Trắc nghiệm TACN 2
description
Transcript of Trắc nghiệm TACN 2
ĐỀ SỐ 1 1. In settlement by deferred payment (thanh toán trả chậm) , 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 day
2.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. No
4.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 depends
5. A warranty is aimed at:A. Obtaining loansB. Assurance of product performanceC. Credit purchaseD. Profit making
6.The Anglo-American contract is………A. Not the entire agreementB. Traditionally the entire agreement
C. Sometimes the entire agreementD. 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……A. Specification (speccifying) ghi rõB. Incorporation C. Compliance( submit) thực thiD. Verification (check) rà soát
8. In a contract under a Continental law, a recital……A. Is essentialB. Is importantC. Is not useful D. Is useful
9.Minimum Coverage is the so-called Cargo Clause…..p64A. AB. BC. C
10. How many timing problems are involved in Defects Liability Period? P134A. ThreeB. FourC. TwoD. Five
11. The main difference between Continent and Anglo –American contract law is the degree of…..A. Codification( bộ luật)B. FormationC. AutomationD. Interpretation
12. 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 money back from the exporter
C. 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
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 specificationsB. An itemized set of specificationC. A plain set of specificationD. 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 goodwillB. Keeping his promiseC. Negotiating detailed specificationsD. Making profit
15. Transfer of risk form the seller to the buyer (Incoterm 2000) CIPA. When the goods are at the seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
16. The name of …………… are normally the full, registered name of the company.A. The exporterB. The buyerC. Either the exporter or the importerD. The parties
17. In a contract under a Continental law, a recital…..A. Is essentialB. Is not useful C. Is not essentialD. Is important
18………….. is opened-endedA. Tailor-madeB. FloatingC. Open cover
19. 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 sellerB. Buyer instructs issuing bank to instruct an advising bank to pay under a letter of
credit in favor of the sellerC. Buyer instructs issuing bank to instruct a confirming bank to pay under a
letter of credit in favor of the sellerD. 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……A. The buyerB. The carrierC. 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 suitabilityB. Implied warranty of conformityC. Implied warranty of merchantabilityD. Implied warranty of fitness for intended purpose
22. A contract is not enforceable if….A. It is signed within powerB. It has a legal purposeC. It has an illegal purposeD. It has no purpose
23. The Disclaimer of warranty means:A. The seller is liable for the goodsB. The buyer is denied of some of his normal rightsC. The seller will make good any defectD. 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…….A. AgreementB. VerificationC. Specification
D. 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 missingC. The credit amount is exceededD. 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 WarrantyB. Bond and SuretyC. Warranty and Defects LiabilityD. Guarantee and Insurance
27. Normally, risks are transferred at the point of……A. DeliveryB. PaymentC. Arrival
28. War risk is not included in……..A. A clause B. B ClauseC. A,B,C clause
29. Negotiation of specification between the exporter and the importer can be ………A. An effortless processB. A difficult process C. Done by an intermediary D. A simple process
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 buyersB. Because the buyer can save on the invoice priceC. Because the exporter can substantially improve his cash flowD. 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 deliveryB. Accepting a personal checkC. Prepayment
D. Export credit insurance32. AS for Ango-American ,the decision of judge is always :
A. PredictableB. ForceableC. UnpredictableD. Estimated
33. If both parties perform their duties correctly, a contract is discharged by :A. DefaultB. SuspensionC. PerformanceD. Breach
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 couldB. Probably, it couldC. No, it could notD. No question, it could
35.If the price is quoted FOB Singapore, who pays for the insurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirm
36. The bill of lading issued by the carrier for combined transport is called:A. Combined bill of ladingB. Combined billC. Combined transportation bill of ladingD. 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 demandB. The original of the bill of lading for shipment by rail does not come into the
possession of the buyer.C. Such a letter of credit is certain to cause delay in paymentD. The bank insists on strict compliance
40. Which is the most appropriate method of payment for the exporter in the following case ? Sale of a bale (roll) of cloth costing 200 USD to a nearly tailor’s shop with whom you have done business for 20 years.A. Confirmed letter of credit.B. Open account with no securityC. Open account with bank guaranteeD. 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 himselfB. The buyer may still ask the exporter to arrange some aspects of the insurance
for himC. The exporter has to arrange the insurance cover to the goodsD. 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. NotificationB. RectificationC. Legal action periodD. Detect liability period
43. The delivery depends on A. Date of executionB. Effective date C. Preconditions
44. The Vienna Sales Convention is also called:A. the uniform Law of International SaleB. the Uniform Law on the Formation of Contract for the international Sale of GoodsC. the UN Convention on Contract for the International Sale of GoodsD. the UN Convention on Contract for acceptance
45. How many originals and copies is the air waybill issued according to the standard of the International Air Transport Association-TATA?A. Three originals and 3 copiesB. 3 originals and 6 copies C. 3Originals and 9 copies
D. it depends on the requirements in the letter of credit46. The parties to a contract are not always required to .....
A. IgnoreB. ApplyC. 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.A. YesB. QuestionableC. No
50. The bank that the buyer asked to open a letter of credit is callA. an issuing bankB. an advising bankC. confirming bankD. opening bank
ĐỀ 21. The decision of arbitrator is:…
A. Law- orientedB. Business-orientedC. Action-orientedD. Reaction-oriented
2. Under most laws, a buyer can make certain assumptions about goods. These assumptions are called (by lawyers):A. Express warrantiesB. Negotiable warrantiesC. Implied warrantiesD. Implied guarantee
3. If the force majeure event continues for too long, both parties have the right toA. Continue the contractB. Terminate the contractC. Make late delivery
4. If the price is quoted FCA, who pays for the freight?A. The exporterB. The carrierC. The buyerD. The forwarding agent
5. When parties agree to end a contract, … occurs.A. TerminationB. FrustrationC. Rescission (từ bỏ)D. Suspension
6. In a contract, a formal definition is the best way of clarifying what exactly the two sides have …A. ExcusedB. NegotiatedC. AgreedD. Solved
7. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is …A. AgreementB. IncorporationC. VerificationD. Compliance
8. “A machine that consumes more fuel than specification” is an example of:A. Latent defectB. Patent defectC. Inherent defectD. Apparent defect
9. When the bill of lading marked “freight prepaid”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement
10. Which of these is the cheapest option for the exporter?A. RepairB. Replace (part of the whole item)C. Reduce the priceD. Return the goods
11. The clause covers General AverageA. AB. BC. A, B, C
12. The bill of lading issued by the carrier for road transport is called…
A. Road bill of ladingB. Road billC. Roadway billD. Road consignment note
13. Which of the following examples is a patent defect?A. Crushed of stained garmentsB. The flooring shows signs of deteriorationC. High fuel consumptionD. Inadequately tightened nuts and bolts
14. If shipment is made on CIF or CPI terms, the letter of credit will call forA. An insurance policyB. A letter of insurance C. A certificate of insurance D. Either A or C
15. In settlement by sight paymentA. The seller presents the necessary documents to the issuing bankB. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank
16. Which of the following discrepancies is not the problem with inconsistencies among documents?A. The description of the goods on the invoice and the description of the goods in the
credit are differentB. Documents are not presented within the required timeC. Weights differ between 2 documentsD. Marks and numbers differ among documents
17. “The buyer shall notify the seller of defects without undue delay”. This is an example of:A. Defects liability periodB. Notification periodC. Rectification periodD. Legal action period
18. Termination for convenience occurs when one party simply decides to drop the contract andA. No reason is requiredB. Reasons are requiredC. Consultation is required
D. Conversation is required19. 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 $10000 worth of assorted textilesA. Open account with no securityB. Open account with bank guaranteeC. Open account with export credit insuranceD. 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 isA. SpecificationB. IncorporationC. ComplianceD. Verification
21. 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 rightB. Only interestC. Only profit, detriment and lossD. 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 of
money 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 buyerC. Because in a letter of credit situation, documents are exchanged for moneyD. Because the documents in a letter of credit are proofs of trust.
24. Continental law has well developed private law, especially contract and …A. Commercial lawB. Corporate lawC. Community lawD. Case law
25. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn from on the buyer from the seller?
A. The bank will pay the seller immediatelyB. The bank will pay the seller as long as the documents submitted comply with all
the terms of letter of credit.C. The bank checks the documentsD. The bank agrees to pay the bill when it matures
26. In contract, “partial invalidity provision” means the invalidity of one part of the contract…A. May invalidate the restB. Does not invalidate the restC. Affects the restD. Enforces the rest
27. Who issues bill of lading?A. CaptainB. ExporterC. Shipping companyD. Agent
28. Why can a manufacturer sometimes accept a loss on an export deal?A. He wants to win a regular customerB. His factory may be short of workC. He can get some export incentives from the governmentD. Any of above
29. A disclaimer of warranty often accompanies delivery ofA. SoftwareB. HardwareC. FootwearD. Chinaware
30. Delivery of the goods under most export contracts takes place in the country ofA. The importerB. The exporterC. The agent
31. All risks covered is under … clauseA. AB. BC. C
32. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NamibiaA. CIF Windhoek
B. CIP WindhoekC. DEQ Windhoek
33. A contract is not enforceable if A. It is signed within powerB. It has a legal purposeC. It has illegal purposeD. It has no purpose
34. Transfer of risk from the seller to the buyer (Incoterm 2000): CIFA. When the goods are at the seller’s premisesB. When the goods are handled to the first carrierC. When the goods across the ship’s railD. When the goods are on board
35. 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 do in that case?A. The court refusedB. The court acceptedC. The court would not involveD. 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…
A. An effortless processB. A difficult processC. Done by an intermediaryD. A simple process
37. An offer dies if it has a/an:A. AcceptanceB. AgreementC. AdoptionD. Revocation
38. Which of the following discrepancies is not the problem with the letter of credit?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired.
39. 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?A. WarrantyB. GuarantyC. Defects liabilityD. Warrantee
40. If alternative means of transport of partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words … between the names of transport documentation.A. AndB. OrC. And/orD. Either B or C
41. If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight. Right or wrong?A. Completely rightB. WrongC. 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 buyerD. 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…
A. Dispute managementB. Dispute avoidanceC. Dispute costD. Dispute means
43. A commercial invoice must be made out to…A. The exporter B. The shipperC. Any party endorsing the bill of ladingD. 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 guaranteeB. Bid guaranteeC. Bond guarantee
D. Bid bond45. 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 interest the seller shall be entitled to receive in case of late payment.
B. An agreement with the buyer to strengthen the payment provisions with a payment guarantee
C. An agreement with an insurance company in case the buyer fails to pay on timeD. A confirmed, irrevocable, at sight letter of credit.
