Question 1

The bill of lading serves as a contract of carriage between the buyer and seller.

Accepted Answer

A) True 
 B)False

Question 2

What are the benefits and possible detriments of using an inspection firm?

Accepted Answer

Using an inspection firm can have severa

Question 3

B is known in the trade as a trader and merchant of soybeans.A entrusts a load of soybeans to B for storage in B's warehouse.Secretly,B delivers the goods to an ocean carrier in return for a bill of lading.B then sells the document covering a shipment of soybeans to C,who has purchased soybeans from B in the past.C pays for the document through its bank.B absconds with the money.In this case:

Accepted Answer

A)  A may demand return of the soybeans from C. 
B)  C has greater rights in the soybeans than A. 
C)  A's only remedy is against the ocean carrier. 
D)  C's bank is liable for committing a conspiracy against A. 
A)  A may demand return of the soybeans from C. 
B)  C has greater rights in the soybeans than A. 
C)  A's only remedy is against the ocean carrier. 
D)  C's bank is liable for committing a conspiracy against A.

Question 4

The St.Paul Guardian Ins.v.Neuromed Systems case held that shipping terms must be defined according to the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 5

Another term for a negotiable bill of lading is a documentary draft.

Accepted Answer

A) True 
 B)False

Question 6

A carrier is entitled to release a shipment covered by a negotiable bill of lading to a holder in possession of a clean copy of the bill of lading only if the holder also presents a written guarantee of ownership.

Accepted Answer

A) True 
 B)False

Question 7

Bills of lading are negotiable instruments but cannot be used as collateral for an outstanding debt.

Accepted Answer

A) True 
 B)False

Question 8

The documentary collection is the process by which:

Accepted Answer

A)  Buyers collect their goods at the port of entry. 
B)  Carriers consolidate cargo for shipment on a vessel. 
C)  Banks collect payment from the buyer. 
D)  Sellers must place their account into the hands of a debt collection agency in order to obtain payment from the buyer. 
A)  Buyers collect their goods at the port of entry. 
B)  Carriers consolidate cargo for shipment on a vessel. 
C)  Banks collect payment from the buyer. 
D)  Sellers must place their account into the hands of a debt collection agency in order to obtain payment from the buyer.

Question 9

The risk of loss in a ____ contract passes to the buyer when the goods are tendered to the buyer at that place; and the risk of loss in a(n)____ contract passes to the buyer when the goods are delivered to the carrier at the port or place of origin.

Accepted Answer

A)  Shipment; destination. 
B)  Point of import; point of export. 
C)  Destination; origination. 
D)  Destination; shipment. 
A)  Shipment; destination. 
B)  Point of import; point of export. 
C)  Destination; origination. 
D)  Destination; shipment.

Question 10

Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods,CIF port of Amsterdam.The seller refused to ship.The buyer brings an action for damages.In the United States,a court would probably rule that:

Accepted Answer

A)  The seller was correct in not shipping until payment was received. 
B)  The damages should be measured by the difference between the contract price and the market price of the goods at the port of shipment. 
C)  The damages should be measured by the difference between the contract price and the market price of the goods in Amsterdam at the time the documents would have been presented to the buyer for payment. 
D)  None of the above. 
A)  The seller was correct in not shipping until payment was received. 
B)  The damages should be measured by the difference between the contract price and the market price of the goods at the port of shipment. 
C)  The damages should be measured by the difference between the contract price and the market price of the goods in Amsterdam at the time the documents would have been presented to the buyer for payment. 
D)  None of the above.

Question 11

The Bolero project is an international treaty requiring trading nations to implement uniform Electronic Data Interchange for the electronic transfer of documents.

Accepted Answer

A) True 
 B)False

Question 12

If the seller wishes to make his goods available to the buyer at his place of business with the buyer arranging all transportation and bearing all risks from the time the goods leave the seller's door,the seller should quote his prices:

Accepted Answer

A)  Ex carriage. 
B)  CIF seller's factory. 
C)  Ex factory. 
D)  FAS seller's dock. 
E)  None of the above. 
A)  Ex carriage. 
B)  CIF seller's factory. 
C)  Ex factory. 
D)  FAS seller's dock. 
E)  None of the above.

Question 13

Because negotiable bearer documents are transferred by delivery,they are not used in foreign trade.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following documents are always required in a documentary collection for the sale of goods:

Accepted Answer

A)  The draft, invoice, and bill of lading. 
B)  The invoice, bill of lading, and delivery order. 
C)  The certificate of origin, insurance policy, and invoice. 
D)  The draft, insurance policy, and invoice. 
A)  The draft, invoice, and bill of lading. 
B)  The invoice, bill of lading, and delivery order. 
C)  The certificate of origin, insurance policy, and invoice. 
D)  The draft, insurance policy, and invoice.

