Question 1

Under the terms "Ex Factory," the seller is responsible for transporting the goods to the buyer's factory.

Accepted Answer

A) True 
 B)False  False

Question 2

The seller issues the bill of lading.

Accepted Answer

A) True 
 B)False  False

Question 3

In an international transaction,the seller risk is called "credit risk" and the buyer's risk is called "delivery risk."

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

The risk of loss and expenses associated

Question 5

A clean bill of lading does not protect the buyer from receiving damaged goods.

Accepted Answer

A) True 
 B)False

Question 6

Negotiable documents 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 7

Compare and contrast the instances in which an individual holding a bill of lading will and will not be protected from the adverse claims of third parties.

Accepted Answer

An individual holding a bill of lading w

Question 8

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:

Accepted Answer

A)  DES Lisbon. 
B)  FAS Lisbon. 
C)  CIF Lisbon. 
D)  DEQ Lisbon. 
E)  None of the above. 
A)  DES Lisbon. 
B)  FAS Lisbon. 
C)  CIF Lisbon. 
D)  DEQ Lisbon. 
E)  None of the above.

Question 9

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

Accepted Answer

A)  The goods cross the ship's rail at the port of shipment. 
B)  The goods are unloaded at the port of destination. 
C)  Title to the goods passes to the seller. 
D)  The goods leave the seller's place of business. 
A)  The goods cross the ship's rail at the port of shipment. 
B)  The goods are unloaded at the port of destination. 
C)  Title to the goods passes to the seller. 
D)  The goods leave the seller's place of business.

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  A received-for-shipment bill of lading. 
B)  An on-board bill of lading. 
C)  A negotiable bill of lading. 
D)  A straight bill of lading. 
A)  A received-for-shipment bill of lading. 
B)  An on-board bill of lading. 
C)  A negotiable bill of lading. 
D)  A straight bill of lading.

Question 12

Consider when a shipping term as opposed to contradictory contract language will be most persuasive in identifying the type of contract.Vice versa?

Accepted Answer

In the context of international trade, s

Question 13

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 14

Both negotiable instruments and negotiable documents serve as substitutes for money.

Accepted Answer

A) True 
 B)False

Question 15

When would and would not a bill of exchange constitute bearer paper?

Accepted Answer

A bill of exchange can constitute bearer

Question 16

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:

Accepted Answer

A)  FAS Omaha. 
B)  CIF seller's plant. 
C)  FOB port of shipment. 
D)  FCA Omaha. 
E)  None of the above. 
A)  FAS Omaha. 
B)  CIF seller's plant. 
C)  FOB port of shipment. 
D)  FCA Omaha. 
E)  None of the above.

Question 17

Draft a contract that includes shipping terms.

Accepted Answer

Sure, here is a draft of a contract that

Question 18

A sale made with terms "CIF Tokyo" includes in the price quoted for the goods which of the following:

Accepted Answer

A)  Cash, in-transit expenses, foreign exchange expenses. 
B)  Cash, insurance, freight. 
C)  Cost, insurance, freight. 
D)  Currency exchange expenses, insurance, freight. 
A)  Cash, in-transit expenses, foreign exchange expenses. 
B)  Cash, insurance, freight. 
C)  Cost, insurance, freight. 
D)  Currency exchange expenses, insurance, freight.

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Under the terms "Ex Factory," the seller is responsible for transporting the goods to the buyer's factory.

The seller issues the bill of lading.

In an international transaction,the seller risk is called "credit risk" and the buyer's risk is called "delivery risk."

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

A clean bill of lading does not protect the buyer from receiving damaged goods.

Negotiable documents of title allow for the transfer of the title to the goods without requiring the owner to take possession of the goods.

Compare and contrast the instances in which an individual holding a bill of lading will and will not be protected from the adverse claims of third parties.

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:

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

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.

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

Consider when a shipping term as opposed to contradictory contract language will be most persuasive in identifying the type of contract.Vice versa?

Both negotiable instruments and negotiable documents serve as substitutes for money.

When would and would not a bill of exchange constitute bearer paper?

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:

Draft a contract that includes shipping terms.

A sale made with terms "CIF Tokyo" includes in the price quoted for the goods which of the following:

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

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

Introduction to International Business

International Law and the Worlds Legal Systems

Resolving International Commercial Disputes

Sales Contracts and Excuses for Nonperformance

The Carriage of Goods and the Liability of Air and Sea Carriers

Bank Collections, Trade Finance, and Letters of Credit

National Lawmaking Powers and the Regulation of Ustrade

Gatt Law and the World Trade Organization: Basic Principles

Laws Governing Access to Foreign Markets

Regulating Import Competition and Unfair Trade

Imports, Customs, and Tariff Law

The Regulation of Exports

North American Free Trade Law

The European Union and Other Regional Trade Areas

International Marketing Law: Sales Representatives, Advertising, and Ethical Issues

Licensing Agreements and the Protection of Intellectual Property Rights

Takings and National Controls on Foreign Direct Investment

Labor and Employment Discrimination Law

Environmental Law

Regulating the Competitive Environment

Filters

Exam 5: The Documentary Sale and Terms of Trade

Under the terms "Ex Factory," the seller is responsible for transporting the goods to the buyer's factory.

The seller issues the bill of lading.

In an international transaction,the seller risk is called "credit risk" and the buyer's risk is called "delivery risk."

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

A clean bill of lading does not protect the buyer from receiving damaged goods.

Negotiable documents of title allow for the transfer of the title to the goods without requiring the owner to take possession of the goods.

Compare and contrast the instances in which an individual holding a bill of lading will and will not be protected from the adverse claims of third parties.

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:

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

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.

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

Consider when a shipping term as opposed to contradictory contract language will be most persuasive in identifying the type of contract.Vice versa?

Both negotiable instruments and negotiable documents serve as substitutes for money.

When would and would not a bill of exchange constitute bearer paper?

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:

Draft a contract that includes shipping terms.

A sale made with terms "CIF Tokyo" includes in the price quoted for the goods which of the following:

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

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

Introduction to International Business

International Law and the Worlds Legal Systems

Resolving International Commercial Disputes

Sales Contracts and Excuses for Nonperformance

The Carriage of Goods and the Liability of Air and Sea Carriers

Bank Collections, Trade Finance, and Letters of Credit

National Lawmaking Powers and the Regulation of Ustrade

Gatt Law and the World Trade Organization: Basic Principles

Laws Governing Access to Foreign Markets

Regulating Import Competition and Unfair Trade

Imports, Customs, and Tariff Law

The Regulation of Exports

North American Free Trade Law

The European Union and Other Regional Trade Areas

International Marketing Law: Sales Representatives, Advertising, and Ethical Issues

Licensing Agreements and the Protection of Intellectual Property Rights

Takings and National Controls on Foreign Direct Investment

Labor and Employment Discrimination Law

Environmental Law

Regulating the Competitive Environment

Filters