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All Jurisprudence based

0 tracked cards Commercial and Taxation Laws

OceanLink Carriers, a common carrier, is contracted to transport 40 crates of high-value electronic components by sea from Manila to Cebu. In transit, a volcanic eruption ejects an ash plume; heavy rains follow, flooding the cargo hold and destroying all crates. OceanLink raises the defense of act of God (vis major). Which statement best states the governing rule on defenses available to a common carrier and the likely outcome under these facts?

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Assumption of risk by the shipper applies; by knowingly shipping during an ash plume, the shipper assumed the risk and the carrier owes no liability. Fault of the shipper applies; if the shipper failed to secure the cargo during packing, the carrier is not liable for the resulting damage. Order of public authority applies; a government order prohibiting sea transport due to the ash cloud would exonerate the carrier irrespective of any fault. Act of God (vis major) applies; the loss occurred due to an extraordinary natural disaster (volcanic eruption with an ash plume and subsequent flood) beyond the carrier's control, so OceanLink is exonerated from liability.

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