đề ôn Tiếng Anh chuyên ngành 2 FTU

tổng hợp các câu hỏi mẫu đề ôn Tiếng ANh chuyên ngành 2 Đại học NGoại thương tiếng Anh thương mại , hợp đồng, Incoterms, Transfer of risk from the seller to the buyer, Where is often the place of expiry of the credit

ĐỀ 1 Which is the most appropriate method of payment for the exporter in the following case? A new small customer in a Pacific island republic much given to political disturbances The order is for $10,000 worth of assorted textiles D Confirmed letter of credit Transfer of risk from the seller to the buyer (Incoterm 2000): FCA B When the goods are handed to the first carrier The risk of rough handling is covered under the cargo clause: A A Where is often the place of expiry of the credit? C At the counters of the confirming bank What does “3/3 Marine Bill of Lading” mean? A It means the exporter must produce three originals and three copies of the marine bill of lading 11 The exporter’s interests are best served by D A combination of all of the above 13 Inspection by the is called “open package inspection” D Importer 15 If the price is quoted FAS Osaka., who pays for the freight? D The buyer 17 The bill of lading issued by the carrier for road transport is called …… D Road consignment note 19 Which of these does not count as a defect? B Misuse 21 Which corrective method is least favourable for the seller? C Return the goods and refund the price 23 If the bank sees from a marine bill of lading that transport will take place on deck, what will the bank do? A The bank will reject the shipping document if the letter of credit does not allow this 25 When a contract is cancelled, a payment problem arises; the party in breach has a case of payment B Weak 27 Termination for default occurs when the contract names certain which allow on side to terminate B Defaults 29 Termination for convenience occurs when one party simple decides to drop the contract and A No reason is required 31 Bill of lading – found something wrong with the consignment C Claused 33 A Returned shipment to the exporter’s country means: The deal is a total loss for the exporter 35 If the exporter knew the buyer;s intended purpose, and if the buyer relied on the exporter’s knowledge and expertise, the buyer can reject goods that are not suitable for their intended purpose This is called D Implied warranty of fitness for intended purpose 37 What are the set of assumptions with which a price quotation is based? D Delivery, payment and warranty terms 39 Of the options available for settling disputes, litigation before the court is internationally least attractive as it is A Expensive and legalistic The greatest fear for the exporter is… C Being unable to get paid for the goods sold Elderly people are ………………… to deal with a contract B Able A contract requiring an exporter in Mozambique to deliver the contract goods in Beira, Mozambique, for the shipment by sea to Dar es Salaam, Tanzania A FAS Beira The lump-sum compensation is set too high C Penalty 10 Transfer of risk from the seller to the buyer (Incoterm 2000): DEQ A When the goods are ex-quay 12 Which of the following is the objective aimed at by the exporter to minimize the risk of the goods being rejected or of heavy defects liability claims? C Negotiating detailed specifications 14 In a contract, consideration may consist of D Right, interest, profit, detriment and loss 16 …… Bill of Lading – goods were taken on board in good condition A clean 18 All risks covered is under clause A A 20 The names of ………… are normally the full, registered name of the company D the parties 22 Every contract is governed by C Applicable law 24 Which countries require that all goods imported to their countries are inspected by the SGS immediately before shipment? C Indonesia 26 In international contracts, parties try to exclude assignment of rights without B Written consent of parties 28 Thảo chụp thiếu 30 A Title of the goods passes With risks 32 Which of the following statements if TRUE? C The amount of the credit should be expressed both in figures and in words 34 Within the four alternatives of the at-sight letter of credit, which one is the least satisfactory for the exporter? D Settelment by negotiation 36 A bill of lading with the note is B Claused BL 38 What would be the effect on the price of the goods traded if the buyer wants the goods sooners? D The price of the goods will go up as extra costs involved due to extra working shift from the manufacturer 40 Which is the most appropriate method of payment for the exporter in the following case? A contract for supply of cloth worth $5,000 per month to the government of Oceanea – a prosperous country Duration of the contract is years, but renewable Contract represents 25% of turnover C If possible, a bank guarantee Otherwise, export credit insurance 41 Which of the following discrepancies is NOT the problem with Insurance? A Documents are not presented within the required time 43 A contract is a written agreement and it follows the ‘meeting of minds” and C Offer and acceptance 45 What are principles which serve to make the letter of credit watertight B Autonomy and strict compliance 47 The fact that manufacturer often tempted to be overoptimistic and to agree to impossible specifications is in business B risky 49 In most guarantees, the bank agrees to pay “on first demand” which means… D Without demur or objection ĐỀ Which is the most appropriate method of payment for the exporter in the following case? A new small customer in a Pacific island republic much given to political disturbances The order is for $10,000 worth of assorted textiles D Confirmed letter of credit Why letters of credit are formally called ‘documentary credits’?C Because in a letter of credit situation, documents are exchanged for money If either party is prevented from, or delayed in, performing any duty under this Contract by an event beyond his reasonable control, then this event shall be deemed force majeure… The workforce at the factory go on strike C No If the price is quoted FCA, who pays for the freight? C The buyer Termination for convenience occurs when one party simply decides to drop the contract and a No reason is required Why most exporters offer a discount for early payment, for example a 1% discount if payment is made within 10 days of the date of invoice? C Because the exporter can substantially improves his cash flow In negotiating a letter of credit, the step in which the list of all required documentation is incorporated into the contract is ………………… B Incorporation In contracts, “partial invalidity provision” means the invalidity of one part of the contract………… b does not invalidate the rest In settlement by acceptance, what will the bank after receiving the documents and draft drawn on the buyer from the seller? D The bank agrees to pay the bill when it matures In a contract, consideration may consist of …………… d right, interest, profit, detriment, and loss Negotiation of specifications between the exporter and the importer can be b a difficult process In settlement by sight payment ……………… C The seller presents the necessary documents to the paying bank Which of the following concepts is best used to avoid confusion when we mean an assurance that the exporter will make good defects in his goods? c Defects liability Delivery of the goods under most export contracts takes place in the country of …………………… B the exporter 42 Cancellation on grounds makes no legal sense C Trivial 44 In negotiating a LC, the step in which the buyer applies for the letter of credit specifying the agreed documentations is D None of the above 46 The buyer can reject goods that are not of saleable quality.This is called C Implied warranty of merchantability 48 Who usually has to pay for curing defects? B.The seller 50 occurs when contract allows one party to end it under given circumstances A Termination “The Buyer shall notify the Seller of defects without undue delay” This is an example of: B Notification period When the Bill of lading marked “freight prepaid” Who pays for the freight? B B The Seller The main concern of the parties to contract should be b Dispute avoidance Why can a manufacturer sometimes accept a loss on an export deal? D Any of the above In a contract, a formal definition is the best way of clarifying what exactly the two sides have ……… c agreed If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight Right or wrong? C Partly right, as the seller is obliged to pay only the freight and insurance necessary to put the goods on board of the designated vessel by the buyer Discount Records bought phonograph records from an exporter Payment was by letter of credit issued by Barclays Bank The exporter delivered a mix of cassettes, eight – track cartridges and other non - contractual goods Discount Records tried to get an injunction to stop Barclays from paying under the letter of credit What you think the court would in that case? D The exporter will be paid – although later action in the courts may oblige him to make good any damage he has caused the buyer The bill of lading issued by the carrier for road transport is called … D Road consignment note In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is ………………… C Verification Which of the following examples is a patent defect? a Crushed or stained garments An offer dies if it has a/ an ………………… d Revocation A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Namibia B CIP Windhoek When parties agree to end a contract, occurs c Rescission “A machine that consumes more fuel than specifications” is an example of a Latent defect Defects that come to light after buyer’s acceptance are called _ b latent defects If shipment is made on CIF or CIP terms, the letter of credit will call for ……………… D Either A or C Defects may be which of the following? c Both All risks covered is under ……… clause A A The decision of arbitratiors is b Business- oriented Which of the following discrepancies is NOT the problem with the Letter of Credit? C There is no endorsement if endorsement is necessary Which of the following discrepancies is NOT the problem with inconsistencies among the documents? B Documents are not presented within the required time If the force majeure event continues for too long, both parties have the right to B terminate the contract Under most laws, a buyer can make certain assumptions about goods These assumptions are called (by lawyers): c Implied warranties Continental law has well developed private law, especially contract and ……………………… a Commercial law In drafting an arbitration clause, the following questions must be resolved: d All of the above ĐỀ “Door to door” service is offered Which term should be used? A DDP If a contract is entire agreement, early letters and documents… B Become invalid A contract requiring an exporter in Mozambique to deliver contract goods in Beira, Mozambique for the shipment Dar es Salaam, A FAS Beira Continental law is also called … A Civil law (Note: If either party is prevented from, or delayed in, performing any duty under this contract by an event beyond his reasonable control shall be deemed force majeure) A ban issued on the export of jute products by newly elected government.B Questionable 11 If the price is quoted FOB Singapore, then the Seller is not obliged to pay insurance and freight Right or Wrong? C Partly right, as the Seller is obliged to pay only the insurance and freight necessary to put the goods on board of the designated vessel by the buyer 13 Defects such as wrong items, broken or missing parts, scratches and so on are called … A Patent defects 15 The fact that the manufacturer often tempted to over – optimistic to agree to impossible specification is ……… in business B Risky 17 Why letters of credit are often called “documentary credits”? C B/c in the L/C situation, documents are exchanged for money 19 The advantages of arbitration are: A Private and foreseeable cost The clause covers General Average C A,B,C Which of these is the cheapest option for the exporter? a Repair If a dispute arises, the recital allows the court to discover the real meaning of ………… a the contract If alternative means of transport or partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words …………… between the names of transport documents C and/or Another name for Tender Guarantee is …………… D Bid bond The best solution for the exporter to make late payment impossible is… D a confirmed, irrevocable, at sight letter of credit Transfer of risk from the seller to the buyer (Incoterm 2000): CIF C When the goods across the ship’s rail A contract is not enforceable if ………… c it has an illegal purpose Who issues ocean bill of lading? C Shipping company A commercial invoice must be made out to …………… D The applicant for the letter of credit, normally to the buyer, unless otherwise stated in the credit A disclaimer of Warranty often accompanies delivery of: a Software Failure to meet specifications is a: C Defect in design The Bill of Lading issued by carrier for sea transport is called … B Marine bill of lading The bank helping the export to check the correctness of the document and set the procedure in motion is … B The advising bank The lump-sum compensation is set too low: B Quasi indemnity 10 Inspection by buyer is called: C Open package inspection 12 To cure defective goods, the best option for the exporter is: D Dependent on the types of goods 14 If the exporter knows the buyer the intended purpose, and if the buyer relies on the exporter’s knowledge and expertise, the buyer can reject goods that are not suitable for their intended purpose This is called… D Implied warranty of fitness for intended purpose 16 A contract is a written agreement and it follows “the meeting of minds” and …… C Offer and acceptance 18 Is it possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money? D Yes, it is 20 In terms of payment in international trade, …… D Risk and cost rise and fall together 21 Delivery of the goods under most export contracts take place in the country of: B The exporter 23 Who issues export credit insuarance? C An insurance company 25 Unless the LC states otherwise, insurance coverage on a CIF or CIP