ĐỀ SỐ 1 1. In settlement by deferred payment, the letter of credit is paid after delivery. Right or wrong?A.Completely rightB.Definitely wrongC.It dependsD.The letter of credit is not payable until a number of day2.Which of these counts as a defect?A.Wrong design B.Fair wear and tearC.MisuseD.Missing items 3. (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 (background, the exporter cannot get the raw jute he need from the supplier because of a shipping delay)A.YesB.QuestionableC.No4.The majority of shipping documents presented to banks under documentary credit transaction are accepted on first presentation, Right or wrong A.Completely rightB.Definitely wrongC.Neither right nor wrongD.It depends5. A warranty is aimed at:A.Obtaining loansB.Assurance of product performanceC.Credit purchaseD.Profit making 6.The AngloAmerican contract is………A.Not the entire agreementB.Traditionally the entire agreement C.Sometimes the entire agreementD.Rarely the entire agreement7.In negotiating a letter of credit, the step in which the list of all required documentation is incorporated into the contract is……A.SpecificationB.Incorporation C.ComplianceD.Verification8. In a contract under a Continental law, a recital……A.Is essentialB.Is importantC.Is not useful D.Is useful9.Minimum Coverage is the socalled Cargo Clause…..A.AB. BC.C10. How many timing problems are involved in Defects Liability Period?A.ThreeB.FourC.TwoD.Five11. The main difference between Continent and Anglo –American contract law is the degree of…..A.CodificationB.FormationC.AutomationD.Interpretation12. What happens if the issuing bank finds a problem with the documents and refuses to send funds to the advising bank to cover payment?A.The advising bank has to suffer that loss due to their carelessness in checking the shipping documentsB.The advising bank gets its mo
Trang 1D The letter of credit is not payable until a number of day
2.Which of these counts as a defect?
Shortage of supplies (background, the exporter cannot get the raw jute he need fromthe supplier because of a shipping delay)
6.The Anglo-American contract is………
A Not the entire agreement
B Traditionally the entire agreement
Trang 2C Sometimes the entire agreement
D Rarely the entire agreement
7.In negotiating a letter of credit, the step in which the list of all required documentation
is incorporated into the contract is……
Trang 3C The payments form the advising bank to the exporter are always made withrecourse The exporter has to pay back the advising bank in such a case
D It is the responsibility of the issuing bank of paying back the advising bank in suck
in case
13 What can protect both the exporter and the importer in an export contract?
A A well-designed set of specifications
B An itemized set of specification
C A plain set of specification
D None of these
14 Which of the following is the objective aimed at by the exporter to minimize the risk
of the goods being rejected of heavy defects liability claims?
A Winning buyer’s goodwill
B Keeping his promise
C Negotiating detailed specifications
D Making profit
15 Transfer of risk form the seller to the buyer (Incoterm 2000) CIP
A When the goods are at the seller’s premises
B When the goods are handed to the first carrier
C When the goods across the ship’s rail
D When the goods are on board
16 The name of ……… are normally the full, registered name of the company
Trang 419 The mechanism of a confirmed letter of credit works as follows:
A Buyer instructs issuing bank to issue a letter of credit in favor of the seller
B Buyer instructs issuing bank to instruct an advising bank to pay under a letter ofcredit in favor of the seller
C Buyer instructs issuing bank to instruct a confirming bank to pay under a letter of credit in favor of the seller
D Buyer instructs issuing bank to instruct any third bank to under letter of credit infavor of the seller
20.In CIF and CIP contracts, the exporter normally assigns the insurance agreementto……
A The buyer
B The carrier
C The issuing bank
21 In principle the buyer can reject delivered goods if they do not conform to the
contract This is called…
A Implied warranty of suitability
B Implied warranty of conformity
C Implied warranty of merchantability
D Implied warranty of fitness for intended purpose
22 A contract is not enforceable if…
A It is signed within power
B It has a legal purpose
C It has an illegal purpose
D It has no purpose
23 The Disclaimer of warranty means:
A The seller is liable for the goods
B The buyer is denied of some of his normal rights
C The seller will make good any defect
D Contract prices would be far higher
24 In negotiating a letter of credit, the step in which the exporter rigorously checksdocumentation and submits it to the bank is……
