Question 1

Compare and contrast the circumstances under which a buyer would and would not accept "E"-term contracts.

Accepted Answer

"Compare and contrast the circumstances

Question 2

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 3

The title of the goods sold in a documentary sale is transferred through:

Accepted Answer

A)  Negotiation of the document only. 
B)  Delivery of the goods only. 
C)  Negotiation of the document and delivery of the goods. 
D)  Title to the goods is not transferred in a documentary sale. 
A)  Negotiation of the document only. 
B)  Delivery of the goods only. 
C)  Negotiation of the document and delivery of the goods. 
D)  Title to the goods is not transferred in a documentary sale.

Question 4

Under contract terms "DES Stockholm," the seller must pay the ocean freight to Stockholm,but the buyer pays the unloading charges at the Stockholm terminal.

Accepted Answer

A) True 
 B)False

Question 5

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 6

In the U.S.,the use of bills of lading is governed by:

Accepted Answer

A)  Federal Bills of Lading Act. 
B)  The Convention on Contracts for the International Sale of Goods. 
C)  Incoterms. 
D)  None of the above. 
A)  Federal Bills of Lading Act. 
B)  The Convention on Contracts for the International Sale of Goods. 
C)  Incoterms. 
D)  None of the above.

Question 7

Because importers and exporters assume different risks,the most preferred way to conduct business and minimize these risks is:

Accepted Answer

A)  Cash in advance. 
B)  Open account. 
C)  Documentary sale. 
D)  All of the above. 
A)  Cash in advance. 
B)  Open account. 
C)  Documentary sale. 
D)  All of the above.

Question 8

The government of Venezuela is purchasing a large quantity of American beans to be loaded on its own ship at the port of New Orleans.The buyer will arrange to have its vessel loaded and will obtain its own export licenses.The seller may be asked to quote its prices:

Accepted Answer

A)  FOB New Orleans. 
B)  CIF Venezuela. 
C)  FAS Venezuelan vessel. 
D)  DEQ Venezuelan port. 
E)  None of the above. 
A)  FOB New Orleans. 
B)  CIF Venezuela. 
C)  FAS Venezuelan vessel. 
D)  DEQ Venezuelan port. 
E)  None of the above.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Under an FOB contract,the bill of lading need not be market "Freight Prepaid."

Accepted Answer

A) True 
 B)False

Question 11

According to Incoterms,the trade term that represents the maximum responsibility of the seller is:

Accepted Answer

A)  Carriage and Insurance Paid To. 
B)  Delivered Duty Paid. 
C)  Ex Works. 
D)  Delivered at Frontier. 
E)  None of the above. 
A)  Carriage and Insurance Paid To. 
B)  Delivered Duty Paid. 
C)  Ex Works. 
D)  Delivered at Frontier. 
E)  None of the above.

Question 12

What term from Incoterms 2000 would you recommend under each of these scenarios?
A transaction wherein an American seller is to transport the goods by sea from the port of Oakland,California to Vancouver,Canada and the Canadian buyer's sole obligations are to arrange for import clearance and purchase insurance against loss from the moment the goods cross the ship's rail.
A transaction wherein a Greek buyer seeks to impose all obligations on the French seller,including export clearance,the cost of insurance,transportation of the goods by sea from Marseille,France,and import clearance at Piraeus,Greece,the port of destination.
A transaction wherein a Dutch seller wishes to limit its obligations to notification of the American buyer that the goods are available for pickup at the seller's warehouse in Antwerp,Netherlands.
A transaction wherein an American seller is to deliver the goods on board a ship in New York and arrange for export clearance for ultimate shipment to Rio de Janiero with the Brazilian buyer responsible for contracting with the carrier,the cost of obtaining insurance and obtaining import clearance.
A transaction wherein a Canadian seller is to transport the goods by sea from Halifax,arrange for export clearance,unload the goods at their final destination in Oslo,Norway and make them available on the wharf while the buyer arranges for import clearance in Norway.
A transaction wherein a Belgian seller is to deliver the goods to the wharf at the port of Antwerp,provide a receipt evidencing such delivery and facilitate export clearance with the Swedish buyer responsible for contracting with a carrier for their transport to Stockholm and bearing all risk of loss from the moment the goods are placed alongside the ship.
A transaction wherein a Mexican seller is to contract for motor carriage of the goods,deliver the goods to another motor carrier for transport across the U.S.border,pay unloading and loading costs,arrange for export clearance and obtain insurance on the U.S.buyer's behalf for final delivery to Phoenix,Arizona.

Accepted Answer

CFR.The C Group of Incoterms 2000 signif

Question 13

A good faith purchaser is one who purchases a document of title:

Accepted Answer

A)  For value, in good faith, in the ordinary course of business. 
B)  For value, in good faith, directly from the seller. 
C)  In good faith and by endorsement from the seller's bank. 
D)  With understanding that the seller had acted in good faith in selling the goods. 
A)  For value, in good faith, in the ordinary course of business. 
B)  For value, in good faith, directly from the seller. 
C)  In good faith and by endorsement from the seller's bank. 
D)  With understanding that the seller had acted in good faith in selling the goods.

