7500 Exam Fall 231

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SUNY Maritime College *

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7500

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Civil Engineering

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Oct 30, 2023

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NOTE: Documents referred to are either in the Modules and / or in the Zip File with all documents (also found on Brightspace) SU.N.Y. MARITIME COLLEGE COURSE 7500 MIDTERM FALL 2023 INSTRUCTIONS- PLEASE READ CAREFULLY. 1. You should complete this exam in a word document (or the equivalent). 2. Please send the document to me as a PDF. Simply attach the PDF document to an email. 3. Please do not email me the exam questions with your answers marked on the exam. Just list your answers in a PDF document in the following manner: 1. B 2. C 3. D 4. A Etc. 4. Your responses should be sent to me at the following email address as an attachment. Send to: jweiss@sunymaritime.edu 5. MAKE SURE YOUR NAME IS ON THE PDF ATTACHMENT PLEASE. 6. Please send to me no later than Saturday Sept. 23 at 1200 hours. 7. Once again, send your responses to me via email. We will not use the Blackboard System to submit exams. 8. THIS EXAM CONTAINS 85 MULTIPLE CHOICE AND TRUE / FALSE QUESTIONS. 9. You may review any document or book that you like. You are free to look at any resource you have. 10. However, please do not consult with anyone while preparing your responses. Please do your own work. PLEASE MAKE SURE YOUR NAME IS ON THE PDF ATTACHMENT . JUST SEND ME YOUR LETTER ANSWERS ON THAT PDF ATTACHMENT. Page 1 of 20
1. See Chapter 3 of the text. Zapata, a Texas Corporation, entered into a contract with Unterweser, a German corporation, to tow Zapata's drilling rig from Louisiana to Italy. A storm arose and Zapata told Unterweser to tow the rig into Tampa, Florida. Zapata immediately filed a lawsuit in Florida against Unterweser for damages to the rig. The original contract called for "Any dispute must be heard before the London Court of Justice." The U.S. Supreme Court held that: a. Florida has jurisdiction since that is where the oil rig is now located. b. the case should be heard in Texas or Germany because that is where the parties are located. c. the forum-selection clause is contrary to public policy and will not be enforced; either Florida, Texas, or Germany would be the correct place to hear it. d. the parties must adhere to the forum-selection clause and have the case heard in London. 2. For all INCOTERM questions on this exam refer to the materials including the INCOTERMS 2020 Chart found in Module 3. A sales contract is entered into under INCOTERM “Delivered Place Unloaded” Liverpool. As between seller and buyer who pays for import duties, if any? A. The seller B. The buyer C. They are shared 50%/50% D. It depends on whether the INCOTERM includes ocean carriage. 3. Which of the following statements is TRUE concerning “firm offers”? a. Under the UCC as between merchants an offer may not be revoked if it is made in writing and states that it will remain open for a period not exceeding three months. b. Under the CISG a firm offer need not be in writing and under certain circumstances such as the the offeree’s reasonably reliance on the offer remaining open, may not be revoked. c. The general contract rule is that an offer may be revoked any time prior to acceptance. However, offers that are made on a “firm” basis under the CISG and UCC may not be revoked under certain circumstances described in the UCC and CISG. d. All of the above are TRUE statements
4. DownPillow, Inc., a U.S. company, and Eiderhoff, a German Company, negotiate a contract with forum and choice of law clauses for the U.S. A dispute arises, the case is heard in the U.S., and a judgment is given to DownPillow. DownPillow wants to enforce this judgment in Germany. According to the above scenario, which of the following statements is true? a. Germany will not allow this judgment to be enforced in Germany because it does not recognize U.S. judgments. b. Germany will allow one-half of the judgment to be enforced in Germany. c. Germany will allow the entire judgment to be enforced if Eiderhoff received notice, it does not violate German law, and the U.S. reciprocates with German judgments. d. None of these are correct. 5. If mediation is chosen in a contract as a form of dispute resolution, it will be: a. a mandatory process resulting in a binding decision. b. subject to appeal. c. a voluntary process and non binding. d. not available in international disputes. 6. Refer to the SYNACOMEX voyage charter found in Module 1. This is a standard form of grain voyage charter. According to the contract, which statement is TRUE? a. The charter party is governed by French law and disputes are to be resolved at arbitration in Paris. b. The Charter party and any bills of lading for cargo shipped under the charter will be subject to the Hague Rules 1924 (International Convention for the Unification of Certain Rules Relating to Bills of Lading). c. Any additional cargo insurance required due to the vessel’s age will be for shipowner’s account (expense). d. All of the above are TRUE statements. 7. The term “ADR” refers to: a. Alternative (or Alternate) Dispute Resolution. b. Alternative Disruption Requirement. c. A Data Reference System. d. Atlantic Development Relations.