46. Defects may be which of the following? Cả design nữaA. Defects in materialsB. Defects in workmanshipC. BothD. None of these
47. If a dispute arises, the recital allows the court to discover the real meaning of …A. The contractB. The termC. The incotermD. The appendix
48. The dockworkers in Port Verbena go on strikeA. YesB. QuestionnaireC. No
49. Defects that come to light after buyer’s acceptance are called…A. Patent defectsB. Latent defectsC. Coherent defectsD. Apparent defects = patent
ĐỀ 31. A contract is a written agreement and it follows the “meeting of minds” and….
A. Offer and declineB. Offer and refusal C. Offer and acceptance quá trình đàm phánD. Offer and renewal
2. A bank is issued on the export of jute products by newly elected governmentA. YesB. QuestionableC. No
3. Continental lawyers ……. Complicated grammar of the whereas- clauseA. Often avoidB. Often useC. Often take advantage ofD. Sometimes use
4. The clause covers General Average:A. AB. BC. A,B,C
5. The contract should regulate what happen if Incoterms 2000 and the terms of contract conflict normally the ….. prevailsA. IncotermB. ContractC. Incoterm and contract.
6. If is possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money?A. No. it isn’tB. It is impossible by all meanC. The draft must be drawn on the buyer to the order payment not the bankD. Yes, it is
7. Continental law is also called…….A. Civil lawB. Common law = case law = Anglo-American LawC. Legal systemD. Lawful case
8. 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
A. 100%B. 90%C. 50%D. 110%
9. The bank helping the exporter to check the correctness of the documents and set the payment procedure in motion is……..A. The issuing bankB. The advising bankC. The confirming bankD. 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 of money when the exporter presents necessary documents to the bankB. Because a letter of credit is issued by a issuing bank at the request of the buyerC. 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 the exporter knowledge and expertise, the buyer can reject the goods that are not suitable for their intended purposes. This is called……A. Implied warranty of the suitability with intended purposesB. Implied warranty of fitness for attentionC. Implied warranty of fitness for objectivesD. Implied warranty of fitness for intended purposes
12. If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight. Right or wrong?A. Completely rightB. WrongC. 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 on his 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 evidenceB. Become invalidC. PrevailD. Remain important
14. The point of delivery is much the same for all…….. terms and …….. terms- when the exporter hand over the goods to the carrierA. C & FB. D & FC. C & D
15. A term or terms in a contract could raise the contract priceA. A shorter warranty periodB. Customer order goods in one colorC. No additional packaging or safety warnings are required beyond normal standardsD. A longer warranty period
16. Who issue export credit insurance?A. The buyerB. The exporterC. An insurance companyD. Any export company
17. The defects liability clause should states:A. The date of acceptanceB. Exporter’s duty if a defect comes to lightC. Both A & BD. Only A
18. If shipment is made on CIF or CIP terms, the letter of credit will call for….A. An insurance policyB. A letter of insuranceC. A certificate of insuranceD. Either A or C
19. The lump-sum compensation is set too low A. liquidated damages B. quasi indemnity C. penalty
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
C. No22. 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.A. Definition clauses B. Whereas-recital clauses C. Preamble clauses D. Annex clauses
24. 'Door to door service" is offered. Which term should be used? A. DDPB. CIFC. CIP
25. Delivery of the goods under most export contracts takes place in the country of A. the importerB. the exporterC. the agent
26. Continental Law does not require long and contracts. A. Loose B. Lax C. Brief D. Detailed
27. The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specifications is…….. in business. A. lucrative B. risky C. advantageous D. common
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, the buyer may
A. 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. Time – consuming
31. . Whereas-clauses.A. are provisions B. are promises C. are conditions D. are not provisions, promises or conditions( they are explanation)
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 A. patent defects B. latent defects C. inherent defects D. concealed defects
34. The bill of lading issued by the carrier for sea transport is called A. Seaway bill B. Marine bill of ladingC. 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
D. Defect in quantity37. 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 exporterD. is often unsafe for the exporter
39. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading? A. It is a possible demand. B. The original of the bill of lading for shipment by rail does not come into the
possession 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 G. discourage trade H. both b and c
41. Which of these does not require prior inspection by SGS? A. The PhilippinesB. Indonesia C. The United Kingdom D. All A, B and C
42. In a contract, the word" whereas" means A. only that"B. ‘while'C. when' 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
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. 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, the best methods of payment under the contract is a/ an…..
A. Revolving L/CB. At sight, confirmed L/CC. Deferred, irrevocable L/CD. Transferable L/C
46. Who issues bank guarantee?A. The buyerB. The exporterC. Any third partyD. A bank
47. Inspection by the buyer is called:A. Independent inspectionB. Inspection of goods prior to the shipmentC. Open package inspectionD. Customs inspection
48. Which of the following discrepancy is NOT the problem with insurance?E. Document are not presented with the required timeF. The sum insured below the figure requiredG. the insurance risks are not those specified in the creditH. 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 Beira Mozambique for the shipment by sea to Da esSallamTazania
A. FAS BeiraB. CIF BeiraC. FOB Da es Salaam
50. There is no connection between the letter of credit and the sales contract. Right or wrong?A. Completely rightB. Completely wrongC. It dependsD. The buyer and the buyer may agree that all the term in their sales contract must be stated in the L/C
Đề 4:
1. There are … parties to a warranty and … in a guaranteeA. 3/2B. 3/3C. 2/3D. 2/2
2. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporterA. CFR LusakaB. CPT LusakaC. CFR Nairobi
3. Once the bank has indicated the discrepancies, what can the exporter do?A. The exporter can provide the missing paperwork or correct errorsB. The exporter can ask the buyer to instruct the bank to change the items of the letter of
creditC. 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 paymentD. Any of the above
4. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NamibiaA. CIF WindhoekB. CIP WindhoekC. DEQ Windhoek
5. A contract requiring an exporter in Mozambique to deliver the contract goods in Beria, Mozambique, for the shipment by sea to Dar es Salaam, TanzaniaA. FAS BeiraB. CIF BeiraC. FOB Dar es Salaam
6. The two terminologies which mean the same thing are …A. Guarantee and warrantyB. Bond and suretyC. Warranty and defects liabilityD. Guarantee and insurance
7. Which country requires that all goods imported into the country are inspected by the SGS immediately before shipment?A. The USAB. Vietnam C. IndonesiaD. The UK
8. 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?A. Definitely, it couldB. Probably, it couldC. No, it couldn’tD. No question, it could
9. Which of the following method of payment is NOT possible?A. 100% of the contract price by letter of creditB. 20% prepayment and 80% by letter of creditC. 90% by letter of credit and 10% retaining until the warranty period is overD. Part of the contract price is paid by letter of credit but there is not a clear figure
stated in the amount of the credit10. The majority of shipping documents presented to banks under documentary credit
transactions accepted on first presentation. Right or wrong?A. Completely rightB. Definitely wrongC. Neither right nor wrongD. It depends
11. In a contract under a Continental law, a recital ….A. Is essential B. Is not usefulC. Is not essential D. Is important
12. In a contract, consideration may consist of …A. Only rightB. Only interestC. Only profit detriment, and lossD. Right, interest, profit, detriment, and loss
13. Which type of bill of lading is negotiableA. SurrenderB. StraightC. To order
14. A unilateral offer can be defined as:A. An offer made of a promise in return for a promiseB. An offer made of a promise in return for an actC. An offer made of an act in return for an actD. An offer made of act in return for a promise
15. Small purchase in private life are often in the form of …
A. Cash on deliveryB. Cash against invoiceC. Cash with orderD. Any of the above
16. Transfer of risk from the seller to the buyer (Incoterms 2000): DDPA. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
17. Shortage of supplies (Background: the exporter cannot get the raw jute from the supplier because of a shipping delay)A. Yes B. QuestionableC. No
18. The defect liability clause should state:A. The date of acceptanceB. Exporter’s duty if a defect comes to lightC. Both A and BD. Only A
19. Continental law is also called …A. Civil lawB. Common lawC. Legal lawD. Lawful case
20. When the goods arrive, if they are …, the importer can reject them but if they … specifications, he is obliged to accept themA. Defective/conform toB. Perfect/conform to C. Defective/differ fromD. Perfect/differ from
21. In contract, “partial invalidity provision” means the invalidity of one part of the contract …A. May invalidate the rest B. Does not invalidate the restC. Affects the rest D. Enforces the rest
22. For the exporter, the option to repair a defective item abroad…A. Is negligentB. Can be costlyC. Is always the best choiceD. Is always the worst choice
23. 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 sellerB. Buyer instructs an issuing bank to instruct an advising bank to pay under a letter of
credit in favor of the sellerC. Buyer instructs an issuing bank to instruct a confirming bank to pay under a
letter of credit in favor of the sellerD. Buyer instructs an issuing bank to instruct any third bank to pay under a letter of
credit in favor of the seller24. “A voltmeter that is specified as accurate within 1 millivolt is accurate within only 5
millivolt” is an example of:A. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the seller
25. Which of the following discrepancies is NOT the problem with inconsistencies among the document?A. The description of the goods on the invoice and the description of the goods in the
credit are differentB. Documents are not presented within the required timeC. Weights differ between two documentsD. 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 bankC. The confirming bankD. The opening bank
27. … is open-ended A. Tailor-madeB. FloatingC. Open cover
28. … happens when one party ends the contract because of breach by the orderA. CancellationB. SuspensionC. ImpossibilityD. Termination
29. Who issues ocean bill of ladingA. Captain B. ExporterC. Shipping companyD. Agent
30. The point at which money is deemed to be paid most preferred by buyer is …
A. When the buyer pays the money into his bankB. When the buyer’s bank transfers fundsC. 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. AcceptanceB. AgreementC. Adoption D. Revocation
32. A price and 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?A. The clause does not specify how payment will be madeB. The clause does not specify when payment is dueC. The clause lacks all the necessary five steps in negotiating payment mode, time,
place, delay and results of delayD. The clause does not say where the money must be before the buyer is deemed to have
paid, define delay in payment and mention the consequences of delay33. An endlessly renewed liability for defects is called:
A. Eternal warranty B. Ephemeral warrantyC. External warrantyD. 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 get
payment from the bankB. The exporter cannot provide the complete setC. This is obviously a mistakeD. 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 expiredB. Documents required by the credit are missingC. The credit amount is exceededD. 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 is the most prestigiousA. UCPB. ADRC. ICCD. FAO
37. Transfer of risk from the seller to the buyer (Incoterms 200):CIPA. When the goods are at the seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
38. If the buyer can make certain assumptions about goods-even if the exporter gives no express warranty, these assumptions are called …A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties
39. The point of delivery is much the same for all … terms and … terms-when the exporter hands the goods over to the carrierA. C and FB. D and FC. C and D
40. What an offer is made, it is not applicable when it has …?A. SuspensionB. RenovationC. RevocationD. Adaption
41. The clause covers General AverageA. AB. BC. A,B,C
42. Transfer of risk from the seller to the buyer (Incoterm 2000): DESA. When the goods are ex-shipB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
43. The cheapest mode of transport is …A. By seaB. By airC. By road
44. Continental law has well developed private law, especially contract and …A. Commercial lawB. Corporate lawC. Community lawD. Case law
45. A liquidated damages clause protects …A. The exporter rather than the importer
B. The importer rather than the exporterC. Both sidesD. Neither the exporter nor the importer
46. Who issues export credit insurance?A. The buyerB. The exporterC. An insurance companyD. An export company
47. It is common to put the definition clause … of the contract A. At the beginning B. Near the beginning C. At the endD. Near the end
48. 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 days
49. “repair by the buyer” provision is often …A. Welcome by the sellerB. Beneficial to the sellerC. Avoided by the sellerD. Imposed by the seller
50. One of the three options available for settling disputes, litigation before the court is internationally least attractive as it …A. Expensive and legalisticB. Business-like and flexibleC. Time-saving and privateD. Fast and acceptable
Đè 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 rightF. Definitely wrongG. It dependsH. 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?
