Transportation Law Final
How many incoterms have been defined by the International Chamber of Commerce (ICC)?
11
The time limit to initiate a lawsuit over freight damages for motor and rail in the US is
2 years after the carrier denies the formally submitted claim
What authority covers BOLs for domestic motor carriers
49 USC Chapter 801
In the latest version of the Hague-Visby rules, what is the liability limit for a package?
666.67 SDR per package
What is the difference between a clean bill of lading and a claused or foul bill of lading
A clean BOL shows that cargo is in good condition while a foul or claused BOL documents damage or loss
Which of the following is NOT a required submittal by the claimant
A copy of the bill of lading showing that the delivery was damaged when received by the carrier from the shipper
The Himalaya clause is named after ______________
A ship involving a woman who was injured and sued the shipping line
What is cabotage?
A shipper cannot transport goods or passengers between two points in a foreign country
In Morales, Attorney General of Texas v Trans World Airlines (1992), the Supreme Court ruled
Advertising is related to rates, so the state laws concerning advertising did not apply
The Warsaw Convention is an international treaty ratified by the US in 1934 that governs liability of:
Air Carriers
Which statement about airline liability is NOT true?
Airlines are not required to publish liability limitation
Confidential contracts are only allowed in which mode of transportation?
All of the above
What is the #1 Rule of Contracting?
Always read the contract
Which of the statements about "Cabotage" is NOT true?
Applies **only** to water carriers (shipping)
All of the following statements about arbitration are true EXCEPT:
Arbitration decisions are not legally binding
All of the following statements about the history of Bills of Lading (BOL) are true EXCEPT:
BOLs are not commonly used today as they have been replaced by contracts.
All of the following statements about the FMC and MARAD are true EXCEPT
Both the FMC and MARAD report up through the Department of Transportation
Under Incoterms® Rule FAS, who is responsible for loading the goods onto the carrier.
Buyer/Importer
A shipment is transferred from an airplane to a truck so the truck can take it 25 miles away for loading onto another aircraft. The truck is involved in an accident on the way and the cargo is damaged. What liability law applies
Carmack - if a separate BOL was used for the truck transport. Otherwise, Montreal Protocol no. 4 would apply under the exemption permitting air carriers to use trucks if they are incidental to the cargo movement.
COGSA stands for
Carriage of Goods by Sea Act
Which of the following is NOT a type of written transportation contract?
Carrier's promotional material
Which of the following statements is TRUE?
Collect means the consignee is liable for freight charges
Which of the following is NOT a required element of a contract
Counter offer
Among the following, the most customer-friendly Incoterms Rule is
DAP
The incoterm DAT stands for
Delivered at Terminal
The Federal Aviation Administration (FAA) reports to which agency in the federal government
Department of Transportation (DOT)
Article III of the Hague-Visby rules as amended in 1979 concerns
Disputes between parties
Which liability regime requires that a person takes the type of actions to prevent mishaps that a reasonable, prudent person would follow
Due Diligence
In terms of cost and responsibility, the easiest Incoterms® Rule for the exporter which is, in turn, the most difficult for the importer is
Ex-Works (EXW).
Which agency has nothing whatsoever to do with airline regulations - including intermodal shipments
FMC
Which of the following statements is FALSE about FOB
FOB is commonly used in both domestic and international shipments and means the same thing in both
A freight claim must always be initiated by the buyer
False
A full description of the items being shipping including number of packages and loading units is only important in ocean shipping
False
COGSA (Carriage of Goods by Sea) of 1936 established a limited liability of $200 per package.
False
COGSA liability is determined per package. A package is defined by its weight and size.
False
Consideration takes place ONLY when there is an exchange of money
False
In the early days of shipping regulations, individual service contracts between shippers and carriers were strongly encouraged.
False
Incoterms define when the ownership of a product passes from exporter to importer.
False
The EXW Incoterms® Rule is mostly used for bulk shipments of commodities where the parties wish to have the exporter pay for the loading of the ship.
False
The Shipping Act of 1984 and Ocean Shipping Reform Act of 1998 made it more difficult for ocean carriers to operate in the US
False
The United States has not signed the Montreal Protocol No. 4 and is therefore not bound by its treaty agreements.