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8. One popular form of dispute settlement is arbitration. This is defined as: a. rules in admissibility of evidence. b. submission for determination of the disputed matter to a private unofficial person or persons selected by agreement who will make a binding decision. c. interlocutory determination by a judge. d. a small claims court run by the local government. 9. If a U.S. company and an Austrian company end up in a dispute about a contract they entered into that contains an arbitration clause, a case brought before a U.S. court would: a. be heard by the U.S. court since arbitration clauses are not popular nor enforceable with such courts. b. be heard by the U.S. court if the U.S. company can show it will be harmed by arbitration. c. not be heard by the U.S. court because U.S. courts accept arbitration as a form of dispute resolution. d. be heard by a federal court only. 10. Refer to the materials on letters of indemnity in Module 3. Which of the following letters of indemnity will not likely be enforced by a court? a. A letter of indemnity given in exchange for the discharge of cargo without presentation of bills of lading. b. A letter of indemnity given to switch up (change) bills of lading originally issued for a substitute set of bills of lading. c. A letter of indemnity given to obtain a clean bill of lading for cargo that is visibly damaged. d. A letter of indemnity given to the ocean carrier by the charterer in furtherance of charterer’s request to blend two oil cargos while loading the cargos onboard the vessel. 11. The following are all arbitration associations / organizations that the parties may use to control the arbitration process except the: a. International Chamber of Commerce. b. American Arbitration Association. c. Society of Maritime Arbitrators. d. International Monetary Fund.
12. The term mediation when dealing with dispute resolution refers to the situation where: a. the two disputing parties settle the disagreement by themselves. b. a third party tries to bring the two parties in conflict to a mutually satisfactory solution. c. the parties in conflict agree to have a court hear only limited evidence. d. the two disputing parties agree to submit the claim to a small claims tribunal for a binding decision. 13. If one is trying to determine the correct geographical location of a court that has jurisdiction over a case, he/ she is determining the proper: a. jurisprudence. b. venue. c. allocation. d. ADR. 14. A forum selection clause in a contract is: a. contrary to public policy because it ousts the court of jurisdiction. b. is upheld as long as it is reasonable, negotiated in an arm's length transaction, and absent a compelling reason not to honor it. c. will not be upheld in Japan or the United States. d. is upheld as long as it was voluntary. 15. When determining whether a court’s “personal jurisdiction” offends "traditional notions of fair play and substantial justice," the court evaluates several factors, including: a. burden on the defendant. b. the plaintiff's interest in having a convenient forum. c. the forum's legitimate interests in the dispute. d. all of these are correct. 16. A copy of the CISG was provided in Module 2. The following sales are excluded from the CISG: a. the sale of industrial equipment. b. the sale of computers. c. the sale of ships and aircraft. d. all of these are excluded from the CISG.