A Agreement
B Verification
C Specification
Trang 5D Compliance
25 Which of the following discrepancies is NOT the problem with the Letter of Credit?
A The credit has expired
B Document required by the credit are missing
C The credit amount is exceeded
D Insurance cover is expressed in a currency other than that of the credit
26.The two terminologies which mean the same thing are…
A Guarantee and Warranty
B Bond and Surety
C Warranty and Defects Liability
D Guarantee and Insurance
27 Normally, risks are transferred at the point of……
30 Why do the exporters offer a discount for early payment , for example a 1% discount
of payment is made within 10 days of the date of invoice ?
A Because the discount is so attractive to the buyers
B Because the buyer can save on the invoice price
C Because the exporter can substantially improve his cash flow
D Because the exporter just want to get payment for delivery
31 The method of payment which is dangerous for the exporter is:
A Cash on delivery
B Accepting a personal check
C Prepayment
Trang 6D Export credit insurance
32 AS for Ango-American ,the decision of judge is always :
34 Dawson bought vanilla beans from Indonesia Dawson instructed an American bank
to open a letter of credit One of required shipping documents was a certificate ofquality issued “ by experts” The bank paid the exporter The beans, when theyarrived, 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?
A Definitely ,it could
36 The bill of lading issued by the carrier for combined transport is called:
A Combined bill of lading
B Combined bill
C Combined transportation bill of lading
D Combined transport bill of lading
37.In a contract the word “ whereas” means :
A “only that”
B “while”
C “when”
D “because” or “consider that”
38 Assuming shipment is by rail, what if a letter of credit demands the original bill oflading ?
Trang 7A It is possible demand
B The original of the bill of lading for shipment by rail does not come into thepossession of the buyer
C Such a letter of credit is certain to cause delay in payment
D The bank insists on strict compliance
40 Which is the most appropriate method of payment for the exporter in the followingcase ? Sale of a bale (roll) of cloth costing 200 USD to a nearly tailor’s shop withwhom you have done business for 20 years
A Confirmed letter of credit
B Open account with no security
C Open account with bank guarantee
D Open account with export credit insurance
41 IF shipment is under Incoterms other than CIF or CIP ?
A the buyer has to arrange the insurance cover by himself
B The buyer may still ask the exporter to arrange some aspects of the insurance for him
C The exporter has to arrange the insurance cover to the goods
D The exporter pays for insurance till the port of discharge
42 The period during which the buyer can begin a legal action is legally called:
A Notification
B Rectification
C Legal action period
D Detect liability period
43 The delivery depends on
A Date of execution
B Effective date
C Preconditions
44 The Vienna Sales Convention is also called:
A the uniform Law of International Sale
B the Uniform Law on the Formation of Contract for the international Sale of Goods
C the UN Convention on Contract for the International Sale of Goods
D the UN Convention on Contract for acceptance
45 How many originals and copies is the air waybill issued according to the standard ofthe International Air Transport Association-TATA?
A Three originals and 3 copies
B 3 originals and 6 copies
C 3Originals and 9 copies
Trang 8D it depends on the requirements in the letter of credit
46 The parties to a contract are not always required to
A Ignore
B Apply
C Refuse
D Decline
47 A ban is issued on the export of jute products by newly elected government that has
on been preparing legislation on this subject for 5 years
Trang 93 If the force majeure event continues for too long, both parties have the right to
A Continue the contract
B Terminate the contract
C Make late delivery
4 If the price is quoted FCA, who pays for the freight?
A The exporter
B The carrier
C The buyer
D The forwarding agent
5 When parties agree to end a contract, … occurs
Trang 10D It depends on the agreement
10 Which of these is the cheapest option for the exporter?
A Repair
B Replace (part of the whole item)
