Interlake Shipping Co

question 55

Multiple Choice

Interlake Shipping Co.transports grain in large barges across Lake Michigan.In March,one of its barges was caught in an ice flow,where it "jammed," with the resultant destruction of its cargo.The carrier's property insurance refused to pay because the hazard was not covered under the policy.And the owner of the cargo had no insurance.Does this occurrence fall under the doctrine of frustration for the carrier?

• A)Yes,it does,since it was an act of God.
• B)Yes,it does,because it involved the perishing of the goods.
• C)No,it doesn't,because the event was preventable.
• D)Yes,it does,because Interlake had no insurance to cover its property.
• E)No,it doesn't,since the event was due to carelessness.

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