Cruise Industry Statute Law and Legal Definition

Cruise Industry Statute refers to a law that addresses the cruise industry.

The statute was enacted after a number of cruise lines went out of business in the 1960s, leaving passengers with useless tickets and no opportunity for refunds. In situations of casualty or nonperformance due to financial difficulties or weather causes the line to cancel a voyage. In such case, when the line does not have the funds to reimburse passengers, the bond funds can be distributed to the injured or stranded passengers. . According to the statute, cruise line operators who board passengers in the U.S. ports shall prove to the Federal Maritime Commission that they are financially responsible, usually by posting a bond or surety to cover some or all of the passenger fares that the cruise lines collect in advance of the voyage.