shipment must be for…… of the CIF (or CIP) value of the goods D 110% 22 Partial invalidity clause can help to avoid problems with contract that … A Might infringe government regulations 24 Which of these does not required prior inspection by SGS? C The UK 26 Which of the following discrepancies is not the problem with insurance? A Documents are not presented within the required time 27 If shipment is made on CIF or CIP terms, the L/c will call for….? D either A or C 28 A term or terms in a contract could raise the contract price D A longer warranty period 29 The exporter ‘s interest are best served by… D a combination of all of the above 31 If the buyer comes from a country which has a poor reputation for enforcing awards, the best method of payment under the contract is a/an… B at sight, confirmed L/c 33 The point of delivery is much the same for all….terms and….terms- when the exporter hands the goods over to the carrier A C and F 35 whereas- clause … D are not provisions, promises and conditions 30 Continental law doesn’t require long and… Contract D detailed 32 Allowing the Buyer to repair the equipment at the exporter’s cost… D is often unsafe for exporter 37 …are the explanations B Whereas- recital clauses 39 Assuming shipment is by rail, what if an L/C depends on the original B/L C Such an L/C is certain to cause delay in payment 41 The answer to background questions are written A through the whereas- recital 43 Export credit insurance is very attractive, however, it has certain limitation like C long time since the buyer fails to pay up to the time the insurance company compensates the exporter and the inability of covering 100% of the original invoice price 45 Continental lawyers complicated grammar f the where clause A often avoid 47 Who issues a bank guarantee? D a bank 49 The contract should regulate what happen if Incoterm 2000 and the term of the contract conflict: normally the prevails B contract ĐỀ A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Namibia B CIP Windhoek A unilateral offer can be defined as: B An offer made of a promise in return for an act The point at which money is deemed to be paid most preferred by buyer is … C When the buyer instructs the bank to pay Transfer of ris k from the seller to the buyer (Incoterm 2000): DDP A When the goods are at the buyer’s premises In settlement by deferred payment, the letter of credit is paid after delivery Right or wrong? D The letter of credit is not payable until a number of days 11 In a contract, consideration may consist of … D Right, interest, profit, detriment, and loss 34 The defects liability clause should state: C both a and b 36 The B/L issued by the carrier for road transport is called D Road consignment road 38 There is no connection between the L/C and the sales contract Right or wrong? A Completely right 40 Which of the following discrepancies is NOT the problem with the L/C C There is no endorsement 42 In the contract, the word “whereas” means: D “because” or “considering that” 44 Why the exporters offer a discount for early payment, for example a 1% discount if payment is made within 10 days of the date of invoice C Because the exporter can substantially improves his cash flow 46 According to the UCC, if the goods fail in any respect to conform the contract, the buyer may D All the above 48 The clause covers General Average C A,B, C 50 The workforce at the factory go on strike B questionable … happens when one party ends the contract because of breach by the other A Cancellation The point of delivery is much the same for all … terms and … terms – when the exporter hands the goods over to the carrier A C and F A contract requiring an exporter in Mozambique to deliver the contract goods in Beira, Mozambique, for the shipment by sea to Dar es Salaam, Tanzania A Fas Beira The defects liability clause should state: C Both A and B 10 Among a number of international bodies offering arbitration services, the … in Paris is the most prestigious C ICC 12 The mechanism of a confirmed letter of credit works as follows C Buyer instructs an issuing bank to instruct a confirming bank to pay under a letter of credit in favor of the seller 13 Transfer of risk from the seller to the buyer (Incoterm 2000): DES A When the goods are ex-ship 15 There are … parties to a warranty and … in a guarantee C Two/three 17 “A voltmeter that is specified as accurate within millivolt is accurate within only millivolt” is an example of: A Defective design 19 Who issues export credit insurance? C An insurance company 21 Which type of bill of lading is negotiable? C To order 23 Which of the following discrepancies is not the problem with inconsistencies among the documents? B Documents are not presented within the required time 25 The two terminologies which mean the same thing as … C Warranty and defects liability 27 Dawson bought vanilla beans from Indonesia Dawson instructed an American bank to open a letter of credit One of the required shipping documents was a certificate of quality issued “by experts” The bank paid the exporter The beans, when they arrived, were rubbish The certificate of quality was signed, however, by only one “expert” Could the bank collect from Dawson the money it paid to the exporter? C No, it couldn’t 29 What is a letter of credit calls for ‘a complete set of original air waybills’? D Only the second original of the air waybill goes to the consignee The bank, however, will follow the wording of the letter of credit exactly and refuse an ‘incomplete set’ waybills 31 In a contract under a Continental law, a recital … C Is not essential 33 Which of the following discrepancies is not the problem with the letter of credit? D Insurance cover is expressed in a currency other than that of the credit 35 If the buyer can make certain assumptions about goods – even if the exporter gives no express warranty, these assumptions are called … D Implied warranties 37 For the exporter, the option to repair a defective item abroad … B Can be costly 39 When the goods arrive, if they are …, the importer can reject them but if they … specifications, he is obliged to accept them A Defective/conform to 41 Who issues ocean bill of lading? C Shipping company 43 Of the three options available for settling disputes, litigation before the court is internationally least attractive as it is … A Expensive and legalistic 45 An endlessly renewed liability for defects is called: A Eternal warranty 47 Small purchases in private life are often in the form of D Any of the above 49 Continental law has well developed private law, especially contract and A Commercial law 14 The majority of shipping document presented to banks under documentary credit transactions are accepted on first presentation Right or wrong? B Definitely wrong 16 … is open-ended C Open cover 18 A price an payment clause taken from an export contract is as follows: “the price payable for the Contract Goods as specified in Annex A is $500,000” What is missing? C The clause lacks all the necessary five steps in negotiating payment like payment mode, time, place, delay and results of delay 20 In contracts, “partial invalidity provision” means the invalidity of one part of the contract … B Does not invalidate the rest 22 The cheapest mode of transport is … A By sea 24 Which country requires that all goods imported into the country are inspected by the SGS immediately before shipment? C Indonesia 26 Which of the following method of payment is not possible? D Part of the contract price is paid by letter of credit but there is not a clear figure stated in the amount of the credit 28 Once the bank has indicated the discrepancies, what can the exporter do? D Any of the above 30 A liquidated damages clause protects … C Both sides 32 It is common to put the definition clause … of the contract B Near the beginning 34 Continental Law is also called … A Civil Law 36 When an offer is made, it is not applicable when it has …? C Revocation 38 The bank notifying the exporter that the letter of credit has been opened is called … B The advising bank 40 Transfer of risk from the seller to the buyer (Incoterm 2000): CIP B When the goods are handed to the first carrier 42 A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter B CPT Lusaka 44 The clause covers General Average C A, B, C 46 Shortage of supplies (Background: the exporter cannot get the raw jute he needs from the supplier because of a shipping delay) A Yes 48 An offer dies if is has a/an … D Revocation 50 “repair by the buyer” provision is often … C Avoided by the seller ĐỀ In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association - IATA? C Three originals and nine copies Dawson bought vanilla beans from Indonesia Dawson instructed an American bank to open a letter of credit One of the required shipping documents was a certificate of quality issued “by experts” The bank paid the exporter The beans, when they arrived, were rubbish The certificate of quality was signed, however, by only one “expert” Could the bank collect from Dawson the money it had paid to the exporter? C No, it couldn’t In CIF and CIP contracts, the exporter normally assigns the insurance agreement to … A The buyer Shortage of supplies ( background: the exporter cannot get the raw jute he needs from the supplier because of a shipping delay) A Yes The period during which the buyer can begin a legal action is legally called C Legal action period 11 Minimum coverage is the so-called Cargo clause … C C 13 The bill of lading issued by the carrier for combined transport is called … D Combined transport bill of lading 15 A warranty is aimed at B Assurance of product performance 17 In a contract under a Continental law, a recital … D Is useful 19 The names of … are normally the full, registered name of the company D The parties 21 Anglo – American law is also called … A Common law 23 If both parties perform their duties correctly, a contract is discharged by … C Performance 25 In a contract under a Continental law, a recital … C Is not essential 27 The method of payment which is dangerous for the exporter is … B Accepting a personal check 29 Why most exporters offer a discount for early payment, for example a 1% discount if payment is made within 10 days of the date of invoice? C Because the exporter can substantially improves his cash flow 31 What happens if the issuing bank finds a problem with the documents and refuses to send funds to the advising bank to cover payment? C The payments from the advising bank to the exporter are always made which recourse The exporter has to pay back the advising bank in such a case 33 How many timing problems are involved in Defects Liability Period? B Four 35 The mechanism of a confirmed letter of credit works as follows: C Buyer instructs an issuing bank to instruct a confirming bank to pay under a LC in favor of the seller 37 Which of the following discrepancies is not the problem with the LC D Insurance cover is expressed in a currency other than that of the credit The Disclaimer of warranty means: B The buyer is denied of some of his normal rights War risk is not included in … C A, B, C clause A Normally Risks are transferred at the point of Delivery Transfer of risk from the seller to the buyer (incoterm 2000) : CIP B When the goods are handed to the first carrier 10 The bank that the buyer asks to open a letter of credit is called … A The issuing bank 12 The two terminologies which mean the same thing are C Warranty and Defects Liability 14 Which of the following is the objective aimed at by the exporter to minimize risk of the goods being rejected or of heavy defects liability claims? C Negotiating detailed specifications 16 Inspection of the goods by the buyer in the manufacturer’s factory is referred to as: B Pre-delivery inspection 18 A ban is issued on the export of jute products by newly elected government that has been preparing legislation on this subject for five years Khaothi la Yes, theo sach la Questionable 20 Bill of lading is the most important document because it is a … A Document of title 22 The delivery depends on … B Effective date 24 The parties to a contract are not always required to … the Vienna sales convention B Apply 26 Which is the most appropriate method of payment for the exporter in the following case? Sale of a bale (roll) of cloth costing $200 to a nearby tailor’s shop with whom you have done business for 20 years B Open account with no security 28 In negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submits it to the bank is … D Compliance 30 If shipment is under Incoterms other than CIF or CIP, … D The exporter pays for insurance till the port of discharge 32 Negotiation of specifications between the exporter and the importer can be … B A difficult process 34 The main difference between Continental and AngloAmerican contract law is the degree of … A Codification 36 Assuming shipment is by rail, what if a LC demands the original bill of lading? C Such a LC is certain to cause delay in payment 38 … is open-ended C Open cover 39 A Which of these counts as a defect? Wrong design 41 In negotiating a LC, the step in which the list of all required documentation is incorporated into the contract is … B Incorporation 43 A contract is not enforceable if … C It has an illegal purpose 45 If the price is quoted FOB Singapore, who pays the insurance and freight? B The buyer 47 As for Anglo-American law, the decision of the judge is always … C Unpredictable 49 The Vienna sales convention is also called … C The uniform nations convention on the Contracts for the international sale of goods ĐỀ 1, Is there any requirement that the air waybill shows the date of the flight? B, yes, there is 3, in negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submits it to the bank is… D, Compliance 5, Companies …….to use the short form of the names in contracts C, are allowed 7, The stand-by letter of credit originated in the U.S is used from there because C, the banking law in some states forbids banks to issue payment guarantee 9, contract comes into force when an offer is made by one side and……by the other A, accepted 11, Transfer of risk from the seller to the buyer (Incoterm 