17. Review the CISG . Price reduction is not available as a buyer's remedy for the seller's breach under the CISG if: a. the seller has already delivered conforming substitute goods. b. the buyer has refused to accept the seller's attempt to cure the breach. c. the buyer has avoided the contract and refused delivery. d. all of these are correct. 18. Both the U.S. and France have ratified the Convention on Contracts for the International Sale of Goods (CISG). A buyer in France and a seller in the U.S. enter into a contract for the sale of widgets. If a dispute arises: a. the CISG will apply since all the requirements have been met. b. the CISG will not apply since the requirement of "legal selection" has not been met. c. the Uniform Commercial Code (UCC) will apply since the seller is a U.S. company. d. neither the UCC nor CISG will apply. 19. Review the CISG. If a question arises over a trade usage, the CISG provides that: a. no reference to trade usage is allowed by a court. b. a court can look at those trade usages that the parties knew or ought to have known and are regularly used in the industry. c. a court can look at those trade usages to which the parties agree to be bound. d. both a court can look at those trade usages that the parties knew or ought to have known and are regularly used in the industry and a court can look at those trade usages to which the parties agree to be bound. 20. Review the CISG. The following elements are all considered to be key elements materially altering the terms of an offer when included with an acceptance under the CISG except: a. price. b. place and time of delivery. c. specification of the ship to be used for carriage. d. settlement of disputes. 21. Review the CISG. All of the following are remedies available under CISG except: a. money damages. b. reformation of contract c. avoidance of the contract. d. specific performance.
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22. Review the CISG. If a U.S. buyer wants to avoid a sales contract with an Italian seller, the CISG states that the U.S. buyer: a. can avoid the contract only if there has been a fundamental breach by the Italian seller. b. cannot avoid the sales contract under any circumstances. c. can avoid the contract even for minor breaches by the Italian seller. d. can avoid if done anytime within 30 days after the goods arrive. 23. Now consult the textbook. In the U.S., the remedy of specific performance is limited to those instances where: a. money damages would be sufficient, but the injured party does not want them. b. the goods are unique. c. the buyer does not want the goods for which he contracted. d. the contract is for the sale of a ship 24. Buyers and sellers entered into a contract for the sale of nuts. The usual route used the Suez Canal. Prior to shipment, a war closed the canal. Because the freight charges would be so high by another route, the seller refused to ship. The buyer had to buy at a higher price elsewhere and sued the seller. (Hint: see Transatlantic Finance case on page 16 of the text). At trial: a. the seller will win based on the doctrine of frustration of purpose. b. the buyer will win since this is just a risk of doing business. c. the seller will win because of res ipsa loquitur. d. the buyer will lose because problems with shipment by sea are an excuse for nonperformance. 25. The name of the clause put into international sales contracts to limit the liability of the parties in the event of an intervening and disruptive force beyond a party's control and makes performance more difficult than expected is: a. Clause Paramount b. Himalaya Clause c. Force Majeure clause. d. Excuse Moi clause. 26. All of the following may be raised as reasons for nonperformance of sales contracts except: a. Impossibility. b. Frustration of Purpose. c. Commercial Impracticability. d. Subjective Constraints.
27. Which statement is TRUE corning London Maritime Arbitration under the LMAA Rules (consult document on London arbitration in Module 1)? a. Claims less than $100,000 can be pursued using the LMAA Small Claims Procedure. b. London’s LMAA Small Claims Procedure is before one sole arbitrator and not a panel of three. c. Awards issued under the LMAA Small Claims Procedures may not be appealed to the courts. d. All of the above are TRUE statements. 28. Based on your understanding of the Pebble Beach v. Caddy in Module 1, which statement is TRUE? a. The court retained personal jurisdiction over Caddy because its web site could be viewed worldwide. b. The court retained personal jurisdiction over Caddy because it used the name “Pebble Beach” which is closely associated with the famous California golf course. c. The court ruled it did not have personal jurisdiction over Caddy because of the lack of contacts Caddy had with California. d. The court ruled it did not have personal jurisdiction over Caddy because Caddy was an English company registered in the United Kingdom. 29. The primary body of law in the U.S. dealing with domestic sales contracts is: a. Uniform Commercial Code (UCC) b. Convention on the International Sales of Goods (CISG) c. Uniform Domestic Sales (UDS) d. Convention on Domestic Contracts (CDC). 30. If a merchant receives goods unsolicited with a note, "If I don't hear from you, I assume you will keep them and pay for them", the failure to respond to the sender: a. Is an acceptance unless a rejection is sent within three (3) days upon receipt b. Is always an acceptance because silence in response to an offer is an acceptance c. Is not an acceptance d. Is a conditional acceptance. 31. Which of the following is TRUE according to the CISG: a. Parole evidence is admissible to determine the intent of the parties to a contract. b. One party or the other to the contract may be given a Nachfrist period. c. Specific performance as a contract remedy may be granted under the appropriate circumstances.