E. Wrong design F. Fair wear and tearG. MisuseH. Missing items
3. Directions: Read the sentence given below. Choose the best answer that fits the
situation. Then mark the letter A,B,C on the screen.
(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)
D. YesE. QuestionableF. No
4.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
E. Completely rightF. Definitely wrongG. Neither right nor wrongH. It depends
5.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
A warranty is aimed at:
E. Obtaining loansF. Assurance of product performanceG. Credit purchaseH. Profit making
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 agreementF. Traditionally the entire agreement G. Sometimes the entire agreementH. 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. SpecificationF. Incorporation G. Compliance
H. Verification
8.In a contract under a Continental law, a recital……
E. Is essentialF. Is important G. Is not useful H. Is useful
9.Minimum Coverage is the so-called Cargo Clause…..
D. AE. BF. C
10. How many timing problems are involved in Defects Liability Period?
E. ThreeF. FourG. TwoH. Five
11.The main difference between Continent and Anglo –American contract law is
the degree of…..
E. CodificationF. FormationG. AutomationH. Interpretation
12. What happens if the issuing bank finds a problem with the documents and
refuses to send funds to the advising bank to cover payment ?
E. The advising bank has to suffer that loss due to their carelessness in checking the shipping documents
F. 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
H. 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 specificationsF. An itemized set of specificationG. A plain set of specificationH. 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 goodwillF. Keeping his promiseG. Negotiating detailed specificationsH. Making profit
15.Transfer of risk form the seller to the buyer ( incoterm 2000) CIP
E. When the goods are at the seller’s premisesF. When the goods are handed to the first carrierG. When the goods across the ship’s railH. When the goods are on board
16.The name of …………… are normally the full, registered name odf the
company.
E. The exporterF. The buyerG. Either the exporter or the importerH. The parties
17. In a contract under a Continental law, a recital…..
E. Is essentialF. Is not useful G. Is not essentialH. Is important
18………….. is opened-ended
D. Tailor-madeE. FloatingF. Open cover
19.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 sellerF. Buyer instructs issuing bank to instruct an advising bank to pay under a
letter of credit in favor of the sellerG. Buyer instructs issuing bank to instruct a confirming bank to pay under
a letter of credit in favor of the sellerH. 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 buyerE. The carrierF. 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 suitabilityF. Implied warranty of conformityG. Implied warranty of merchantabilityH. Implied warranty of fitness for intended purpose
22. A contract is not enforceable if….
E. It is signed within powerF. It has a legal purposeG. It has an illegal purposeH. It has no purpose
23. The Disclaimer of warranty means:
E. The seller is liable for the goodsF. The buyer is denied of some of his normal nightsG. The seller will make good any defectH. 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. AgreementF. VerificationG. SpecificationH. Compliance
25. Which of the following discrepancies is NOT the problem with the Letter of
Credit?
E. The credit has expired F. Document required by the credit are missingG. The credit amount is exceededH. 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 WarrantyF. Bond and SuretyG. Warranty and Defects LiabilityH. Guarantee and Insurance
27.Normally, Risks are transferred at the point of……
D. DeliveryE. Payment
F. Arrival
28.War risk is not included in……..
D. A clause E. B ClauseF. A,B,C clause
29.Negotiation of specification between the exporter and the importer can be
………
E. An effortless processF. A difficult process G. Done by an intermediary H. A simple process
30. 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 :
A. Cash on delivery
B. Accepting a personal check
C. Prepayment
D. Export credit insurance
32. AS for Ango-American ,the decision of judge is always :
A. Predictable
B. Forseeable
C. Unpredictable
D. Estimated
33. If both parties perform their duties correctly, a contract is discharged by :
A. Default
B. Suspension
C. Performance
D. Breach
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.No question,it could
35.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
B. The original of the bill of lading for shipment by rail does not come into the
possession of the buyer.
C.Such a letter of credit is certain to cause delay in payment
D. The bank insists on strict compliance
39. UNABLE TO SEE
40. Which is the most appropriate method of payment for the exporter in the
following case ? Sale of a bale (roll) of cloth costing 200 USD to a nearly tailor’s
shop with whom 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 espects 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 excution
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 of the International Air Transport Association-TATA?
A. Three originals and 3 copies
B. 3 originals and 6 copies
C. 3Originals and 9 copies
D. 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.
A.Yes
B. Questionable
C.No
50. the bank that the buyer asked to open a letter of credit is call
A. an issuing bank
B. an advising bank
C. confirming bank
D. opening bank
51. Dịch san tiếngViệt
The following documents shall be forwarded to BUYER’s bank immediately after
loading date: Signed Commercial Invoice in 03 originals; Clean “ Shipped on
Board ” Ocean Bill of Lading in complete set of at least 03originals and 03 non-
negotiable copies signed and made out “ To order of Vietcombank Hanoi” ;
Packing list in triplicate.
ĐỀ 6
1. If both parties perform their duties exactly according to the contract, the contract is….A. Discharged by performanceB. Discharged for performanceC. Discharged to performanceD. Discharges with performance
2. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading?A. It is a possible demandB. The original of the bill of lading for shipment by rail does not come into the possession of the buyer.C. Such a letter of credit is certain to cause delay in payment.D. The bank insists on strict compliance
3. If a country ratifies the Vienna Sales Convention, in the event of conflicts, the Vienna Sales Convention can…… ……….. the national law.A. Prevail overB. Conform toC. FollowD. Adapt
4. Which type of payment is the most advantageous for the exporter?A. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation
5. 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?A. Definitely, it couldB. Probably, it couldC. No, it couldn’tD. No question, it could
6. The decision of arbitrators is……………….A. Law- orientedB. Business- oriented
C. Action- orientedD. Reaction- oriented
7. Among a number of international bodies offering arbitration services, the…………….. in Paris is the most prestigious.A. UPCB. ADRC. ICCD. FAO
8. It is common to put the definition clause……………….. of the contract.A. at the beginningB. near the beginningC. at the endD. near the end
9. Which the following is the least desirable option for the exporter?A. Allow the buyer to repair at the exporter’s costB. Reduce the priceC. Return the goods and refund the priceD. Replace the defective items
10. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Namibia.A. CIF WinhoekB. CIF WinhoekC. DEQ Winhoek
11. What is a transferable credit?A. It is the kind of credit which allows the exporter to transfer his right as the credit’s beneficiary to ant third party.B. It is the kind of credit which allows the first beneficiary to request the confirming bank to pay a third party.C. It is the kind of negotiable document with which the exporter can endorse for any party.D. It is the kind of credit with which the buyer will not necessarily know who is the actual supplier of the goods.
12. Which of the following discrepancies is NOT the problem with the Letter of Credit?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired
13. In settlement by sight payment…………………………..A. The seller presents the necessary documents to the issuing bankB. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank
14. When are documents considered to be stale?A. When they reach the issuing bank too lateB. When they are submitted to the opening bank after the merchandise has already arrivedC. When they reach the advising bank at the expiration of the letter of creditD. When they are refused by the issuing bank
15. The word “cash” in international trade means……………A. Coins and notesB. GoldC. Checks or bank transfersD. Prepayment
16. Failure to meet specifications is a:A. Defect in workmanshipB. Defect in materialC. Defect in designD. Defect in quantity
17. Inspection by carrier on dispatch is often carried out:A. In seller’s countryB. In buyer’s countryC. At seaD. At customs area
18. The dock workers in Port Verbena go on strike.A. YesB. QuenstionalbleC. No
19. Continental law is based on a……………………………….A. Case lawB. Common lawC. Legal codeD. Legal system
20. in negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submits it to the bank is………………………………
A. AgreementB. VerificationC. SpecificationD. Compliance
21. The stand-by letter of credit originated in the U.S. is used there because……………….A. it is very popular for U.S. exporters to ask for payment from their buyers of customersB. it is much more convenient to ask for one in the U.S. instead of the ordinary letters of creditC. the banking law in some states forbids banks to issue payment guaranteeD. English banks prefer to issue demand guarantees and ordinary letters of credit
22. Companies………. to use the short form of the names in contracts.A. are forcedB. are not forcedC. are allowedD. are not allowed
23. a well-designed set of specifications protects buyer against…………………product.A. advancedB. dentedC. inferiorD. superior
24. The risk of rough handling is not covered under the cargo clause………………..A. AB. BC. CD. B and C
25. Once the bank has indicated the discrepancies, what can the exporter do?A. The exporter can provide the missing paperwork or correct errorsB. The exporter can ask the buyer to instruct the bank to change the terms of letter of creditC. The exporter can ask the bank to process the letter of credit with the discrepancies but to pay pnly when (and if) the issuing bank permits paymentD. Any of the above
26. 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 documentsC. The bank is not interested in the question of why the buyer wanted a particular document presented in a particular formD. There are no rules as to what documents a letter of credit may or may not require
27. If both parties perform their duties correctly, a contract is discharged by:……………A. DefaultB. SuspensionC. PerformanceD. Breach
28. The point at which money is deemed to be paid most referred by buyer is……………….A. When the buyer pays the money into his bankB. When the buyer’s bank transfers fundsC. When the buyer instructs the bank to payD. When the funds reach the seller’s bank account
29. Shortage of supplies (Background: The exporter cannot get the raw jute he needs from the supplier because of a shipping delay)A. YesB. QuestionableC. No
30. “ Minimum Coverage” is the so-called Cargo Clause……………..A. AB. BC. C
31. A disclaimer of Warranty often accompanies delivery of:A. SoftwareB. HardwareC. FootwearD. Chinaware
32. The defects liability period is also called:A. Warranty periodB. Guarantee periodC. Correction action periodD. Legal action period
33. “A machine that consumes more fuel than specifications” is an example ofA. Latent defectB. Patent defect
C. Inherent defectD. Apparent defect
34. To make sure that the officer signing the contract has authority to sign the contract, parties should check………………….A. The duplicate of the signatureB. The authenticity of the signatureC. The coverage of the signatureD. The transferability of the signature
35. Disclaimer of warranty often accompanies:A. Contracts for hardwareB. Contracts for footwearC. Contracts for glasswareD. Contracts for software
36. The court of arbitration applies whatever………………………….the parties stipulate in the contract.A. International lawB. Corporate lawC. National lawD. Business law
37. 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 telexB. The exporter wants to begin preparations for deliveryC. The buyer’s responsibility of informing the exporter that a letter of credit has been issued in his favorD. The exporter wants to know about the issuance of the letter of credit more quickly
38. In international trade, if payment is made on delivery, the method of payment to be chosen will be……………………………….A. Bank guaranteeB. Open accountC. Export credit insuranceD. At sight letter of credit
39. In a contract, the word “wheras” means………………………………A. “only that”B. “while”C. “when”D. “because” or “considering that”
40. Which of the following examples is a patent defect?A. Crushed or stained garmentsB. The flooring shows signs of deteriorationC. High fuel consumptionD. Inadequately tightened nuts and bolts
41. Transfer of risk from the seller to the buyer (Incoterm 2000): DESA. When the goods are ex-shipB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
42. A marine Bill of lading becomes negotiable document and no restriction on ownership when it is………………..A. to order, blank endorsedB. surrendered, blank endorsementC. to order, endorsed
43. Negotiation of specifications between the exporter and the importer can be………………..A. an effortless processB. a difficult processC. done by an intermediaryD. a simple process
44. If the price is quoted CIF San Francisco, who pays for the insurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirming bank
45. Who issues ocean bill of lading?A. CaptainB. ExporterC. Shipping companyD. Agent
46. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is……………………..A. AgreementB. IncorporationC. VerificationD. Compliance
47. Is there any requirement that the air waybill shows the date of the lights?A. No, there isn’tB. Yes, there isC. Never is there such a requirementD. No, it is an incorrect requirement because a correctly completed waybill cannot show this information
48. Drunken people have no…………… to sign a contractA. Contractual capacityB. Contractual conceptC. Contractual governmentD. Contractual branch
49. A contract comes into force when an offer is made by one side and………….by other.A. AcceptedB. DeclinedC. WrittenD. Drawn
50. ………………………….is open-ended.A. tailor-madeB. floatingC. open cover
ĐỀ 81. A Contract is not enforceable if….