200): DES A, When the goods are ex-ship 13, Which type of payment is the most advantageous for the exporter? A, Credit by sight payment 15, In settlement by sight payment………… C, The seller presents the necessary documents to the paying bank 17, what is transferable credit B, It is the kind of credit which allows the first beneficiary to request the confirming bank to pay a third party 19, in international trade, if payment is made on delivery, the method of payment to be chosen will be…… D, At sight letter of credit 21, the risk of rough handling is not covered under the cargo clause…… D, B and C 23, which of the following examples is a patent defect? A, crushes or stained garments 25, a disclaimer of warranty often accompanies delivery of A, software 27, which of the following discrepancies is NOT a problem with the LC C, there is no endorsement if endorsement is necessary 29, … is open- ended C, open cover 31, if the box “with brief advice by teletransmission” is crossed, it means… A, the exporter wans to be informed of the issuance of the LC by telex 33, Inspection by carrier on dispatch is often carried out: A, in seller’s country 40 What can protect both the exporter and the importer in an export contract? A A well-designed set of specifications 42 In settlement by deferred payment, the LC is paid after delivery Right or wrong? D The LC is not payable until a number of days 44 In principle the buyer can reject delivered goods if they not conform to the contract This is called … B Implied warranty of conformity 46 The majority of shipping documents presented to banks under documentary credit transactions are accepted on first presentation Right or wrong? B Definitely wrong 48 The Anglo-American contract is … B Traditionally the entire agreement 50 In a contract, the word “whereas” means … D “because” or “considering that” 2, Disclaimer of warranty often accompanies: D, Contacts for software 4, which off the following statement is wrong? B, Sometimes, the bank may question the necessity or value of the documents 6, It is common to put the definition clause…….of the contract B, near the beginning 8, The court of arbitration applies whatever………the parties stipulate in the contract C, national law 10, among a number of international bodies offering arbitration services, the…… in Paris is the most prestigious C, ICC 12, If a country ratifies the Vienna Sales Convention, in the event of conflicts, the Vienna Sale Covention can …… the national law A, Prevail over 14, The point at which money is deemed to be paid most preferred by buyer is…… C, When the buyer instructs the bank to pay 16, Failure to meet specification is a C, Defect in design 18, A marine Bill of lading becomes negotiable document and no restriction on ownership when it is… A, to order, bank endorsed 20, decision of arbitrator is…… B, Business-oriented 22, Negotiation of specifications between the exporter and the importer can be… B, A difficult process 24, the word ‘cash’ in international trade means… C, check or bank transfers 26, Once the bank has indicated the discrepancies, what can the exporter do? D, any of these above 28, “Minimum coverage” is the so-called Cargo Clause…… C, C 30, Continental law is bases on a C, legal code 32, shortage of supplies(background: The exporter cannot get the raw jute he needs from the supplier because of a shipping delay) A, Yes 34,Druken people have no……to sign a contract A, contractual capacity 35, Dawson bought vanilla beans from Indonesia Dawson instructed an American bank to open an LC One of the required shipping documents was a certificate of quality issued “by expert” The bank paid the exporter The certificate of quality was signed However, by only one “expert” Could the bank collect from Dawson the money it had paid to the exporter? C, no, it couldn’t 37, if the price is quoted CIF San Francisco, who pays for the insurance and freight? A, the exporter 39, in negotiating a LC, the step in which the exporter checks the credit ti see that required documentation is as agreed is C, Verification 41, the defect liability period is also called A, warranty period 43, which of the following is the least des irable option for the exporter C, return the good and return the price 45, to make sure that the officer signing the contract has authority to sign the contract, partiesshoud check B, the authenticity of the signature 47, a well-designed set of specifications protects buyer against… products C, inferior 49, who issues bill of lading C, shipping company ĐỀ An offer dies if it has a/an D revocation The Vienna Sales Conservation is also called: C The United Nations Convention on Contracts for the International Sale of Goods Which is the most appropriate method of payment for the exporter in the following case? Sale of a bale (roll) of cloth costing $200 to a nearby tailor’s shop with whom you have done business for 20 years B Open account with no security A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Nambia B CIP Windhoek The lump-sum compensation is set too low _ B quasi indemnity 11 Agreements, under Anglo-American Law, are of A types 13 Which of the following discrepancies is NOT the problem with the LC? D Insurance cover is expressed in a currency other than that of the credit 15 The background of the contract is provided in the form of _ D a whereas- recital 17 The advantages of arbitration are _ A Private and foreseeable costs 19 If the price is quoted EXW, who pays for the freight? B The buyer 21 Disclaimer of warranty often accompanies: D Contracts for software 23 The force majeure clause suggested by the International Chamber of Commerce, for example, states that payment of interest on overdue sums payable to the seller is by B not excuses/ force majeure 36, if both party perform their duties exactly according to the contract, the contract is…… A, discharged by performance 38, assuming shipment is by rail, what if a LC demands the original Bill of lading C, Such a letter of credit is certain to cause delay payment 40, the dock workers in Port Verbena go on strike A, yes 42, “a machine that consumes more fuel than specifications” is an example of A, latent defect 44, a contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Namibia B, CIP Windhoek 46, when are document considered to be stale? B, when they are submitted to the opening bank after the merchandise has already arrived 48,in a contract, ‘whereas’ mean D, because or considering that 50, if the force majeure event continues for too long, both parties have the right to…… B, terminate the contract Which of the following discrepancies is NOT the problem with the L/C? C There is no endorsement if endorsement is necessary Negotiation of specification between the exporter and the importer can be B a difficult process Which of the following statement is wrong? A The bank must check if the documents specified in the letter of credit are in perfect order B Sometimes the bank may question the necessity or value of the documents Continental law is widely used for B National issues 10 The guarantor is usually a C Both 12 Unless the LC states otherwise, insurance coverage on a CIF or CIP shipment must be for of the CIF (or CIP) value of the goods D 110% 14 What does “3/3 Marine Bill of Lading” mean? A It means the exporter must produce three originals and three copies of the marine bill of lading 16 Continental Law copies with _ C National issues 18 It’s always good for the exporter to promote his skills and the excellence of his products _ C in the recital 20 Which corrective method is least favorable for the seller? C return the goods and refund the price 22 The bill of lading issued by the carrier for combined transport is called D Combined transport bill of lading 24 What happens if the issuing bank finds a problem with the documents and refuse to send funds to the advising bank to cover payment? C The payments from the advising bank to the exporter are always made with recourse The exporter has to pay back the advising bank in such a case 25 General average has the conditions D A and C 27 Within the four alternatives of the at-sight LC, which one is the least satisfactory for the exporter? D Settlement by negotiation 29 Transfer of risk from the seller to the buyer (Incoterm 200): EXW A When the goods are at the seller’s premises 31 With defective heavy equipment, it is usually the case that: C just a defective part is replaced 33 The buyer can reject goods that are not of saleable quality This is called C Implied warranty of merchantability 35 “Repair by the buyer” provision is often C avoided by the seller 37 Transfer of risk from the seller to the buyer (Incoterm 2000): FCA B when the goods are handed to the first carrier 39 Returned shipment to the exporter’s country means: A the deal is a total loss for the exporter 41 All risks covered is under clause A A 26 Unless otherwise agreed, the insurance is “minimum cover” – cargo clause _ C C 28 How many originals and copies is the air waybill issued according to the standard of the International Air Transport Association – IATA? C Three originals and nine copies 30 The names of are normally the full, registered the name of the company D the parties 32 How many types of implied warranties are there? B three 34 Small purchases in private in life are open in the form of D Any of the above 36 An offer is not always, in international practice, the first move in forming a _ A contract 38 Who issues export credit insurance? C an insurance company 40 In a contract under a Continental law, a recital D is useful 42 The best solution for the exporter to make late payment impossible is D a confirmed, irrevocable, at sight letter of credit 43 What are the common discrepancies reported by banks in practice? D Any of the above 44 defect? B Misuse Which of these does not count for a 45 In settlement by deferred payment, if the seller needs money immediately, what can he do? B He can exchange the letter of credit for cash with any agreeable bank 47 If both parties perform their duties correctly, a contract is discharged by C Performance 49 The risk of rough handling is not covered under the cargo clause D B and C 46 C A, B, C The clause covers General Average: ĐỀ The bill of lading issued by the carrier for road transport is called ……… D road consignment note In settlement by sight payment ………… C the seller present the necessary documents to the paying bank The cost of L/C amendments are normally for ………… D The one who ask for such amendment Where is often the place of expiry of the credit C At the counters of the confirming bank The essence of Continental Law is ……… C codification 11 In settlement by deffered payment, if the seller needed more money immediately, what can he B he can exchange the letter of credit for cash with any agreeable bank 13 The place of payment is very important because late payment is subject to payment of interest and the cost of any delay along the payment route properly belong to ………… A The buyer 15 Under Anglo – American Law, a contract must give… A both right sides and duties 17 “ A machine that consumes more fuel than specifications” is an example of …… A latent defect 48 Earthquake, volcanic eruption and lighting are not covered under the cargo clause _ C C 50 Which of the following discrepancies is NOT the problem with the Bill of Lading? C The description of the goods on the invoice and the description of the goods in the credit are different Elderly people are … To deal with a contract B Able Is there any “refconfirming bank” B Yes There is one in case banks are reluctant to confirm letter of credit, especially those ffrom obscure banks The disadvantage of …… policy is that it is set up for particular time and automatically expires B floating …………… is open – ended C open cover 10 Which of these requires prior inspection by SGS A Indonesia 12 What would be the effect on the price of goods traded if the buyer wants the goods sooner D The price of the goods will go up as extra costs involved due to the extra working shift from the manufacturer 14 Transfer of risk from the seller to the buyer (Incoterm 2000): DDU A When the goods are at the buyer ‘s premises 16 A contract requiring an exporter to sent the contract goods by air for delivery in Windhoek, Namibia B> CIP Windhoek 18 Anglo – Amrican Law develop[ed through…… C.Court decisions 19 TO make sure that the officer signing the contract has authority to sign the contract, patientsshoiul check… B.Theauthencity of the signature 21 “the radio lacks the wires connecting the loudspeaker to the amplifier” is an example of C defective workmanship 23 The best solutinon for the xporter to make the the late payment immpostible is … D A confirm is irrrevocable, at sight latter credits 25 All risks cover is unger ……… Clause A A 27 In term of payment in international trade, ……… D Risk and cost rise and fall together 29 A well – designed set of specifications protect: C both parties 31 Inspection by the buyer is called C open package inspection 33 A bill of lading with the note is ………… B clause bill of lading 35 Another name for warranty is B defect liability 37 A mistake about the goods in a contract means there is no ……… B meeting of minds 39 Wsr risk is not included in C A,B,C clause 41 ………… Bill of lading – found sth wrong with the consignment C Claused 43 The decision of arbitrators is B business – oriented 45 When the exporter fills in the letter of credit application form, if the box “requested” for the “confirmation of credit to the beneficiary” is ticked what does it mean? B It means the exporter wants the bank in his country make the payment itself and recover the funds from the buyer ‘s bank 47 As the consequence of a defect can be expensive, the question of who pays for the consequential loss or damage is often ……… B controlversial ĐỀ Which type of bill of lading is negotiable? to order A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Namibia CIP Windhoek The lump-sum compensation is set about right liquidated damages If the box "With brief advice by teletransmission” is crossed, it means The exporter wants to be informed of the issuance of the letter of credit by telex In