Question 1

Air waybills are non-negotiable and delivery will be made only to the consignee.

Accepted Answer

A) True 
 B)False

Question 2

The documentary letter of credit transaction serves as a means to assure the buyer and seller that the transaction is secured.

Accepted Answer

A) True 
 B)False

Question 3

A carrier is entitled to release a shipment covered by a negotiable bill of lading to a holder in possession of a clean copy of the bill of lading only if the holder also presents a written guarantee of ownership.

Accepted Answer

A) True 
 B)False

Question 4

The trade terms "FOB" and "CIF" are defined by which of the following:

Accepted Answer

A)  Incoterms. 
B)  Uniform Commercial Code. 
C)  The Revised American Foreign Trade Definitions. 
D)  All of these are correct. 
A)  Incoterms. 
B)  Uniform Commercial Code. 
C)  The Revised American Foreign Trade Definitions. 
D)  All of these are correct.

Question 5

A straight bill of lading assures that the goods have actually been loaded on board for shipment.

Accepted Answer

A) True 
 B)False

Question 6

The documentary collection is the process by which:

Accepted Answer

A)  buyers collect their goods at the port of entry. 
B)  carriers consolidate cargo for shipment on a vessel. 
C)  banks collect payment from the buyer. 
D)  sellers must place their account into the hands of a debt collection agency in order to obtain payment from the buyer. 
A)  buyers collect their goods at the port of entry. 
B)  carriers consolidate cargo for shipment on a vessel. 
C)  banks collect payment from the buyer. 
D)  sellers must place their account into the hands of a debt collection agency in order to obtain payment from the buyer.

Question 7

When goods are to be transported by more than one mode of transportation,the transportation is:

Accepted Answer

A)  unimodal. 
B)  FAS 
C)  DAS 
D)  multimodal. 
A)  unimodal. 
B)  FAS 
C)  DAS 
D)  multimodal.

Question 8

Bills of lading are meant to be:

Accepted Answer

A)  Substitutes for money. 
B)  a means of transferring goods to buyers. 
C)  sight drafts. 
D)  guarantees for payment of the goods. 
A)  Substitutes for money. 
B)  a means of transferring goods to buyers. 
C)  sight drafts. 
D)  guarantees for payment of the goods.

Question 9

Shipment contracts are more common in international trade than destination contracts.

Accepted Answer

A) True 
 B)False

Question 10

In a documentary sales transaction,financial responsibility for lost or damaged goods is always negotiated once the loss or damage occurs and not before.

Accepted Answer

A) True 
 B)False

Question 11

According to Incoterms,the risk of loss under contract terms "FAS Name of Vessel" passes to the buyer when the goods are delivered alongside the named vessel.

Accepted Answer

A) True 
 B)False

Question 12

An importer in Germany requests a price quotation from a cotton broker in Memphis.The broker wishes to place the cotton in the hands of a multimodal terminal operator in Memphis for shipment through the port of New Orleans.He will pay the freight charges through to the German seaport,but he wishes the risk of loss to the cotton to pass to the German importer as soon as he places the cotton in the hands of the multimodal terminal operator in Memphis.The broker should quote his prices for the cotton:

Accepted Answer

A)  CIF Germany. 
B)  FOB New Orleans. 
C)  CPT New Orleans. 
D)  Ex Factory. 
E)  None of these are correct. 
A)  CIF Germany. 
B)  FOB New Orleans. 
C)  CPT New Orleans. 
D)  Ex Factory. 
E)  None of these are correct.

Question 13

International commercial terms are used in all international contracts for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 14

When a party takes a negotiable document as a good faith purchaser,it generally acquires even greater rights in the document than the one from whom it had been negotiated.

Accepted Answer

A) True 
 B)False

Question 15

Another term in lieu for a negotiable bill of lading is a documentary draft.

Accepted Answer

A) True 
 B)False

Question 16

In Basse and Selve v.Bank of Autralasia,the seller submitted a phony sample of ore to an inspection company to obtain a Certificate of Analysis showing high- grade ore.On the basis of the certificate,the seller paid for the documents and took delivery of the ore.The ore turned out to be worthless.The court ruled that:

Accepted Answer

A)  the bank had an obligation to inspect the ore before paying for the documents on behalf of the buyer. 
B)  the buyer had a cause of action against the chemist for fraud. 
C)  the bank had acted properly in paying the seller even though the ore did not conform to the contract because the certificate was regular on its face. 
D)  the bank had acted properly in paying the seller because the bill of lading was negotiable. 
A)  the bank had an obligation to inspect the ore before paying for the documents on behalf of the buyer. 
B)  the buyer had a cause of action against the chemist for fraud. 
C)  the bank had acted properly in paying the seller even though the ore did not conform to the contract because the certificate was regular on its face. 
D)  the bank had acted properly in paying the seller because the bill of lading was negotiable.

Question 17

A sale made "CIF foreign port" implies that the terms of the sale are:

Accepted Answer

A)  credit in foreign currency. 
B)  cash against documents. 
C)  credit against documents. 
D)  settlement pending approval of goods. 
A)  credit in foreign currency. 
B)  cash against documents. 
C)  credit against documents. 
D)  settlement pending approval of goods.

