Transportation Operations LINCS Practice Exam

Who bears the liability for goods damaged while unloading at the Port of Seattle?

1. Seller

2. Insurance company

3. Carrier

4. Buyer

The correct answer is: Buyer

In the context of goods being damaged while unloading at the Port of Seattle, understanding who bears the liability is often governed by the terms of the shipping contract and relevant legal frameworks. The buyer typically assumes responsibility for the goods once they have been delivered to the designated unloading site, which in this case is the Port of Seattle. Transfer of risk is a critical element that varies depending on the incoterms used in the agreement. Most commonly used incoterms, such as FOB (Free on Board) or CIF (Cost, Insurance, and Freight), outline the points at which the risk and ownership of goods shift from the seller to the buyer. Under these terms, the buyer takes on liability once the goods reach the point of obligation. In this scenario, if the incoterms stipulate that the buyer is responsible for the goods at the unloading phase, then they would bear the liability for any damages incurred during that process. Therefore, the buyer is responsible for mitigating risks associated with the unloading operation, which typically includes damages that may occur during handling and placement of goods at the destination port. The other options—seller, insurance company, and carrier—would generally not be responsible for these damages at this stage, as the liability and risk would have