The plaintiff, Z.K. Marine, is an importer of yachts for sale in the United States. In 1987, five yachts were shipped from Taiwan to the United States aboard the MV Archigetis. Each yacht was shipped under a clean negotiable bill of lading. Each of the five bills of lading provided on its face that one unit only was being shipped, that the yacht was being shipped on deck at the shipper's risk, and that the value of the goods could be declared with prior notice. On the back of each bill of lading, the liability for danger or loss was limited to $500 per package or customary freight unit. During transit, one yacht was lost and the other four were damaged. The bills of lading were purchased by the plaintiffs while the yachts were in transit. The defendant claims that it is liable only in the amount of $500 per yacht.
1. Why might an unknowing or unadvised shipper have failed to properly value marine cargo?
2. What is the proper role of the shipper's freight forwarder in giving advice and in arranging transport for ocean cargo?
3. How could the shipper avoided the result of this case?