C Reduce the price
D Return the goods
11 The clause covers General Average
A A
B B
C A, B, C
12 The bill of lading issued by the carrier for road transport is called…
A Road bill of lading
B Road bill
C Roadway bill
D Road consignment note
13 Which of the following examples is a patent defect?
A Crushed of stained garments
B The flooring shows signs of deterioration
C High fuel consumption
D Inadequately tightened nuts and bolts
14 If shipment is made on CIF or CPI terms, the letter of credit will call for
A An insurance policy
B A letter of insurance
C A certificate of insurance
D Either A or C
Trang 1115 In settlement by sight payment
A The seller presents the necessary documents to the issuing bank
B The seller presents the necessary documents to the advising bank
C The seller presents the necessary documents to the paying bank
D The seller presents the necessary documents to the reconfirming bank
16 Which of the following discrepancies is not the problem with inconsistencies amongdocuments?
A The description of the goods on the invoice and the description of the goods in thecredit are different
B Documents are not presented within the required time
C Weights differ between 2 documents
D Marks and numbers differ among documents
17 “The buyer shall notify the seller of defects without undue delay” This is an exampleof:
A Defects liability period
B Notification period
C Rectification period
D Legal action period
18 Termination for convenience occurs when one party simply decides to drop thecontract and
A Open account with no security
B Open account with bank guarantee
C Open account with export credit insurance
D Confirmed letter of credit
20 In negotiating a letter of credit, the step in which the list of all required documentation
is incorporated into the contract is
A Specification
B Incorporation
C Compliance
D Verification
Trang 1221 In drafting an arbitration clause, the following question must be resolved:
A How many arbitrators sit in the court?
B What is the language of the court?
C Where is the place of the court?
D All the above
22 In a contract, consideration may consist of…
A Only right
B Only interest
C Only profit, detriment and loss
D Right, interest, profit, detriment and loss
23 Why letters of credit are formally called “documentary credits”?
A Because a letter of credit is a binding agreement by a bank to pay a certain sum ofmoney when the exporter presents the necessary documents to the bank
B Because a letter of credit is issued by an issuing bank at the request of the buyer
C Because in a letter of credit situation, documents are exchanged for money
D Because the documents in a letter of credit are proofs of trust
24 Continental law has well developed private law, especially contract and …
A The bank will pay the seller immediately
B The bank will pay the seller as long as the documents submitted comply with allthe terms of letter of credit
C The bank checks the documents
D The bank agrees to pay the bill when it matures
26 In contract, “partial invalidity provision” means the invalidity of one part of thecontract…
A May invalidate the rest
B Does not invalidate the rest
C Affects the rest
D Enforces the rest
27 Who issues bill of lading?
A Captain
Trang 13B Exporter
C Shipping company
D Agent
28 Why can a manufacturer sometimes accept a loss on an export deal?
A He wants to win a regular customer
B His factory may be short of work
C He can get some export incentives from the government
33 A contract is not enforceable if
A It is signed within power
B It has a legal purpose
C It has illegal purpose
D It has no purpose
34 Transfer of risk from the seller to the buyer (Incoterm 2000): CIF
A When the goods are at the seller’s premises
B When the goods are handled to the first carrier
C When the goods across the ship’s rail
D When the goods are on board
Trang 1435 Discount Records bought phonograph records from an exporter Payment was byletter 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 thinkthe court would do in that case?
A The court refused
B The court accepted
C The court would not involve
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.
36 Negotiation of specification between the exporter and the importer can be…
38 Which of the following discrepancies is not the problem with the letter of credit?
A The shipment was short
B The shipment was late
C There is no endorsement if endorsement is necessary
D The credit has expired
39 Which of the following concepts is best used to avoid confusion when we mean anassurance that the exporter will make good defects in his goods?
A And
B Or
C And/or
Trang 15D Completely wrong, because the buyer is obliged to pay for insurance and freight
on his own account if term of trade is FOB
42 The main concerns of the parties to contract should be…
C Any party endorsing the bill of lading
D The application for the letter of credit, normally to the buyer, unless otherwise stated in the credit.
44 Another name for tender guarantee is
A Revocation guarantee
B Bid guarantee
C Bond guarantee
D Bid bond
45 The best solution for the exporter to make late payment impossible is
A A typical contract clause in which there are regulations on the amount of interestthe seller shall be entitled to receive in case of late payment
B An agreement with the buyer to strengthen the payment provisions with a paymentguarantee
C An agreement with an insurance company in case the buyer fails to pay on time
D A confirmed, irrevocable, at sight letter of credit.
