Exam 5: The Documentary Sale and Terms of Trade

Which of the following documents are always required in a documentary collection for the sale of goods?

There are many different types of bills of lading.The one that the book advises that most buyers insist the seller provide is:

B is known in the trade as a trader and merchant of soybeans.A entrusts a load of soybeans to B for storage in B's warehouse.Secretly,B delivers the goods to an ocean carrier in return for a bill of lading.B then sells the document covering a shipment of soybeans to C,who has purchased soybeans from B in the past.C pays for the document through its bank.B absconds with the money.In this case:

According to Incoterms,the trade term that represents the minimum responsibility of the seller is:

The type of bill of lading not recommended for the shipment of perishable goods is:

Because importers and exporters assume different risks,the most preferred way to conduct business and minimize these risks is:

According to Incoterms,the risk of loss or damage to goods under a CIF contract passes from seller to buyer when:

In addition to the bill of lading,other documents that may be required for shipment include all but which of the following:

The documentary letter of credit is a modern commercial practice devised by the United Nations Commission on International Trade Law.

The title of the goods sold in a documentary sale is transferred through:

If the seller in Omaha wishes to place the goods in the hands of a trucking company named by the foreign buyer and have the risk of loss pass to the buyer at that time,the seller should quote his prices:

The purpose of the bill of lading is to:

Under the Uniform Commercial Code,the risk of loss in a destination contract passes to the buyer when the goods are tendered to the buyer at that place.

What term from Incoterms 2000 would you recommend under each of these scenarios? A transaction wherein an American seller is to transport the goods by sea from the port of Oakland,California to Vancouver,Canada and the Canadian buyer's sole obligations are to arrange for import clearance and purchase insurance against loss from the moment the goods cross the ship's rail. A transaction wherein a Greek buyer seeks to impose all obligations on the French seller,including export clearance,the cost of insurance,transportation of the goods by sea from Marseille,France,and import clearance at Piraeus,Greece,the port of destination. A transaction wherein a Dutch seller wishes to limit its obligations to notification of the American buyer that the goods are available for pickup at the seller's warehouse in Antwerp,Netherlands. A transaction wherein an American seller is to deliver the goods on board a ship in New York and arrange for export clearance for ultimate shipment to Rio de Janiero with the Brazilian buyer responsible for contracting with the carrier,the cost of obtaining insurance and obtaining import clearance. A transaction wherein a Canadian seller is to transport the goods by sea from Halifax,arrange for export clearance,unload the goods at their final destination in Oslo,Norway and make them available on the wharf while the buyer arranges for import clearance in Norway. A transaction wherein a Belgian seller is to deliver the goods to the wharf at the port of Antwerp,provide a receipt evidencing such delivery and facilitate export clearance with the Swedish buyer responsible for contracting with a carrier for their transport to Stockholm and bearing all risk of loss from the moment the goods are placed alongside the ship.??A transaction wherein a Mexican seller is to contract for motor carriage of the goods,deliver the goods to another motor carrier for transport across the U.S.border,pay unloading and loading costs,arrange for export clearance and obtain insurance on the U.S.buyer's behalf for final delivery to Phoenix,Arizona.

In an effort to satisfy an important customer in Portugal,the seller is willing to pay all ocean freight charges and bear all risks of the journey to the port of Lisbon.The buyer,however,has agreed to pay all unloading charges.The exporter should quote his prices:

Incoterms are published by the International Chambers of Commerce based in Paris,France.

Compare and contrast the risk of loss and expenses associated with "C" and "F" terms.

A clean bill of lading does not guarantee that the goods are without damage even during the voyage to the buyer.

A seller who quotes on open account terms in a foreign currency bears the currency risk during the open credit period.

The government of Venezuela is purchasing a large quantity of American beans to be loaded on its own ship at the port of New Orleans.The buyer will arrange to have its vessel loaded and will obtain its own export licenses.The seller may be asked to quote its prices: