Question 1

A ________ is pre-contractual offer that describes a product, states a price for it, sets the time of shipment, and specifies the sale and payment terms:

Accepted Answer

A)  Pro forma invoice 
B)  Commercial invoice 
C)  Packing list 
D)  Bill of lading 
E)  Consular invoice 
A)  Pro forma invoice 
B)  Commercial invoice 
C)  Packing list 
D)  Bill of lading 
E)  Consular invoice A

Question 2

An Airway bill of lading covers only international flights.

Accepted Answer

A) True 
 B)False  False

Question 3

A received-for-shipment bill of lading warrants that the goods have been placed upon the ship.

Accepted Answer

A) True 
 B)False  False

Question 4

The bill of lading is issued by the seller.

Accepted Answer

A) True 
 B)False

Question 5

A time draft signed and stamped by a merchant is called a:

Accepted Answer

A)  Trade acceptance 
B)  Merchant's acceptance 
C)  Banker's acceptance 
D)  Documentary acceptance 
A)  Trade acceptance 
B)  Merchant's acceptance 
C)  Banker's acceptance 
D)  Documentary acceptance

Question 6

Destination contracts are more common in international trade than shipment contracts.

Accepted Answer

A) True 
 B)False

Question 7

Generally, insurance certificates are non-negotiable.

Accepted Answer

A) True 
 B)False

Question 8

The method of export pricing which considers the direct, out-of-pocket expenses of producing and selling products for export as a floor beneath which prices cannot be set without incurring a loss is known as the cost-plus method.

Accepted Answer

A) True 
 B)False

Question 9

A marine insurance certificate is not limited to ocean transport and can be used for multi-modal transport.

Accepted Answer

A) True 
 B)False

Question 10

In letter of credit transactions, a ________ is necessary for the shipper to obtain payment from the bank:

Accepted Answer

A)  Clean Bill of lading 
B)  Clean, On-Board, Order Bill of Lading 
C)  Clean, Received-for-shipment, Straight Bill of Lading 
D)  Clean, On-Board, Straight Bill of Lading 
E)  Clean, Received-for-shipment, Order Bill of Lading 
A)  Clean Bill of lading 
B)  Clean, On-Board, Order Bill of Lading 
C)  Clean, Received-for-shipment, Straight Bill of Lading 
D)  Clean, On-Board, Straight Bill of Lading 
E)  Clean, Received-for-shipment, Order Bill of Lading

Question 11

Under FOB and FAS, the buyer bears all risks for loss as the goods are loaded onto a ship.

Accepted Answer

A) True 
 B)False

Question 12

How does the documentary transaction serve to reduce the risk of both the buyer and the seller?

Accepted Answer

Documentary transactions, often facilita

Question 13

A certificate of origin is an invoice certified by the consul of the country of import.

Accepted Answer

A) True 
 B)False

Question 14

In a documentary transaction, the seller is payee and the buyer is drawer of the documentary draft.

Accepted Answer

A) True 
 B)False

Question 15

The statute of limitations under COGSA for filing a suit for loss against a carrier is:

Accepted Answer

A)  6 months 
B)  1 year 
C)  18 months 
D)  2 years 
A)  6 months 
B)  1 year 
C)  18 months 
D)  2 years

Question 16

In international consignment sales, the exporter retains title to the goods until the distributor sells them.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following are the basic methods of payment in international trade ranked in order of the most secure for the importer-buyer:

Accepted Answer

A)  Open account; documentary credit; documentary collection; cash in advance 
B)  Cash in advance; documentary credit; documentary collection; open account 
C)  Cash in advance; documentary collection; documentary credit; open account 
D)  Open account; documentary collection; documentary credit; cash in advance 
A)  Open account; documentary credit; documentary collection; cash in advance 
B)  Cash in advance; documentary credit; documentary collection; open account 
C)  Cash in advance; documentary collection; documentary credit; open account 
D)  Open account; documentary collection; documentary credit; cash in advance

Question 18

All of the following Incoterm trade terms can be used for multi-modal transport except which of the following:

Accepted Answer

A)  FCA 
B)  CPT 
C)  FAS 
D)  DDU 
E)  DDP 
A)  FCA 
B)  CPT 
C)  FAS 
D)  DDU 
E)  DDP

Question 19

Under COGSA, if a receiving party receives goods in which there is a loss and the loss is not apparent at the time of receiving the goods, then notice must be given in writing within:

Accepted Answer

A)  3 days 
B)  5 days 
C)  7 days 
D)  15 days 
E)  None of the above 
A)  3 days 
B)  5 days 
C)  7 days 
D)  15 days 
E)  None of the above

Question 20

A bill of lading serves all of the following functions except:

Accepted Answer

A)  Title document 
B)  Evidence of receipt that the goods were delivered to a vessel 
C)  Valuation for customs purposes 
D)  Carriage contract between the ship owner and shipper 
A)  Title document 
B)  Evidence of receipt that the goods were delivered to a vessel 
C)  Valuation for customs purposes 
D)  Carriage contract between the ship owner and shipper

A ________ is pre-contractual offer that describes a product, states a price for it, sets the time of shipment, and specifies the sale and payment terms:

An Airway bill of lading covers only international flights.

