Logistics Processes Module 6 Risk Management QUIZ 1. Risk Management is all about: A) Adequate insurance B) Preventative Planning C) Effective Claims Processes D) Managing Goods in Transit 2. When initiating a claim, there is one primary document used to establish the conditions of liability. That document is: A) The Carrier Claims Form B) The Incoterm C) The Sales Contract D) The Bill of Lading 3. A shipment arrives at your door damaged. What should you do? A) Send it back to the shipper and have them deal with the claim. B) Refuse it and call the carrier C) Accept it, isolate it in the building and begin the claims process D) Accept it, take out what you can use and then begin the claims process 4. Claims can be filed by anyone legally entitled to the goods. What terms typically determine who would file a claim? A) Incoterms B) Terms of Sale C) The Bill of Lading D) FOB Origin 5. I make a product that costs me ten dollars. I sell it for one hundred dollars. I ship it. The carrier admits they broke it beyond repair and will pay for it. How much can I claim? A) 90 Dollars B) 100 Dollars C) 10 Dollars D) 110 Dollars 6. When does carrier liability for a shipment end? A) When a claim is initiated in writing to all parties B) When product is delivered and signed clear by the receiver C) When product is picked up and the BOL is issued to the carrier D) When the product is given to another/interlining carrier 7. You ship a load of steel by road on a flat bed trailer that weighs 35,000 pounds. It is worth fifty thousand dollars. While in transit, the load flips and the product is destroyed. Shipping charges aside, how much can you claim for? A) $70000 B) $35000 C) $50000 D) $85000 8. How could Insurance impact claims planning and management decisions? A) The cost and nature of insurance coverage may dictate modes used. B) Since we insure for the value of product, Insurance should not be a consideration in logistics decisions C) We issue all of our terms of sale such that the consignee deals with insuring goods, so we are not affected D) Since we have a good claims record, we should methodically reduce our coverage and therefore costs. 9. What happens to freight charges in a claim where the carrier is found liable? A) They dont need to be claimed for as the party paying the bill should simply not pay that freight invoice B) They should be paid and will be refunded as claimed in the original claim to the carrier C) They dont need to be claimed as the freight charges were deducted from other freight invoices long before the claim was settled D) They should be paid and the carrier should be sued for those freight charges plus applicable legal fees/costs after all other claims amounts are settled and paid for. 10. Time limits noted on the BOL for submitting written intention to claim: A) Are typically the same as the time limits for formally filing a claim B) Are the same for all modes C) Are not the same as the time limits for formally submitting a claim D) Can be legally changed by the carrier transporting the shipment Logistics Processes Module 7 Marine Insurance QUIZ 1. Whom does the purchase of marine insurance offer benefit? A) Ship Owners B) Anyone with an insurable interest in goods shipped by ocean C) Nations Flying the Flag of Convenience D) Legislators that maintain the Marine Insurance Act 2. When a loss or damaged is claimed for, who is assigned to investigate and inspect product? A) The carrier B) The shipper C) Those subject to general average D) The surveyor 3. Marine insurance is primarily charged or rated at: A) Cents per Dollar of Insured Value B) Cents per Hundred Pounds of Product Weight C) Cents per Hundred Dollars of Insured Value D) Cents per Thousand Dollars of Insured Value 4. Why is subrogation such an important part of a risk management plan in marine shipments? A) It guides the nature of marine insurance policies to exclude some parties in the loss/damage event B) It guides the nature of marine insurance policies such that it reduces the need for surveyors C) It guides the nature of marine insurance policies such that insurers can recover money from all liable for losses D) It guides the nature of marine insurance policies such that it supersedes utmost good faith 5. On marine voyages that involve a landbridge, or ocean/land components, what government/regime laws govern each leg of the journey? A) Since there is a marine component, all legs of the trip are governed by the Federal Government B) Since it involves multiple modes and multiple jurisdictions, each part of the journey is governed by local regimes C) Since there are land components to the move, the Provincial Government governs the entire journey D) Since there is a marine component in this journey, it would all be governed by international laws. 6. The system of General Average applies when: A) The