Question 1

The United Nations Convention on Contracts for the International Sale of Goods (CISG)considers a contract to have been accepted

Accepted Answer

A)  when most of the items in the seller's offer are agreed to. 
B)  when there has been a counter-offer. 
C)  when both parties agree to the basic parts of the contract, except for details like price, payment, quality and quantity of goods, shipping instructions, and liability. 
D)  if the contract is valued at above U.S. $ 500 and is in writing. 
E)  None of the above 
A)  when most of the items in the seller's offer are agreed to. 
B)  when there has been a counter-offer. 
C)  when both parties agree to the basic parts of the contract, except for details like price, payment, quality and quantity of goods, shipping instructions, and liability. 
D)  if the contract is valued at above U.S. $ 500 and is in writing. 
E)  None of the above

Question 2

Contracts contain a force majeure clause which dissolves the contract in the event of a major unforeseen event,like a ship sinking in a storm.Loosely translated,force majeure means

Accepted Answer

A)  "forced dissolution." 
B)  "overwhelming power." 
C)  "major provisions of contract no longer in force." 
D)  "major forfeit." 
E)  None of the above 
A)  "forced dissolution." 
B)  "overwhelming power." 
C)  "major provisions of contract no longer in force." 
D)  "major forfeit." 
E)  None of the above

Question 3

Contracts normally contain a clause that annuls the contract in the event of an overwhelming unforeseen event like a major storm or fire.This is called an evergreen provision.

Accepted Answer

A) True 
 B)False

Question 4

The scope of appointment clause is usually the first clause of a contract.

Accepted Answer

A) True 
 B)False

Question 5

Under the Uniform Commercial Code,an offer can be withdrawn at any time,without prejudice.

Accepted Answer

A) True 
 B)False

Question 6

An agreement between an exporter and an agent/distributor may state that the laws of the exporter's country apply to governing of the contract.This can be complicated by

Accepted Answer

A)  the practice of many exporters to bribe the judges in their home countries. 
B)  a shortage of lawyers in the exporter's home country. 
C)  it being illegal for the exporter to make such an agreement. 
D)  the government of the country where the agent/distributor is located, as it may say it has jurisdiction over the contract. 
E)  None of the above 
A)  the practice of many exporters to bribe the judges in their home countries. 
B)  a shortage of lawyers in the exporter's home country. 
C)  it being illegal for the exporter to make such an agreement. 
D)  the government of the country where the agent/distributor is located, as it may say it has jurisdiction over the contract. 
E)  None of the above

Question 7

An exporter's termination of a relationship with an agent/distributor on the basis of "convenience" is

Accepted Answer

A)  essentially risk-free. 
B)  with little obligation on the part of the exporter to the agent/distributor. 
C)  easy to accomplish. 
D)  in little danger of ending up in court. 
E)  None of the above 
A)  essentially risk-free. 
B)  with little obligation on the part of the exporter to the agent/distributor. 
C)  easy to accomplish. 
D)  in little danger of ending up in court. 
E)  None of the above

Question 8

Instead of using courts to settle disputes,an increasing number of contracts call for disputes to be settled by

Accepted Answer

A)  international law. 
B)  diplomacy. 
C)  an arbitration panel. 
D)  the Uniform Commercial Code. 
E)  None of the above 
A)  international law. 
B)  diplomacy. 
C)  an arbitration panel. 
D)  the Uniform Commercial Code. 
E)  None of the above

Question 9

Agreements between an exporter and an agent and agreements between an exporter and a distributor are called distribution contracts.

Accepted Answer

A) True 
 B)False

Question 10

Unless otherwise specified,contracts between an exporter and an agent and contracts between an exporter and a distributor are called

Accepted Answer

A)  contract law. 
B)  labor law. 
C)  common law. 
D)  distribution contracts. 
E)  None of the above 
A)  contract law. 
B)  labor law. 
C)  common law. 
D)  distribution contracts. 
E)  None of the above

Question 11

A contract is entered in good faith when neither of the parties has any other ulterior motive about the agreement.