A. It is signed within powerB. It has a legal purposeC. It has an illegal purposeD. It has no purpose
2. The advising bank never pays the exporter directly. Right or wrong?A. RightB. WrongC. It depend on type of creditD. Neither right or wrong
3. A mistake about the goods in a contract means there is no ….A. Meeting of acceptanceB. Meeting of mindsC. Meeting of conceptsD. Meeting of agreementCorrect answer: B
4. The things that the exporter should keep in mind in negotiating payment are …A. Payment mode, timing, place, delay and results of delayB. How payment will be made and the date of paymentC. Where the money must be before payment is considered to complete and what
delay in payment is excusableD. Results of non- excusable delay in payment and time of payment
5. 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 this mean?A. It means the exporter wants the bank in his country merely handle the paperworkB. It means the exporter wants the bank in his country make the payment itself and
recover the fund from buyer’s bankC. It means that the exporter is double guaranteed in term of payment by a third bank
beside the issuing bank and the advising bank.D. It means the confirmation from the issuing bank in term of payment in case the
buyer defaults 6. To cure the defective goods, the best option for the exporter is :
A. Taking back the defective goods and giving back the moneyB. Reducing priceC. Replacing the goods
D. Dependent on type of goods7. What would be the effect on the price of the goods traded if the buyer wants the goods
sooner?A. The price of goods will go upB. The price of goods will go downC. There is no change in priceD. The price of goods will go up as extra costs involved due to extra working
shifting from the manufacturer8. Transfer of risk from the seller to the buyer ( Incoterm 2000) : DDU
A. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
9. What if the often place of expiry of the credit?A. At the counters of the issuing bankB. At the counters of the advising bankC. At the counters of the confirming bankD. At the counters of the negotiating bank
10. A bill of lading with the note is….A. Clean bill of ladingB. Claused bill of ladingC. Clear bill of lading
11. The bill of lading issued by the carrier for combined transport is called…A. Combined bill of ladingB. Combined billC. Combined transportation bill of ladingD. Combined transport bill of lading
12. In term of payment in international trade,…A. Risk rises and cost rise as wellB. Risk falls and cost falls as a consequenceC. Risk and cost have no relationship with each otherD. Risk and cost rise and fall together
13. A Contract is requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NamibiaA. CFA WindhoekB. CIP WindhoekC. DEQ Windhoek
14. Which of following is not needed for a legally binding contract to be in force?A. Written contractB. Offer and acceptanceC. ConsiderationD. Conversation
15. Elderly people are …to deal with contractA. UnableB. AbleC. ImpossibleD. Unaffordable
16. “The radio lacks the wires to connecting the loudspeaker to the amplifier” is an example of :A. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the buyer Correct answer: C
17. The essence of Continental law is…A. VerificationB. AuthenticationC. CodificationD. Acceptance
18. The arbitrators’ awards are…A. Consultative and examinatorialB. Final and enforceableC. Referable and reverableD. All of above
19. …is open-endedA. Tailor-madeB. FloatingC. Open cover
20. In settlement by signt payment …A. The seller presents the necessary documents to the issuing bankB. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank
21. It is common to put the definition clause …of the contract
A. At the beginningB. Near the beginningC. At the endD. Near the end
22. Under the Angola- American law, a contract must give….A. Both sides rights and dutiesB. Each side rightsC. Each side dutiesD. Not duties but rights
23. The exporter should have no liability for the goods when they are….A. Beyond his controlB. In his controlC. Under his control
24. A well-designed set of specifications protects:A. The exporterB. The importerC. Both partiesD. Neither of these
25. It is possible for beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect money?A. No, it isn’tB. It is impossible by all meansC. The draft must be drawn on the buyer to order payment, not the bankD. Yes, it is
26. Which type of payment is the most advantageous for the exporter?A. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation
27. Another name for warranty is……..A. GuaranteeB. Defect liabilityC. Legal responsibilityD. Warrantee
28. Is there any ‘reconfirming’ bank?A. No, there isn’t
B. Yes, there is one in case banks are reluctant to confirm letters of credit, especially those from obscure banks.
C. Never is thereD. It depends.
29. 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 interest
the seller shall be entitled to receive in case of late paymentB. An agreement with the buyer to strengthen the payment provisions with a payment
guaranteeC. An agreement with an insurance company in case the buyer fails to pay on timeD. A confirmed, irrevocable, at sight letter of credit
30. All risks covered under ….clauseA. AB. BC. C
31. The bill of lading issued by the carrier for road transport is called…A. Road bill of ladingB. Road billC. Roadway billD. Road consignment note
32. How many timing problems are involved in Defects Liability Period?A. ThreeB. FourC. TwoD. Five
33. “A machine that consumes more fuel than specifications” is an example ofA. Latent defectB. Patent defectC. Inherent defectD. Apparent defect
34. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn on the buyer from the seller?A. The bank will pay the seller immediatelyB. The bank will pay the seller as long as the documents submitted comply with all
the terms of the letter of creditC. The bank checks the documentsD. The bank agrees to pay the bill when it matures.
35. To avoid confusion, many contract drafters use “……..” instead of “warranty”A. GuaranteeB. WarranteeC. Legal responsibilityD. Defect liability
36. Which of these requires prior inspection by SGS?A. IndonesiaB. MalaysiaC. ThailandD. Vietnam
37. The bill of lading issued by the carrier for rail transport is called……A. Railway billB. RailwaybillC. Railway consignment note or rail consignment noteD. Railway bill of lading
38. 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 belongs to….A. The buyerB. The exporterC. The bank of the exporterD. The bank of the buyer
39. A decision of arbitrators is…………….A. Law - orientedB. Business - orientedC. Action – orientedD. Reaction – oriented
40. Anglo – American law develops through………….A. Law codeB. Arbitrators’ decisionsC. Court decisionsD. Legal system
41. The costs of L/C amendments are normally for………A. the buyer’s accountB. the exporter’s accountC. the issuing bank’s accountD. the one who asks for such amendments
42. The disadvantage of……policy is that it is set up for particular time and automatically expires.A. tailor – madeB. floatingC. open cover.
43. Termination for default occurs when the contract names certain………….which allow one side to terminate.A. Time limitsB. DefaultsC. SituationsD. Conditions
44. “Minimum Coverage” is so-called Cargo ClauseA. AB. BC. C
45. To make sure that the officer signing the contract has authority to sign the contract, parties should check………………A. The duplicate of the signatureB. The authenticity of the signatureC. The coverage of the signatureD. The transferability of the signature
46. As the consequences of a defect can be expensive, the question of who pays for the consequential loss or damage is often………A. agreeableB. controversialC. non – negotiableD. amicable
47. In settlement by deferred payment, if the seller needs money immediately, what can he do?A. There is no way he can get money immediatelyB. He can exchange the letter of credit for cash with any agreeable bank.C. The seller can realize some part of the letter of credit’s value, not its full valueD. Payment is still safe but it is delayed
48. War risk is not included in………A. A clauseB. B clauseC. A,B,C clause
49. Inspection by the buyer is called:A. Independent inspectionB. Inspection of goods prior to shipmentC. Open package inspectionD. Customs inspection
ĐỀ 91. There is no connection between the letter of credit and the sales contract. Right or
wrong?A. Completely right B. Completely wrong C. It dependsD. Exporter and the buyer may agree that all the terms in their sales contract must be
stated in the letter of credit.2. Quality assurance and customer satisfaction are the same issues for customers .
A. in domestic marketB. in overseas markets C. Both A and BD. neither A nor B
3. A marine bill of lading can be negotiable document with which….A. The buyer can use itto resell the goods during shipment B. The exporter can use itto resell the goods during shipment C. The issuing bank can use itto resell the goods to another customer.D. The buyer can use itto negotiate a price with the negotiating bank
4. Which of the following is NOT the method of issuing the letter of credit?A. By emailB. By airmailC. By mailD. By teletransmission.
5. Anglo-American law is also called…..A. Civil lawB. Legal codeC. Common LawD. Law code
6. How do you know Bill of lading is "Marine Bill of lading”?There is a…..A. on board notationB. consigneeC. shipper
7. Continental law prevails in ……..A. The USAB. EuropeC. The Vienna convention systemD. All countries in the world
8. When the Bill of lading marked "freight prepaid”. Who pays for the freight?A The BuyerB. The SellerC. The agentD. It depends on the agreement.