Question 14

The difference between terms "CFR" and "CIF" is that under "CIF" term of sale,the buyer must procure his own marine insurance coverage on the goods.

Accepted Answer

A) True 
 B)False

Question 15

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 the above. 
A)  Incoterms. 
B)  Uniform Commercial Code 
C)  The Revised American Foreign Trade Definitions 
D)  All of the above.

Question 16

The documentary sales transaction serves to protect not only the seller,but also the buyer.

Accepted Answer

A) True 
 B)False

Question 17

Inspection certificates are often used to assure that a shipment will conform to the specifications required by the buyer.

Accepted Answer

A) True 
 B)False

Question 18

A entrusts a shipment of eel skins to an ocean carrier and obtains a bill of lading.The carrier delivers the goods to B without asking B to produce the document.Without knowledge of what has occurred,A sells the bill of lading to C,who is a good faith purchaser.In this case:

Accepted Answer

A)  C may not reclaim the goods because they have already been delivered by the carrier. 
B)  C has a cause of action against the carrier for misdelivery. 
C)  C has a cause of action against A for fraud. 
D)  The carrier is liable for a crime committed against A. 
E)  All of the above. 
A)  C may not reclaim the goods because they have already been delivered by the carrier. 
B)  C has a cause of action against the carrier for misdelivery. 
C)  C has a cause of action against A for fraud. 
D)  The carrier is liable for a crime committed against A. 
E)  All of the above.

Question 19

The documentary sale is a modern commercial practice devised by the United Nations Commission on International Trade Law.

Accepted Answer

A) True 
 B)False

Question 20

The two types of contracts named for the point at which responsibility for loss is transferred from seller to buyer is:

Accepted Answer

A)  Point of import, point of export. 
B)  Origination, destination. 
C)  Destination, shipment. 
D)  None of the above; the seller always assumes the risk of shipment. 
A)  Point of import, point of export. 
B)  Origination, destination. 
C)  Destination, shipment. 
D)  None of the above; the seller always assumes the risk of shipment.

Compare and contrast the circumstances under which a buyer would and would not accept "E"-term 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.

The title of the goods sold in a documentary sale is transferred through:

Under contract terms "DES Stockholm," the seller must pay the ocean freight to Stockholm,but the buyer pays the unloading charges at the Stockholm terminal.

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.

In the U.S.,the use of bills of lading is governed by:

Because importers and exporters assume different risks,the most preferred way to conduct business and minimize these risks is:

The government of Venezuela is purchasing a large quantity of American beans to be loaded on its own ship at the port of New Orleans.The buyer will arrange to have its vessel loaded and will obtain its own export licenses.The seller may be asked to quote its prices:

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

Under an FOB contract,the bill of lading need not be market "Freight Prepaid."

According to Incoterms,the trade term that represents the maximum responsibility of the seller is:

A good faith purchaser is one who purchases a document of title:

The difference between terms "CFR" and "CIF" is that under "CIF" term of sale,the buyer must procure his own marine insurance coverage on the goods.

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

The documentary sales transaction serves to protect not only the seller,but also the buyer.

Inspection certificates are often used to assure that a shipment will conform to the specifications required by the buyer.

A entrusts a shipment of eel skins to an ocean carrier and obtains a bill of lading.The carrier delivers the goods to B without asking B to produce the document.Without knowledge of what has occurred,A sells the bill of lading to C,who is a good faith purchaser.In this case:

The documentary sale is a modern commercial practice devised by the United Nations Commission on International Trade Law.

The two types of contracts named for the point at which responsibility for loss is transferred from seller to buyer is:

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

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Exam 5: The Documentary Sale and Terms of Trade

Compare and contrast the circumstances under which a buyer would and would not accept "E"-term 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.

The title of the goods sold in a documentary sale is transferred through:

Under contract terms "DES Stockholm," the seller must pay the ocean freight to Stockholm,but the buyer pays the unloading charges at the Stockholm terminal.

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.

In the U.S.,the use of bills of lading is governed by:

Because importers and exporters assume different risks,the most preferred way to conduct business and minimize these risks is:

The government of Venezuela is purchasing a large quantity of American beans to be loaded on its own ship at the port of New Orleans.The buyer will arrange to have its vessel loaded and will obtain its own export licenses.The seller may be asked to quote its prices:

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

Under an FOB contract,the bill of lading need not be market "Freight Prepaid."

According to Incoterms,the trade term that represents the maximum responsibility of the seller is:

A good faith purchaser is one who purchases a document of title:

The difference between terms "CFR" and "CIF" is that under "CIF" term of sale,the buyer must procure his own marine insurance coverage on the goods.

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

The documentary sales transaction serves to protect not only the seller,but also the buyer.

Inspection certificates are often used to assure that a shipment will conform to the specifications required by the buyer.

A entrusts a shipment of eel skins to an ocean carrier and obtains a bill of lading.The carrier delivers the goods to B without asking B to produce the document.Without knowledge of what has occurred,A sells the bill of lading to C,who is a good faith purchaser.In this case:

The documentary sale is a modern commercial practice devised by the United Nations Commission on International Trade Law.

The two types of contracts named for the point at which responsibility for loss is transferred from seller to buyer is:

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