Question 18

Under an FOB contract,the seller delivery's the goods on board the ship decks and has no further transportation obligations.

Accepted Answer

A) True 
 B)False

Question 19

Negotiable bill of lading is proof of title allow for the transfer of the title to the goods without requiring the owner to take possession of the goods.

Accepted Answer

A) True 
 B)False

Question 20

The Incoterms definitions will automatically become a part of a contract for the sale of goods,governed by the UN Convention for the International Sale of Goods.

Accepted Answer

A) True 
 B)False

Air waybills are non-negotiable and delivery will be made only to the consignee.

The documentary letter of credit transaction serves as a means to assure the buyer and seller that the transaction is secured.

A carrier is entitled to release a shipment covered by a negotiable bill of lading to a holder in possession of a clean copy of the bill of lading only if the holder also presents a written guarantee of ownership.

The trade terms "FOB" and "CIF" are defined by which of the following:

A straight bill of lading assures that the goods have actually been loaded on board for shipment.

The documentary collection is the process by which:

When goods are to be transported by more than one mode of transportation,the transportation is:

Bills of lading are meant to be:

Shipment contracts are more common in international trade than destination contracts.

In a documentary sales transaction,financial responsibility for lost or damaged goods is always negotiated once the loss or damage occurs and not before.

According to Incoterms,the risk of loss under contract terms "FAS Name of Vessel" passes to the buyer when the goods are delivered alongside the named vessel.

International commercial terms are used in all international contracts for the sale of goods.

When a party takes a negotiable document as a good faith purchaser,it generally acquires even greater rights in the document than the one from whom it had been negotiated.

Another term in lieu for a negotiable bill of lading is a documentary draft.

A sale made "CIF foreign port" implies that the terms of the sale are:

Under an FOB contract,the seller delivery's the goods on board the ship decks and has no further transportation obligations.

Negotiable bill of lading is proof of title allow for the transfer of the title to the goods without requiring the owner to take possession of the goods.

The Incoterms definitions will automatically become a part of a contract for the sale of goods,governed by the UN Convention for the International Sale of Goods.

Introduction to International Business

International Law and the World's Legal Systems

Resolving International Commercial Disputes

The Formation and Performance of Contracts for the Sale of Goods

Legal Issues in International Transportation

Bank Collections and Letters of Credit

National Lawmaking Powers and the Regulation of U.S.Trade

The World Trade Organization: Basic Legal Principles

Laws Governing Access to Foreign Markets

Regulating Import Competition and Unfair Trade

Imports,Customs,and Tariff Law

Export Controls and Sanctions

North American Free Trade Law

The European Union

Marketing: Representatives,Advertising,and Anti-Corruption

Protection and Licensing of Intellectual Property

The Legal Environment of Foreign Direct Investment

Labor and Employment Discrimination Law

Environmental Law

Regulating the Competitive Environment

Filters

Exam 5: The Documentary Sale and Terms of Trade

Air waybills are non-negotiable and delivery will be made only to the consignee.

The documentary letter of credit transaction serves as a means to assure the buyer and seller that the transaction is secured.

A carrier is entitled to release a shipment covered by a negotiable bill of lading to a holder in possession of a clean copy of the bill of lading only if the holder also presents a written guarantee of ownership.

The trade terms "FOB" and "CIF" are defined by which of the following:

A straight bill of lading assures that the goods have actually been loaded on board for shipment.

The documentary collection is the process by which:

When goods are to be transported by more than one mode of transportation,the transportation is:

Bills of lading are meant to be:

Shipment contracts are more common in international trade than destination contracts.

In a documentary sales transaction,financial responsibility for lost or damaged goods is always negotiated once the loss or damage occurs and not before.

According to Incoterms,the risk of loss under contract terms "FAS Name of Vessel" passes to the buyer when the goods are delivered alongside the named vessel.

International commercial terms are used in all international contracts for the sale of goods.

When a party takes a negotiable document as a good faith purchaser,it generally acquires even greater rights in the document than the one from whom it had been negotiated.

Another term in lieu for a negotiable bill of lading is a documentary draft.

A sale made "CIF foreign port" implies that the terms of the sale are:

Under an FOB contract,the seller delivery's the goods on board the ship decks and has no further transportation obligations.

Negotiable bill of lading is proof of title allow for the transfer of the title to the goods without requiring the owner to take possession of the goods.

The Incoterms definitions will automatically become a part of a contract for the sale of goods,governed by the UN Convention for the International Sale of Goods.

Introduction to International Business

International Law and the World's Legal Systems

Resolving International Commercial Disputes

The Formation and Performance of Contracts for the Sale of Goods

Legal Issues in International Transportation

Bank Collections and Letters of Credit

National Lawmaking Powers and the Regulation of U.S.Trade

The World Trade Organization: Basic Legal Principles

Laws Governing Access to Foreign Markets

Regulating Import Competition and Unfair Trade

Imports,Customs,and Tariff Law

Export Controls and Sanctions

North American Free Trade Law

The European Union

Marketing: Representatives,Advertising,and Anti-Corruption

Protection and Licensing of Intellectual Property

The Legal Environment of Foreign Direct Investment

Labor and Employment Discrimination Law

Environmental Law

Regulating the Competitive Environment

Filters