46 Defects may be which of the following?
A Defects in materials
B Defects in workmanship
Trang 17ĐỀ 3
1 A contract is a written agreement and it follows the “meeting of minds” and…
A Offer and decline
B Offer and refusal
C Offer and acceptance
D Offer and renewal
2 A ban is issued on the export of jute products by newly elected government
C Incoterm and contract
6 If is possible for the beneficiary (exporter) sometimes, though not often, to make adraft on the bank to collect the money?
A No it isn’t
B It is impossible by all mean
C The draft must be drawn on the buyer to the order payment not the bank
Trang 18A The issuing bank
B The advising bank
C The confirming bank
D Any third bank
10 Why letter of credits are formally called documentary credits?
A Because a letter of credit is a binding agreement by a bank to pay a certain sum ofmoney when the exporter presents necessary documents to the bank
B Because a letter of credit is issued by a issuing bank at the request of the buyer
C Because in a letter of credit situation, documents are exchanged for money
D Because the documents in a letter of credit are proof of trust
11 If the exporter knew the buyer’s intended purposes, and if the buyer relied on theexporter knowledge and expertise, the buyer can reject the goods that are not suitablefor their intended purposes This is called……
A Implied warranty of the suitability with intended purposes
B Implied warranty of fitness for attention
C Implied warranty of fitness for objectives
D Implied warranty of fitness for intended purposes
12 If the price is quoted FOB Singapore, then the seller is not obliged to pay insuranceand freight Right or wrong?
A Completely right
B 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
D Completely wrong because the buyer is obliged to pay for insurance and freight onhis own account if term of trade is FOB
13 If a contract is an entire agreement, earlier letters and documents……
A Can be used as evidence
B Become invalid
C Prevail
D Remain important
Trang 1914 The point of delivery is much the same for all…… terms and …… terms- whenthe exporter hand over the goods to the carrier
A C & F
B D & F
C C & D
15 A term or terms in a contract could raise the contract price
A A shorter warranty period
B Customer order goods in one color
C No additional packaging or safety warnings are required beyond normal standards
D A longer warranty period
16 Who issue export credit insurance?
A The buyer
B The exporter
C An insurance company
D Any export company
17 The defects liability clause should states:
A The date of acceptance
B Exporter’s duty if a defect comes to light
20 To cure the defective goods, the best option for the exporter is:
A taking back the defective goods and giving back the money
B reducing the price
C replacing the goods
D dependent on the type of goods
21 The workforce at the factory goes on strike:
A Yes
B Questionable
Trang 20C No
22 The exporter's interests are best served by
A An irrevocable letter of credit
B A confirmed letter of credit
C An at-sight letter of credit
D A combination of all of the above.
23 ………… are the explanations
28 The answers to background questions are written
A through the whereas-recital
B through the annex
C through provisions
D through conditions
29 According to the UCC, if the goods fail in any respect to conform to the contract, thebuyer may
Trang 21A reject the whole
B accept the whole
C accept any commercial unit and reject the rest
D All the above
30 The advantages of arbitration are
A Private and foreseeable costs
B Lengthy and open
C Binding and rigid
D are not provisions, promises or conditions
32 In terms of payment in international trade
A Risk rises and cost rises as well
B Risk falls and cost falls as a consequence
C Risk and cost have no relationship with each other
D Risk and cost rise and fall together
33 Defects such as wrong items, broken or missing parts, scratches, and so on are called
B Marine bill of lading
C Sea way bill
35 Which of the following discrepancies is NOT the problem with the Letter of Credit?
A The shipment was short
B The shipment was late
C There is no endorsement if endorsement is necessary
D The credit has expired
36 Failure to meet specifications is a
A Defect in workmanship
B Defect in material
C Defect in design
Trang 22D Defect in quantity
37 The bill of lading issued by the carrier for road transport is called
A Road bill of lading
B Road bill
C Roadway bill
D Road consignment note
38 Mowing the buyer to repair the equipment at the exporter's cost ……
A is always the best choice for the exporter
B is always the worst choice for the exporter
C is often safe for the exporter
D is often unsafe for the exporter
39 Assuming shipment is by rail, what if a letter of credit demands the original bill oflading?
A It is a possible demand
B The original of the bill of lading for shipment by rail does not come into thepossession of the buyer
C Such a letter of credit is certain to cause delay in payment
D The bank insists on strict compliance.
