African Spice Exporters Inc. brings two shipments of cloves from Zanzibar, Tanzania to the United States each year. When their second shipment of the year is stopped by the Coast Guard off the coast of Florida, 10 pounds of contraband is found hidden among the bins of cloves. All of the ship's cargo is seized and the ship's crew arrested. When African Spice Exporters Inc. files a claim with its insurer for the seized cargo, the claim comes back denied. Why might this claim have been denied?

African Spice Exporters Inc. brings two shipments of cloves from Zanzibar, Tanzania to the United States each year. When their second shipment of the year is stopped by the Coast Guard off the coast of Florida, 10 pounds of contraband is found hidden among the bins of cloves. All of the ship's cargo is seized and the ship's crew arrested. When African Spice Exporters Inc. files a claim with its insurer for the seized cargo, the claim comes back denied. Why might this claim have been denied?



Answer: African Spice Exporters Inc. violated the "legality" implied warranty of ocean marine insurance.

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