only persons who are a party to a contract may enforce its provisions.

Question 8

The insurance policy represents the cost element of a contract.

Question 9

A conference line is an association of seagoing carriers that have joined together to offer common freight rates.

Question 10

Lay days are the number of days that a charterer may keep a chartered ship idle for the loading of goods.

Question 11

Bearer instruments are transferred by negotiation.

Question 12

Dead freight is a charge imposed on a charterer when a chartered ship has less than a full load.

Question 13

Where the owner or operator of a vessel is willing to carry goods for more than one person, the vessel is known as a free carrier.

Question 14

Under an ex works contract, all the costs connected with transportation are the responsibility of the seller.

Question 15

Res is a charge or claim against a vessel, its freight, or its cargo.

Question 16

Under an ex works contract, a seller is obliged only to deliver the goods at his own place of business.

Question 17

A charterparty is a contract for the hire of an entire ship for a particular voyage or a set period of time.

Question 18

A time charterparty is a contract to hire an entire ship for a particular voyage.

Question 19

The contract of carriage between a charterer and a shipowner is the charterparty.

Question 20

A bill of lading is an instrument issued by an ocean carrier to a shipper with whom the carrier has entered into a contract for the carriage of goods.

Question 21

Maritime liens require possession.

Question 22

In the marine insurance industry, a "free from particular average" policy provides more protection than a "with average" policy.

Question 23

If a vessel is sold, the lien goes with the ship, even if the new owner is unaware of its existence.

Question 24

Which of the following terms refers to the point in the transaction where the risk of loss or damage to the goods is transferred from the seller to the buyer?

A) demurrage
B) ad litem
C) contra legem
D) delivery

Question 25

Which of the following trade terms means that the seller has an obligation to deliver the goods to a named place for transfer to a carrier?

A) ex works
B) dead freight
C) free
D) demurrage

Question 26

A partial loss is known in the marine insurance industry as a particular average.

Question 27

In civil law countries, the lien exists against the owner as a debtor.

Question 28

The air waybills and consignment notes used in air carriage are documents of title.

Question 29

The trade term " ________" is used when the seller fulfills his obligations to deliver by handing over the goods, cleared for export, to a carrier named by the buyer.

A) ex works
B) free carrier
C) charterparty
D) demurrage

Question 30

The trade term "________" is used when the seller fulfills his obligations to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment.

A) free alongside
B) free on board
C) free carrier
D) common carrier

Question 31

A ________ is a ship that carries goods for all persons who choose to employ it so long as there is room.

A) common carrier
B) free carrier
C) freight forwarder
D) tramp vessel

Question 32

A ________ is a firm that makes or assists in the making of shipping arrangements.

A) common carrier
B) freight forwarder
C) charterparty
D) free carrier

Question 33

Which of the following documents provided by a seller represents freight?

A) bill of lading
B) letter of credit
C) invoice
D) insurance policy

Question 34

"With average" policies can be purchased without a franchise clause.

Question 35

The trade term "________" is used when the seller fulfills his obligations to deliver by making the goods available at his premises.

A) freight forwarder
B) free alongside
C) ex works
D) dead freight

Question 36

A(n) ________ is a seagoing common carrier operating over established routes with a stated rate schedule.

A) conference line
B) independent line
C) common carrier
D) free carrier

Question 37

Which of the following documents provided by a seller represents cost?

A) bill of lading
B) air waybill
C) invoice
D) insurance policy

Question 38

In civil law countries, a vessel is regarded as a juridical person separate and apart from its owner.

Question 39

The trade term "________" is used when the seller fulfills his obligations to deliver the goods passed over the ship's rail at the named port of shipment.

A) free on board
B) freight forwarder
C) common carrier
D) dead freight

Question 40

A(n) ________ is an association of seagoing carriers that have joined together to offer common freight rates.

A) independent line
B) freight forwarder
C) conference line
D) free carrier

Question 41

The ________ establishes a hierarchy among lien claims.

A) Brussels Convention
B) Warsaw Convention
C) Rome Convention
D) Montreal Convention

Question 42

A(n) ________ is a seagoing common carrier operating with a stated rate schedule but without established routes.

A) common carrier
B) conference line
C) independent line
D) tramp vessel

Question 43

Which of the following is a term in a bill of lading that purports to extend to third parties the carrier's liability limits established by the Hague and Hague-Visby Rules?

A) Himalaya Clause
B) force majeure clause
C) voyage charterparty
D) ultra vires rule

Question 44

A ________ is a charge or claim against a vessel or its cargo.

A) certiorari
B) demurrage
C) dead freight
D) maritime lien

Question 45

Which of the following is true of res in civil law countries?

A) The res is seized without prior notice to the owner.
B) The res is not regarded as something distinct from its owner.
C) Maritime lien associated with a res requires separate possession.
D) The res itself can be liable for the owner's breach of contract.