Accepted Answer

A) True 
 B)False

Question 12

An agent can negotiate prices,delivery,or other sales terms with the buyer (importer)without direction from the exporter.

Accepted Answer

A) True 
 B)False

Question 13

The "facilities and activities" clause of a contract between an exporter and an agent/distributor spells out what kind of docking arrangements will be made when the goods arrive by ship into the agent/distributor's country.

Accepted Answer

A) True 
 B)False

Question 14

The scope of appointment clause of a contract usually prevents an agent or distributor to "cherry pick" the most profitable products for extra selling effort and to minimize effort toward less profitable products.

Accepted Answer

A) True 
 B)False

Question 15

The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is

Accepted Answer

A)  termination. 
B)  advertising. 
C)  territories. 
D)  product line. 
E)  None of the above 
A)  termination. 
B)  advertising. 
C)  territories. 
D)  product line. 
E)  None of the above

Question 16

If an international agreement between an exporter and an agent/distributor grants a monopoly to the agent/distributor,that agent/distributor is considered to be

Accepted Answer

A)  operating illegally. 
B)  a subsidiary of the exporting company. 
C)  an exclusive representative. 
D)  operating under a force majeure clause. 
E)  None of the above 
A)  operating illegally. 
B)  a subsidiary of the exporting company. 
C)  an exclusive representative. 
D)  operating under a force majeure clause. 
E)  None of the above

Question 17

While an exporter and distributor can agree on what the distributor can add for margin on the wholesale price of goods,in agency contracts

Accepted Answer

A)  commissions are limited to U.S.$ 1.2 million per quarter. 
B)  the commission is limited to 12 percent. 
C)  the commission is whatever the agent decides it should be. 
D)  commissions are set by the UCC. 
E)  None of the above 
A)  commissions are limited to U.S.$ 1.2 million per quarter. 
B)  the commission is limited to 12 percent. 
C)  the commission is whatever the agent decides it should be. 
D)  commissions are set by the UCC. 
E)  None of the above

Question 18

The European Union tends not to recognize exclusive territories that limit an agent or distributor to one country.

Accepted Answer

A) True 
 B)False

Question 19

When an international distribution contract between an exporter and an agent/distributor is terminated for "just cause," in most cases the termination is made by the

Accepted Answer

A)  agent/distributor. 
B)  government of the agent/distributor. 
C)  exporter. 
D)  government of the exporter. 
E)  None of the above 
A)  agent/distributor. 
B)  government of the agent/distributor. 
C)  exporter. 
D)  government of the exporter. 
E)  None of the above

Question 20

If the country in which an arbitration takes place is one of the 130 signatory countries to the New York Convention on the Enforcement of Foreign Arbitral Awards,then the ruling can be enforced just about anywhere.

Accepted Answer

A) True 
 B)False

The United Nations Convention on Contracts for the International Sale of Goods (CISG)considers a contract to have been accepted

Contracts contain a force majeure clause which dissolves the contract in the event of a major unforeseen event,like a ship sinking in a storm.Loosely translated,force majeure means

Contracts normally contain a clause that annuls the contract in the event of an overwhelming unforeseen event like a major storm or fire.This is called an evergreen provision.

The scope of appointment clause is usually the first clause of a contract.

Under the Uniform Commercial Code,an offer can be withdrawn at any time,without prejudice.

An agreement between an exporter and an agent/distributor may state that the laws of the exporter's country apply to governing of the contract.This can be complicated by

An exporter's termination of a relationship with an agent/distributor on the basis of "convenience" is

Instead of using courts to settle disputes,an increasing number of contracts call for disputes to be settled by

Agreements between an exporter and an agent and agreements between an exporter and a distributor are called distribution contracts.

Unless otherwise specified,contracts between an exporter and an agent and contracts between an exporter and a distributor are called

A contract is entered in good faith when neither of the parties has any other ulterior motive about the agreement.

An agent can negotiate prices,delivery,or other sales terms with the buyer (importer)without direction from the exporter.