settlement by sight payment The seller presents the necessary documents to the paying Dank 11 A commercial invoice must be made out to _ The applicant for the letter of credit, normally to the buyer, unless otherwise stated in the credit 13 What are the set of assumptions with which a price quotation is based? Delivery, payment and warranty terms 20 A contract Is not enforceable if …………… C it has an illegal purchase 22.The bill of lading issued by the carrier for combined transport a s called… D combine transport bill of lading 24 The bill of lading issued by the carrier for rail transport is called ……… C Railway consignment note 26 The advising bank never pays the exporter directly Right or wrong ? C It depends on the type of credit 28 Which type of payment is the most advantageous for the exporter A credit by sight payment 30 To avoid confusion, may contract drafters use “ ………… ” instead of “ warranty” D defect liability 32 It is possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the band to collect the money D Yes, it is 34 In settlement by acceptance, what will the bank after receiving the documents and drafts drawn on the buyer from the seller D the banks agree to pay the bill when it mature 36 to cure the defective goods, the best option for the exporter is D dependent on the types of goods 38 The exporter should have no liability for the goods when they are ………… A beyond the control 40 The arbitrator’s award are B final and enforceable 42 Which of this following is not needed for a legally binding contract be in force A written contract 44 Termination for default occurs when the contract names certain ………… which allow one side to terminate B defaults 46 The thing that the exporter should keep in mind in negotiating payment are …… A Payment mode , timing, place, delay, and results of delay 48 It is common to put the definition clause ……….of the contract B near the beginning In a confirmed letter of credit, what happens if the bank pays the exporter and the issuing bank finds something wrong with the documents? The confirming bank has paid the money to the exporter and has no way of recovering it The confirming bank must pay the exporter without recourse Which of the following is NOT the method of issuing the letter of credit? By email An offer dies if it has a/ an Revocation The two terminologies which mean the same thing are Warranty and Defects Liability 10 There are… parties to a warranty and… in a guarantee two/three 12 Inspection of the goods by the buyer in the manufacturer’s factory is referred to as: Pre-delivery inspection 14 A marine bill of lading can be negotiable document with which The buyer can use it to resell the goods during shipment A marine Bill of lading becomes negotiable document and no restriction on ownership when it is A to order, blank endorsed Under the publis law, a company can only sign a contract A even when they lack power 11 The things that the exporter should keep in mind in negotiating payment are … A Payment mode, timing, place, delay and results of delay 13 As for Anglo – American law, the decision of the judge is always … C Unpredictable 15 Beside the commercial invoice, the transport document and insurance document, what “the other document” include? D any of the above 17 With a well – designed set of specification, the seller can protect its ……… And avoid cost A reputation 19 What can protect both of the exported and the Importer in the export contract A A well – designed set of specifications 21 Many export contracts cannot come into force due to … A certain preconditions are not met 23 The bank helping the exporter to check the correctness of the documents and set the payment proceduere in motion is ………… B the advising bank 25 Why can a manufacturer sometimes accept a loss on an export deal D any of the above 27 The buyer can reject goods that are not saleable quality This is called ………… C Implied warranty of merchantability 29 How many types of the warranties are there B three 31 If either party is prevented from, or delayed in, performing any duty under this Contract by an event beyond his reasonable control, then this event shall be deemed force majeure… A ban is issued on the export of jute products by newly elected government that has been preparing legislation on this subject for five years Khaothi la Yes, theo sach la Questionable 33 Which is the most appropriate method of payment for the exporter in the following case? A new small customer in Parcificis land republic much give to politiacal disturbances The order is for $10000 worht of assorted textxiles D confirmed letter of credit 35 Which of this following discrepancies is NOT the problem with the letter of credit D insurance cover is expressed in a currency other than that of credit 37 A commercial invoice must be made out to……… D the applicant for the letter of credit normally to the buyer, unless otherwise stated in the credit 39 Why few exporters ask for bank guarantees as security for payment B Because they run into trouble so ofen 41 The mechanism of a confirmed letter of credit word as follows: C buyer instruct an issuing bank to instruct a confirming bank to pay under a letter of credit in favor of the seller 43 “ A voltmeter that is specified as accurate within milivolt is accurate within only millivolt” is an example of: A defective design What export insurance premiums depend on? D All of the above 10 In a contract, under a Continental law, a recital …… C is not essential 12 As soon as the exporter receives advice that the letter of credit has been opened what should he do? C He should check if there is any requirement that he does not agree to 14 A contract comes into force when an offer is made by one side and … By the other A accepted 16 Among a number of international bodies offering arbitration services, the ……… In Paris is the most prestigious C ICC 18.The cheapest mode of transport is …… A by sea 20 Transfer of risk from the seller to the buyer (Incoterm 2000) CIF C When the goods across the ship’s rail 22 Termination for default occurs when the contract names certain ……… Which allow one side to terminate B Default 24 In how many originals and copies is the air way bill issued according to the standard of the International Air Transport Association – IATA C three original and nine copies 26 If either party is prevented from, or delayed in, performing any duty under this Contract by an event beyond his reasonable control, then this event shall be deemed force majeure… A ban is issued on the export of jute products by newly elected government Khaothi la Questionable, theo sach la Yes 28 The “order of precedence” among the documents explain…………… A the authority of the documents 30 There are ……… parties to a warranty and ………… in guarantee C two / three 32 Which is the most apporiate method of payment for the exporter in the following case ? An contract supply of cloth worth 5000$ per month to the government of Oceanea – a prosperous country Duration of this contract is years but renewable Contracts represents 0.5% of turnover D export credit insuarance is advisable Selling on account with no security at all is also possible 34 Defects such as wrong items, broken or missing parts,scratches, and so on are called ………… A patent defects 36 The applicable law governs questions concerning the validity ……………… performance of contracts Khaothi cham Payment, theo sach la Interpretation 38 “Full set on board ocean bills of lading to orders shipper, blank endorsed” In this clause, shipper means………… D A or B or C, it depends on situation 40 If the price is quoted CPT Vancouver, who pays for the freight A the exporter 42 What is a transferable credit B It is the kind of credit which allows the first beneficiary to request the confirming bank to pay a third party 44 What happens if the issuing bank find a problem with the document and the refuses to send funds to the advising bank to cover payment? C the payments from the advising bank to the exporter are always made with recourse The exporter has to pay bank the advising bank to cover payment 45 In a confirmed letter of credit , what happens if the bank pays the exporter and the issuing bank find something wrong with the documents ? D The confirming bank has paid the money to the exporter and has no way of recovering it The confirming bank must pay the exporter without resource 47 Which of following is essential to successful business B customer satisfaction 49 When the bill of lading marked “ freight prepaid” Who pays for the freight B the seller ĐỀ 20 As the consequences of a defect can be expensive, the question of who pays for the consequential loss and damage is often b controversial What happens first when a bank refuses to pay under a letter of credit? a the bank will cite a “ discrepancy”, some aspect of the documentation that is not in line with the terms of credit The cheapest mode of transport is… a by sea A contract that is ultra vires is …… b unenforceable In drafting an arbitration clause, the following questions must be resolved:… d All of the above 11 When the exporter fills in the letter of credit application form, if the box “requested” for the “Confirmation of credit to the beneficiary” is ticked, what does it mean? b it means that the exporter wants the bank in his country make the payment itself and recover the funds from the buyer 13 If the price is quoted CFR Hai Phong, who pays for the freight? b the exporter 15 The place of delivery (CIP, CIF) should not be confused with the …… of the goods b destination 18 Who issues ocean bill of lading? c shipping company 20 In negotiating a letter of credit, the step in which the list of all required documentation is incorporated into the contract is b incorporation 22 “Nuts and bolts are inadequately tightened” represents: c defective workmanship 24 If alternative means of transport or partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words … between the names of transport documents c and/ or 26 The names of …… are normally the full, registered name of the company d the parties 28 The bank that the buyer asks to open a letter of credit is called…… a the issuing bank 30 The parties to contract are not always required to …… the Vienna Sales Convention b apply 32 Transfer of risk from the seller to the buyer ( Incoterm 2000): DES a when the goods are ex-ship 34 The background of the contract is provided in the form of …… d a whereas - rectial 36 A contract comes into force when an offer is made by one side and …… by the other a accepted 46 Which is the following examples in a latent defect A Missing parts B structural weakeness 48 Anglo – American law is ……… B Case law 50 The place of delivery is doubly important to the exporter because the date of …………… normally depend on time and place of delivery B payment 2.There is no connection between the letter of credit and the sales contract Right or wrong? a completely right The disadvantage of … policy is that it is set up for particular time and automatically expires b floating 6,The mechanism of a confirmed letter of credit works as follows: c buyer instructs an issuing bank to instruct an confirming bank to pay under a LC in favor of the seller 8.The expiry date of the letter of credit is …… b the last date for presentation of documents to the bank 10 Drunken people have no …… to sign a contract a contractual capacity 12 In contract negotiation, “an invitation to provide terms and condition” may mean:.… c an invitation to the other parties to make an offer 14 Continental Law copes with: …… c national issue 16 Why few exporters ask for bank guarantees as security for payment? b because they run into trouble so often 19 A grace period is sometimes used to … b facilitate early delivery 21 What does it mean by “irrevocable” letter of credit? b It means the letter of credit cannot be cancelled at any time by the buyer or issuing bank 23 An offer dies if it has a/an …… d revocation 25 Which of these does not require prior inspection by SGS? c The United Kingdom 27 …… refer(s) to the question of implied warranties b most laws 29.War risk is not included in …… c A, B, C clause 31 Most contracts contain an assurance that the exporter will …… any defects in his products a makes good 33 …… arethe explanations b whereas – recital clause 35 Among a number of international bodies offering arbitration services, the …… in Paris is the most prestigious c ICC 37 If the price is quoted FOB Singapore, who pays for the insurance and freight? b the buyer 38 After making the shipment of the goods to the buyer, the exporter presents the shipping documents to …… b the advising bank 40 How many timing problems are involved in Defects Liability Period? b four 42 What export insurance premiums depend on? d all of the above 44 A ban is issued on the export of jute products by newly elected government Khaothi la Questionable, theo sach la Yes 46 “A radio lacks the wires connecting the loudspeake r to the amplifier” is an example of: c Defective workmanship 48 Inspection by the buyer is called: c open package inspection 39 In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is ……… c verification 41 Within the four alternatives of the at – sight Letter of credit, which one is the least satisfactory for the exporter? d Settlement by negotiation 43 When there are words like “about” or “approximately” in the letter of credit’s amount, how much can the actual payment be? a The actual payment therefor can be 10% more or 10% less than the stated amount 45 Which of the following example is patent defect? a crushed or stained garments 47 A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter b CPT Lusaka 49 “The seller shall make good the defect or damage as soon as practicable and at his own cost” This is an example of c Rectification period 50 An FOB sales contract agrees that the exporter can deposit the goods in a warehouse if the ship arrives late and that this counts as delivery If the letter of credit requires a bill of lading and makes no mention of a warehouse receipt, b the bank simply cannot pay against a warehouse receipt DE 21 A contract comes into force when an offer is made by one side and … by the other