d. All of the above are TRUE.
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32. Consult INCOTERMS 2020. A sales contract is entered into under the INCOTERM “CPT Liverpool”. As between seller and buyer who pays for export duties, if any? A. The seller B. The buyer C. They are shared 50%/50% D. It depends on whether the CPT term includes ocean carriage. 33. When one party clearly sees that the other contracting party will either not perform a substantial part of the contract, this is a: a. Breach of contract. b. Anticipatory Breach. c. Impossibility of performance. d. Force Majeure. The following questions have TWO CHOICES: ANSWER TRUE OR FALSE 34. Under the Cedar Petrochemicals case in the text (Chapter 5), INCOTERMS are incorporated into the body of the CISG and into the contract if the CISG applies to the underlying contract. a. True b. False 35. A negotiable "bill of lading" is provided by the seller (exporter) to the buyer (importer) in order for the buyer to claim the goods from the vessel upon arrival at the destination port. a. True b. False 36. Most buyers in an international sale are willing to pay cash in advance in order to reduce seller’s credit risk. a. True b. False 37. A seller who quotes and sells on “open account” terms in a foreign currency bears the currency risk during the open credit period. a. True b. False
38. Sellers and buyers may “opt out” of the application of the CISG to their international sales contract by including an express opting out provision in the sales contract. a. True b. False 39. A CIF sales contract automatically, and under all circumstances, gives the buyer the right to inspect the goods before payment is made by buyer’s bank to seller. a. True b. False 40. Inspection certificates are advisable, and are often used by a prudent buyer, to assure that a shipment will conform to the specifications required by the buyer. a. True b. False 41. In a documentary sales transaction that is “CIF destination”, the financial responsibility for loss or damage to the goods only transfers from seller to buyer when the cargo is discharged at destination. a. True b. False 42. INCOTERMS are commercial trade terms that are required by law and used in all international contracts for the sale of goods. a. True b. False 43. When a party takes a negotiable document as a good faith purchaser, it generally acquires even greater rights in the document than the one from whom it had been negotiated. a. True b. False 44. Under the INCOTERM “Ex Works” the passage of risk of loss to the goods shifts from seller to buyer when the goods are made available by the seller at the named works (location). a. True b. False 45. Refer to INCOTERMS 2020. Under the INCOTERMS 2020, a sale on terms "DDP" places the maximum responsibility on the seller and the minimum responsibility of the buyer. a. True b. False
46. According to INCOTERMS 2020, the risk of loss under contract terms "FAS Name of Vessel" passes to the buyer when the goods are delivered alongside the named vessel. a. True b. False 47. Under an “FOB” contract, the seller delivers the goods to the buyer on board the ship and seller has no further transportation obligations. a. True b. False 48. The difference between terms "CFR" and "CIF" is that under the "CIF" term of sale, the buyer must procure his own marine insurance coverage on the goods. a. True b. False 49. The INCOTERMS 2020 are intended for use with ocean cargo only. a. True b. False 50. An ocean carrier will discharge a cargo covered by a negotiable bill of lading to the endorsee / holder of the negotiable bill of lading, only if that endorsee / holder of the negotiable bill of lading also presents a third party first class bank written guarantee of ownership. a. True b. False 51. A carrier can be held liable for monetary damages if it breaches the contract of carriage by misdelivering the cargo (delivering to an improper consignee) a. True b. False The following are standard multiple - choice questions: 52. According to of the U.S. Constitution, the U.S. federal courts have subject matter jurisdiction over admiralty / maritime cases. a. Article III Section 2 b. The 14 th Amendment c. Article I d. Article II