9. An offer dies if it has a/an .A. AcceptanceB. AgreementC. AdoptionD. Revocation.
10. 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 otherthan that of the credit.11. Parties to contract for the sale of goods are free to choose.
A. Applicable lawB. International lawC. Corporate lawD. Business law
12. There are panics to a warranty and in a guarantee.A three/twoB. three/threeC. two/threeD. two/two
13. To cure the defective goods, the best option for the exporter is:A. taking back the defective goods and giving back the moneyB. reducing the priceC. replacing the goodsD. dependent on the type of goods
14. The Anglo-American contract is......A. not the entire agreementB. traditionally the entire agreementC. sometimes the entire agreementD. rarely the entire agreement
15. The answers to the questions of implied warranties are supplied byA The contract provisions
B. The UCCC. Most lawsD. The contract
16. A contract comes into force when an offer is made by one side and....by the other.A AcceptedB. DeclinedC. writtenD. Drawn
17. Companies . . . . . . . . to use the short form of the names in contracts. A. are forced B. are not forcedC. are allowedD. are not allowed
18. 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
19. A guarantee is:A UnilateralB. TripartiteC. BilateralD. Multilateral
20. With a well-designed set of specifications, the seller can protect its and avoid costs.A. reputationB. productionC. resolutionD. profitability
21. "Minim1nn Coverage” is the so-called Cargo Clause .......A. AB. BC. C
22. The bill oflading issued by the carrier for road transport is called .A Road bill ofladingB. Road billC. Roadway bill
D. Road consignment note23. To avoid confusio11_ many contract drafters use "..........” instead of “warranty”.
A guaranteeB. warranteeC. legal responsibilityD. defect liability
24. 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 belongs toA The buyerB. The exporterC. The bank of the exporterD. The bank of the buyer
25. The background of the contractis provided in the form .A. a clauseB. a definitionC. the annexD. a whereas-recital
26. The lump-sum compensation is set too high . A. liquidated damages B. quasi indemnity C. penalty
27. There has no power to enforce his solution or to bind the parties, his task is to suggest affair solution only.A JudgeB. ConciliatorC. MagistrateD. Lawyer
28. Who signs "shipped on board" notation?A CaptainB. ExporterC. Shipping companyD. Agent
29. The expiry date of the letter of credit is.....A. The date the exporter will be paid for goods soldB. The last date for presentation of documents to the bankC. The date the letter of credit no longer effectiveD. The last date the shipment should be made by the exporter.
30. The place of delivery is doubly important to the exporter because the date of …..normally depends on time and place of delivery. A. insurance B. payment C. invoice
31. ............can create 110- contract situations A. Only duress B. Only fraud C. Only mistakeD. Duress,fraud, and mistake all
32. Why is the Certificate of Origin required?A. Because the goods imported are under a preferential tariff or other
agreement.B. Because the exporter has to prove that his exported goods are legal.C. Because the exporter has to show his proof of paying tax to the customs in the
buyer's country.D. Because it is one of the key requirements under the letter of credit's terms.
33. After making the shipment of goods to the buyer, the exporter presents the shipping documents to...A. The issuing bankB. The advising bankC. The confirming bankD. The opening bank
34. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Namibia_ A. CIF Windhoek B. CIP Windhoek C. DEQ Windhoek
35. A commercial invoice must be made out to A. The exporter. B. The shipper. C. Any party endorsing the bill of lading. D. The applicant for the letter of credit, normally to the buyer, unless otherwise
stated in the credit.36. The lump-sum compensation is set about right
A. liquidated damages.B. quasi indemnity
C. penalty37. Failure to meet specifications is a:
A. Defect in workmanshipB. Defect in materialC. Defect in design D. Defect in quantity
38. What are the set of assumptions with which a price quotation is based? A. Mode of payment, timing, place of payment. B. Delay in payment and results of delay. C. Choices of method of payment D. Delivery, payment and warranty terms.
39. Of the three options available for settling disputes, litigation before the court is internationally least attractive as it is: A. Expensive and legalistic B. Business- like and flexible C. Time-saving and private D. Fast and acceptable
40. 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. B. The exporter wants to begin preparations for delivery. C. The buyer’s responsibility of informing the exporter that a letter of credit has been
issued in his favor. D. The exporter wants to know about the issuance of the letter of credit more quickly.
41. 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
42. Which type of bill of lading is negotiable? A. surrenderB. straightC. to order
43. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter. A. CFR LusakaB. CPT Lusaka
C. CFR Nairobi44. The things that the exporter should keep in mind in negotiating payment are .....
A. Payment mode, timing, place, delay and results of delay. B. How payment will be made and the date of payment.C. Where the money must be before payment is considered complete and what delay
in payment is excusable.D. Results of non- excusable delay in payment and time of payment.
45. In a confirmed letter of credit, what happens if the bank pays the exporter and the issuing bank finds something wrong with the documents? A. The exporter has a problemB. The confirming bank has a problem. C. It is the issuing bank which has an absolute obligation to pay the exporter
according to the terms of the credit 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 recourse.46. If a dispute arises, the recital allows the court to discover the real meaning of :
A. the contractB. the termC. the incotermD. the appendix
47. A letter of credit can be either "revocable" or "irrevocable". Few exporters will accept a revocable letter of credit, so the plain expression "letter of credit" generally means the irrevocable kind. The word "irrevocable", therefore, should not always appear in the text of the credit and of the contract. Right or wrong?A. Wrong. B. Wrong, because it should always appear in the text of the credit and of the
contract according to the ICC's rules. C. Right. D. Right, because in the absence of a clear indication, letter of credit are deemed to be
irrevocable.48. (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 needs from
the supplier because the Central Bank will not give him foreign exchange to pay the supplier)
A. Yes
B. QuestionableC. No
49. Inspection of the goods by the buyer in the manufacturer's factory is referred to as:A. Inspection by inspection serviceB. Pre-delivery inspectionC. Post-delivery inspectionD. Customs inspections
50. If the buyer can make certain assumptions about goods - even if the exporter gives no express warranty, these assumptions are called....A. explicit warrantiesB. exotic warrantiesC. unspoken warrantiesD. implied warranties
ĐỀ 101. The incoterm … contains 13 terms.
a. 1990b. 2000c. 2010d. 1990 and 2000
2. In negotiating a LC, the step in which the exporter check the credit to see that required documentation is as agreed is…a. Agreementb. Incorporationc. Verificationd. Compliance
3. The question of warranty is disposive. This mean:a. It is fixedb. The exporter can usually exclude all warrantiesc. The exporter must include it in the contractd. It is non-existent
4. which of the following discrepancies is NOT the problem of the Bill of Lading?a. The bill of lading is “unclean”b. The bill of lading shows shipment between ports other than those specified in the
creditc. The descriptions of the goods in the invoice and the description of the goods
in the credit are differentd. There is no endorsement if endorsement is necessary
5. Inspection by carrier on dispatch is often carried out:a. In seller’ countryb. In buyer’s countryc. At sead. At customs area
6. In settlement by sign payment…a. The seller present the necessary documents to the issuing bankb. The seller present the necessary documents to the advising bankc. The seller present the necessary documents to the paying bankd. The seller present the necessary documents to the reconfirming bank
7. What are the set of assumptions with which a price quotation is based?a. Mode of payment, timing, place of paymentb. Delay in payment and results of delay
c. Choices of method of paymentd. Delivery, payment and warranty terms.
8. Defect includea. Mistakeb. Materialsc. Fair wear and teard. Misuse
9. Anglo-American law, a contract must give…a. Both sides rights and dutiesb. Each side rightsc. Each side dutiesd. No duties but rights
10. Inspection of the goods by the buyer in the manufacturer’s factory is referred to as:a. Inspection by inspection serviceb. Pre-delivery inspectionc. Post-delivery inspectiond. Customs inspection
11. The bill of lading issued by the carrier for rail transport is called…a. Railway billb. Rail waybillc. Railway consignment noted. Railway bill of lading.
12. A ban is issued on the export of jute products by newly elected government that has been preparing legislation on this subject for 5 yearsa. Yesb. Questionablec. No
13. Termination may be for…a. Disruptionb. Authenticationc. Convenienced. Adoption
14. The force majeure suggested by International Chamber of Commerce, for example, states that payment of interests on overdue sums payable to the seller is … by …a. Excused/force majeureb. Not excused/force majeurec. Excused/Acts of God
d. Excused/Contingencies15. Companies … to use the short form of the name in the contracts.
a. Are forcedb. Are not forcedc. Are allowedd. Are not allowed
16. In a contract under a Continental Law, a recital…a. Is essentialb. Is importantc. Is not usefuld. Is useful
17. The delivery depends on…a. Date of executionb. Effective datec. Preconditions
18. Normally, Risks are transferred at the point of…a. Deliveryb. Paymentc. Arrival
19. Elderly people are … to deal with a contracta. Unableb. Ablec. Impossibled. Unaffordable
20. To background of the contract is provided in the form of …a. A clauseb. A definitionc. The annexd. A whereas-recital
21. Transfer of the risk from the seller to the buyer (Incoterm 2000): DEQa. When the goods are ex-quayb. When the goods are handed to the first carrierc. When the goods across the ship’s raild. When the goods are on board
22. In the price quoted CIF San Francisco, who pays for insurance and freight?a. The exporterb. The buyer
c. The forwarding agentd. The confirming bank
23. Where is often the place of expiry of the credit?a. At the counter of the issuing bankb. At the counter of the advising bankc. At the counter of the confirming bankd. At the counter of the negotiating bank
24. Which corrective method is least favorable for the sellera. Replace the wrong itemsb. Reduce the price c. Return the goods and refund the priced. Repair the goods
25. What is transferable credit?a. It is the kind of credit which allows the exporter to transfer his right as exporter as
the credit’s beneficiary to any third partyb. It is the kind of credit which allows the first beneficiary to request the
confirming bank to pay a third party.c. It is the kind of negotiable document with which the exporter can endorse for any
third partyd. It is the kind of credit with which the buyer will not necessarily know who is the
actual supplier of the goods.26. For the exporter, the option to repair a defective item abroad…
a. Is negligentb. Can be costlyc. Is always the best choiced. Is always the worst choice.
27. The majority of shipping documents presented to banks under documentary credit transactions are accepted on first presentation. Right or wrong?a. Completely rightb. Definitely wrongc. Neither right nor wrongd. It depends
28. 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.a. 100 %b. 90 %c. 50 %
d. 110 %29. Anglo-American law develops through…
a. Law Codeb. Arbitrator’s decisionsc. Court decisionsd. Legal system
30. The entire agreement provision means … must be established within the contract itself.a. The background of the contractb. Important letters and memorandac. Contract documentsd. All of these
31. The advising never pays the exporter directly, right or wrong?a. Rightb. Wrongc. In depends on the type of creditd. Neither right nor wrong.