40 Partial invalidity clause can help to avoid problems with contacts that……
E might infringe government regulations
F violate the trade laws
D because' or 'considering that'
43 Export credit insurance is very attractive; however, it has certain limitations like
A high premiums paid by the exporter
B long time waiting for compensation from the insurance company
Trang 23C 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
D Refusal from the insurance company to quote premiums due to risky business or
the buyers non-creditworthiness
44 Why do 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?
A Because the discount is so attractive to the buyer
B Because the buyer can save on the invoice price
C Because the exporter can substantially improves his cash flow
D Because the exporter just wants to get payment on delivery
45 If the buyer come from a country which has poor reputation for enforcing awards, thebest methods of payment under the contract is a/ an…
B Inspection of goods prior to the shipment
C Open package inspection
D Customs inspection
48 Which of the following discrepancy is NOT the problem with insurance?
E Document are not presented with the required time
F The sum insured below the figure required
G the insurance risks are not those specified in the credit
H A certificate of insurance is produced while the credit calls for a policy
49 A contract requiring an exporter in Mozambique to deliver the contract goods BeiraMozambique for the shipment by sea to Da esSallamTazania
A FAS Beira
B CIF Beira
C FOB Da es Salaam
Trang 2450 There is no connection between the letter of credit and the sales contract Right orwrong?
Trang 253 Once the bank has indicated the discrepancies, what can the exporter do?
A The exporter can provide the missing paperwork or correct errors
B The exporter can ask the buyer to instruct the bank to change the items of the letter ofcredit
C The exporter can ask the bank to process the letter of credit with the discrepancies but
to pay only when (and if) the issuing bank permits payment
D Any of the above
4 A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery
C FOB Dar es Salaam
6 The two terminologies which mean the same thing are …
A Guarantee and warranty
B Bond and surety
C Warranty and defects liability
D Guarantee and insurance
7 Which country requires that all goods imported into the country are inspected by the SGSimmediately before shipment?
A The USA
B Vietnam
C Indonesia
D The UK
Trang 268 Dawson bought vanilla beans from Indonesia Dawson instructed an American bank toopen a letter of credit One of the required shipping documents was a certificate of qualityissued “by experts” The bank paid the exporter The beans, when they arrived, wererubbish The certificate of quality was signed, however, by only one “expert” Could thebank collect from Dawson the money it had paid to the exporter?
A Definitely, it could
B Probably, it could
C No, it couldn’t
D No question, it could
9 Which of the following method of payment is NOT possible?
A 100% of the contract price by letter of credit
B 20% prepayment and 80% by letter of credit
C 90% by letter of credit and 10% retaining until the warranty period is over
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
10 The majority of shipping documents presented to banks under documentary credittransactions accepted on first presentation Right or wrong?
C Only profit detriment, and loss
D Right, interest, profit, detriment, and loss
13 Which type of bill of lading is negotiable
A Surrender
B Straight
C To order
14 A unilateral offer can be defined as:
A An offer made of a promise in return for a promise
B An offer made of a promise in return for an act
C An offer made of an act in return for an act
D An offer made of act in return for a promise
15 Small purchase in private life are often in the form of …
Trang 27A Cash on delivery
B Cash against invoice
C Cash with order
D Any of the above
16 Transfer of risk from the seller to the buyer (Incoterms 2000): DDP
A When the goods are at the buyer’s premises
B When the goods are handed to the first carrier
C When the goods across the ship’s rail
D When the goods are on board
17 Shortage of supplies (Background: the exporter cannot get the raw jute from the supplierbecause of a shipping delay)
A Yes
B Questionable
C No
18 The defect liability clause should state:
A The date of acceptance
B Exporter’s duty if a defect comes to light
A May invalidate the rest
B Does not invalidate the rest
C Affects the rest
D Enforces the rest
22 For the exporter, the option to repair a defective item abroad…
A Is negligent
B Can be costly
C Is always the best choice
D Is always the worst choice
Trang 2823 The mechanism of a confirmed letter of credit works as follows:
A Buyer instructs issuing bank to issue a letter of credit in favor of the seller
B Buyer instructs an issuing bank to instruct an advising bank to pay under a letter ofcredit in favor of the seller
C Buyer instructs an issuing bank to instruct a confirming bank to pay under a letter of credit in favor of the seller
D Buyer instructs an issuing bank to instruct any third bank to pay under a letter ofcredit in favor of the seller
24 “A voltmeter that is specified as accurate within 1 millivolt is accurate within only 5millivolt” is an example of:
