What is the law of limitation of liability?

The law of limitation of liability is a maritime law in Tennessee that limits the amount of money ship owners can be held liable for in cases related to damage to people or property. This law can be used in the event of a marine accident, such as a collision or other maritime incident. It states that ship owners will only be held responsible for a certain amount of damage, even if the actual loss is far greater. This law was put in place to protect ship owners from large payouts in cases of maritime accidents. Without it, the damages could be so high that it would put some companies out of business. It should be noted, however, that this law can only be used under certain circumstances. It must be proven that the damage was caused solely by the negligence of the ship owner. It will not apply to events such as an act of God or an act of war. The law of limitation of liability is important for the maritime industry in Tennessee. It serves to protect ship owners from large financial losses and allows them to continue to be in business.

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What is the law of limitation of liability?

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