Exam (elaborations)
SHIP BROKER QUESTIONS AND ANSWERS
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SHIP BROKER QUESTIONS AND ANSWERS
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Name: Score:47 Multiple choice questions
Term 1 of 47
A charter party is a maritime contract. In which court system in the U.S. is it
enforceable?
No. Time doesn't matter.
In NY a a contract not capable of being enforced in 1 year must be in writing (does not
apply to charter parties)
No he is not. Not in the US.
Yes - Due to ruling by congress
Federal Courts
Sect. 3, Art. 2 of Constitution, Maritime matters heard in federal court
Term 2 of 47
a) The reply "ACCEPT EXCEPT..." is called a
b) The reply "I repeat my last offer" is called a
c) The reply "I accept your offer" is called a
No obligation
a. counter offer
b.
c.
a. No, not bound by the result.
b. Yes
c. To the injured third party / that is - the broker becomes a
principal.
It is split
,Term 3 of 47
Is a fixture confirmation letter (recap) necessary? Desirable?
Somewhat necessary, no rush. send a letter with missing information.
Optional, take your time. send a letter with inaccurate data for discussion.
Not necessary, delay in sending. just send a brief summary without reviewing details.
Very necessary, prepare and review quickly. It is primarily an e-mail covering what was
discussed over phone. Make sure all data/numbers/places accurate.
Term 4 of 47
A broker can be described as a special agent who negotiates contracts. What must a broker
always have from his principal when negotiating? (Answer in one word)
Accountability
Attribute
Responsibility
Authority
Term 5 of 47
May a broker be held liable for errors he makes in transmitting offers, etc.?
Yes
No
,Term 6 of 47
Can a "firm offer" be modified by the person who made it, after it has been passed on to the
recipient?
Yes. That is considered negligence.
Bonus info: ASBA brokers required to have omissions insurance.
Before: find ships, provide recommendations, predict market
After: prepare hire statements, assist in collection of hire, handle communication
between parties, help facilitate amicable resolution of disputes.
More info in Document 17: Shipbrokers
Very necessary, prepare and review quickly. It is primarily an e-mail covering what was
discussed over phone. Make sure all data/numbers/places accurate.
Legally yes, but ethically "it stinks."
Altering because you received a better offer or market has changed is bad business.
Exception: Extenuating circumstances; i.e. Ship breaks shorty after making offer and
laycan cannot be made. Other party should understand.
Term 7 of 47
Brokerage commissions payable to the charterer's broker are customarily paid by whom?
Hire under a time charter
freight under a voyage charter
Down at the bars, phone, or e-mail
All brokerage paid by ship owner
Authority
, Term 8 of 47
Owner "X" offers his vessel to charterer "Y" with laydays Sept. 15/30, stipulating that reply must
be by email by 10:00 A.M. the next morning. At 9:00 A.M. charterer "Y" telephones "X" and
makes the following reply "accept/except laydays Sept. 20/30." "X" declines. A little later "Y"
learns that his cargo can be made available a little bit earlier and he emails "X" at 9:45 A.M.
"Accept your offer with your laydays September 15/30." Is the owner bound by this
acceptance?
Yes
No
Term 9 of 47
What is the usual consideration received by an owner under a charter party?
Hire under a time charter
Freight under a voyage charter
No agreement - shipowner has made a counter offer
Whatever is agreed to (brokerage commission)
Please read the ASBA Code of Ethics one more time. Remember, some things are
unethical and illegal. Some things are unethical but still legal. Just because something is
legal, it does not mean it is ethical
Term 10 of 47
You are broker for an owner who wishes to remain anonymous for tax reasons. You conclude a
C/P for your principal and sign it "J. Doe, as Agent for Owners". Later
on a dispute arises and the charterer asks you to reveal the name of the owner. Because you
do not wish to lose his future business you refuse. Can you be held
liable by the Charterer?
Yes
No
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