HW#3 – Spring 2018
1. Giulia is traveling from Italy to China. The plane briefly lands in Thailand to refuel and pick up new passengers. In the process of landing in Thailand, the overhead storage bin across the aisle flies open and a carry-on bag whacks Giulia in the head causing a concussion. Does the Montreal Convention govern this incident? Explain in detail why or why not. (4)
2. Following up on #1, Giulia’s husband, Kevin, is on board and is deeply disturbed by the incident to the point that he files a claim for mental anguish. What are his chances of success? Explain. (3)
3. How many U.S. dollars would someone get if they sustained 100 kilograms worth of cargo losses under the Montreal convention on February 1st, 2018? (3)
4. Lucas is flying from Houston, TX to Ixtapa, Mexico for a fishing vacation when a 3 hour delay in Houston forces him to miss his connecting flight, resulting in a loss of $500 in pre-paid expenses. If the delay was due to weather would the airline be liable under the Montreal Convention? What about a mechanical issue? Explain the likelihood of his success in recovery in each case. (4)
(4)Fishman shipper a container of boys’ pants on a ship owner by Tropical. The container was lost at sea due to improper storage. The pants were attacked into bundles of 12 each and placed into what is known in the industry as a “big pack.” A “big pack” is similar to a 4’x4’ pallet, partially enclosed in corrugated cardboard, with a base and cover made of plastic. The bill of lading stated, “1 x 40 ft. [container] STC [said to contain] 39 Big Pack Containing 27,908 unit’s boy’s pants.” Fishman maintains that Tropical is liable for an amount up to $500 for each of the 2,325 bundles. If the carrier is liable for up to $500 per “package,” what is the limit of the carrier’s liability? Fishman & Tobin, Inc. v. Tropical Shipping & Const. Co., Ltd., 240 F.3d 956 (11th Cir. 2001).
5. I’m the process of shipping goods that are damaged while sitting on the dock in California waiting for loading. Absent contractual language about choice of law, which law will govern my claim? (2)
6. My goods are going to be shipped from Florida to South Africa. During the voyage, the ship’s captain makes a navigational error and runs aground 50 miles off course, destroying my cargo. Will the carrier be liable under COGSA? Explain why/why not? (4)
7. Watch the video and review in detail the following website: https://www.youtube.com/watch?v=8fGrS0kU2h0, http://worldjusticeproject.org/. What is the rule of law? Why is this concept a concern for International business? Do you think the United States lives by the Rule of Law? This has actually been a hot topic of late in our political discussions. (8 points)
8. What does it mean to have “normal trade relations” with a country and why is this a big deal? (3)
9. An Italian company believes that its products have been unfairly treated in terms of tariffs by the U.S. government. In what court would they bring their claim? (2)
10. Explain two ways the president can get around the full treaty process. (4)
11. Answer #2 pg. 233. (4)
TheTrade Expansion Act of 1962 as amended by the Trade Act of 1974 states that if the secretary of the treasury finds that an “article is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security,” the president is authorized to “take such action . . . as he deems necessary to adjust the imports of the article . . . so that [it] will not threaten to impair the national security.” Does this grant of power by Congress allow the president to establish quotas? If importation of foreign oil is deemed “a threat to national security,” can the president implement a $3–$4-per-barrel license fee? See Federal Energy Administration v. Algonquin SNG, Inc., 426 U.S. 548 (1976).