Which statement best describes the inherent vice defense?

Which statement best describes the inherent vice defense?

• A. It is never available.
• B. It requires a court order.
• C. It applies only to time charters.
• D. It is available when loss stems from inherent vice of goods or perils of the sea beyond carrier control; liability may be limited or excluded subject to contract.

Answer: (D)

The inherent vice defense lets a carrier avoid or limit liability when damage to cargo stems from the goods’ own inherent nature or from perils of the sea that the carrier couldn’t prevent. When such a loss occurs, liability may be limited or excluded, but only to the extent permitted by the contract governing the carriage (the bill of lading or charterparty). This is why the statement is correct: it accurately captures both the source of the defense and the fact that the outcome depends on the contract terms. The other options are off the mark because this defense is not never available, it does not require a court order, and it isn’t confined only to time charters.

The inherent vice defense lets a carrier avoid or limit liability when damage to cargo stems from the goods’ own inherent nature or from perils of the sea that the carrier couldn’t prevent. When such a loss occurs, liability may be limited or excluded, but only to the extent permitted by the contract governing the carriage (the bill of lading or charterparty). This is why the statement is correct: it accurately captures both the source of the defense and the fact that the outcome depends on the contract terms. The other options are off the mark because this defense is not never available, it does not require a court order, and it isn’t confined only to time charters.