A Accepted A volcanic eruption buries the factory in ash Yes … Bill of Lading – goods were taken on board in good condition A clean A grace period is sometimes used to … B facilitate early delivery The bank helping the exporter to check the correctness of the documents and set the payment procedure in motion is B The advising bank It’s always good for the exporter to promote his skills and the excellence of his products … C in the recital The entire agreement clause means that all documents that predate the contract C become invalid 11 To avoid the dangers of slow payment, exporters try to protect themselves with a clause like this: “Payment shall be deemed to have been made only when …” D, Funds reach the seller’s bank account and at his full disposal 13 The stand-by L/C originated in the U.S is used there because … C The banking law in some states forbids banks to issue payment guarantee A term or terms in a contract could raise the contract price D A longer warranty period A warranty is aimed at B Assurance of product performance 10 A guarantee is B Tripartite 15 … is open-ended C open cover 16 In settlement by deferred payment, the L/C is paid after delivery Right or wrong? D The L/C is not payable until a number of days 18 Elderly people are … to deal with a contract B able 17 Transfer of risk from the seller to the buyer (Incoterm 2000): CPT B When the goods are handed to the first carrier 19 Delivery of the goods under most export contracts takes place in the country of … B the exporter 21 Termination may be for … C Convenience 23 Another name for Tender Guarantee is … D Bid bond 25 The method of payment which is dangerous for the exporter is … B Accepting a personal check 27 A The essence of Continental law is … Codification 12 Most contracts contain an assurance that the exporter will … any defects in his products A make good 14 A lockout (Background: the workers have been striking for one day a week The management locks the workers out of factory until they agree to end the strike) C NO 20 The final quality hurdle is the … during which the exporter is liable to cure defects that come to light in the goods B defect liability period 22 A fire burns down the factory (Note: If either party is prevented from, or delayed in….) A Yes 24 Anglo-American law is also called … C Common law 26 Is it possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money? D Yes, it is 28 The first step in negotiating a L/C is … C AgreemenT 29 A payment guarantee simply commits the bank to pay if the buyer defaults The payment guarantee is usually for … of the contract price A 100% 31 If shipment is made on CIF or CIP terms, the L/C will call for … D Either A or C 30 If both parties perform their duties exactly according to the contract, the contract is … A Discharged by performance 33 Allowing the buyer to repair the equipment at the exporter’s cost … D is often unsafe for the exporter 34 The legal action period varies greatly from law to law Which of these defines this period that is equal to and concurrent with the defects liability period? b The BGB 36 Assuming shipment is by rail, what if a L/C demands the original bill of lading? C Such a L/C is certain to cause delay in payment 35 Which type of payment is the most advantageous for the exporter? A Credit by sight payment 37 A mistake about the goods in a contract means there is no … b Meeting of minds 39 To make sure that the officer signing the contract has authority to sign the contract, parties should check … b The authenticity of the signature 41 A The lump-sum compensation is set about right … liquidated damages 43 Who usually pays for curing defects? b.The exporter 45 The period during which the buyer can begin a legal action is legally called: c Legal action period 47 The point of delivery is much the same for all … terms and … terms – when the exporter hands the goods over the carrier A C and F 49 When the Bill of lading marked “freight collected” Who pays for the freight? A The Buyer DE 22 In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association_IATA c Three originals and nine copies Transfer of risk from the seller to the buyer ( Incoterm 2000) : CPT B When the goods are handed to the first carrier According to the UCC, how long is the legal action period? C Four years 7.Which of the following is the objective aimed at by the expoter to minimize the risk of the goods being rejected or of heavy defects liability claims C Negotiating detailed specifications If shipment is made n CIF or CIP term, the letter of credit will call for D Either A or C 11 Contract documents must be given …… in case of contradictions D Either A or B 13.……… refer(s) to the question of implied warranties B Most laws 15 What if the letter of credit requries “an appropriate wildlife certificate”? D All of the above 17 A grace perod is sometimes used to 32 Different legal systems regulate that rejection of delivered goods must be total … can be partial A or 38 The disadvantage of … policy is that it is set up for particular time and automatically expires b floating 40 It the buyer comes from a country which has a poor reputation for enforcing awards, the best method of payment under the contract is a/an… B At sight, confirmed L/C 42 The greatest fear for the exporter is … C.Being unable to get paid for the goods sold 44 Earthquake, volcanic eruption and lighting are not covered under the cargo clause … c C 46 Which of the following is essential to successful business? B Customer satisfaction 48 Export credit insurance is very attractive; however, it has certain limitations like … C long time since the buyer fails to pay up to the time the insurance company compensates the exporter and the inability of covering 100% of the original invoice price 50 A contract that ultra vires is … B unenforceable The fact that manufacturer often tempted to be overoptimistic and to agree to impossible specifications is ……… in business B Risky The bank helping the exporter to check the correctness of the documents and set the payment procedure in motion is …………… B The advising bank What are the set of assumption with which a price quotation is based? D Delivery,payment and warranty terms Open cover is not a policy: the …… will write a policy if required A Insurer 10 Which of the following is not true? A A letter of credit is a binding agreement by the buyer to pay a certain sum of money when the exporter present the necessary documents 12 Within most Anglo-American jurisdictions, a contract D Must be two-sided 14 In settlement by acceptance, the kind of bill of exchange being sent together with other documents to the accepting bank is……… C Time draft 16 The rules of international common law decide the law that applies for the contract if the contract can not specify the…… D Applicable law 18.……… Bill of lading-goods were taken on board in good B Facilitate early delivery 19 The disadvantage of ……… policy is that it is set up for particular time and automatically expires B Floating 21 In CIF and CIP contracts,……… must pay for insurance from the point of delivery to the named point of arrival A The exporter 23 …………… is two-sided procedures C Rescission 25 The decision of arbitrators is…… B Business oriented 27 The parties to a contract are not always required to ……… the Vienna sale convention B Apply 29 Defect may be which of the following? C Both 31 Export credit insurance is a kind if special priviledge that an exporter may get from his government’s export incentives and supports, right or wrong? D it is not a charity, it is beneficial for both exporter and insurance company 33 The buyer can reject goods that are not saleable quality This is called B Implied Zarranty of conformity 35 Which of the following discrepancies is NOT the problem with insurance? A Documens are not presented withing the required time 37 If the box “ with brief advice by teletransmission” is crossed, it means…… A A The exporter wants to be informed of the issuance of the letter of credit by telex 39 The lump-sum compensation is set too high……… Penalty 41 What does “ 3/3 marine bill of lading” mean? A It means the exporter must produce three originals and three copies of the marine bill of lading 45 Anglo-American law is …… B Case law 46 Discount records bought phonograph records from an exporter Payment was by letter of credit issued by Barclays Bank…… D The exporter will be paid-although later action in the courts may oblige him to make good any damage he has caused the buyer 48 The contract should regulate what happens if Incoterm 2000 and the term of the contract conflict: normally the …… prevails B Contract 43 Acorrding to the UCC,if the goods fail in any respect to conform to the contract,the buyer may……… D All the above condition A Clean 20 There is no connection between the letter of credit and the sales contract, right or wrong? A Completely right 22 The cost of L/C amendments are normally for……… D The one who ask for such amendment 24 Partial invalidity clause can help to avoid problems with contract that…… A Might infringe government regulations 26 Exporter prefer: B The replacement of the defective item to the return of it 28 As for Angle-American law, the decision of the judges is always…… C Unpredictable 30 What are common discrepancies reported by banks in practice? D, Any of the above 32 To make sure that the officer signing the contract has authority to sign the contract, party should check………… B The authenticity of the signature 34 In a contract under a continential law, a recital……… C is not essential 36 “Full set on board ocean bill of lading to order shipper,blank endorsed” In this clause shipper means D A or B or C It depends on the situation 38 Which of these does not count as a defect? B Misuse 40 The legal action period varies greatly from law to law Which of these define this period that is equal to and concurrent with the defect liability period? B The BGB 42 What if letter of credit calls for a “comlete set of original air waybill” D Only the second original of the air waybill goes to the cosignee The bank,however,will follow the wording of the letter of credit exactly and refuse an ‘incomplete set’ waybills 44 In a contract, the word “whereas” means…… D Because or considering that 47 The cheapest mode of transport is……… By sea 49 Is there any requirement that the air waybill shows the date of the flight? B Yes,there is 50 A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter B CPT Lusaka DE 23 C1: Two parties sign a contract A The contract is binding C3: (Note: If either party is prevented from, or delayed in, performing any duty under this Contract by an event beyond his reasonable control, then this event shall be deemed force majeure) Shortage of supplies C No C5: The place of payment is very important because late payment is s ubject of interest and the cost of any delay along the payment route properly belongs to… A The buyer C7: It is… to identify latent defect than patent defect B more complicated C9: If a country ratifies the Vienna Sales Convention, in the event of conflicts, the Vienna Sales Convention can… the national law C11: A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by… A the buyer C13: The … has no power to enforce his solution or to bind the parties, his task is to suggest a fair solution only B Conciliator C15: Export credit insurance which gives the exporter an acceptable level of security in term of payment shall be paid by… B The exporter C17: In settlement by acceptance, what will the bank after receiving the documents and draft drawn on the buyer from the seller? D The bank agrees to pay the bill when it matures C19: Drunken people have no… to sign a contract A Contractual capacity C21: Who signs “shipped on board” notation? A Captain C23: Which of the following discrepancies is NOT the problem with inconsistencies among the documents? B Documents are not presented within the required time C25: The defects liability period is also called: A Warranty period C27: Defects such as wrong items, broken or missing parts, scratches, and so on are called… A patent defects C29: A well-designed set of specifications protects: importer C Both parties C31: Who issues a bank guarantee? D A bank C33: The method of payment which is completely safe for the seller in small purchases is… D Cash with order C35: If a dispute arises, the recital allows the court to discover the real meaning of… A the contract C37: The Vienna Sales Convention is also called… C The United Nations Convention on Contracts for the International Sale of Goods C2: The force majeure clause suggested by the International Chamber of Commerce, for example, states that payment of interest on overdue sums payable to the seller is… by… B not excused/ force majeure C4: What would be effect on the price of the goods traded if the buyer wants the goods sooner? D The price of the goods will go up as extra costs involved due to extra working shift from the manufacturer C6: A liquidated damages clause protects… C both sides C8: Which of the following discrepancies is NOT the problem with the Bill of Lading? C The description of the goods on the invoice and the description of the goods in the credit are different C10: Title to the goods passes… A with risks C 12: “Full set on board ocean bills of landing to order shipper, blank endorsed.” In this clause, shipper means… Bank D A or B or C It depends on the situation C14: What if a letter of credit requires “an appropriate wildlife certificate”? D All of the above C16: If the price is quoted FOB Singapore, who pays for the insurance and freight? B The buyer C18: Which of the following is NOT the method of issuing the letter of credit? A By email C 20: (Note: If either party is prevented from, or delayed in, performing any duty under this Contract by an event beyond his reasonable control, then this event shall be deemed force majeure) Shortage of supplies A Yes C22: Partial invalidity clause can help to avoid problems with contracts that… A might infringe government regulations C24: Transfer of risk from the seller to the buyer (Incoterm 2000): DDP A When the goods are At the buyer’s premises C26: If the buyer can make