False
The airlines are the only mode of transportation that were never required to file their tariffs with a federal agency
False
The least customer-friendly of the Incoterms® Rules is the DDP (Delivered Duty Paid) Incoterms® Rule.
False
There is one - and only one - type of Bill of Lading
False
Under the Cost, Insurance, and Freight Incoterms® Rule, the importer takes responsibility for the goods when they arrive at the importer's port.
False
All of the following events helped make commercial air flight possible EXCEPT
Farmers in the Great Plains states needed air planes to seed and fertilize their fields.
Article 4 of the original Hague rules of 1924 lists 19 defenses in which the carrier will not be liable for loss or damage. Which of the following is NOT on that list?
Fire caused by a short in the electrical system that was known but not fixed before sailing.
The Incoterms® Rule FCA means
Free Carrier.
In Wolens v American Airlines (1995), the Supreme Court ruled that
Frequent flyer programs are "services" and so are exempt from deceptive trade practices
A Bill of Lading serves all of the following functions EXCEPT
Guarantee of timely delivery
What authority covers BOLs for International Ocean shipping
Hague Rules
The US passed the Carriage of Goods by Sea Act (COGSA) in response to the passage of international treaties. Which ocean shipping related international treaty is COGSA modeled after?
Hague Rules of 1924
What is the first US law to codify bills of lading for water transportation?
Harter Act of 1893
All of the following statements about bills of lading and contracts are true EXCEPT:
If the BOL and contract disagree, the BOL governs
The rules of bills of lading are covered by several different laws, documents, and treaties depending on the mode of transport. Which mode of transport does not have a specific US law covering liability for cargo.
International Air Transport
What authority covers BOLs for multimodal shipping
International Chamber of Commerce Uniform Customs and Practices 600
Which international agency is tasked with securing the safety and security of international shipping?
International Maritime Organization (IMO)
COGSA applies to
International Ocean Shipping
A package in ocean shipping
Is a term that is difficult to define and depends on the situation
A straight bill of lading
Is considered "non-negotiable"
Which of the following is NOT true about a customary freight unit?
It applies primarily to animals and livestock
Which of the following is true about the International Civil Aviation Organization (ICAO)?
It is a United Nations agency charged with ensuring safe, efficient and responsible civil aviation
Which of the following is true about the International Air Transport Association (IATA)?
It is a voluntary consortium of airlines providing a clearinghouse for air traffic policy for the international air community
All of the following are TRUE about a clause paramount EXCEPT
It is applicable to rail, motor carrier, water, and air freight
All of the following are true about the phrase force majeur EXCEPT
It is required to be included in all contracts by the UCC
Which statement is NOT true about the Warsaw Convention?
It was signed in Warsaw, Ohio
The Federal Aviation Agency (FAA) currently has jurisdiction over airline
Landing slots. The FAA controls which airlines get landing slots at all domestic airports.
All of the following statements about the Harter Act of 1893 are true EXCEPT:
Liability limitations are the same as Carmack
What authority covers BOLs for International Air shipping Select an answer and submit. For keyboard
Montreal Protocol #4
The front page of a bill of lading generally has a section for all the following EXCEPT
Names of the captains and/or drivers for the carrier
Which country has the most ship registries? in other words, it is the top Flag State for ships.
Panama
In FOB Origin, Freight Collect, who is responsible for arranging for the transportation
The Buyer (Consignee)
Transportation Contract Law is grounded in all of the following EXCEPT:
The Hague Treaty
Which organization manages the Incoterm rules
The International Chamber of Commerce
A series of legislation was instituted governing international ocean freight pricing. Which of the following did NOT address ocean freight pricing?
The MCA of 1935
Foreign airlines may apply to operate in the United States pending approval from
The President of the United States
In FOB Destination, Freight Prepaid, who is responsible for arranging for the transportation
The Shipper (Seller)
International Airline Cargo liability has been addressed through a series of protocols, treaties and conventions. Which one of the following is NOT mentioned in the power points?
The Versailles treaty
What document generally determines who is responsible for the payment of freight charges
The bill of lading
Under the Free on Board Incoterms Rule, if a piece of cargo breaks loose while it is being loaded onto the ship, it becomes the responsibility of
The exporter
Federal common law covers interstate air cargo liability notifications. Which of the following is NOT required?
