Guidance

Business and Law Examination Syllabus

Published 3 January 2018

1. Course details

1.1 Duration

The course must take place over five days or 30 hours of formal instruction. Candidates may be given course notes or a self-study preparation pack in advance.

1.2 Aims

The aim of this course is to enable Masters to understand:

• Their legal obligations for the safe, secure and pollution free operation of yachts in the context of statutory obligations and civil law;
• The different legal jurisdictions that apply in a vessel operating in International waters;
• Aspects of English law necessary for the correct administration of a UK-registered commercially or privately operated yacht.

1.3 Level of understanding

The level of understanding should be that considered necessary for the safe, secure and lawful operation of a commercially and privately operated yacht of up to 3000GT.

The candidate need not display an academic grasp of the legal principles involved beyond that needed for this purpose on a practical level.

1.4 Assessment

Assessment will be by a written 2.5 hour examination of five questions. The pass mark will be 60%.

2. Syllabus

2.1 Legal framework

2.1.1 Legal framework

1. Can outline the difference between civil and criminal law and can give examples of civil wrongs and criminal offences in the context of yacht operations.
2. Can state that certain breaches of the Merchant Shipping Act can result in substantial fines imposed by the magistrates’ court.
3. Can demonstrate an awareness of the offences that can result in significant fines on summary conviction.
4. Can outline in general terms the concepts of:
   1. ‘Negligence’;
   2. ‘Duty of care’;
   3. ‘Reasonable care’;
   4. ‘Non delegable responsibility’; and
   5. ‘Vicarious liability’.
5. Can describe the role of the Maritime & Coastguard Agency (MCA) and the Marine Accident Investigation Branch (MAIB) and recognise their separate functions.
6. Can identify the importance of the following:
   1. Merchant Shipping Acts;
   2. Statutory Instruments (SIs);
   3. Merchant Shipping Notices (MSNs);
   4. Marine Guidance Notes (MGNs);
   5. Marine Information Notes (MINs);
   6. Codes of Practice in particular, The Large Commercial Yacht Code (LY3) (or as amended);
   7. The role of the MCA within the structure of the United Kingdom Marine Administration.
7. Identifies the role of the Official Log Book (OLB) and is able to:
   1. State which yachts must keep an OLB;
   2. State the rules governing the recording of information, including the practice of annexing documents/information;
   3. State with reference to yachts, when this record must start and when it must be transferred to the Registrar at Cardiff;
   4. State, given the considerable detail of the information to be recorded, the need to have a copy of the OLB regulations for reference when making entries;
   5. Describe the information to be recorded in the OLB relevant to the operational management of a yacht and its crew;
   6. State the nature of the entries to be made in the narrative section of the OLB.

2.1.2 Arrival and departure

1. Can identify the documentation required for arrival in port. e.g. Customs Declaration, Crew List, Clearance Documents.
2. Can identify the circumstances giving rise to a mandatory health report and the procedure to be followed:
   1. Before arrival;
   2. On arrival; and
   3. Until health clearance is obtained.
3. Can identify the role of the International Maritime Declaration of Health.

2.1.3 International law

1. Can define territorial waters, inland waters and high seas as defined in the United Nations Convention on the Law of the Sea (UNCLOS).
2. Can describe what is meant by ‘freedom of the high seas’.
3. Can outline the rights and obligations of Flag State and Port State.
4. Can outline the importance of the geographical position of the yacht, the nationality of the crew and of the flag of the yacht in determining criminal jurisdiction.
5. Can outline the way international conventions can be policed, the nature of ‘innocent passage’ and when this may be denied.
6. Can describe in general terms the role of Port State Control organisations.
7. Can outline the role of the UK Register of ships in Cardiff.
8. Can distinguish between a United Kingdom registered yacht and a British yacht.
9. Can identify the relationship between the United Kingdom and the Crown Dependencies and British Overseas Territories with reference to the statutory regulation of British yachts.
10. Can describe the contents of the MCA publication “A Master’s Guide to the UK Flag – Large Yacht Edition”.