Question 15

There are many different types of bills of lading.The one that the book advises that most buyers insist the seller provide is:

Accepted Answer

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

Question 16

Bills of lading are meant to be:

Accepted Answer

A)  Substitutes for money. 
B)  A means of transferring goods to buyers. 
C)  Sight drafts. 
D)  Guarantees for payment of the goods. 
A)  Substitutes for money. 
B)  A means of transferring goods to buyers. 
C)  Sight drafts. 
D)  Guarantees for payment of the goods.

Question 17

An importer in Germany requests a price quotation from a cotton broker in Memphis.The broker wishes to place the cotton in the hands of a multimodal terminal operator in Memphis for shipment through the port of New Orleans.He will pay the freight charges through to the German seaport,but he wishes the risk of loss to the cotton to pass to the German importer as soon as he places the cotton in the hands of the multimodal terminal operator in Memphis.The broker should quote his prices for the cotton:

Accepted Answer

A)  CIF Germany. 
B)  FOB New Orleans. 
C)  CPT New Orleans. 
D)  Ex Factory. 
E)  None of the above. 
A)  CIF Germany. 
B)  FOB New Orleans. 
C)  CPT New Orleans. 
D)  Ex Factory. 
E)  None of the above.

Question 18

Shipment contracts are more common in international trade than destination contracts.

Accepted Answer

A) True 
 B)False

Question 19

All Incoterms are intended for use with ocean cargo.

Accepted Answer

A) True 
 B)False

Question 20

The Bolero project is a cross-industry system for worldwide electronic transfer of commercial trade information.

Accepted Answer

A) True 
 B)False

The bill of lading serves as a contract of carriage between the buyer and seller.

What are the benefits and possible detriments of using an inspection firm?

The St.Paul Guardian Ins.v.Neuromed Systems case held that shipping terms must be defined according to the Uniform Commercial Code.

Another term for a negotiable bill of lading is a documentary draft.

A carrier is entitled to release a shipment covered by a negotiable bill of lading to a holder in possession of a clean copy of the bill of lading only if the holder also presents a written guarantee of ownership.

Bills of lading are negotiable instruments but cannot be used as collateral for an outstanding debt.

The documentary collection is the process by which:

The risk of loss in a contract passes to the buyer when the goods are tendered to the buyer at that place; and the risk of loss in a(n) contract passes to the buyer when the goods are delivered to the carrier at the port or place of origin.

Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods,CIF port of Amsterdam.The seller refused to ship.The buyer brings an action for damages.In the United States,a court would probably rule that:

The Bolero project is an international treaty requiring trading nations to implement uniform Electronic Data Interchange for the electronic transfer of documents.

If the seller wishes to make his goods available to the buyer at his place of business with the buyer arranging all transportation and bearing all risks from the time the goods leave the seller's door,the seller should quote his prices:

Because negotiable bearer documents are transferred by delivery,they are not used in foreign trade.

Which of the following documents are always required in a documentary collection for the sale of goods:

There are many different types of bills of lading.The one that the book advises that most buyers insist the seller provide is:

Bills of lading are meant to be:

Shipment contracts are more common in international trade than destination contracts.

All Incoterms are intended for use with ocean cargo.

The Bolero project is a cross-industry system for worldwide electronic transfer of commercial trade information.

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

The bill of lading serves as a contract of carriage between the buyer and seller.

What are the benefits and possible detriments of using an inspection firm?

The St.Paul Guardian Ins.v.Neuromed Systems case held that shipping terms must be defined according to the Uniform Commercial Code.

Another term for a negotiable bill of lading is a documentary draft.

A carrier is entitled to release a shipment covered by a negotiable bill of lading to a holder in possession of a clean copy of the bill of lading only if the holder also presents a written guarantee of ownership.

Bills of lading are negotiable instruments but cannot be used as collateral for an outstanding debt.

The documentary collection is the process by which:

The risk of loss in a ____ contract passes to the buyer when the goods are tendered to the buyer at that place; and the risk of loss in a(n)____ contract passes to the buyer when the goods are delivered to the carrier at the port or place of origin.

Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods,CIF port of Amsterdam.The seller refused to ship.The buyer brings an action for damages.In the United States,a court would probably rule that:

The Bolero project is an international treaty requiring trading nations to implement uniform Electronic Data Interchange for the electronic transfer of documents.

If the seller wishes to make his goods available to the buyer at his place of business with the buyer arranging all transportation and bearing all risks from the time the goods leave the seller's door,the seller should quote his prices:

Because negotiable bearer documents are transferred by delivery,they are not used in foreign trade.

Which of the following documents are always required in a documentary collection for the sale of goods:

There are many different types of bills of lading.The one that the book advises that most buyers insist the seller provide is:

Bills of lading are meant to be:

Shipment contracts are more common in international trade than destination contracts.

All Incoterms are intended for use with ocean cargo.

The Bolero project is a cross-industry system for worldwide electronic transfer of commercial trade information.

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

The risk of loss in a contract passes to the buyer when the goods are tendered to the buyer at that place; and the risk of loss in a(n) contract passes to the buyer when the goods are delivered to the carrier at the port or place of origin.