The liability limits must be displayed in the air carrier's main office so workers have easy to the rules
Which of the following statements about contracting parties is TRUE?
The parties to a transportation contract may include shipper and carrier; shipper and freight forwarder: or buyer and carrier
Consequential or Special damages arise when
The shipper advises the carrier in writing of the exact delivery date/time required and the final consequences of a late delivery
All of the following are TRUE about the current US laws governing ocean shipping EXCEPT
The shipping act of 1984 is the prevailing US law
What is the difference between a short and long form BOL
The short form shows the front of the BOL, while the long form includes the terms and conditions on the back
Which of the following is NOT true about the Uniform Commercial Code (UCC)
There is a federal UCC but it is not mandatory that the states follow it
All of the following statements are true about multimodal bills of lading EXCEPT
There is a strict form to be used - any deviation from the form voids the BOL
A Himalaya clause extends COGSA protection to third parties beyond the "tackle" to 'tackle" boundary
True
A contract is an agreement between two or more parties to exchange something of value
True
A verbal contract is legally binding.
True
Approved foreign airlines may operate intermodal services within a 35-mile zone from the airport or city they service.
True
COGSA has successfully superseded Carmack when goods are imported by ship and transloaded onto railroads
True
Conceptually, the CPT Incoterms® Rule is the same as the CFR Incoterms® Rule, except it applies to goods shipped by means other than ocean transport, or shipped by sea without being handed over at the port of departure.
True
Deregulation of the airlines led to bankruptcies and mergers - similar to what happened after the railroads were deregulated
True
For all modes of transportation, the carrier is liable for damages from acceptance of the cargo through delivery - however that is defined.
True
Fraud occurs when a representative makes a false claim knowing the claim is false and the other party acts on the claim and is damaged by it.
True
In a "strict lability" regime, you are responsible for damage or loss even if you are not at fault or negligent
True
In an order bill of lading, a consignee can transfer title of the goods by simply endorsing the bill of lading and giving it to another person
True
In general, the first section or two of the terms and conditions of most types BOLS tends to be dedicated to definitions
True
In light of any other evidence, common law tends to make the shipper liable for freight charges
True
Incoterms are categorized in two groups; one for any means of transport and one for ocean transport only
True
It is implied in contract law that the parties to a contract will act in "Good Faith"
True
On a "Collect" shipment, if shipper executes Section 7 (non-recourse) on the Bill of Lading, the carrier has no recourse to the shipper for the freight charges
True
Safety was a primary driver in regulating airlines, more so than in other modes of transportation.
True
The CFR Incoterms® Rule means "Cost and Freight."
True
The Carriage of Goods by Sea Act (COGSA) is the United States version of the international Hague-Visby rules.
True
The Cost, Insurance, and Freight Incoterms® Rule is specifically designed for ocean transportation.
True
The Jones Act regulates CABOTAGE, the transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country
True
The Ocean Reform Act of 1998 provided for individual confidential contracts between a shipper and an individual carrier
True
The Rotterdam Rules are a fairly recent attempt by the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea to harmonize rules governing international contracts for transportation of goods by sea.
True
The Shipping Act of 1916, the Shipping Act of 1984, and the Ocean Shipping Reform Act of 1998 share a common theme which is to ensure the United States is ready and able to participate in global commerce through ocean shipping while still protecting US interests
True
The airlines supported passage of the Air Commerce Act of 1926.
True
What events led to the creation of the Civil Aeronautics Act of 1938 whose primary focus was to ensure safety
Two national figures were killed in air plane accidents
The ______________ is a comprehensive code addressing most aspects of commercial law and is generally viewed as one of the most important developments in American law.
Uniform Commercial Code
Which international agency is tasked with modernization and harmonization of international business rules
United Nations Commission on International Trade Law (UNCITRAL)
Under the Delivered Duty Paid Incoterms® Rule, unloading costs are borne by the
importer.
Delivered At Place is an Incoterms Rule designed specifically for
it can be used for any means of transportation
International transportation is usually divided into how many phases?
pre carriage, main carriage, on carriage
Under the Incoterms® Rule FOB, responsibility for the cargo
shifts from exporter to importer when the goods are loaded onto the ship in the country from which the goods are leaving.