Shipping Law and Business, Paper No 1 -2-

Answer a total of Seven (7) questions. Question 1 is compulsory.

Question 1 - (Provide short answers - maximum 10 words)

a List any two (2) actions of freedoms that could be exercised under
UNCLOS Article 87 Freedom of High Seas

b Land locked states have the freedom of high seas. Is this statement TRUE
or FALSE?

c What is meant by Indemnity in the context of Marine Insurance?

d An American war ship encounters a cargo vessel on the high seas. State
two (2) reasonable grounds that the warship has the right to board the
cargo ship.

e Can there be a General Average where a ship is in ballast?

f What form of contract is commonly used in Australia for Harbour towage?

g Under what rules is General Average usually adjusted?

h Provide an instance where an owner can appoint a supervising agent.

i In which type of maritime service are the following documents associated with?
i An average adjustment
ii A laytime statement

j What is meant by the expression Right in Rem?

k What is the meaning of the acronym MOLOO in a charter party?

Shipping Law and Business, Paper No 1 -3-

l In the context of a Voyage Charter, what is FHEXUU

m The property has to be in possession in order to exercise a maritime lien

against it. Is this statement True or False

n What is denoted by the INCO term CIF?

o Name the two classes of Maritime Liens.

[22 Marks]

Question 2
Describe the three (3) main functions of a bill of lading, and explain why sea
waybills cannot fulfil all of these functions.

[13 Marks]

Question 3
a As a general rule, marine insurance policies state that the insured must have an
insurable interest in the adventure or property to be insured. Clarify the
meaning of this statement.
[7 Marks]

b Explain the elements that must be present before an act can be classified as a
general average act.
[6 Marks]

Question 4
Compare and contrast the content and application of Hague Rules and Hamburg
Rules and as result of this comparison provide a reasoned argument to explain why
the Hamburg Rules have gained limited acceptance, particularly by major maritime
nations.
[13 Marks]

Question 5
Describe the four (4) elements that must be present for a successful salvage claim.
[13 Marks]
Shipping Law and Business, Paper No 1 -4-

Question 6
Elaborate the relationship, responsibilities and liabilities that are created when an
agency agreement is entered into. What characteristics should a good ships agent
exhibit? If a shipowner believes the agent is acting largely in the interests of the
charterer to the detriment of those of the owner, what action could he take?
[13 Marks]

Question 7
Differentiate the meaning and application of maritime liens and possessory liens.
Cite examples where each may exist.

[13 Marks]

Question 8
Briefly explain the distinguishing features of the following types of Bills of Lading:
I. Order
II. Straight
III. Received for shipment
IV. Clean and foul

[13 Marks]
______________________