Question: Sisco Systems is a security equipment developer and manufacturer based in Japan. In January, Lentro, a Malaysian company ordered 2000 Sisco Complete Security Systems. The

Sisco Systems is a security equipment developer and manufacturer based in Japan. In January, Lentro, a Malaysian company ordered 2000 Sisco Complete Security Systems. The total purchase price for the systems was RM 1 million CIF Port Klang. Sisco employees packed the systems into two containers for carriage to Malaysia on board The Sakura, a ship owned and operated by Teppi Shipping Inc.

The master of The Sakura issued Sisco a clean bill of lading on behalf of Teppi Shipping, which Sisco forwarded to Lentro, along with other necessary documents, for payment. The Sakura departed Japan on 1 March. However, only two days into the journey the ship's navigation systems failed. Consequently, the ship struck submerged rocks and the force of impact dislodged a number of containers, which fell overboard. On arrival, it was discovered that one of the containers lost overboard was destined for delivery to Lentro.

Is Teppi Shipping liable for the loss of Sisco's container? Advise Lentro.

  1. What is the governing law?
  2. What does a clean bill of lading signify?
  3. Was the vessel seaworthy?
  4. Can Teppi Shipping rely on any carrier's immunities?
  5. How is compensation calculated?

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