A received-for-shipment bill of lading warrants that the goods have been placed upon the ship.

The bill of lading is issued by the seller.

A time draft signed and stamped by a merchant is called a:

Destination contracts are more common in international trade than shipment contracts.

Generally, insurance certificates are non-negotiable.

The method of export pricing which considers the direct, out-of-pocket expenses of producing and selling products for export as a floor beneath which prices cannot be set without incurring a loss is known as the cost-plus method.

A marine insurance certificate is not limited to ocean transport and can be used for multi-modal transport.

In letter of credit transactions, a ________ is necessary for the shipper to obtain payment from the bank:

Under FOB and FAS, the buyer bears all risks for loss as the goods are loaded onto a ship.

How does the documentary transaction serve to reduce the risk of both the buyer and the seller?

A certificate of origin is an invoice certified by the consul of the country of import.

In a documentary transaction, the seller is payee and the buyer is drawer of the documentary draft.

The statute of limitations under COGSA for filing a suit for loss against a carrier is:

In international consignment sales, the exporter retains title to the goods until the distributor sells them.

Which of the following are the basic methods of payment in international trade ranked in order of the most secure for the importer-buyer:

All of the following Incoterm trade terms can be used for multi-modal transport except which of the following:

Under COGSA, if a receiving party receives goods in which there is a loss and the loss is not apparent at the time of receiving the goods, then notice must be given in writing within:

A bill of lading serves all of the following functions except:

Introduction to International Business Transactions

Ethics of International Business

Strategies for International Business

International Commercial Dispute Resolution

International National Trade Regulation

The European Union EU

Emergence of China

Comparative Legal Systems

Comparative International Contract Law

International Sales Law

Transport of Goods

International Trade Finance

Employment Sale of Services

Law of Intellectual Property Rights Licensing

Foreign Direct Investment Sustainability

International E-Commerce

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Exam 12: Documentary Transactions

A ________ is pre-contractual offer that describes a product, states a price for it, sets the time of shipment, and specifies the sale and payment terms:

An Airway bill of lading covers only international flights.

A received-for-shipment bill of lading warrants that the goods have been placed upon the ship.

The bill of lading is issued by the seller.

A time draft signed and stamped by a merchant is called a:

Destination contracts are more common in international trade than shipment contracts.

Generally, insurance certificates are non-negotiable.

The method of export pricing which considers the direct, out-of-pocket expenses of producing and selling products for export as a floor beneath which prices cannot be set without incurring a loss is known as the cost-plus method.

A marine insurance certificate is not limited to ocean transport and can be used for multi-modal transport.

In letter of credit transactions, a ________ is necessary for the shipper to obtain payment from the bank:

Under FOB and FAS, the buyer bears all risks for loss as the goods are loaded onto a ship.

How does the documentary transaction serve to reduce the risk of both the buyer and the seller?

A certificate of origin is an invoice certified by the consul of the country of import.

In a documentary transaction, the seller is payee and the buyer is drawer of the documentary draft.

The statute of limitations under COGSA for filing a suit for loss against a carrier is:

In international consignment sales, the exporter retains title to the goods until the distributor sells them.

Which of the following are the basic methods of payment in international trade ranked in order of the most secure for the importer-buyer:

All of the following Incoterm trade terms can be used for multi-modal transport except which of the following:

Under COGSA, if a receiving party receives goods in which there is a loss and the loss is not apparent at the time of receiving the goods, then notice must be given in writing within:

A bill of lading serves all of the following functions except:

Introduction to International Business Transactions

Ethics of International Business

Strategies for International Business

International Commercial Dispute Resolution

International National Trade Regulation

The European Union EU

Emergence of China

Comparative Legal Systems

Comparative International Contract Law

International Sales Law

Transport of Goods

International Trade Finance

Employment Sale of Services

Law of Intellectual Property Rights Licensing

Foreign Direct Investment Sustainability

International E-Commerce

Filters