A navigation error caused a cargo ship to run aground on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained a $150,000 physical damage loss
If this loss is a "particular average" loss, how will the loss be settled?
A) The owners of each of the three interests are responsible for $50,000.
B) The owner of the ship is responsible for the entire $150,000 loss.
C) The two cargo owners are each responsible for $75,000 of the loss.
D) The owner of the ship is responsible for the first $100,000 of the loss, and the two cargo owners are each responsible for $25,000 of the loss.
Answer: B
You might also like to view...
Email messages and memos differ from letters in that they are
a. written to employees within a company. b. less formal in tone and formatting. c. subject to less grammatical scrutiny. d. more formal in tone.
A judge would be a good example of which form of third party dispute resolution approach?
What will be an ideal response?
A director must make a full disclosure of any potential conflict of interest that might arise in any corporate transaction
a. True b. False Indicate whether the statement is true or false
Role ambiguity is often experienced among new employees who have not been around long enough to receive instructions from supervisors or observe and model the role behaviors of more senior colleagues.
Answer the following statement true (T) or false (F)