The ship Audie Murphy leaves the New York Port with a ship load of GMC pick-up trucks bound for the Port of Istanbul, Turkey. A fire breaks out aboard the ship and destroys the more than thirty GMC pick-up trucks. After an investigation it has been unable to determine the cause. Who is financially responsible to the owner of the cargo?

Question

The ship Audie Murphy leaves the New York Port with a ship load of GMC pick-up trucks bound for the Port of Istanbul, Turkey. A fire breaks out aboard the ship and destroys the more than thirty GMC pick-up trucks.  After an investigation it has been unable to determine the cause.  Who is financially responsible to the owner of the cargo?

Quizplus · Accepted Answer

The cause of the fire could not be determined, therefore it is considered a case of force majeure or an act of God, which means that no one is liable for the damages. The risk of loss or damage to the cargo during transit falls under the terms of the contract of sale, which in this case would likely be CIF (Cost, Insurance, and Freight) or FOB (Free on Board), and the responsibility for loss or damage would depend on the specific terms of that contract.

The Ship Audie Murphy Leaves the New York Port with a Ship