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53. Under INCOTERMS 2020, the seller under a CIF sales contract must obtain cargo insurance on terms of average similar to: a. Institute Cargo Clauses A b. Institute cargo Clauses C c. Free of Particular Average d. Total Loss only. 54. In contract law, a clause is a provision that states that the terms of a written contract are the complete and final agreement between the parties. As such, any previous agreements that may conflict with the written terms, whether written or verbal, cannot be entered as evidence as to how the contract should be interpreted if there is a contract dispute. a. Parole Evidence clause b. Merger and Integration clause c. Himalaya Clause d. Lex Mercantoria Clause 55. According to INCOTERMS, the risk of loss or damage to goods under a CIF contract passes from seller to buyer when: a. the goods cross the ship's rail at the port of shipment. b. the goods are unloaded at the port of destination. c. title to the goods passes to the seller. d. the goods leave the seller's place of business. 56. A sale made with terms "CIF Tokyo" includes which of the following in the price quoted for the goods: a. Cash in advance, in-transit expenses, foreign exchange expenses. b. Cash in advance , insurance, freight. c. Cost, insurance, freight. d. Currency exchange expenses, insurance, freight. 57. According to the legal doctrine , whenever a case can be properly heard in the courts of more than one jurisdiction, it should be heard in the jurisdiction that is most convenient. a. rogatory b. of personal jurisdiction c. forum non conveniens d. res ipsa loquitur
58. Because importers and exporters assume different risks, the most preferred way to conduct business and minimize these risks is: a. Cash in advance. b. Open account. c. A documentary sale. d. By use of a letter of indemnity 59. In addition to the bill of lading, other documents that may be required in a documentary sale include: a. Inspection certificate. b. Insurance certificate c. Commercial invoice. d. All of these are correct and may be included. 60. As decided in the case presented in Chapter 5 of the text, Biddel Brothers v. E. Clemens Horst Co ., under a C.I.F. sales contract: a. the buyer has no right to inspect the goods before payment but is obligated to pay upon the presentation of the proper documents. b. the buyer has the right to inspect the goods prior to paying for them upon the presentation of the proper documents. c. the buyer has no right to inspect the goods and no obligation to pay upon the presentation of the proper documents. d. the buyer has the right to inspect the goods and no obligation to pay upon the presentation of the proper documents. 61. If the seller wishes to make his goods available to the buyer at his place of business with the buyer arranging all transportation and bearing all risks from the time the goods leave the seller's door, the seller should quote his prices: a. Ex Carriage. b. CIF seller's factory. c. Ex Works d. FAS seller's dock.
62. If the seller in Omaha, that is selling goods to a buyer in London, wishes to place the goods in the hands of a trucking company that the seller arranges and have the risk of loss to the goods pass to the buyer when seller turns the goods over to that trucker, the seller should quote his prices: a. FAS Omaha. b. DDP London c. FOB port of shipment. d. CIP London 63. The government of Venezuela is purchasing a large quantity of American beans to be loaded on its own ship at the port of New Orleans. The buyer will arrange to have its vessel loaded and will obtain its own export licenses. The seller may be asked to quote its prices: a. FOB New Orleans. b. CIF Venezuela. c. FAS Venezuelan vessel. d. DEQ Venezuelan port. 64. When is an offer effective under the CISG ? a. When it reaches the offeree. b. When it is sent by the offeror via email or other electronic means. c. 21 days after receipt by the offer. d. Once acknowledged by the offer. 65. Which of the following INCOTERMS 2020 is not found in the previous version INCOTERMS 2010? a. FOB b. CIF c. FAS d. DPU 66. Read the Cedar Petrochemical case in Chapter 5 of the text. After reading the case, which statement do you think is TRUE? a. The CISG automatically applies to international sales contracts between parties from different contracting states unless the parties exclude its application. b. Free of Board is defined such that the seller delivers the goods to the buyer when the goods pass the ship’s rail at the port of loading. The buyer bears all risk of loss to the goods and costs from that point onwards. c. The Court held that INCOTERMS are incorporated into the body of the CISG and that there was no incompatibility between the term FOB and the CISG. d. All of the above are TRUE statements.