32. How to make a bill of lading negotiablea. Stamp the word “Negotiable” across the surface of the bill of lading.b. In the Consignee box, do not write anything, just leave it blankc. Make the bill of lading blank endorsedd. Fill the words “to order” in the Consignee box.
33. In principle the buyer can reject delivered goods if they do not conform the contract. This is called…a. Implied warranty of suitabilityb. Implied warranty of conformityc. Implied warranty of merchantabilityd. Implied warranty of fitness for intended purpose
34. If the price is quoted CIP Marsellie, who pays for insurance and freight?a. The buyerb. The exporterc. The issuing bankd. The forwarding agent
35. Cancellation on … grounds makes no legal sensea. Greatb. Genuinec. Trivial
d. Acceptable36. An offer dies if it has a/an…
a. Acceptanceb. Agreementc. Adoptiond. Revocation
37. The period during which the buyer can begin a legal action is legally called:a. Notification periodb. Rectification periodc. Legal action periodd. Defect liability period
38. What if a LC requires “an appropriate wildlife certificate”?a. It’s a vague argumentb. The bank and the exporter may have different on what is “different”c. It should be more specific like what the certificate must show and who should
issue itd. All of the above
39. The risk of rough handling is not covered under the cargo clause …a. Ab. Bc. Cd. B and C
40. What can a manufacturer sometimes accept a loss on an export dea?a. He wants to win a regular customerb. His factory may be short of workc. He can get some export incentives from the governmentd. Any of the above
41. To cure the defective goods, the best option for the exporter is:a. Taking back the defective goods and giving back the moneyb. Reducing the pricec. Replacing the goodsd. Dependent on the type of goods
42. Transfer of risk from the seller to the buyer (Incoterm 2000): DDUa. When the goods are at the buyer’s premisesb. When the goods are handed to the first carrierc. When the goods across the ship’s raild. When the goods are on board
43. The workforce at the factory go on strikea. Yesb. Questionablec. No
44. If the buyer comes from the country which has the poor reputation for enforcing awards, the best method of payment under the contract is a /an…a. Revolving LCb. At sight, confirmed LCc. Deferred, irrevocable LCd. Transferable LC
45. Which of the following is essential to a successful business?a. Qualityb. Customer satisfactionc. Correct marking and packagingd. On-time delivery
46. The clause covers General Averagea. Ab. Bc. A,B,C
47. The avoid the dangers of slow payment, the exporters try to protect themselves with a clause like this “ Payment shall be deemed to have been made only when…”?a. The buyer instructs the bank to payb. The buyer pays the money to his bankc. The buyer’s bank transfers fundsd. Funds reach the seller’s bank account and at his full disposal
48. Export credit insurance which gives the exporter an acceptable level of security in terms of payment shall be paid by…a. The buyerb. The exporterc. A bankd. An insurance company
49. In contracts, … is not normally alloweda. Delegation of dutiesb. Assignment of rightsc. Performance of obligationsd. Fulfillment of duties
50. In a performance guarantee, if the seller works badly or not at all, the guarantor will pay the buyer, within stated limits, …a. 100% of the loss of the beneficiaryb. The costs of the principal’s failure to performc. The whole contract priced. Between 5 and 10 % contract price
ĐỀ 111. In a contract under a Continental law, a recital …
A. Is essential B. Is importantC. Is not usefulD. Is useful
2. The stand-by letter of credit originated in the US is used there because …A. It is very popular for US exporters to ask for payment from their buyers or
customers.B. It is much more convenient to ask for one in the US instead of the ordinary letters
of credit.C. The banking law in some states forbids banks to issue payment guarantee D. English banks prefer to issue demand guarantees and ordinary letters of credit.
3. If the price is quoted FOB Singapore, who pays for the insurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirming bank
4. Export credit insurance which gives the exporter an acceptable level of security in terms of payment shall be paid by …A. The buyerB. The exporterC. A bankD. An insurance company
5. A letter of credit can be either “revocable” or “irrevocable”. Few exporters will accept a revocable letter of credit, so the plain expression “letter of credit” generally means the irrevocable kind. The word “irrevocable”, therefore, should not always appear in the text of the credit and of the contract. Right or wrong?A. WrongB. Wrong, because it should always appear in the context of the credit and of the
contract according to the ICC’s rulesC. RightD. Right, because in the absence of a clear indication, letter of credit are deemed to be
irrevocable.6. The greatest fear for the exporter is…
A. Being unable to meet the delivery deadline
B. Being unable to meet the specifications of the goodsC. Being unable to get paid for the goods soldD. Having no guarantee for payment
7. If the force majeure event continues for too long, both parties have the right to …A. Continue the contractB. Terminate the contract C. Make late delivery
8. The Incoterms … contains 11 termsA. 1990B. 2000C. 2010
9. If the price is quoted CFR HaiPhong, who pays for the freight?A. The buyerB. The exporterC. The carrierD. The forwarding agent
10. A payment guarantee simply commits the bank to pay if the buyer defaults. The payment guarantee is usually for…A. 100%B. Less than 100%C. 10%D. Between 5% and 10%
11. Under the public law, a company can only sign a contract …A. Even when they lack powersB. That is beyond its powerC. Both a and bD. That is within its power
12. Returned shipment to the exporter’s country means:A. The deal is a total loss for the exporterB. The exporter takes back the whole shipmentC. The exporter makes a small profitD. The deal is a total loss for the importer
13. Which of the following is essential to successful business?A. QualityB. Customer satisfaction C. Correct marking and packagingD. On-time delivery
14. Transfer of risk from the seller to the buyer (Incoterms 2000): FASA. When the good are ex-quayB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
15. The advising bank never pays the exporter directly. Right or wrong?A. RightB. WrongC. It depends on the type of creditD. Neither right or wrong
16. “Full set on board ocean bills of lading to order shipper, blank endorsed”. In this clause shipper means…A. Exporter B. ImporterC. BankD. A or B or C. It depends on the situation
17. The … has no power to enforce his solution to bind the parties, his task is to suggest a fair solution only.A. Judge B. ConciliatorC. Magistrate D. Lawyer
18. The lump-sum compensation is set too high …A. Liquidated damagesB. Quasi indemnityC. Penalty
19. It is possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money?A. No, it isn’t B. It is impossible by all meansC. The draft must be drawn on the buyer to order payment, not the bankD. Yes, it is
20. The delivery depends on …A. Date of execution B. Effective dateC. Precondition
21. Which of the following discrepancies is NOT the problem with Insurance?
A. Documents are not presented within the required timeB. The sum insured is below the figure requiredC. The insurance risks are not those specified in the creditD. A certificate of insurance is produces while the credit calls for a policy
22. 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 days
23. What is a transferable credit?A. It is the kind of credit which allows the exporter to transfer his right as the credit’s
beneficiary to any third partyB. It is the kind of credit which allows the first beneficiary to request the
confirming bank to pay a third partyC. It is the kind of negotiable document with which the exporter can endorse for any
third party D. It is kind of credit with which the buyer will not necessarily know who is the
actual supplier of the goods24. If the price is quoted CIF San Francisco, who pays for the insurance and freight?
A. The exporter B. The buyerC. The forwarding agentD. The confirming bank
25. CIF and CIP contracts are especially confusing since they name the point of …A. DepartureB. DestinationC. Embarkation
26. Continental law is widely used for …A. International issuesB. National issuesC. Both national and international issuesD. Neither international nor national issues
27. Exporter prefers:A. The return of the defective item to the replacement of itB. The replacement of the defective item to the return of it C. The return of the goods and refund of the price
D. None of these28. Under Anglo-American law, a contract must give …
A. Both side rights and dutiesB. Each side rightsC. Each side dutiesD. Not duties but rights
29. If both parties perform their duties exactly according to the contract, the contract is …A. Discharged by performanceB. Discharged for performanceC. Discharged to performanceD. Discharged with performance
30. 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 2 years, but renewable. Contract represents 25% of turnover.A. Open account with bank guaranteeB. Open account with export credit insuranceC. If possible, a bank guarantee. Otherwise, export credit insuranceD. Confirmed letter of credit
31. Another name for Tender Guarantee is …A. Revocation guaranteeB. Bid guaranteeC. Bond guaranteeD. Bid bond
32. 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 2 years, but renewable. Contract represents 0.5% of turnover.A. Open account with no securityB. Open account with bank guaranteeC. Open account with export credit insuranceD. Export credit insurance is advisable. Selling on open account with no security at
all is also possible33. The answer to background question are written …
A. Through the whereas-recitalB. Through the annexC. Through provisions
D. Through conditions34. If shipment is under Incoterms other than CIF or CIP …
A. The buyer has to arrange the insurance cover by himselfB. The buyer may still ask the exporter to arrange some aspects of the insurance for
himC. The exporter has to arrange the insurance cover the goodsD. The exporter pays for insurance till the port of discharge
35. There are … parties to a warranty and … in a guaranteeA. 3/2B. 3/3C. 2/3D. 2/2
36. Under most laws, a buyer can make certain assumptions about goods. These assumptions are called (by lawyers):A. Express warrantiesB. Negotiable warrantiesC. Implied warrantiesD. Implied guarantee
37. A contract that is ultra vires is ..A. Well enforceableB. UnenforceableC. ValidD. Effective
38. What are the set of assumptions with which a price quotation is based?A. Mode of payment, timing, place of paymentB. Delay in payment and results of delayC. Choices of method of paymentD. Delivery, payment and warranty items
39. In CIF and CIP contract, … must pay for insurance from the point of delivery to the named point of arrival.A. The exporterB. The importerC. The carrier
40. An offer dies if it has a/an …A. AcceptanceB. AgreementC. Adoption
D. Revocation41. “A machine that consumes more fuel than specifications” is an example of
A. Latent defectB. Patent defectC. Inherent defectD. Apparent defect
42. The “exporter’s wording” and the “buyer’s wording” in the defects liability provision represent:A. A major contract issueB. A minor contract issueC. NonsenseD. Profit and loss of each party
43. Who usually pays for the defects?A. The importerB. The exporterC. Both partiesD. A third parties
44. Two parties sign a contractA. The contract is bindingB. The contract is effectiveC. The contract is binding and effective
45. Liquidated damages clause protects …A. The exporter rather than the importerB. The importer rather than the exporterC. Both sidesD. Neither exporter nor the importer
46. The arbitrators’ awards are …A. Consultative and examinatorialB. Final and enforceable C. Referable and reverableD. All of the above
47. “Export credit insurance is a kind of special privilege that an exporter may get from his government’s export incentives and support”. Right or wrong?A. Completely rightB. Absolutely wrong C. Neither right nor wrongD. It is not a charity. It is beneficial for both exporter and insurance company
48. The essence of Continental law is …A. Verification B. AuthenticationC. CodificationD. Acceptance
49. The defects liability clause should state:A. The date of acceptanceB. Exporter’s duty if a defect comes to lightC. Both A and BD. Only A
50. When parties agree to end a contract, ….occurs.A. TerminationB. FrustrationC. RescissionD. Suspension
ĐỀ 12
Đề 12:
1. The lump-sum compensation is set too low…A. Liquidated damagesB. Quasi indemnityC. Penalty
2. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NambiaA. CIF WindhoekB. CIP WindhoekC. DEQ Windhoek
3. The machanism of a confirmed letter of credit in favor of the sellerA. Buyer instructs issuing bank to issue a letter of credit in favor of the sellerB. Buyer instructs an issuing bank to instruct an advising bank to pay under a
letter of credit in favor of the sellerC. Buyer instructs an issuing bank to instruct a confirming bank to pay
under a letter of credit in favor of the sellerD. Buyer instructs an issuing bank to instruct any third party bank to pay under a
letter of credit in favor of the seller4. Under most laws, a buyer can make certain assumption about good. These
assumption are called (by lawers):A. Express warrantiesB. Negotiable warrantiesC. Implied warrantiesD. Implied guarantee
5. Inspection by carrier on dispatch is often carried out:A. In seller’s countryB. In buyer’s countryC. At seaD. At customs area
6. The defect liability clause should state:A. the date of acceptanceB. exporter’s duty if a defect comes to lightC. both A and BD. only “A”
7. (Note: If either party is prevented from, or delayed in, performing any duty under this contract by an event beyond his reasonable control, this shall be deemed force majeure)Shortage of supplies (Background: The exporter cannot get the raw jute he needs
from the supplier because of a chipping delay).
