This is a three-hour examination. There are four parts to the examination. When calculating the final grade, I will give each part equal weight (i.e., 25% of the final grade). You should allocate your time with care, remembering that one-fourth of three hours is 45 minutes.

This is an open-book examination. During the examination you may consult any written materials except materials checked out of the reserve section of the law library.

Read each question carefully and follow the directions. Think before you write. Organize your answer and emphasize those points you think are most significant. If you find an ambiguity or if you need more facts, make reasonable assumptions and state these clearly in your answer. Be concise. Be clear. Good luck!

Please record your special examination number in the upper right-hand corner of this page and return these examination questions with your blue books.

There are ten questions in this part of the examination. Write your answer to each question in the space provided immediately following each question. You should explain each answer in no more than one sentence. You will receive full credit for an answer only if there is an explanation. Although the 10 questions vary in difficulty, your answer to each question will be given equal weight when computing the final grade.

1. "Long John Lowe and Dandy Dan Shuman are avid Sunday sailors. Last Sunday they collided on White Rock lake in East Dallas. Their dispute is governed by federal Admiralty law rather than state law." True or False?

2. "Swank Hank Lischer agrees orally to sell to Tall Paul Rogers his ocean-going yacht moored in Corpus Christi, Texas. Although Lischer has not yet delivered the yacht, his agreement is enforceable notwithstanding that the agreement has not been reduced to writing." True or False?

3. "A shipper of goods may proceed against a vessel in rem for breach of the contract of carriage." True or False?

4. "The Maggie Thatcher is an ocean-going English tug. An English creditor has secured its loan to the owners of the tug with a ship mortgage registered in accordance with the laws of England. The tug occasionally crosses the Atlantic to U.S. waters. The English creditor's mortgage will not be recognized by a U.S. court sitting in Admiralty." True or False?

5. "A 'Clause Paramount' is frequently found in bills of lading." True or False?

6. "Where a vessel under time charter is damaged by the negligence of a third party, the charterer is not entitled to recover damages for loss of use or profits caused by the negligence unless the charter does not include a clause suspending the charter hire during the period the vessel is out of service." True or False?

7. "During a police raid on houses of ill-repute in an unnamed U.S. port, Johnny Jamison injures his leg when he jumps from Susie Streetwalker's room. Johnny is a seaman on the Dream Catcher. Johnny is unlikely to be entitled to maintenance and cure payments from his employer, who owns the vessel." True or False?

8. "A shipowner has 'deviated' when it fails to exercise due diligence in making the vessel seaworthy." True or False?

9. "Violation of the 'Uniform Inland Rules' constitutes statutory fault (i.e., negligence per se) in an action to recover damages for a collision." True or False?

10. "Under an enforceable 'Both-to-Blame' clause, colliding vessels must bear the damages caused by the collision in proportion to their fault." True or False?

Shipper arranged with Carrier to transport tin ingots from Bolivia to New York. Shipper shipped 9,000 ingots in 600 steel-strapped bundles of 15 ingots each. When Carrier's agent received the bundles from Shipper, the agent packed the bundles into six shipping containers and issued to Shipper a bill of lading for each container. Each bill of lading includes the following information:

DESCRIPTION OF PACKAGES AND GOODS: 1500 tin ingots

NUMBER OF BUNDLES 100 bdls

The bills of lading also incorporate COGSA's rules on limitation of liability for the period after the goods are unloaded and before delivery to Shipper. They also make COGSA applicable to any stevedoring company used by Carrier.

Carrier transported the containers to New York, where they were unloaded by Stevedore and stored in a terminal operated by Stevedore.

When Shipper took delivery by presenting the bills of lading it discovered that one of the six containers was empty (i.e., 1,500 ingots or 100 bundles were missing). An appraiser agreed-upon by all parties determined that Carrier was primarily responsible for the loss of the ingots. Having concluded that Carrier was primarily responsible, the appraiser did not specifically determine whether or not Stevedore was negligent. None of the parties disputes the appraiser's conclusions.

There are two legal issues outstanding.

(1) Shipper insists that Carrier is responsible for the full market value of the 1,500 missing ingots while Carrier responds that it is only liable for $500 per bundle.

(2) Carrier insists that, no matter how much it must pay Shipper, it (Carrier) is entitled to indemnity in full from Stevedore for its breach of the warranty of workmanlike service implied by admiralty law without regard to whether or not Stevedore was negligent.

Carrier asks for your comments on the weight (i.e., likelihood of success in litigation) to be given to its position on these two legal issues. Advise Carrier on one (1) of these issues.

Neil Rudenstine works as a painter on a "spud" barge that operates in the territorial waters of Louisiana. A spud barge is a floating platform which has legs, called spuds, which extend to the sea floor and keep the platform in place. This barge also has four anchors on each corner which allow the barge to reposition itself by raising or lowering the anchors. Approximately once a month the barge is moved to another location by a "push" boat or a tow. The owner of the barge uses the barge to repair oil drilling platforms. The owner hired Rudenstine several years ago to paint exposed surfaces on the drilling platforms.

One month ago, when he was working on the barge while it was in Louisiana territorial waters, a loose cable swung across the area where Rudenstine was working and injured him in the groin and hip. The owner of the barge has compensated Rudenstine for his medical bills and loss of earnings at a rate determined by a collective bargaining agreement.

Mary Rudenstine, Neil's wife, complains, however, about "loss of society." She asks you whether she may recover for this loss from the owner of the barge. Advise her.

Comment, using examples, on the content of the following quotation:

"Federal legislation has been more important in the development of U.S. admiralty and maritime law than has federal caselaw."