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67. The term jurisdiction refers to the court’s authority to hear a certain type of legal matter, such as tort cases or breach of contract. a. personal jurisdiction b. subject matter jurisdiction c. diversity jurisdiction d. in rem jurisdiction 68. The term is an amount of money, agreed upon by the parties at the time of the contract signing, that establishes the damages that can be recovered in the event a party breaches the contract. a. liquidated damages b. punitive damages c. breaching damages d. compensatory damages 69. According to the Federal Arbitration Act (see text of FAA in Module 1), an arbitration award may be vacated under the following circumstances: a. the arbitrators “wrongfully decided” the dispute. b. the arbitrators ignored Supreme Court precedent. c. fraud and / or corruption d. all of the above are grounds for vacatur. 70. The U.S. federal statute that prohibits firms and individuals from paying bribes to foreign officials to further business deals is the: a. Foreign Corrupt Practices Act b. Racketeer Influenced Corruption Act (RICO) c. The Pomerene Act d. The Jones act 71. According to the New York Produce Exchange Time Charter 2015 ( see Module 1 for a copy), in the event of a dispute between the shipowner and the time charterer that is to be resolved in New York: a. Each party shall appoint an arbitrator. b. A third arbitrator will be selected by the two party appointed arbitrators c. The decision by any two of the three arbitrators shall be final and binding. d. All of the above.
72. The famous U.S. Supreme Court case in which the Court at long last overruled the application of the divided damages rule in a both to blame collision liability case was the: a. U.S. v Reliable Transfer (Mary Whelan) b. The Jason c. The Pennsylvania d. COLREGS 73. Which statement is TRUE concerning the Buster Bean arbitration (see my article on Force Majeure and Charter Parties in Module 2)? a. ALCOA was not required to pay demurrage because of the force majeure event. b. The arbitration was a consolidated arbitration because it resolved claims arising out of numerous charter parties between numerous shipowners and ALCOA. c. Both Statements are TRUE d. Neither Statement is TRUE. Both are False. 74. In the United States, judgments taken against a party by a court of competent jurisdiction in one state will be enforced by courts in all other states according to the of the U.S. Constitution. a. 5 th Amendment b. Full Faith and Credit Clause c. 14 th Amendment d. Emoluments Clause 75. Read the LADYTRAMP force majeure case study posted in Module 2. Based on your reading, which statements is / are TRUE? a.) English and American arbitrators and courts will generally require the event, that is declared as being a force majeure event, to be specifically named in the force majeure clause. b.) No force majeure was allowed in the LADYTRAMP case because the force majeure clause did not extend to cover a fire, which had damaged the terminal where the charterers had scheduled the vessel to load. c.) Both A and B are True Statements d.) Neither A or B is a True Statement
76. A Court order, of limited duration, requiring the parties to a dispute to maintain a certain status until the court can hear further evidence and decide whether to issue a preliminary injunction, is called a. an in rem suit b. a temporary retraining order c. an estoppel d. a Nachfrist period. 77. The losing party at an arbitration cannot appeal (to the courts) in the traditional sense. Refer to the Federal Arbitration Act posted in Module 1. It provides for of an award under limited circumstances such as fraud, bias and arbitrator misconduct. a. Estopping b. Vacating c. Confirming d. Reviewing 78. Company A and B have entered into a maritime contract such as a charter party. Disputes arise and Company A demands arbitration against Company B. Company B subsequently files a lawsuit against Company A in the federal court. Which statement is TRUE? a. The Court will hear both A and B’s disputes because a court will always oust the jurisdiction of an arbitration panel. b. The arbitration panel will hear A’s dispute and the court will hear B’s dispute. c. Company A can seek an order from the court staying the court proceedings and referring all disputes to arbitration. d. All of the above statements are TRUE. 79. Which tanker casualty resulted in the Oil Pollution Act of 1990 and the creation of huge financial liabilities in the event of an oil spill (see the Maritime Disasters article in Module 1)? a. Argo Merchant b. Amoco Cadiz c. Torrey canyon d. Exxon Valdez
