An oil tanker crashes off the coast of California. It dumps millions of gallons of oil into the ocean. Environmental experts estimate the damages at approximately $100 million dollars. During the investigation of the crash, it is suspected that the ship's captain was intoxicated while piloting the ship, and it was this negligence that led to the crash. Is the ship owner liable for the damages? Why or why not? What affect might the captain's negligence have on the amount of the owner's liability, if any?

What will be an ideal response?


The ship owner is liable for damages caused by the oil spill. Ordinarily, the Oil Pollution Act would cap the ship owner's liability at $75 million plus the removal costs in most circumstances. Here, because the presence of gross negligence is at issue, there may not be a cap on the damages. The ship's owner could potentially be liable for a much greater amount.

Business

You might also like to view...

Predecessor auditor Discuss the required communications between predecessor and successor auditors

Business

The process that allows project managers to balance operational and economic costs of protective measures to achieve project success best defines

A) risk identification. B) risk assessment. C) risk avoidance. D) risk management.

Business

In the early 1970's the U.S. Supreme Court changed its position on constitutional protection of commercial speech such as advertising. Which of the following reflects the post-1970's position? A) All commercial speech is protected under the First Amendment as long as it is truthful

B) Commercial speech is protected, but not as much as noncommercial speech. C) Commercial speech falls under strict scrutiny because it is not protected by the First Amendment. D) As long as it is clear that the speech is commercial in nature, almost any commercial speech is allowed.

Business

Which of the following statements is true of digital subscriber line signals?

A) Digital subscriber line signals do not interfere with telephone signals. B) Digital subscriber line signals use the same protocols as cable modems for data transmission. C) Digital subscriber line signals replace phone signals and are sent to the ISP. D) Digital subscriber line signal data transmission and telephone conversations cannot occur simultaneously.

Business