certain assumptions about goods – even if the exporter gives no express warranty, these assumptions are called… warranties D implied warranties C28: The fact that manufacturer often tempted to be overoptimistic and to agree to impossible specifications is… in business B risky C30: Anglo-American law is… B Case law C32: A payment guarantee simply commits the bank to pay if the buyer defaults The payment guarantee is usually for… of the contract price A 100% C34: In principle the buyer can reject delivered goods if they not conform to the contract This is called… B Implied warranty of conformity C 36: A bill of lading with the note is… B Claused bill of lading C38: Which of these is the cheapest option for the exporter? A Repair C39: the applicable law governs questions concerning the validity, …, performance of contracts Khaothi cham Payment, theo sach la Interpretation C41: Cancellation on… grounds makes no legal sense C Trivial C43: The decision of arbitrators is… B Business-oriented C45: What happens first when a bank refuses to pay under a letter of credit? A The bank will cite a “discrepancy”, some aspect of the documentation that is not in line with the term of the credit C47: If alternative means of transport or partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words… between the names of transport documents C and/ or C49: The exporter should have no liability for the goods when they are… A beyond his control DE 24 Câu 1: when the Bill of lading marked “freight prepaid” Who pays for the feight? B The Seller C40: Earthquake, volcanic eruption and lighting are covered under the cargo clause… D A and B C42: In CIF and CIP contracts,… must pay for insurance form the point of delivery to the named point of arrival A The exporter C44: If a contract is the entire agreement, earlier letters and documents… B become invalid C46: In a contract under a Continental law, a recital… D is useful C48: Why can a manufacturer sometimes accept a loss on an export deal? D Any of the above C50: Independent inspection reports on… C Both A and B Cau 3: The bank notifying the exporter that the letter of credit has been opened is called B The advising bank Cau 2: In drafting an arbitration clause, the following questions must be resolved: d All of the above Cau 4: The point at which money is deemed to be paid most preferred by seller is D When the funds reach the seller’s bank account Cau 5: Inspection by the is called “open package inspection” D Importer Cau 6: Transfer of risk from the seller to the buyer (incoterm 2000): DDU A When the goods are at the buyer’s premises Cau 7: Another name for Tender Guarantee is D Bid bond Cau 8: Defects that come to light after buyer’s acceptance are called A patent defects Cau 10: which of these allow(s) rejection of only defective or non-conforming goods: D Vietnamese contract law Cau 9: The best solution for the exporter to make late payment impossible is D A confirmed irrevocable, at sight LC Cau 11: “Door to door service” is offered Which term should be used? A DDP 13: (note: if either party is prevented from, or delayed in, performing any duty under this Contract by an event… A fire burns down the factory A Yes Cau 15: which corrective method is least favourable for the seller? C Return the goods and refund the price Cau 17: Defects such as wrong items, broken or missing parts, scratches, and so on are called A patent defects Cau19: happens when one party ends the contract because of breach by the other A Cancellation Cau 21: Beside the commercial invoice, the transport document and insurance document, what “Other documents” include? D Any of the above Cau 23: which of the following is NOT true? A A LC is a binding agreement by the buyer to pay a certain sum of money when the exporter presents the necessary doccuments Cau 25: who usually has to pay for curing defects? B The seller Cau 27: Contract documents must be given in case of contradictions D either a or b 12: In international trade, if payment is made on delivery, the method of payment to be chosen will be: A Bank guarantee Cau 14: original(s) Bill of lading constitute(s) a full set C Cau 16: If the force majeure event continues for too long, both parties have the right to B terminate the contract Cau 18: Which of the following is NOT the method of issuing the LC? A By email Cau 20: The lump-sum compensation is set about right A liquidated damages Cau 22: In term of payment in international trade, D Risk and cost rise and fall together Cau 24: The parties to a contract are not always required to the Vienna Sales Convention B Apply Cau 26: what are common discrepancies reported by banks in practice? D Any of the above Cau 28: In most guarantees, the bank agrees to pay “on first demand” which means D Without demur or objection Cau 29: A ban is issued on the export of jute products by newly elected goverment Khaothi la Questionable, theo sach la Yes Cau 31: The cost of LC amendments are normally for D the one who asks for such amendments Cau 33: If alternative means of transport or partial shipments are allowed perhaps by different modes of transport, the LC should have the words between the names of transport documents C and/or Cau 35: In settlement by acceptance, what will the bank after receiving the documents and draft drawn on the buyer from the seller? D The bank agrees to pay the bill when it matures Cau 37: In some legal systems, the buyer has the right duty to inspect delivered goods D but Cau 39: Returned shipment to the exporter’s countruy means: B the exporter takes back the whole shipment Cau 41: Parties to contract for the sale of goods are free to choose A Applicable law Cau 43: Which is the most appropriate method of payment for the exporter in the following case? B Open account with no security Cau 45: If a contract is the entire agreement, earlier letters and documents B become invalid Cau 47: The essence of Continental law is A Codification Cau 49: When an offer is made, it is not applicable when it has … ? C Revocation Cau 30: Replacing a defective product help to keep the of the customer A goodwill Cau 32: Which of the following discrepancies is NOT the problem with the LC? D Insurance cover is expressed in a currency other than that of thecredit Cau 34: In contracts, “partial invalidity provision” means the invalidity of one part of the contract B Does not invalidate the rest Cau 36: Termination may be for C Convenience Cau 38: In a guarantee, a guarantor is often: C The bank Cau 40: When the Bill of lading marked “freight collected” Who pays for the freight? A The Buyer Cau 42: Anglo-American law is also called C, Common law Cau 44: If the price is quoted FOB Singapore, who pays for the insurance and freight? B The buyer Cau 46: Why LC are formally called “documantary credits”? A Because a LC is a binding agreement by a bank to pay a certainsum of money when the exporter presents the necessarydocuments to the bank Cau 48: The workforce at the factory go on strike C No Cau 50: The exporter must know the legal identity of the buyer that may arise D all of these DE 25 Câu 1: In a contract under a Continental law, a recital … C is not essential Câu 2: … happens when one party ends the contract because of breach by the other A.Cancellation Cau 3: Feeble-minded ….contracts A Sign Cau 4: Unless the letter of credit states otherwise, insurance coverage on a CIF or CIP shipment must be for … of the CIF (or CIP) value of the goods D 110% people are legally unable to Cau 5: Which of the following is NOT the reason why the exporter prefers a longer expiry period of the credit? A He wants to save bank charges Cau 7: Once the bank has indicated the discrepancies, what can the exporter do? D Any of the above Cau 9: What kind of inspection is particularly important for sophisticated items or capital goods? C Pre-delivery inspection Cau 11: The Vienna Sales Convention is also called: … C The United Nations Convention on Contracts for the international Sale of Goods Cau 13: The names of … are normally the full, registered name of the company D the parties Cau 15: Transfer of risk from the seller to the buyer (Incoterm 2000): FAS C When the goods across the ship’s rail Cau 6: A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter B CPT Lusaka Cau 8: The entire agreement clause means that all documents that predate the contract … C become invalid Cau 10: A well-designed set of specifications protects: C Both parties Cau 12: Different legal systems regulate that rejection of delivered goods must be total … can be partial A or Cau 14: When there are words like “about” or “approximately” in the letter of credit’s amount, how much can the actual payment be? A The actual payment therefore can be 10% more or 10% less than the stated amount Cau 16: In a contract, a formal definition is the best way of clarifying what exactly the two sides have … C agreed Cau 19: The disadvantage of ….policy is that it is setup for particular time and automatically expires B floating Cau 18: When the goods arrive, if they are … , the importer can reject them but if they ….specifications, he is obliged to accept them A defective/conform to Cau 20: In contract negotiation, “an invitation to provide terms and condition” may mean: … C An invitation to the other party to make an offer Cau 21: In most guarantees, the bank agrees to pay “on first demand” which means… D Without demur or objection Cau 22: The two terminologies which mean the same thing are … C Warranty and Defects Liability Cau 23: In contracts, ….is not normally allowed A Delegation of duties Cau 24: The point at which money is deemed to be paid most preferred by seller is … D When the funds reach the seller’s bank account Cau 25: … Bill of lading – goods were taken on board in good condition A clean Cau 26: In principle the buyer can reject delivered goods if they not conform to the contract This is called … B Implied warranty of conformity Cau 27: The bank helping the exporter to check the correctness of the documents and set the payment procedure in motion is … B The advising bank Cau 28: Termination may be for … C Convenience Cau 29: Which type of bill of lading is negotiable? C to order Cau 30: The greatest fear for the exporter is … C Being unable to get paid for the goods sold Cau 31: In settlement by sight payment … C The seller presents the necessary documents to the paying bank Cau 33: After making the shipment of the goods to the buyer, the exporter presents the shipping documents to … B The advising bank Cau 32: Earthquake, volcanic eruption and lighting are not covered under the cargo clause … C C Cau 35: Which of the following is NOT true? A A letter of credit is a binding agreement by the buyer to pay a certain sum of money when the exporter presents the necessary documents Cau 37: Who issues a bank guarantee? D A bank Cau 36: If the box “With brief advice by teletransmission” is crossed, it means … A The exporter wants to be informed of the issuance of the letter of credit by telex Cau 38: Which type of payment is the most advantageous for the exporter? A Credit by sight payment Cau 40: In some legal systems, the buyer has the right ……duty to inspect delivered goods B or Cau 17: Inspection by the buyer is called: C Open package inspection Cau 39: In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association – IATA? C Three originals and nine copies Cau 41: Agreements, under Anglo-American law, are of … A two types Cau 43: According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may … D All the above Cau 34: Transfer risk from the seller to the buyer (Incoterm 2000): DES A When the goods are ex-ship Cau 42: Which of the following is NOT considered to be special requirement in a sale/purchase contract? C Goods must be packed according to export standards Cau 44: The answers to the question of implied warranties are supplied by: C Most laws Cau 45: When the Bill of lading marked “freight prepaid” Who pays for the freight? B The seller Cau 46: The contract should regulate what happends if Incoterm 2000 and the terms of the contract conflict: normally the … prevails B Contract Cau 47: It is … to identify latent defect than patent defect B more complicated Cau 48: Beside the commercial invoice, the transport document and insurance document, what “Other documents” include? D Any of the above DE 26 If the buyer can make certain assumption about goods – even if the exporter gives no express warranty, these assumptions are called (D) Implied warranties The risk of rough handling is not covered under the cargo clause (D) B and C Drunken people have no (A) Contractual capacity to sign a contract In how many originals and copies is the air waybills issued according to the standard of the International Air Transport Association – IATA? (C) originals and copies If the buyer comes from a country which has a poor reputation for enforcing awards, but the best method of payment under the contract is a/an (B) At sight, confirmed L/C Of the three options available for setting disputes, litigation before the court is international least attractive as it is Expensive and legalistic (A) Another name for Tender Guarantee is (D) Bid bond (C) Open cover is open-ended 11 What is transferable credit? B It is a kind of credit which allows the first beneficiary to request the confirming bank to pay a third party 13 The official mailing address of the parties are given in The Notices (A) 15 Exporter refers (B) The replacement of the defective item to the return of it When a contract is cancelled, a payment problem arises; the party in breach has a Weak (B) case of payment 10 (B) Most laws refers to the questions of implied warranties 12 When the Bills of lading marked “freight collected” Who pays for the freight? A The Buyer 14 Inspection by (D) The importer reveals discrepancies in quality 16 For the exporter, the opinion to repair a defective item abroad Can be costly (B) 17 A contract comes into force when an offer is made by one side and Accepted (A) by the other 18 Which of following is NOT the method of issuing the letter of credits? A By email 19 “A radio lacks the wires connecting the loudspeaker to the amplifier” is an example of (C) Defective workmanship 20 Anglo – America law is also called Common law (A) 21 The dock workers in Port Verbena go on strike (A) YES 23 The Incoterm 2010 (D) contains 11 items 25 The fact that manufacture often tempted to be overoptimistic and to agree to impossible specifications is Risky (B) in business 27 In contracts, (A) Delegation of duties is not normally allowed 29 What happens first when a bank refuses to pay under a letter of credit? A The bank will cite a “discrepancy”, some aspect of the documentation that is not in line with the terms of the credit 31 In international contracts, parties try to exclude assignment of rights without (B) Written consent of parties 33 Who issues a bank guarantee? D A bank 35 All of the following are objectives that the exporter tries to achieve to minimize the risk of the goods being rejected or of heavy defects liability claims EXCEPT: B The confidence in the buyer 37 When a bill of lading marked “freight prepaid” Who pays for the freight? B The seller 39 Who issues ocean bill of lading? C Shipping company 41 Continental law is also called Civil law (A) 43 Dawson bought Vanilla beans from Indonesia, Dawson instructed an American bank to open a letter of credit One of the required shipping documents was a certificate of quality issued “by experts” The bank paid the exporter (C) No it couldn’t 45 In some legal systems, the buyer has the right (A) and duty to inspect delivered goods 47 A grace period is sometimes used to (B) facilitate early delivery 49 Delivery of the goods under most export contracts takes place in the country of The exporter (B) 22 Which of the following discrepancies is NOT the problem with Insurance? A The documents are not presented within the required time 24 Transfer of risk from the seller to the buyer (Incoterm 2000): DDU A When the goods are at the buyer’s premises 26 What export insurance premiums depend on? D All of the above 28 A bank guarantee which gives the exporter an acceptable level of security in terms of 30 Who signs “shipped on board” notation? A Captain 32 Where is often the place of expiry of the credit? C At the counters of the confirming bank 34 Feeble-minded people lack (C) Contractual capacity to enter contracts 36 A bill of lading with a note is Claused bill of lading (B) 38 There is no connection between the letter of credit and the sale contract Right or Wrong? A Completely right 40 If shipment is under Incoterms other than CIF or CPI, The exporter pays for Insurance till the port of discharge (D) 42 If both parties perform their duties exactly according to the contract, the contract is Discharged by performance (A) 44 A disclaimer of Warranty often accompanies delivery of (A) Software 46 An FOB sales contract agrees that the exporter can deposit the goods in a warehouse if the ship arrives late and that this counts as delivery If the letter of credit requires a bill of lading and makes no mention of a warehouse receipt, B The bank simply cannot pay against a warehouse receipt 48 Within the four alternatives of the at-sight Letter of credit, which one is the least satisfactory for the exporter? (D) Settlement by negotiation 50 Which of the following statement is wrong? B Sometime, the bank may question the necessity or value of the documents DE 27 Câu 1: Exporters prefer: B the replacement of the defective item to the return of it Cau 3: The defects liability period is also called: A Warranty period Cau 2: … happens when one party ends the contract because of breach by the other A Cancellation Cau 4: With the alternatives of at sight LC, which one is the least satisfactory for the exporter ? D negotiation Cau 5: the defects liability clause should state : C both A and B Cau 7: In contracts, … is not normally allowed: A.delegation of duties Cau 9: A promise by the exporter to cure defects in his product is called B A product warranty Cau 11: In most guarantees, the bank agrees to pay “on first demand” which means: D.without demur or objection Cau 13: the bank notifying the exporter that the LC has been opened is called: B The advising bank Cau 15: Termination for convenience occurs when one party simply decide to drop a contract and … A no reason is required Cau 17: If the price is quoted CPT Vancourver , who pays for the freight? A The exporter Cau 19: Transfer of risk from the buyer to the seller ( incoterm 2000) FOB: B when the goods are handed to the first carrier cau 21: A, by sea The cheapest mode of transport is Cau 23: open package inspection is synonymous with A Buyer’s inspection Cau 25: Failure to meet specification is a c Design Cau 27: Which of the following is not the method of issuing the LC: A.By email Cau 29: Assuming shipment is by rail,what if a LC demands the original B/L C Such a LC is certain to cause delay in payment Cau 31: IF the price is quoted FCA, who pay for the freight: A The exporter Cau 33: in international contracts, party try to exclude assignments of rights without B Written consent of parties Cau 35: If the price is quoted CIF San Francissco, who pay for the insurance and freight ? A The exporter Cau 37: the risk of rough handling is not covered under the cargo clause D B and C Cau 39: which is the most appropriate method of payment for the exporter in the following case : a new small customer in Pacific island republic must given to political disturbances The order is for $10000 worthof assort textiles D Confirmed LC cau 41: parties sign a contract : C The contract is blinding and effective Cau 43: In the price is quoted CFR HaiPhong, who pay for the freight? B The exporter Cau 45: the terminologies which mean the same thing are C Warranty and defects liability Cau 47: the things that the exporter should keep in mind in negotiating payment are A Payment mode, timing, place, delay and results of delay cau 49: Transfer of risk from the seller to the buyer ( incoterm 2000) : CPT B When the goods are handed to the first carrier Cau 6: Feeble-minded lack … to enter contracts: C contractual capacity Cau 8: According to the UCC, if the goods fail in any respect to comfort to the contract, the buyer may: D All the above Cau 10: Payment guarantee means: D a triangle relationship among guarantor Principle and beneficiary Cau 12: a contract requiring an exporter in Ethiopia to send the contract good by air for delivery Windhoek, Nabimia B CIP Windhoek Cau 14: (Note:if either party is prevented from, or daleyed in, performancing any duty under this contract by an event beyond his reasonable control, A ban is issued on the export of jute products by newly elected government Khaothi la Questionable, theo sach la Yes Cau 16: It is common to put the definition clause… of the contract B near the beginning Cau 18: The B/L is issued by the carrier for road transport is called: D Road consignment note Cau 20: the decision of arbitrators is B Business- oriented Cau 22: Export credit insurance which give the exporter an acceptable level of securities in terms of payment shall be paid by D An insurance company Cau 24: a warranty protects: D Both the exporter and the importer Cau 26: Which of these is the cheapest option of the exporter: A Repair Cau 28: The place of delivery is doubly important to the exporter because the date of normally depends on time and place of delivery B Payment Cau 30: In a contract under a continental law, a recital is : D Useful Cau 32: Feeble-minded people are legally unable to contract: A Sign Cau 34: A warranty is aimed at : B Assurance of product performance Cau 36: the word “cash” in international trade means C Checks or bank transfers Cau 38: Under anglo american law , exporters have rights to B Withdraw an common law Cau 40: Elderly people are deal with a contract: B.able Cau 42: the exporter’s interests are best served by D A combination of all the above Cau 44: a contract that is ultra vires is : B Unenforceable Cau 46: the best solution for the exporter to make late payment impossible is : D A confirmed, irrevocable, at sight LC Cau 48: a commercial invoice must be made out to D.the applicant for the LC, normally to the buyer, unless the ortherwise stated in the credit Cau 50: How to make a B/L negotiable D Fill the word “ to order” in the cosignee box DE 28 Câu 1: Under the public law, a company can only sign a contract… D That is within its power Câu 3: If the contract is the entire agreement, earlier letters and documents: B Become invalid Câu 5: “minimum coverage” is the so-called cargo clause… C C Câu 7: The guarantor is usually a C.both a and b Câu 9: In CIF and CIP contract, … must pay for insurancefrom the point of delivery to the named point of arrival A the exporter Câu 11: All of the following are objectives that the exporter try to achieve to minimize the risk of the goods being rejected or of heavy defects liability claims EXCEPT: B The confidence in the buyer Câu 13: in settlement by deferred payment, if the seller needs money immediately, what can he do? C The seller can realize some part of the letter of credit’s value, not its full value Câu 15: in CIF and CIP contracts, the exporter normally assigns the insurance agreement to A The buyer Câu 17: the names of parties to contract are often on of the contract A the first pagE Câu 19: Among a number of international bodies offering arbitration services, the in Paris is the most prestigious C ICC Câu 21: As the consequences of a defect can be expensive, the question of who pays for the consequential loss or damage is often C non-negotiable Câu 23: the point at which money is deemed to paid most preferred by buyer is C when the buyer instructs the bank to pay Câu 25: if the price are quoted CPT Vancouver, who pay for the freight? A the exporter Câu 27: In contracts is not normally allowed A delegation of duties Câu 29: the "door to door service" is offered Which term should be used? A DDP Câu 31: can creat no-contract situation D duress, fraud and mistake all Câu 33: a unilateral offer can be defined as: B an offer made of a promise in return for an act Câu 35: in negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submit it to the bank is C specification Câu 37: in a guarantee, a guarantor is often: C the bank Câu 39: the first step in negotiating a letter of credit is B specification Câu 41: a grace period are sometimes used to B facilitate early delivery Câu 43: is open ended C open cover Câu 46: war risk is not included in C A,B,C clause Câu 2: A warrantee protects: D Both the exporter and the importer Câu 4: Why can a manufacturer sometimes accept a loss on an export deal D Any of the above Câu 6: Inspection of the goods by the buyer in the manufacturer’s factory is referred to as: B Pre-delivery inspection Câu 8: if the box “With brief advice by teletransmission” is crossed, it means… B the exporter wants to begin preparation for delivery Câu 10: In international practice, problem of assignment of rights and delegation of duties can be reduced by using :… A prior written consent of the other party Câu 12: which of the following is NOT a discrepancy found with the commercial invoice? D The documents required to be signed are not signed Câu 14: what is a transferable credit? B It is the kind of credit which allows the first beneficiary to request the confirming bank to pay a third party Câu 16: who issue ocean bill of lading C shipping company Câu 18: the lump-sump compensation is set too high C penalty Câu 20: the mechanism of a confirmed letter of credit works as follows: C Buyer instructs issuing bank to instruct a confirming bank to pay under a letter of credit in favor of the seller Câu 22: discharge a contract when a party faces an excessive burden in complying with the contract B frustration and impossibility Câu 24: transfer of risks from the seller to the buyer (Incoterm 2000) DDU Premise Câu 26: transfer of risks from the seller to the buyer (Incoterm 2000) CFR: C when the goods across the ship's rail Câu 28: refers to the questions of implied warranties B Most laws Câu 30: In contract negotiation, "an invitation to provide terms and condition" may mean: C an invitation to the other party to make an offer Câu 32: if shipment is made on CIP and CIF terms, the letter of credit will call for D either a or c Câu 34: is both parties perform their duties exactly according to the contract, the contract is A discharge by performance Câu 36: Most contracts contain an assurance that the exporter will any defects of his products A make goods Câu 38: which of the following method of payment is NOT possible: D part of the contract price is paid by letter of credit but there is not a clear figure stated in the amount of the credit Câu 40: transfer of risk from the seller to the buyer (incoterm 2000) FAS Exquay Câu 42: which of the following discrepancies is NOT the problem with the letter of credit C there is no endorsement is endorsement is neccessary Câu 44: A payment guarantee simply commits the bank to pay if the buyer defaults The payment guarantee is usually for of the contract price A 100% Câu 47: why few exporters ask for banks guarantees as security for payment B because they run into trouble so often Câu 48: the entire agreement clause means that all documents that predate the contract C become invalid Câu 49: in negotiating a letter of credit, the step in which the list of all required documentation is incorporated into the contract is b incorporation Câu 50: A well- designed set of specifications protects buyer against products C inferioR DE 29 In which situation exporters use export credit insurance? Transactions represent high proportion of their turnover Transaction of risk from the buyer to the seller ( Incoterm 2000) FAS: When the goods are across the ship’s rail Why letter of credit are formally called “ documentary credits”: Because in a letter of credit situation, documents are exchanged for money Bill of lading is the most important document because it is a document title “A machine that consumes more specification” is an example of : Latent defect fuel than 11 Export credit insurance is very attractive, however, it is certain limitations like long time since the buyer fails to pay up to the time the insurance company compensates the exporter