A. YesB. QuestionableC. No
8. To avoid the dangers of slow payment, exporter try to protect themselves with a clause like this: “Payment shall be deemed to have been made only when:A. The buyer instructs the bank to payB. The buyer pays the money into his bankC. The buyer’s bank transfer fundsD. Funds reach the seller’s bank account and at his full disposal
9. Where is often the place of expiry of the creditA. At the counters of the issuing bankB. At the counters of the advising bankC. At the counters of the confirming bankD. At the counters of the negotiating bank
10. The advantages of arbitration are…A. Private and foreseeable costsB. Lengthy and openC. Binding and rigidD. Time-consuming
11. Which of these does not count as defect?A. Defective designB. MisuseC. Defective materialsD. Defective workmanship
12. Independent inspection reports on…A. The weight of the goodsB. The size of the goodsC. Both A and BD. None of these
13. Termination for convenience occurs when one party simply decides to drop the contract and…A. No reason is requiredB. Reasons are requiredC. Consultation is requiredD. Conversation is required
14. In a contract under a Continental law, a recital…A. is essentialB. is importantC. is not usefulD. is useful
15. Defects include:A. mistakeB. Materials
C. Fair wear and tearD. Misuse
16. As for Anglo-American law, the decision os the judge is always…A. PredictableB. ForeseeableC. UnpredictableD. Estimated
17. It is common to put the definition clause… of the contract.A. at the beginningB. near the beginningC. at the endD. near the end
18. The main difference between continental and Anglo-American law is the degree of…A. CodificationB. FormationC. AutomationD. Interpretation
19. The first step in negotiating a letter of credit is…A. incoporationB. SpecificationC. AgreementD. Verification
20. The Anglo-American contract is…A. not the entire agreementB. traditionally the entire agreementC. sometimes the entire agreementD. rarely the entire agreement
21. If a country ratifies the Vienna Sales Convention, in the event os cònlicts, the Vienna Sales Convention can… the national law.A. Prevail overB. Conform toC. FollowD. Adapt
22. In negotiating a letter of credit, the first step in which the buyer applies for the letter of credit specifying the agreed documentation is…A. incoporationB. verificationC. ComplianceD. None of the above
23. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn on the buyer from the seller?A. The bank will pay the seller immediately
B. The bank will pay the seller as long as the documents submitted comply with all the terms of the letter of credit
C. The bank checks the documentsD. The bank agrees to pay the bill when it matures.
24. The bill of lading issued by the carrier for air transport is called..A. Air waybillB. Air bill of ladingC. Air way bill of ladingD. Airway bill
25. The guarantor is usually a…A. bankB. insurance companyC. both A and BD. Neither A nor B
26. Who issues export credit insurance?A. The buyerB. The exporterC. An insurance companyD. Any export company
27. Elderly people are… to deal with a contractA. UnableB. AbleC. ImpossibleD. Unaffordable
28. The point of delivery is much the same for all… terms and .. . terms- when the exporter hands the goods over to the carrierA. C and FB. D and FC. C and D
29. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporterA. CFA LusakaB. CPT LusakaC. CFR nảiobi
30. In a guarantee, a guarantor is often:A. The buyerB. The sellerC. The bankD. The manufacturer
31. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed isA. AgreementB. Incorporation
C. VerificationD. Compliance
32. (Note: If either party is prevented from, or delayed in, performing any duty under this contract by an event beyond his reasonable control, this shall be deemed force majeure)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
A. YesB. QuestionableC. No
33. The disadvantage of … policy is that it is set up for particular time and automatically expiresA. tailor-madeB. floatingC. open cover
34. In international trade, if payment is made on delivery, the method of payment to be chosen will beA. Bank guaranteeB. Open accountC. Export credit insuaranceD. At sight letter of credit
35. A price and payment clause taken from an export contract is as follows: “ The price payable for the contract goods as specified in Annex A is $5000,000”. What is missing?A. The clause does not specify how payment will be madeB. The clause does not specify when payment is dueC. The clause lacks all the necessary five steps in negotiating payment like
payment mode, time, place, delay and results of delayD. The clause does not say where the money must be before the buyer is deemed
to have paid, define delay in payment and mention the consequences of delay36. Is it possible for the beneficiary (exporter) sometimes, though not often, to make a
draft on the bank to collect the moneyA. No, it isn’tB. It is impossible by all meansC. The draft must be drawn on the buyer to order payment, not the bankD. Yes, it is
37. Two Parties sign a contractA. The contract is bindingB. The contract is effectiveC. The contract is binding and effective
38. A guarantee is:A. Unilateral
B. TripartiteC. BilateralD. Multilateral
39. How to make a bill of lading negotiable?A. Stamp the word “Negotiable” across the surface the bill of ladingB. In the Consignee box, do not write anything, jusst leave it blankC. Make the bill of lading blank endorsedD. Fill the words “to order” in the Consignee box
40. Anglo-American law is called…A. Civil lawB. Legal codeC. Common lawD. Law code
41. Inspection of the goods by the buyer in the manufacturer’s factory is refered to ấ:A. Inspection by inspection serviceB. Pre-delivery inspectionC. Post-delivery inspectionD. Customs inspection
42. What is 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 wants to
get payment from the bankB. The exporter cannot provide the complete setC. This is obviously a mistakeD. Only the second original of the air waybill goes to the consignee. The bank,
however, will follow the wording of the letter of credit axactly and refuse an “incomplete set” waybills
43. Anglo-American law is:A. Law codeB. Case lawC. Civil lawD. Legal code
44. A bank guarantee which gives the exporter an acceptable lavel of security in terms of payment shall be paid by…A. The buyerB. The exporterC. A bankD. A third party
45. When the Bill of lading marked “freight prepaid”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement
46. If the force majeure event continues for too long, both parties have the right to…
A. continue the contractB. terminate the contractC. make late delivery
47. Feeble-minded people are legally unable to … contractA. SignB. DeclineC. RefuseD. Resign
48. Which of the following is not the method of issuing the letter of credit?A. By emailB. By airmailC. By mailD. By teletransmission
49. War risk is not included in…A. A clauseB. B clauseC. A, B, C clause
50. “Minimum Coverage” is so-called Cargo Clause…A. AB. BC. C
ĐỀ 13
1. The entire agreement position means….. must be established within the contract itselfA. The background of the contractB. Important letter and memorandaC. Contract documentsD. All of these
2. All risks covered is under…. clauseA. AB. BC. C
3. The disadvantage of policy….. is that it’s set up for particular time and automatically expires.A. Tailor-madeB. FloatingC. Open cover
4. If the price is quoted CIU Marseille, who pays for insurance and freight?A. The buyerB. The exporterC. The issuing bankD. The forwarding agent
5. There are …….parties to a warranty and….in a guarantyA. three/twoB. Three/threeC. Two/threeD. Two/two
6. In settlement by deferred payment, if the seller needs more money immediately, what can he do?A. There is no way he can get money immediatelyB. He can exchange the letter of credit cash with any agreement bankC. The seller can realize some part of the letter of credit’s value, not its full valueD. Payment is still safe but it’s delayed.
7. What does prompt payment of the letter of credit depend on?A. It depends on the presentation of correct documentation of the exporterB. It depends on kind of the documents which must be presented by the exporterC. It depends on the willingness of the buyer
D. It depends on the time of checking the documents from both advising bank and issuing bank.
8. Where is the often place of expiry of the creditA. At the counters of the issuing bankB. At the counters of the advising bankC. At the counters of the confirming bankD. At the counters of the negotiating bank
9. The…….. has no power to enforce his solution or to bind the parties, his task is to suggest a fair solution onlyA. JudgeB. ConciliatorC. MagistrateD. Lawyer
10. In the contract, consideration may consist of…..A. Only rightB. Only interestC. Only profit, detriment and lossD. Right, interest, detriment and loss
11. Defects such as wrong items, broken and missing parts, scratches, and so on are called….A. Patent defectsB. Latent defectsC. Inherent defectsD. Concealed defects
12. The court of arbitration applies whatever……the parties stipulate in the contractA. International lawB. Corporate lawC. National lawD. Business law
13. Every contract is governed by ….A. Common lawB. Vienne ConventionC. Applicable lawD. Civil law
14. Within most Anglo – American jurisdictions, a contract….A. Can be one sidedB. Can be two-sided
C. Can be either one-sided and two-sidedD. Must be two-sided
15. In negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submit it to the bank is…..A. AgreementB. VerificationC. SpecificationD. Compliance
16. If the price is quoted FCA, who pays for the freight?A. The exporterB. The carrierC. The buyerD. The forwarding agent
17. As for Anglo- American, the decision of the judge is always…A. PredictableB. ForeseeableC. UnpredictableD. Estimated
18. Transfer of risk from the seller to the buyer ( Incoterm 2000) DDUA. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are the board
19. What can protect both the exporter and the importer in an exporter contractA. A well- designed set of specificationsB. An itemized der of specificationsC. A plain set of specificationD. None of these
20. The hereinafter called wording can prevent legal problem caused by A. Misspelling namesB. Mistyping namesC. Misreading namesD. Misaccepting names
21. What is the transferable creditA. It’s a kind of credit which allows the exporter to transfer his right as the
credit’s beneficiary to any third party.
