Question 1

The Harter Act has been superseded by the Hague Rules for goods shipped from one U.S. port to another U.S. port.

Accepted Answer

The Harter Act applies to domestic shipments within the United States, while the Hague Rules generally apply to international shipments. The Harter Act has not been superseded by the Hague Rules for goods shipped between U.S. ports.

Question 2

The Hamburg Rules are more pro-shipper than are the Hague and Hague-Visby Rules.

Accepted Answer

The Hamburg Rules provide more protection for the shippers by increasing the responsibility of the carrier for loss or damage to the goods, as well as extending the period in which claims can be made.

Question 3

Under the Hague-Visby Rules, the "per package limitation" of a carrier's liability is set at $1,000.

Accepted Answer

According to the Hague-Visby Rules, the per package limitation for a carrier's liability is 666.67 special drawing rights (SDR) or approximately $1,000 USD as of May 2021.

Question 4

The enactment of the Carriage of Goods by Sea Act (COGSA) codified into U.S. law the Hague-Visby Rules.

Accepted Answer

The Carriage of Goods by Sea Act (COGSA) codified the Hague Rules into U.S. law, not the Hague-Visby Rules. The Hague-Visby Rules are an amended version of the original Hague Rules, but COGSA does not incorporate these amendments.

Question 5

If the shipper has a fair opportunity to declare a higher value on a bill of lading and fails to do so, then the carrier's liability is limited to $500 per package under COGSA.

Accepted Answer

This statement accurately represents the limitation of liability for carriers under COGSA if the shipper does not declare a higher value on the bill of lading.

Question 6

A 'non-vessel operating common carrier' (NVOCC) consolidates cargo from numerous shippers into larger groups for shipment by an ocean carrier.

Accepted Answer

This is the correct definition of a NVOCC. They do not own or operate their own vessels, but instead arrange for ocean transportation using space on other carrier's vessels. They gather cargo from multiple shippers and consolidate it into full container loads for shipment.

Question 7

A charterparty is a person or entity who leases an entire ship from the ship's owner.

Accepted Answer

A charterparty is a contractual agreement between the ship owner and a third party who hires the entire ship for a specified period of time. Therefore, the charterparty is the person or entity leasing the ship, not the ship's owner.

Question 8

Any third party to be covered under a Himalaya clause needs to be specifically named in order for the protection of a carriage convention to be extended.

Accepted Answer

A Himalaya clause does not require that a third party be specifically named in order to extend the protection of a carriage convention to them; it generally allows for the extension of contractual protections to third parties such as subcontractors, who may not be specifically named.

Question 9

COGSA covers a carrier's liability from the time the goods are in its possession, including prior to loading and after discharge from the ship.

Accepted Answer

COGSA (Carriage of Goods by Sea Act) specifically covers a carrier's liability for cargo from the time it is loaded onto the ship until the time it is discharged from the ship.

Question 10

Under COGSA, a carrier is liable if does not undertake due diligence in the preparation and inspection of the ship in order to ensure its seaworthiness.

Accepted Answer

COGSA (Carriage of Goods by Sea Act) holds the carrier liable for any loss or damage to goods during transit unless the carrier can prove that it took all necessary measures to ensure the seaworthiness of the ship. This includes due diligence in the preparation and inspection of the ship to make sure it is fit to carry the goods. Therefore, if the carrier fails to undertake due diligence, they can be held liable for any resulting damages.

Question 11

If a ship becomes unseaworthy after leaving the port of shipment, then the carrier will be liable for all damages for loss.

Accepted Answer

The carrier's liability for damages due to the ship becoming unseaworthy after leaving the port depends on whether the carrier exercised due diligence to make the ship seaworthy before and at the beginning of the voyage. If due diligence is proven, the carrier may not be held liable for subsequent unseaworthiness.

Question 12

Under the Hamburg Rules, the burden of proof is on the shipper to prove that any loss is due to the fault of the carrier.

Accepted Answer

Under the Hamburg Rules, the burden of proof is on the carrier to prove that they took all necessary measures to avoid the loss.

Question 13

Generally, a route deviation due to governmental intervention would not be considered a material deviation under COGSA.

Accepted Answer

Governmental intervention is considered an act of God under COGSA, which is not considered a material deviation.

Question 14

A clean bill of lading is considered prima facie evidence that goods delivered to an ocean carrier were in good condition.

Accepted Answer

A clean bill of lading represents that the goods were received by the carrier in good condition and without damage. It is considered as prima facie evidence, which means it is assumed to be true unless proven otherwise. If any damage or discrepancy is found later, the burden of proof falls on the carrier to prove that it was not responsible for the same.

Question 15

The insertion of a warehouse-to-warehouse clause will extend the 'tackle to tackle' period of responsibility for a carrier found in the Hague Rules.

Accepted Answer

The insertion of a warehouse-to-warehouse clause will extend the responsibility of a carrier beyond the 'tackle to tackle' period of responsibility specified in the Hague Rules.

Question 16

COGSA provides for liability when goods are lost, damaged, or delayed in delivery.

Accepted Answer

The answer of COGSA provides for liability when goods are...

Question 17

If loss or damage is due to one of the enumerated exceptions under COGSA, then the carrier's liability is limited to a maximum of $500 per package.

Accepted Answer

The answer of If loss or damage is due to...

Question 18

The ordinary action of wind and waves is enough to justify a peril of sea exception under COGSA.

Accepted Answer

Under COGSA (Carriage of Goods by Sea Act), the ordinary action of wind and waves is not considered a peril of the sea. Perils of the sea refer to extraordinary forces of nature that could not have been anticipated, such as storms or waves of unusual intensity.

Question 19

In most cases, the courts have liberally interpreted the Q clause exception in favor of the carriers.

Accepted Answer

The Q clause, or "Act of God" clause, is typically interpreted narrowly by courts, meaning carriers are often held to a high standard of proof to demonstrate that an event was truly beyond their control and thus falls under this exception.

Question 20

In order to provide a 'fair opportunity' to declare a higher value, COGSA requires a carrier to designate a place on the front of the bill of lading for the shipper to do so.

Accepted Answer

The answer of In order to provide a 'fair opportunity'...

Quiz 11: Transport of Goods