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BOLs are not commonly used today as they have been replaced by contracts.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.