act is intentional B) No other insurance is available C) The carrier has performed an illegal act D) All parties agree to the act just prior to jettison 7. Which party is primarily the one to insure goods on a marine shipment? A) The owner of the goods B) The marine carrier C) The marine surveyor D) The customs broker 8. Why do Incoterms play such a major part in marine insurance? A) Stating the Incoterm implies that a contract exists B) Marine insurance is a requirement of the terms of sale, and Incoterms describe the insurance obligations of each party. C) Because Incoterms are stated on the bill of lading D) Due to General Average 9. Through whom would one typical arrange for Marine Insurance A) Directly with the Steamship line B) With an Intermediate agent C) Through your company group insurance plan D) Through your load broker 10. Marine incidents (by virtue of the sheer size and volume total shipments) can be costly. There are different degrees of recovery, specific to insurance. What are these levels for recovery of losses? A) General Average Acts, Fortuitous Acts, Indemnity B) Institute Cargo Clause, Particular Average, All Risks C) General Average Acts, Particular Average and Total Loss. D) With Average, Free of Particular Average, All Risks Logistics Processes Module 8 Customs & Compliance QUIZ 1. Customs brokers offer a valuable service to importers and exporters of goods. Once an importer uses a customs broker to complete the import of goods, how does that change the importers responsibilities to that importation? A) Since the customs broker is a licensed professional, they assume legal responsibility for any and all mistakes and omissions in the customs process. B) Statutes have changed to the extent that the individual employee working for the customs brokerage firm that completes all work and payment of duties on behalf of the importer is ultimately responsible for all mistakes in the customs process. C) Since the importer is dealing with a licensed professional, the legal responsibility to complete all parts of the customs process is shared between the customs broker and the importer. D) The importer remains responsible for all parts of the import process. 2. Rules of origin A) The country of origin designation is given to the country where the product originated. B) The country of origin designation is given to the country that last made major changes to the product in form or function C) The country of origin designation is given to the country that distributes the original product D) The country of origin designation is given to the country that last imported the product 3. When using a customs broker, a document is signed between the broker and the importer, authorizing the customs broker to pay duties and fines on behalf of the importer. What is that document? A) The Power of Attorney B) GATT C) AMPS D) CBSA 4. The Canada Customs Coding Form B3 acts as the primary information provider in a customs-based transaction. As such, it must be accurate. Once received, who is responsible for reading it and verifying its accuracy? A) The Shipping Company B) The Customs Broker C) The Importer D) Canada Customs (CBSA) 5. US Customs can be party to a customs bond. What is the purpose of that bond? A) To ensure payment of all shipping and handling costs to U.S. customs by the importer of record B) To ensure payment of duties, taxes and penalties to U.S. customs by the exporter of record C) To ensure payment of all shipping and handling costs to U.S. customs by the importer of record. D) To ensure payment of duties, taxes and penalties to U.S. Customs by the importer of record. 6. What is the punitive system applied when a product is shipped to the U.S. and is sold for less than fair market value? A) The importer is jailed B) It can be subject to Anti-Dumping Duties C) It can be subject to Additional Inspection D) It may have to be Re-packaged 7. Canada Border Services Agency (CBSA) operates in what jurisdictions? A) Federally, regionally, in districts and at ports B) Provincially or territorially, depending on the region C) Only at the Federal Level. All other jurisdictions are provincially operated D) At ports and border crossings only 8. A process that invites importers to share information and processes to help secure our borders and the supply chain is referred to as: A) Free and Secure Trade B) Partners in Protection C) Customs Self-Assessment Program D) PARS 9. As a result of a trade agreement with qualified countries that wish to export a product, CBSA is authorized to impose: A) Restrictions B) Open Border Agreements C) A Duty Schedule D) A Trade Agreement 10. The CBSA has the authority to control the movement of goods and people into and out of Canada through the legislation offered in: A) PARS B) The Open Skies Agreement C) The Customs Act D) The Transport Act