Exam 12: Documentary Transactions

Under the CFR trade term, the buyer pays for insurance.

In international transactions, the seller's risk is known as ________ and the buyer's risk is known as __________:

A _______ transfers title to goods and makes the documentary transaction possible:

In a documentary transaction, a sale of goods contract is converted into a sale of documents contract.

The current effort to electronically transmit all standard shipping documents is known as the:

Provide one example of a trade term from each of the four groups in Incoterms. Explain the meaning of each term and note where the risk of loss passes from seller to buyer.

A letter of indemnity allows a carrier to release goods to a consignee not yet in possession of the bill of lading.

The documentary transaction requires the buyer and seller to enlist the services of third parties. Briefly describe the role banks, inspection agents, insurance companies, freight forwarders, common carriers and customs brokers play in the documentary transaction.

A __________ is an international customs document for the temporary duty-free import of goods into a country for display, demonstration, or other purposes:

Airway bills of lading must be properly endorsed by the buyer and surrendered to the carrier in order for the buyer to claim the goods.

What functions does a bill of lading serve? Describe the various types of bills of lading and their purposes.

A ________ bill of lading can be bought, sold, or traded while goods are in transit and is used for letter-of-credit transactions:

A "Documents against Acceptance" type of documentary collections requires the buyer to sign a sight draft before receiving the necessary documents.

Under which of the following trade terms would the seller's quotation cover all costs up to and including delivery of goods aboard an overseas vessel.

U.S. Customs requires a Shippers Export Declaration for all exports valued at more than:

Name seven documents needed for exporting. Explain the purpose of each document and its purpose.

All of the following are title documents except:

Under an Airway bill of lading, a shipper has the right to increase the carrier's liability by declaring a higher value for carriage and paying a supplemental charge.

Under the trade terms Ex-Factory, the seller is responsible for paying the cost of transport to the seller's factory.

C&F and C. I.F. are destination contracts.