2.2 Safety management

2.2.1 Safety certificates and documentation

1. Can state which vessels are required to comply with MCA ‘Large Commercial Yacht Code’ (as amended).
2. Can describe the purpose of certificates listed below that may be issued for compliance with ‘Large Commercial Yacht Code’ (as amended) with regard to; period of validity, timing of required surveys, general subject matter of the surveys, purpose of the issuing authority ‘conditions of assignment’ (where applicable) and the consequences of failure to comply with the conditions of the code:
   1. International Tonnage certificate for vessels of 24 meters or over;
   2. International Load Line certificate for vessels of 24 meters or over;
   3. Load Line Exemption certificate;
   4. International Safety Construction certificate for vessels of 500 GT or over;
   5. International Safety Equipment certificate for vessels of 500 GT or over;
   6. International Safety Radio certificate for vessels of 300 GT or over;
   7. International Safety Management certificate for vessels of 500 GT or over;
   8. International Ship Security certificate for vessels of 500 GT or over;
   9. The International Convention for the Safety of Life at Sea (SOLAS) combined safety certificate for vessels of 500 GT or over;
   10. Certificate of Compliance for vessels of 24 metres or over;
   11. Safe Manning Document for vessels of 500 GT or over;
   12. International Oil Pollution Prevention certificate for vessels of 400 GT or over;
   13. International Sewage Pollution Prevention Certificate for vessels of 400 GT or over OR more than 15 persons on board.
   14. International Air Pollution Prevention Certificate for the prevention of air pollution and reduction of greenhouse gases (as amended).
3. Can summarise the content of the SOLAS training manual.
4. Can summarise the content of the Load Line ‘conditions of assignment’.
5. Can define the requirement to implement a safety management system on vessels of less than 500 GT as contained in Annex 2 of the ‘Large Commercial Yacht Code (as amended).
6. Can state the difference between a ‘pleasure vessel’ and a vessel ‘engaged in trade’ as defined in the Large Yacht Code (as amended).
7. Can state that UK registered ‘private’ yachts (pleasure vessels) are subject to minimum safety standards as class XII vessels.
8. Can state that no yacht can carry more than 12 passengers and can define the word ‘passenger’.

2.2.2 Prevention of marine pollution

1. Can state that the Large Yacht Code (as amended) ‘Clean Seas’ covers the requirements of the International Convention for the Prevention of Pollution from Ships (MARPOL) as applicable to Large Yachts not covered by the MARPOL regulations.
2. Can identify the MARPOL Annexes in force and the pollutants covered by each Annex relevant to yacht operations.
3. Can state that the provisions of the Large Yacht Code ( as amended ) chapters 4 to 10 meet the requirements of SOLAS for a yacht, (less than 500GT) construction.

2.2.3 Statutory safety duties

1. Can state the duty of the Master, under UNCLOS, to respond to signals of distress and the circumstances when the Master is released from his obligation to respond.
2. Can state the Master’s statutory obligations following a collision.
3. Can state the actions to be taken with regard to statutory certificates and insurance in the event of a yacht sustaining material damage.
4. Can define an accident as defines in annex B of MGN 458 (M+F):
   1. A Marine Casualty;
   2. Very Serious Marine Casualty;
   3. Serious Marine Casualty;
   4. Marine Incident.
5. Can describe the initial report following an accident and the required follow up reports.
6. Can describe the actions required after each type of incident, including declarations to other responsible authorities.
7. Can state how the MAIB can respond to such reports.
8. Can state when the master has a duty to report dangers to navigation and can list the six categories and describe how the reports should be made.
9. Can distinguish between compulsory and non-compulsory pilotage and the responsibilities between Master, pilot and owner.

2.2.4 Seaworthiness and safe manning

1. Can outline the Master’s responsibility to ensure the seaworthiness of the vessel at the commencement of each voyage and the consequences of attempting to proceed to sea in an unsafe and unseaworthy condition.
2. Can outline why the possession of valid statutory certificates does not prove seaworthiness.
3. Can state the principles by which a vessel may be deemed to be safely manned in accordance with the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) convention.
4. Can outline the application of United Kingdom manning regulations to a yacht, and the use of the MCA Large Yacht Code (as amended) as an alternative to these regulations.
5. Can outline how the Maritime Labour Convention (MLC) 2006 (as amended) applies to yachts.
6. Can outline how the Hours of Work legislation as described in MLC 2006 applies to yachts.

2.2.5 Security

1. Can state the objectives of the International Ship and Port Facility Security (ISPS) Code.
2. Can outline the possible consequences of carrying stowaways, describe the action to be taken to prevent stowaways and action to be taken upon discovery of stowaways.
3. Can define the three levels of security under the ISPS code.
4. Can outline the advice given by the MCA concerning the carriage of firearms in UK registered vessels and the United Kingdom government’s policy and guidance concerning the contracting of private armed guards.
5. Can define a high security risk area as an area where armed robbery or piracy are a threat.
6. Can state the recommended precautions when approaching a high risk area.