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80. Evidence of prior or contemporaneous negotiations that contradict, modify, or vary the terms of a written contract is called . This type of evidence can be used to resolve a contract dispute governed by the CISG but would not ordinarily be allowed in a contract dispute governed by the UCC. a. circumstantial evidence b. parol evidence c. irrelevant evidence d. Nachfrist evidence 81. Consult the document Bills of Lading:Important Concepts in Module 4. “Switching” a bill of lading issued by a carrier (to change the cargo description or place of discharge): a. is illegal under the CISG b. is allowed under INCOTERMS but not the CISG c. will often require that the party requesting the switched bill of lading to provide a letter of indemnity to the carrier. d. is illegal under U.S. law. 82. A bill of lading that is made out “to order” and that can be used to transfer title to a cargo shipped onboard a vessel is called : a. a negotiable bill of lading. b. a straight bill of lading c. a freight forwarders bill of lading d. a destination contract 83. An arbitration agreement signed by a seaman and his / her employer concerning allegations of injury and the right to personal injury compensation: a. Is always enforceable because of the Jones Act. b. Is always enforceable because seamen never have a right to a jury trial to determine monetary damages due to a personal injury. c. Is more likely enforceable if the seaman and employer enter into the agreement after the seaman has suffered an injury. d. Is not enforceable under the doctrine of forum non conveniums if the arbitration is to be conducted in a city the seaman does not live in.
84. Consult the text's materials on CISG. The “perfect tender” rule is a rule that refers to the legal right of a buyer to insist that the goods purchased conform precisely to the product’s description in terms of quality, quantity, and manner of delivery. If the goods do not conform the buyer may legally reject the goods. Which of the following statements is TRUE? a. the CISG applies the perfect tender rule. b. the UCC applies the “fundamental” breach rule and not the “perfect tender” rule when determining whether goods can be rejected by the buyer. c. both the CISG and the UCC apply the “perfect tender” rule. d. generally, the CISG uses a “fundamental breach” standard while the UCC applies the “perfect tender rule” when determining whether a buyer has the right to reject goods. 85. Company A sells a cargo to Company B. There is an arbitration clause in the contract referring all disputes to arbitration in New York. B resells that same cargo to Company C. There is a similar New York arbitration clause in that contract. Disputes arises between A and B and B and C under the separate contracts – all concerning the quality of the cargo. Which statement is TRUE? a. Since the disputes involve the same cargo, a U.S. federal court can require that all parties – meaning A, B, and C – submit all disputes before one arbitration panel in a consolidated arbitration. This saves time and money. b. A, B and C may choose to agree to consolidate the disputes into one arbitration to save time and money but under U.S. law an order requiring consolidation cannot be ordered by the U.S. court. c. The Federal Arbitration Act empowers a Court to consolidate arbitrations involving the same “facts and circumstances”. d. Consolidation was made illegal by the CISG Please send the document to me as a PDF. Simply attach the PDF document to an email. Please write your name on the PDF attachment. END.

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