A Navigation Error Caused a Cargo Ship to Run Aground

question 41

Multiple Choice

A navigation error caused a cargo ship to run aground on a reef.The ship,valued at $1.5 million,was carrying $1.5 million in grain and $1.5 in electronic devices.The ship sustained a $150,000 physical damage loss.If this loss is a "particular average" loss,how will the loss be settled?

• A)The owners of each of the three interests are responsible for $50,000.
• B)The owner of the ship is responsible for the entire $150,000 loss.
• C)The two cargo owners are each responsible for $75,000 of the loss.
• D)The owner of the ship is responsible for the first $100,000 of the loss,and the two cargo owners are each responsible for $25,000 of the loss.

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Definitions:

Long-term Impacts

The prolonged effects or outcomes of an action, decision, or policy over an extended period.

Information-processing Style

Describes an individual's preferred method of gathering, analyzing, and interpreting information to make decisions.

Logical

Pertaining to the formal principles of reasoning, characterized by clear and consistent thought processes guided by rules of valid inference.

Intuitive

Pertaining to using or based on what one feels to be true even without conscious reasoning; instinctive.