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Matt and Ana own and operate a craft brewery Moon Dog[LK1] (MD) in Melbourne, Australia. They are expanding their business by exploring export opportunities. After

Matt and Ana own and operate a craft brewery "Moon Dog[LK1]" (MD) in Melbourne, Australia. They are expanding their business by exploring export opportunities. After attending an international beer festival in Amsterdam and showcasing their beers, they received a substantial order from a distributor, Hans Karton[LK2]. The order is for 10,000 cartons (24 x 330cl) of Lager, 10,000 cartons of its Summer Ale and 5,000 cartons of its sour ale Lagoona Matata. The contract incorporates CIF (Amsterdam) Incoterm 2010, and it was agreed that the shipment would be between 1 April and 1 May 2021. Hans wanted to market and distribute the Pilsner and Summer Ale before the start of the European summer.

MD arranges for shipment aboard Pan Van Cent, owned and operated by Queen International Shipping[LK3]. As agreed, the goods are packed into a container by MD and delivered to the Port of Melbourne. On 15 March 2021, Queen International Shipping issued a bill of lading, which references the receipt of '1 container said to contain glass bottled beer/beverage'. During the voyage, the ship encountered very rough seas due to extreme storms[LK4]. Due to a fault in the equipment securing the MD' container[LK5], the container moved violently, causing the contents to shift around and some of the bottles to break. The fault would usually be picked up by routine checks. However, the crew member responsible for checks that day was distracted because he had failed a test that would have made him eligible to apply for promotion.

On realising that the equipment was faulty, the Pan Van Cent made an immediate detour to the nearest port for necessary repairs to ensure the safety of the rest of the cargo. The repairs took considerable time as the storms had caused damage to several ships in the area and spare parts had to be sourced before the repairs could be finalised. As a result of this delay, Pan Van Cent did not arrive in Amsterdam until 28 May 2021[LK6]. When Hans collected the shipment, he discovered that nearly all of the Lagoona Matata bottles were broken. Fortunately, Hans was still able to market and sell the remainder of the shipment to beer gardens and restaurant customers, although many demanded a reduced price. Hans estimates that it lost about 25% of its expected profits due to the late arrival of the beer.

Answer the following questions with reference to the relevant articles of the Modified Hague Visby Rules (MHVR) and any relevant cases.

(a)Is the carrier liable under the MHVR for the damaged goods?

(b)Is the carrier liable under the MHVR for the late arrival of the goods?

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