Question 46

An order bill of lading differs from a straight bill of lading in that, an order bill of lading ________.

A) gives the transferee greater rights
B) is non-negotiable
C) is issued to a named consignee
D) is issued by a shipper to an ocean carrier

Question 47

A ________ is a contract to hire an entire ship for a particular voyage or for a period of time.

A) maritime lien
B) claused bill of lading
C) straight bill of lading
D) charterparty

Question 48

Which of the following best describes a claused bill of lading?

A) It is a bill of lading that is negotiable.
B) It is a bill of lading issued to a named consignee that is not negotiable.
C) It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill.
D) It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship.

Question 49

A(n) ________ is an instrument issued by an ocean carrier to a shipper that serves as a receipt for goods shipped, as evidence of the contract of carriage, and as a document of title for the goods.

A) bill of lading
B) air waybill
C) letter of credit
D) bill of exchange

Question 50

A ________ is a contract to hire an entire ship for a particular duration.

A) time charterparty
B) voyage charterparty
C) maritime lien
D) codicil

Question 51

Which of the following best describes a straight bill of lading?

A) It is a bill of lading issued to a named consignee that is not negotiable.
B) It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship.
C) It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill.
D) It is a bill of lading that is negotiable.

Question 52

Which of the following terms refers to a charge made by a shipowner when a charterer keeps a ship idle for more than the agreed-upon number of lay days?

A) claused bill of lading
B) dead freight
C) demurrage
D) clean bill of lading

Question 53

Which of the following terms refers to a charge imposed on a charterer when a chartered ship has less than a full load?

A) demurrage
B) dead freight
C) maritime lien
D) straight bill of lading

Question 54

Which of the following is true of maritime liens?

A) They attach to the res and travel with it.
B) They require possession in both common law and civil law countries.
C) In civil law countries, the owner is not essential to the existence of a lien against a ship.
D) If a vessel is sold, the lien does not go with the ship, if the new owner is unaware of its existence.

Question 55

Which of the following terms refers to a contract in which the owner agrees to provide the ship at a named port at a specified time and to carry the goods to the contract destination?

A) voyage charterparty
B) no arrival, no sale contract
C) maritime lien
D) claused bill of lading

Question 56

The ________ do(es) not apply to charterparties unless a bill of lading issued by the shipowner comes into the hands of a third party.

A) maritime lien
B) Himalaya Clause
C) Hague and Hague-Visby Rules
D) no arrival, no sale contract

Question 57

A ________ is the vessel or cargo to which a maritime lien attaches.

A) mare liberum
B) quaere
C) situs
D) res

Question 58

Which of the following terms refers to a charge or claim against property that exists to satisfy some debt or obligation?

A) lien
B) demurrage
C) certiorari
D) dead freight

Question 59

Which of the following best describes an order bill of lading?

A) It is a bill of lading that is negotiable.
B) It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship.
C) It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill.
D) It is a bill of lading issued to a named consignee that is not negotiable.

Question 60

Which of the following best describes a clean bill of lading?

A) It is a bill of lading that is negotiable.
B) It is a bill of lading issued to a named consignee that is not negotiable.
C) It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill.
D) It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship.

Question 61

What is the purpose of a maritime lien?

Question 62

Which of the following terms refers to a loss to a ship or its cargo that is not to be shared in by contributions from all those interested, but is to be borne by the owner of the injured thing?

A) dead freight
B) maritime lien
C) general average
D) particular average

Question 63

Under the Brussels Convention, which of the following claims has the highest rank?

A) Judicial costs and other expenses
B) Salvage and general average
C) Tort claims
D) Ship mortgages

Question 64

Explain the trade term "free on board."

Question 65

Total loss of cargo is governed by a ________ in a maritime insurance policy.

A) loss payable clause
B) Himalaya Clause
C) constructive loss clause
D) loss payee clause

Question 66

Differentiate between a straight bill of lading and an order bill of lading.

Question 67

A "with average" policy contains a ________ that provides for payment only if the loss exceeds a specified minimum amount.

A) Himalaya Clause
B) franchise clause
C) constructive loss clause
D) loss payee clause

Question 68

Differentiate between a conference line and an independent line.

Question 69

Which of the following terms refers to a contribution by those jointly involved in a maritime venture to make good the loss by one of them for his voluntary sacrifice of a part of the ship or cargo to save the residue of the property and the lives on board, or for the extraordinary expenses necessarily incurred for the benefit and safety of all?

A) dead freight
B) maritime lien
C) general average
D) particular average

Question 70

What is a charterparty?

Question 71

Explain the Himalaya Clause.

Question 72

Differentiate between a voyage charterparty and a time charterparty.

Question 73

Differentiate between particular average and general average.

Question 74

What is the purpose of issuing a bill of lading?

Question 75

Differentiate between a clean bill of lading and a claused bill of lading.