A Defective design
B Defective materials
C Defective workmanship
D Misuse by the seller
25 Which of the following discrepancies is NOT the problem with inconsistencies amongthe document?
A The description of the goods on the invoice and the description of the goods in thecredit are different
B Documents are not presented within the required time
C Weights differ between two documents
D Marks and numbers differ among documents
26 The bank notifying the exporter that the letter of credit has been opened is called …
A The issuing bank
B The advising bank
C The confirming bank
D The opening bank
Trang 29A When the buyer pays the money into his bank
B When the buyer’s bank transfers funds
C When the buyer instructs the bank to pay
D When the funds reach the seller’s bank account
31 An offer dies if it has a/an …
A The clause does not specify how payment will be made
B The clause does not specify when payment is due
C The clause lacks all the necessary five steps in negotiating payment mode, time, place, delay and results of delay
D The clause does not say where the money must be before the buyer is deemed to havepaid, define delay in payment and mention the consequences of delay
33 An endlessly renewed liability for defects is called:
A Eternal warranty
B Ephemeral warranty
C External warranty
D Explicit warranty
34 What if a letter of credit calls for “a complete set of original air waybills”?
A The exporter has to present the full set of original air waybills if he want to getpayment from the bank
B The exporter cannot provide the complete set
C This is obviously a mistake
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
35 Which of the following discrepancies is NOT the problem with the Letter of Credit?
A The credit has expired
B Documents required by the credit are missing
C The credit amount is exceeded
D Insurance cover is expressed in a currency other than that of the credit
36 Among a number of international bodies offering arbitration services, the … in Paris isthe most prestigious
A UCP
B ADR
C ICC
D FAO
Trang 3037 Transfer of risk from the seller to the buyer (Incoterms 200):CIP
A When the goods are at the seller’s premises
B When the goods are handed to the first carrier
C When the goods across the ship’s rail
D When the goods are on board
38 If the buyer can make certain assumptions about goods-even if the exporter gives noexpress warranty, these assumptions are called …
42 Transfer of risk from the seller to the buyer (Incoterm 2000): DES
A When the goods are ex-ship
B When the goods are handed to the first carrier
C When the goods across the ship’s rail
D When the goods are on board
43 The cheapest mode of transport is …
45 A liquidated damages clause protects …
A The exporter rather than the importer
Trang 31B The importer rather than the exporter
C Both sides
D Neither the exporter nor the importer
46 Who issues export credit insurance?
D Near the end
48 In settlement by deferred payment, the letter of credit is paid after delivery Right orwrong?
A Completely right
B Definitely wrong
C It depends
D The letter of credit is not payable until a number of days
49 “repair by the buyer” provision is often …
A Welcome by the seller
B Beneficial to the seller
C Avoided by the seller
D Imposed by the seller
50 One of the three options available for settling disputes, litigation before the court isinternationally least attractive as it …
A Expensive and legalistic
B Business-like and flexible
C Time-saving and private
D Fast and acceptable
Trang 32Đè 5
1.Directions: Choose the answer that suits the question most
In settlement by deferred payment, the letter of credit is paid after delivery Right
or wrong ?
E Completely right
F Definitely wrong
G It depends
H The letter of credit is not payable until a number of day
2.Directions: 4 answer choices are given below each sentence Choose the best answer then then mark the letter A, B, C, D on the screen
Which of these counts as a defect?
