The Ineffectiveness of the Provisions of SGA in Allocating Risks Essay

The Ineffectiveness of the Provisions of SGA in Allocating Risks - Essay Example The researcher states that transportation is a challenge that affects goods in transit. In many cases, problems arise during the transportation of a bulky consignment owing to the fact that such goods are likely to change hand from one mode of transport to another. Although the act addresses the concerns of the risk bearers in the case of loss, its introduction presents a complex perspective on the form of transportation. For instance, when there is a transportation of goods, it is likely that such a container of the goods may transit through different modes of transport like ships, rails or even the use of tracks. The act fails to give appropriate guidance on risk allotment when bulky goods transit through one mode to another. The issues arising from risk allotment to the various modes of transport is so complex that any amendment of the provision will require an appropriate method that quantifies and allocate the level of involvement between the modes of transport before allotting the risks. Further, the section provides the limiting factor to the scope of the act. The provision lacks a proper directive to offering direction on goods in transit. Perhaps, the best approach would involve splitting the risks and ensuring there is a clear definition of the bearers based on the different goods forming the consignment. In doing so, it would limit the risks of deterioration by splitting these risks occasioned during transiting by allowing the seller to bear the so-called extraordinary risks associated with casualty and accidents. The same approach would apportion the so-called necessary risks of deterioration, which is common to all goods undergoing transit to the buyer.