and the inability of covering 100% of the original invoice price 13 “ Full set on board ocean bills of lading to order shipper, blank endorsed” In this clause shipper means: A or B or C It depends on the situation 15 The contract requiring the exporter to send the contract goods by road from Kenza to Zambia with freight paid by the exporter: CPT Lusaka 17 The things that exporters should keep in mind in negotiating payment are payment mode, timing, place, delay, and result of delay 19 Which of the following examples is a patent defect? Crushed or stained garments 21 If the force majeure event continues for too long , both parties have the right to terminate the contract 23 Which of these does not count as a defect? Misuse 25 The contract should regulate what happens if Incoterm 2000 and the terms of the contract conflict normally the Contract prevails 27 Agreement, under Anglo-American law, are of two types 29 The exporter should have no liability for the goods when they are beyond his control 31 Unless otherwise agreed, the insurance is” minimum cover” – Cargo clause C 33 Which of the following discrepancies is NOT the problem with the Letter of Credit? There is no endorsement if endorsement is necessary 35 Whereas-clauses are not provisions, promises or conditions 37 When a party agree to end a contract, Rescission occurs 39 A marine bill of lading can be negotiable document with which the buyer can use it to resell the good s during shipment 41 “The Seller shall make goods the defect or damage as soon as a practicable and at his own cost”This is an example of Rectificatonperiod 43 The bank notifying the exporter that the letter of credit has been opened is called The advising bank 45 Continental law copes with National issues 47 A disclaimer of Warranty often accompanies delivery of software Transaction of risk from the buyer to the seller ( Incoterm 2000) CIF : When the goods are handed the first carrier Most contracts contain an assurance that the exporter will make good any defects in his products Rescission are two-side procedures “Door to door service “ is offered Which term should be used? A DDP 10 Which of following is NOT considered to be special requirement in a sale/purchase contract? Goods mustbe packed according to export standard 12 The background of the contract is provided in the form of a whereas-recital 14 Another name for warranty is defect liability 16 The answers to background questions are written through the whereas -recital 18 Of the three options available for setting disputes, litigation before the court is internationally least attractive as it is Expensive and legalistic 20 As soon as the exporter receives advice that the letter of credit has been opened, what should he do? He should check that it complies with the agreement he negotiated with the buyer 22 Which of the following is the least desirable option for the exporter? Return the goods and refund the price 24 If a dispute arises, the recital allows the court to discover the real meaning of the contract 26 A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by The Buyey 28 Why can a manufacturer sometimes accept a loss on an export deal? An of these above 30 With a well-designed set of specifications, the seller can protect its reputation and avoid costs 32 Anglo- American law brings the Uniformity in the individual case 34 Assuming shipment is by rail, what if the letter of credit demands the original bill of lading? Such a letter of credit is certain to cause delay in payment 36 “The Buyer shall notify the Seller of defects without undue delay” This is an example of Notification period 38 When a contract under a Continental law, a recital is not essential 40 Continental law is based on a legal code 42 What if a letter of credit calls for “a complete set of original air waybills”? Only the second original of the airway bill goes to the consignee The bank, however, will follow the wording of the letter of credit exactly andrefuse an incomplete set waybills 44 The clause covers General Average? A, B,C 46 Another name for Tender Guarantee is Bid bond 48 Which of the following is not the reason why the exporter prefers a longer expiry period of the credit? He wants to save bank charges 49 What would be the effects on the price of goods traded if the buyer wants the goods sooner? The price of the goods will go up as extra costs involved due to extra working shift from the manufacturer DE 30 A ban is issued on the export of jute products by newly elected government that has been preparing legislation on this subject for five years Khaothi la Yes, theo sach la Questionable Câu 3: The goods became deteriorated as a result of normal use This process is called: B Fair wear and tear Câu 5: Export credit insurance is very attractive; however, it has certain limitations like… C Long time since the buyer fails to pay up to the time the insurance company compensates the exporter and the inability of covering 100% of the original invoice price Câu 7: The word ‘cash’ in international trade means ……… C Checks or bank transfers Câu 9: Once the bank has indicated the discrepancies, what can the exporter do? D Any of the above Câu 11: Is there any ‘reconfirming’ bank B Yes, there is one in case banks are reluctant to confirm letters of credit, especially those from obscure banks Câu 13: The "exporter’s wording” and the "buyer’s wording” in the defects liability provision represent: A a major contract issue Câu 15: "A machine that consumes more fuel than specifications” is an example of A Latent defect Câu 17: If a dispute arises, the recital allows the court to discover the real meaning of ………… A the contract Câu 19: happens when one party ends the contract because of breach by the other A Cancellation Câu 21: The answers to background questions are written ……… A through the whereas-recital Câu 23: If shipment is under Incoterms other than CIF or CIP, D The exporter pays for insurance till the port of discharge Câu 25: In drafting an arbitration clause, the following questions must be resolved : D All of the above Câu 27: The court of arbitration applies whatever the parties stipulate in the contract C National law Câu 29: The greatest fear for the exporter is… C Being unable to get paid for the goods sold Câu 31: In settlement by sight payment…… C The seller presents the necessary documents to the paying bank Câu 33: In principle the buyer can reject delivered goods if they not conform to the contract This is called B Implied warranty of conformity Câu 35: Which of the following is NOT the reason why the exporter prefers a longer expiry period of the credit? A He wants to save bank charges Câu 37: If the price is quoted EXW, who pays for the freight? B The buyer Câu 39: Where is often the place of expiry of the credit? C At the counters of the confirming bank 50 A volcanic eruption buried the factory is ash Yes Câu 2: The Incoterm contains 11 terms C 2010 Câu 4: Inspection by the buyer is called: C Open package inspection Câu 6: The hereinafter called wording can prevent legal problem caused by : ……… B Mistyping names Câu 8: In settlement by acceptance, the kind of bill of exchange being sent together with other documents to the accepting bank is ……… C Time draft Câu 10When the Bill of lading marked "freight collected” Who pays for the freight? A The Buyer Câu 12: A commercial invoice must be made out to …… D The applicant for the letter of credit, normally to the buyer, unless otherwise stated in the credit Câu 14: Continental law is based on a …………… C Legal code Câu 16: Which of the following concepts is best used to avoid confusion when we mean an assurance that the exporter will make good defects in his goods? C Defects liability Câu 18: Defects that come to light after buyer’s acceptance are called B latent defects Câu 20: A contract that is ultra vires is ……… B unenforceable 22: A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by… A The buyer Câu 24: The bill of lading issued by the carrier for combined transport is called D Combined transport bill of lading Câu 26: Transfer of risk from the seller to the buyer (Incoterm 2000): CPT B When the goods are handed to the first carrie Câu 28: Title to the goods passes A with risks Câu 30: Delivery of the goods under most export contracts takes place in the country of B the exporter Câu 32: Elderly people are ………… to deal with a contract B Able Câu 34: Beside the commercial invoice, the transport document and insurance document, what ‘Other documents’ include? D Any of the above Câu 36: Within the four alternatives of the at - sight Letter of credit, which one is the least satisfactory for the exporter? D Settlement by negotiation Câu 38: Why most exporters offer a discount for early payment, for example a 1% discount if payment is made within 10 days of the date of invoice? C Because the exporter can substantially improves his cash flow Câu 40: "The Buyer shall notify the Seller of defects without undue delay” This is an example of: B Notification period Câu 41: The background of the contract is provided in the form of ………… D a whereas-recital Câu 43: The force majeure clause suggested by the International Chamber of Commerce, for example, states that payment of interest on overdue sums payable to the seller is ………… by ……………… B not excused/force majeure Câu 45: Which type of bill of lading is negotiable? C to order Câu 47: is two-sided procedures C Rescission Câu 49: In settlement by deferred payment, if the seller needs money immediately, what can he do? B He can exchange the letter of credit for cash with any agreeable bank Câu 42: Which of the following is essential to successful business? B Customer satisfaction Câu 44: Transfer of risk from the seller to the buyer (Incoterm 2000): CIP B When the goods are handed to the first carrier Câu 46: The Disclaimer of warranty means: B the buyer is denied of some of his normal rights Câu 48: The place of delivery is doubly important to the exporter because the date of normally depends on time and place of delivery B payment Câu 50: The names of parties to contract are often on of the contract A the first page [...]... examples is a latent defect? B Structural weaknesses 20 The clause covers General Average C A, B,C 22 Transfer of risk from the seller to the buyer (Incoterm 20 00) :DAF A When the goods are at frontier 24 An offer is not always ,in international practice ,the first move in forming a A Contract 26 Who issues ocean bill of lading? C Shipping company 28 Why do most exporters offer a discount for early... (C) Defective workmanship 20 Anglo – America law is also called Common law (A) 21 The dock workers in Port Verbena go on strike (A) YES 23 The Incoterm 20 10 (D) contains 11 items 25 The fact that manufacture often tempted to be overoptimistic and to agree to impossible specifications is Risky (B) in business 27 In contracts, (A) Delegation of duties is not normally allowed 29 What happens first when... workmanship 20 Defects such as wrong items, broken or missing parts, scratches, and so on are called…… A Patent defects 22 In a contract, consideration may consist of………………… D Right, interest, profit, detriment and loss 24 A marine bill of lading can be negotiable document with which ………… A.The buyer can use it to resell the goods during shipment 26 Continental Law copes with …………… C National issues 28 Which... named point of arrival A The exporter 21 Who usually pays for curing defects? B The exporter 23 Under the public law, a company can only sign a contract… D that is within its power 25 The Incoterm … contains 11 terms C 20 10 27 A payment guarantee simply commits the bank to pay if the buyer defaults The payment guarantee is usually for … of the contract price A 100% 29 A liquidated damages clause protects... sea 20 Transfer of risk from the seller to the buyer (Incoterm 20 00) CIF C When the goods across the ship’s rail 22 Termination for default occurs when the contract names certain ……… Which allow one side to terminate B Default 24 In how many originals and copies is the air way bill issued according to the standard of the International Air Transport Association – IATA C three original and nine copies 26 ... goods B defect liability period 22 A fire burns down the factory (Note: If either party is prevented from, or delayed in….) A Yes 24 Anglo-American law is also called … C Common law 26 Is it possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money? D Yes, it is 28 The first step in negotiating a L/C is … C AgreemenT 29 A payment guarantee simply... damages Cau 22 : In term of payment in international trade, D Risk and cost rise and fall together Cau 24 : The parties to a contract are not always required to the Vienna Sales Convention B Apply Cau 26 : what are common discrepancies reported by banks in practice? D Any of the above Cau 28 : In most guarantees, the bank agrees to pay “on first demand” which means D Without demur or objection Cau 29 : A... American law is… B Case law 20 Termination for convenience occurs when one party simply decides to drop the contract and … A No reason is required 22 Inspection of the goods by the buyer in the manufacturer’s factory is reffered to as : B Pre- delivery inspection 24 “Minimum Coverage” is the so-called Cargo Clause … C C 26 Elderly people are … to deal with a contract B Able 28 In negotiating a letter... takes place in the country of The exporter (B) 22 Which of the following discrepancies is NOT the problem with Insurance? A The documents are not presented within the required time 24 Transfer of risk from the seller to the buyer (Incoterm 20 00): DDU A When the goods are at the buyer’s premises 26 What do export insurance premiums depend on? D All of the above 28 A bank guarantee which gives the exporter... risk from the buyer to the seller ( incoterm 20 00) FOB: B when the goods are handed to the first carrier cau 21 : A, by sea The cheapest mode of transport is Cau 23 : open package inspection is synonymous with A Buyer’s inspection Cau 25 : Failure to meet specification is a c Design Cau 27 : Which of the following is not the method of issuing the LC: A.By email Cau 29 : Assuming shipment is by rail,what if