The "facilities and activities" clause of a contract between an exporter and an agent/distributor spells out what kind of docking arrangements will be made when the goods arrive by ship into the agent/distributor's country.

The scope of appointment clause of a contract usually prevents an agent or distributor to "cherry pick" the most profitable products for extra selling effort and to minimize effort toward less profitable products.

The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is

If an international agreement between an exporter and an agent/distributor grants a monopoly to the agent/distributor,that agent/distributor is considered to be

While an exporter and distributor can agree on what the distributor can add for margin on the wholesale price of goods,in agency contracts

The European Union tends not to recognize exclusive territories that limit an agent or distributor to one country.

When an international distribution contract between an exporter and an agent/distributor is terminated for "just cause," in most cases the termination is made by the

If the country in which an arbitration takes place is one of the 130 signatory countries to the New York Convention on the Enforcement of Foreign Arbitral Awards,then the ruling can be enforced just about anywhere.

Introduction

International Supply Chain Management

International Logistics Infrastructure

Methods of Entry into Foreign Markets

Terms of Trade or Incoterms

Terms of Payment

Currency of Payment (Managing Transaction Risks)

International Commercial Documents

International Insurance

International Ocean Transportation

International Air Transportation

International Land and Multi-Modal Transportation

Packaging for Export

International Logistics Security

Customs Clearance

Using International Logistics for Strategic Advantage

Filters

Exam 5: International Contracts

The United Nations Convention on Contracts for the International Sale of Goods (CISG)considers a contract to have been accepted

Contracts contain a force majeure clause which dissolves the contract in the event of a major unforeseen event,like a ship sinking in a storm.Loosely translated,force majeure means

Contracts normally contain a clause that annuls the contract in the event of an overwhelming unforeseen event like a major storm or fire.This is called an evergreen provision.

The scope of appointment clause is usually the first clause of a contract.

Under the Uniform Commercial Code,an offer can be withdrawn at any time,without prejudice.

An agreement between an exporter and an agent/distributor may state that the laws of the exporter's country apply to governing of the contract.This can be complicated by

An exporter's termination of a relationship with an agent/distributor on the basis of "convenience" is

Instead of using courts to settle disputes,an increasing number of contracts call for disputes to be settled by

Agreements between an exporter and an agent and agreements between an exporter and a distributor are called distribution contracts.

Unless otherwise specified,contracts between an exporter and an agent and contracts between an exporter and a distributor are called

A contract is entered in good faith when neither of the parties has any other ulterior motive about the agreement.

An agent can negotiate prices,delivery,or other sales terms with the buyer (importer)without direction from the exporter.

The "facilities and activities" clause of a contract between an exporter and an agent/distributor spells out what kind of docking arrangements will be made when the goods arrive by ship into the agent/distributor's country.

The scope of appointment clause of a contract usually prevents an agent or distributor to "cherry pick" the most profitable products for extra selling effort and to minimize effort toward less profitable products.

The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is

If an international agreement between an exporter and an agent/distributor grants a monopoly to the agent/distributor,that agent/distributor is considered to be

While an exporter and distributor can agree on what the distributor can add for margin on the wholesale price of goods,in agency contracts

The European Union tends not to recognize exclusive territories that limit an agent or distributor to one country.

When an international distribution contract between an exporter and an agent/distributor is terminated for "just cause," in most cases the termination is made by the

If the country in which an arbitration takes place is one of the 130 signatory countries to the New York Convention on the Enforcement of Foreign Arbitral Awards,then the ruling can be enforced just about anywhere.

Introduction

International Supply Chain Management

International Logistics Infrastructure

Methods of Entry into Foreign Markets

Terms of Trade or Incoterms

Terms of Payment

Currency of Payment (Managing Transaction Risks)

International Commercial Documents

International Insurance

International Ocean Transportation

International Air Transportation

International Land and Multi-Modal Transportation

Packaging for Export

International Logistics Security

Customs Clearance

Using International Logistics for Strategic Advantage

Filters