2.3 Contracts and marine insurance

2.3.1 Contracts of salvage

1. Can state the definitions contained in the International Convention on Salvage (Articles 13 and 14) including SCOPIC.
2. Can outline the practical use of Lloyds Open Form of salvage contract, and its advantages to both parties.
3. Can outline the elements of a valid claim for salvage in Admiralty Law, in the absence of any contractual obligation to pay for the services involved.
4. Can outline the interpretation of the expression ‘a place of safety’ as used in Lloyds Open Form of salvage agreement and the need, wherever possible, to agree a ‘place of safety’.
5. Can state who has the legal right to control the acceptance or rejection of assistance to yachts.
6. Can define the legal definition of the word ‘derelict’.
7. Can outline the ‘Duties of the Salvor’ and the ‘Duties of the Master/Owner’.
8. Can outline the difference between contracts for assistance based on salvage principles (Lloyds open form) and other forms of salvage contract.
9. Can outline the advantages and disadvantages to both parties in the use of each of the above forms of contract.

2.3.2 Contracts of employment and the merchant navy code of conduct

1. Can state the circumstances in which a yacht must have an MCA approved crew agreement.
2. Can state the circumstances in which crew member will have a contract on the basis of a Seafarers Employment Agreement (SEA) under MLC 2006.
3. Can describe the United Kingdom regulations as they relate to the opening and closing of a crew agreement aboard yachts.
4. Can state that crew members are entitled to a contract on the basis of an approved crew agreement or seafarers employment agreement.
5. Can describe the standard form of approved crew agreement for yachts not governed by MLC 2006 (as amended).
6. Can outline the relationship between an MCA approved crew agreement and any other associated contract of employment.
7. Can outline the relationship between a Seafarer’s Employment Agreement and any other associated contract of employment.
8. Can describe the procedure for engaging a crew under the standard form of approved crew agreement.
9. Can describe the procedure for engaging a crew under the Seafarer Employment Agreement.
10. Can state the legal obligations of a Master for the maintenance of crew lists.
11. Can describe the procedure for terminating a seafarers employment under the standard form of yacht crew agreement and the Seafarers Employment Agreement.
12. Can define ‘passengers’, ’crew’ and ‘trainee’ on board a yacht.
13. Can state the statutory obligations of an employer as they relate to the maintenance and repatriation of seaman.
14. Can describe the procedure to be followed so as to comply with United Kingdom regulations relevant to a crew member who:
    1. Dies at sea;
    2. Is injured at sea on board a yacht; or
    3. Is incapacitated due to illness and discharged to hospital.
15. Can outline United Kingdom employment law as it relates to yacht crew.
16. Outline the elements of the Code of Conduct for the Merchant Navy as it relates to yachts.
17. Outline how to apply the Code Of Conduct for the Merchant Navy.
18. Outline the application of the Code of Conduct in relation to emergencies.
19. Outline the meaning of fair, unfair, wrongful, and constructive dismissal.
20. Outline the remedies for unfair dismissal.
21. Outline the conditions for the termination of employment within the context of the crew agreement:
    1. At the request of the Master;
    2. Request of the individual;
    3. The direct request of the Owner.

2.3.3 Yacht charter agreements

1. Can distinguish between ‘bareboat’ (Demise) and ‘standard’ (time) yacht charter party agreements.
2. Can describe how a bareboat and time charter affect the owner and charterer in terms of their:
   1. Responsibilities;
   2. Liabilities;
   3. Degree of operational control.
3. Can outline the importance of reading through all agreements prior to the charter commencing.

2.3.4 Marine insurance

1. Can outline the voluntary and contractual nature of the insurance of yachts.
2. Can distinguish between the insurance of a yacht and the insurance of other forms of Owners’ liabilities.
3. Can define the following insurance principles:
   1. Actual total loss;
   2. Constructive total loss;
   3. Particular average (partial loss);
   4. Deductibles.
4. Can state the difference between implied warranty and express warranty.
5. Can outline the following marine insurance clauses:
   1. Navigation;
   2. Breach of warranty;
   3. Termination;
   4. Perils;
   5. 3/4 collision liability;
   6. General Average (GA) and salvage;
   7. Duty of the assured (Sue and labour) ; 8.Constructive total loss;
   8. War exclusion;
   9. Tender.
6. Can outline how hull insurance policies place various restrictions on the use of a yacht, in particular the use of the yacht to save or assist in saving property.
7. Can state that the change/loss of a Certificate of Class, change of flag or ownership or demise chartering, could all result in automatic termination of hull insurance.
8. Can outline why underwriters may prefer assistance to vessels at sea to be negotiated on the basis of Lloyds Open Form.
9. Can describe the function of Protection & Indemnity (P & I) Clubs.
10. Can state the type of risks that yacht owners usually insure with P & I Clubs.
11. Can describe the likely sequence of events after a major claim.
12. Can describe what must be done immediately after an incident and subsequently, in order to act in the owner’s best interests.