Shortage of supplies( background, the exporter cannot get the raw jute he need from the supplier because of a shipping delay)
D Yes
E Questionable
F No
Trang 334.Directions: Choose the answer that suits the question most
The majority of shipping documents presented to banks under documentary credit transaction are accepted on first presentation, Right or wrong
6 Directions: A word or phrase is missing in each of the sentences below.
Directions: 4 answer choices are given below each sentence Choose the best answer to completed then mark the letter A, B, C, D on the screen
The Anglo-American contract is………
E Not the entire agreement
F Traditionally the entire agreement
G Sometimes the entire agreement
H Rarely the entire agreement
7 In negotiating a letter of credit, the step in which the list of all required
documentation is incorporated into the contract is……
E Specification
F Incorporation
G Compliance
Trang 34F The advising bank gets its money back from the exporter
G The payments form the advising bank to the exporter are always made with recourse The exporter has to pay back the advising bank in such a case
Trang 35H It is the responsibility of the issuing bank of paying back the advising bank
in suck in case
13.What can protect both the exporter and the importer in an export contract?
E A well-designed set of specifications
F An itemized set of specification
G A plain set of specification
H None of these
14.Which of the following is the objective aimed at by the exporter to minimize the risk of the goods being rejected of heavy defects liability claims?
E Winning buyer’s goodwill
F Keeping his promise
G Negotiating detailed specifications
H Making profit
15.Transfer of risk form the seller to the buyer ( incoterm 2000) CIP
E When the goods are at the seller’s premises
F When the goods are handed to the first carrier
G When the goods across the ship’s rail
H When the goods are on board
16.The name of ……… are normally the full, registered name odf the company.
Trang 3619.The mechanism of a confirmed letter of credit works as follows:
E Buyer instructs issuing bank to issue a letter of credit in favor of the seller
F Buyer instructs issuing bank to instruct an advising bank to pay under a letter of credit in favor of the seller
G Buyer instructs issuing bank to instruct a confirming bank to pay under
a letter of credit in favor of the seller
H Buyer instructs issuing bank to instruct any third bank to under letter of credit in favor of the seller
20 In CIF and CIP contracts, the exporter normally assigns the insurance
agreement to……
D The buyer
E The carrier
F The issuing bank
21 In principle the buyer can reject delivered goods if they do not conform to the
contract This is called…
E Implied warranty of suitability
F Implied warranty of conformity
G Implied warranty of merchantability
H Implied warranty of fitness for intended purpose
22 A contract is not enforceable if….
Trang 37E It is signed within power
F It has a legal purpose
G It has an illegal purpose
H It has no purpose
23 The Disclaimer of warranty means:
E The seller is liable for the goods
F The buyer is denied of some of his normal nights
G The seller will make good any defect
H Contract prices would be far higher
24 In negotiating a letter of credit, the step in which the exporter rigorously Checks documentation and submits it to the bank is…….
E The credit has expired
F Document required by the credit are missing
G The credit amount is exceeded
H Insurance cover is expressed in a currency other than that of the credit
26.The two terminologies which mean the same thing are….
E Guarantee and Warranty
F Bond and Surety
G Warranty and Defects Liability
H Guarantee and Insurance
27.Normally, Risks are transferred at the point of……
D Delivery
E Payment
Trang 3830 Why do the exporters offer a discount for early payment , for example a 1%
discount of payment is made winthin 10 days of the date of invoice ?
A Because the discount is so attractive to the buyers
B Because the buyer can save on the invoice price
C Because the exporter can sustantially improve his cash flow
D Because the exporter just want to get payment for delivery
31 The method of payment which is dangerous for the exporter is :
Trang 3932 AS for Ango-American ,the decision of judge is always :
34 Dawson bought vanilla beans from Indonesia Dawson instructed an American
bank to open a letter of credit One of 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?
A Definitely ,it could
B Probably,it could
C.No,it could not
D.Noquestion,it could
Trang 4035.If the price is quoted FOB Singapore,who pays for the insurance and freight?
A.The exporter
B.The buyer
C.The forwarding agent
D.The confirm
36 The bill of lading issued by the carrier for combined transport is called:
A Combined bill of lading
B Combined bill
C Combined transportation bill of lading
D Combined transport bill of lading
37.In a contract the word “ whereas” means :
A “only that”
B “while”
C “when”
D “because” or “consider that”
38 Assuming shipment is by rail, what if a letter of credit demands the original bill
of lading ?
A It is possible demand