International Business law exam 3

Liable

means to be held legally responsible.

the person who will have to pay

Convention

is a multilateral treaty on matters of common concern.

Where lots of countries agreeing about a particular topic

Montreal Convention

establishes airline liability in the case of death or injury to passengers, as well as in cases of delay, damage, or loss of baggage and cargo.

Airline Liability

Says how much the airline will be responsible for

Baggage

is personal belongings packed in suitcases for traveling; luggage.

Cargo

are goods carried on a ship or aircraft.

Montreal convention or no

A lives in US

He places his product on airline to ship to Canada

While on airplane, the product get damaged

US and Canada WILL USE Montreal convention

Montreal convention or no

A lives in MS

A places his product on airline to ship it to Florida

While on the airplane, the product gets damaged

Will NOT use the Montreal Convention

air waybill

is a document of title issued by an air carrier to a shipper.

Document of Title

is a document that evidences ownership of the goods it represents.

Title

is a document that shows legal ownership of a piece of property.

ownership

Document of Title

Piece of paper saying who owns

Freight

is the price charged to transport the cargo.

how much you have to pay the air carrier transport your product

Special Drawing Rights (SDRs)

represent a certain amount that mixes several currency values.

Currency

is a system of money.

Montreal Convention Limits Air Carriers to 19 SDRs Per Kilogram

A lives in the US

A wants to deliver cargo to B in England

The US and England follow the Montreal Convention

A places cargo on airplane

Cargo weighs 10kg

Airplane crashes into ocean, and all cargo is lost

• 19 SDRs x 10kg =190

Maritime Law

also known as admiralty law, is the body of law that governs navigation and shipping.

Laws about stuff that happens in the water

Navigation

means the act of traveling on water.

The Carriage of Goods by Sea Act (COGSA)

applies to the carriage of goods by sea between a U.S. port and a foreign port, and governs the liability of a carrier from the time goods are loaded onto the ship until the time the cargo is unloaded.

Bill of Lading

is a document of title that an ocean carrier issues to a shipper upon receiving goods for transport.

Document of Title used for ocean travel

Document of Title

is a document that evidences ownership of the goods it represents.

Evidence that own something

Clean Bill of Lading

means there are no visible or apparent damage to the goods when they are loaded on the carrier by the shipper.

shippers’ evidence that goods were not damaged before being placed on ocean carrier

Unsealed

means to be not securely closed.

Package

means a separate unit of itself.

Unit

is an individual thing.

COGSA Example

Example:

• Shipping books

• 10 Books placed in a box

• There are 50 total boxes

• All boxes are lost at sea

• On package=One container that holds goods

• Under COGSA, there are 50 packages here

$500.00 x 50 Packages =$25,000.00

Freight

is the price charged to transport the cargo.

Perils of the Sea

occur when there are fortuitous actions of the sea or weather of sufficient force to overcome the strength of a seaworthy ship.

Fortuitous

means happening by accident or chance.

Seaworthy Ship

is a ship that is the proper type to carry a specific type of cargo.

is the ship worthy or good enough to travel on the sea

Wont be responsible for loss

Ocean carrier has a normal sized ship

He is just transporting a few boxes of paperclips

If ocean or weather makes the boat crash, the ocean carrier _____ be responsible for the loss of paperclips

Because he has a seaworthy ship to transport paperclips

Will be responsible

Ocean carrier is using the smallest ship possible

The ship can only hold very small pieces of cargo

Ocean carrier places an Elephant on the ship

If ocean or weather makes the boat crash, the ocean carrier _____ be responsible for the loss of the elephant

Because his DIDN’T have a seaworthy ship to transport an elephant

Marine Insurance

is insurance purchased to protect the goods being transported in water.

example of Marine insurance YOU being held liable

You don’t buy marine insurance

Ocean carrier takes your cargo on a seaworthy ship

An act of God happened and causes ship to wreck

Ocean carrier wont pay for the lost cargo

example of Marine insurance you NOT being held liable

You DO buy Marine insurance

Ocean carrier takes your cargo on a seaworthy ship

An Act of God happens an causes ship to wreck

Ocean carrier wont pay for the lost cargo

You wont pay for the lost cargo

The insurance company will