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Interlake Shipping Co

Question 33

Multiple Choice

Interlake Shipping Co. transports grain in large barges across Lake Michigan. In March, one of its barges was caught in an Ice flow where it "jammed" with the resultant destruction of its cargo. The carrier's property insurance refused to pay because the hazard was not covered under the policy. And the owner of the cargo had no insurance. Does this occurrence fall under the Doctrine of Frustration for the carrier?


A) No, since the event was due to carelessness.
B) Yes, because it involved the perishing of the goods.
C) Yes, because he had no insurance to cover his property.
D) No, because the event was preventable.
E) Yes, since it was an act of God.

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