B. It’s a kind of credit which allows the first beneficiary to request the confirming bank to pay a third party
C. It’s a kind of negotiating document with which the exporter can endorse for any third party
D. It’s a kind of credit with which the buyer will not necessarily know who is the actual supplier of the goods.
22. The lump-sum compensation is set too high…A. Liquidated damagesB. Quasi indemnity C. Penalty
23. The advising bank never pays the exporter directly. Right or wrong?A. RightB. WrongC. It depends on type of credit D. Neither right or wrong
24. Allowing the buyer to repair the equipment at the exporter’s costA. Is always the best choice for the exporterB. Is always the worst choice for the exporterC. Is often safe for the exporterD. Is often unsafe for the exporter
25. When parties agree to end a contract…..occurs A. TerminationB. FrustrationC. RescissionD. Suspension
26. In CIF and CIP contract,….must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier
27. “Exporter credit insurance is a kind of special privilege that an exporter may get from his government ‘s export incentives and support’. Right or wrong?A. Completely rightB. Absolutely wrongC. Neither right or wrongD. It’s not a charity. It’s beneficial for both exporter and insurance company
28. “Nuts and bolts are inadequately tightened” represent:
A. Defective materialsB. Defective designC. Defective workmanshipD. Misuse
29. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is….A. AgreementB. IncorporationC. VerificationD. Compliance
30. Different legal systems regulate that rejection of delivered goods must be total… can be partialA. OrB. AndC. And/orD. Nor
31. If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight. Right or wrong?A. Completely rightB. WrongC. Partly right, as the seller is not obliged to pay only the insurance and
freight necessary to put the goods on board of the designated vessel by the buyer.
D. Completely wrong, because the buyer is obliged to pay insurance and freight on his own account if term of trade is FOB.
32. Beside the commercial invoice, the transport document and the insurance document, what does “Other document” include?A. A certificate of originB. A certificate of inspectionC. A health inspectionD. Any of the above
33. Who signs “Shipped on board” notation?A. CaptainB. ExporterC. Shipping companyD. Agent
34. The essence of Continental law is
A. VerificationB. AuthenticationC. CodificationD. Acceptance
35. Continental law copes withA. Personnel problemsB. International tradeC. National issuesD. Individual conflicts
36. If the price is quoted FAS Osaka, who pays the freight?A. The shipperB. The exporterC. The forwarding agentD. The buyer
37. Which of the following is the least desirable option for the exporter?A. Allow the buyer to repair exporter’s costB. Reduce the priceC. Return the goods and refund the priceD. Replace the defective items
38. Inspection for the buyer is calledA. Independent inspectionB. Inspection for goods prior to shipmentC. Open package inspectionD. Customs inspection
39. A contract is not enforceable ifA. It’s signed within powerB. It has a legal purposeC. It has an illegal purposeD. It has no purpose
40. A marine bill of lading can be negotiable document with which?A. The buyer can use it to resell the goods during shipmentB. The exporter can use it to resell the goods during shipmentC. The issue bank can use it to resell the goods to another customersD. The buyer can use it to negotiate a price with a negotiating bank
41. Which type of payment is the most advantageous for the exporter A. Credit by sight paymentB. Credit by deferred payment
C. Credit by acceptanceD. Credit by negotiation
42. A contract requiring an exporter in Mozambique to deliver the contract goods in Beira, Mozambique, for the shipment by sea to Dar es Salaam, TanzaniaA. FAS BeiraB. CIF BeiraC. FOB Dar es Salaam
43. The things that the exporter should keep in mind in negotiating payment areA. Payment mode, timing, place, delay and result of delayB. How payment will be made and the date of paymentC. Where the money must be before payment is considered complete and what
delay in payment is excusableD. Result and non-excusable delay in payment and time of payment.
44. Defects includeA. MistakesB. MaterialsC. Fair wear and tearD. Misuse
45. What of these do not count as defect A. Defective designB. MisuseC. Defects materialsD. Defects workmanship
46. Dawson bought vanilla beans from Indonesia. Dawson instructed American bank to open a letter of credit. One of requirement shipping documents was a certificate and quality issues ‘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 couldB. Probably, it couldC. No, it couldn’tD. No question, it could
47. Why can a manufacturer sometime accept a loss on an export dealA. He wants to win a regular customerB. His factory may by short of workC. He can get some export incentives from government
D. Any of the above48. In which situation should the exporters use export credit insurance
A. Long- term customersB. Transactions represent a high proportion of their turnoverC. Buyer are willing to spend money on a payment guaranteeD. In a seller’s market
49. Normally, risk are transferred at the point ofA. DeliveryB. PaymentC. Arrival
50. Which of the following is not the reason why the exporter prefers a longer expiry period of the creditA. He wants to save bank chargeB. He wants enough time after delivery to present the documentC. He wants to have enough time to collect and discrepancies that be discovered
by the bankD. He wants to spare some time for any unexpected thing preventing his
presentation of documents on times.
ĐỀ 141. If the buyer can make certain assumptions about goods- even if the exporter give no
express warranty, these assumptions are called…….A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties
2. The entire agreement clause means that all documents are predate the contract………A. are still valid B. become important C. become invalid D. can be used as evidence
3. Delivery of the goods under most export contracts takes place in the country of A. the importer B. the exporter C. the agent
4. As soon as the exporter receives advice that the letter of credit has been opened, what should he do? A. He should check that it complies with the agreement he negotiated with the buyer. B. He should check if there is any document that he does not understand. C. He should check if there is any requirement that he does not agree to. D. He should check if there is any necessary amendment to the terms of the letter of credit.
5. 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. B. A check— list of commonly cited discrepancies will be used by banks. C. The exporter will have to re-submit their shipping documents. D. The exporter must contact the buyer asking the buyer to instruct the issuing bank to extend the date of the credit.
6. Beside the commercial invoice, the transport document and insurance document, what do 'Other documents' include? A. A Certificate of Origin. B. A Certificate of Inspection. C. A health Inspection. D. Any of the above.
7. The elmise covers General Average. A. A B. B C. A, B, C
8. 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
9. Defects that come to light after buyer's acceptance are called A. patent defects B. latent defects C. coherent defects D. apparent defects
10. The bank noting 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.
11. The main difference between Continental and Anglo-American contract law is the degree of A. Codification B. FormationC. Automation D. Interpretation
12. The answers to background questions are written ………A. through the whereas-recital B. through the annex C. through provisions D. through conditions
13. In a performance guarantee: if the seller works badly or not at all, the guarantor will pay the buyer: within stated limits, A. 100% of the loss of the beneficiaryB. the costs of the principal's failure to perform 710…C. the whole contract price (C va D sai)D. between 5% and 10% of the contract price
14. A term or terms in a contract could raise the contract price
A. A shorter warranty period. B. Customer orders goods in one color. C. No additional packaging or safety warnings are required beyond normal standards. D. A longer warranty period.
15. If a contract is the entire agreement, earlier letters and documents A. can be used as evidence B. become invalid C. prevail D. remain important
16. In a contract, ……….can be incorporated into contract document clause. A. letters B. general conditions C. the IncotermsD. any of the above
17. Which of the following is left to the applicable law to regulate? The notification period B. The rectification period C. The legal action period D. The length of the defect liability period
18. When offer is made, it is not applicable when it has…..?A. SuspensionB. RenovationC. RevocationD. Adaptation
19. Continental law is also called…..A. Civil lawB. Common lawC. Legal systemD. Lawful case
20. Which countries require that all goods imported into the country are inspected by the SGS immediately before shipment?A. the USAB. VietnamC. IndonesiaD. The UK
21. The answer to the questions of implies warranties are supplied byA. The contract provision
B. The UCCC. Most lawD. The contract
22. What happen 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 shipping documentsB. The advising bank gets money back from exporterC. The payment from the advising bank to the exporter are always made with recourse. The exporter…D. It is the responsibility of the issuing bank of paying back the advising bank in such a case
23. The place of delivery (CIP, CIF) should not be confused with the… of the goodsA. DepartureB. DestinationC. Transshipment
24. Partial invalidity clause can help to avoid problems with the contracts that…A. might infringe government regulationsB. violate the trade lawsC. discourage tradeD. both B and C
25. In negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submit it to the bank is…A. agreementB. verificationC. specificationD. compliance
26. “a radio lacks the wires connecting to loudspeaker to the amplifier” is an example ofA. defective designB. defective materialC. defective workmanshipD. misuse by the buyer
27. Transfer of risk from seller to the buyer (incoterm 2000) CFR:A. when the goods are at the seller’s premiseB. when the goods are handed to the first carrierC. when the goods across the ship railD. when the goods are on board
28. Feeble- minded people are legally unable to… contractsA. signB. declineC. refuseD. resign
29. Many export contracts cannot come into force due to…A. certain preconditions are not metB. force majorC. late delivery
30. With a well- designed set of specifications, the seller can protect its… and avoids costA. reputationB. productionC. resolutionD. productivity
31. Is the any requirement that the air waybill shows the date of the flight?A. No, there isn’tB. Yes. There isC. never is there such requirementD. No. it is an incorrect requirement because…
32. Which type of payment is the most advantageous for the exporter?A. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation
33. If the price is quote FAS Osaka, who pays for the freight?A. The shipperB. The exporterC. The forwarding agentD. The buyer
34. The exporter’s right to “cure” any defects in his delivery is ….. .A. Out of questionB. Advantageous to himC. Disadvantageous to himD. Detrimental to him
35. Which of the following discrepancies is NOT problem with the Bill of Lading?A. The bill of lading “unclean”
B. the bill of landing shows shipment between ports orther than those specified in the creditC. the description of the goods on the invoice and the description of the goods in the credit are differentD. there is no endorsement if endorsement is necessary
36. Transfer of the risk from the select to the buyer (incoterm 2000): DDUA. when the goods are at the buyer’s premisesB. when the goods are handed to the first carrierC. when the goods across the ship’s railD. when the goods are on broad
37. If a dispute arises, the recital allows the court to discover the real meaning of ….. .A. the contractB. the termC. the incotermD. the appendix
38. The disclaimer of warranty means:A. the seller is liable for the goodsB. the buyer is denied of some of his normal nightC. the seller will make good any defectD. contract prices would be far higher
39. A payment guarantee simply comits the bank to pay if the buyer defaults. The payment guarantee is usually for ….Of the contract price.A. 100%B. less than 100%C. 10%D. between 5% and 10%
40. The first step in negotiating a letter of credit is …………A. incorporationB. specificationC. agreementD. verification
41. A contract is not enforceable if ……….. .A. it is signed within powerB. it has a legal purposeC. it has an illegal purposeD. it has no purpose
42. The contract should regulate what happens if incoterm 2000 and the terms of the contract conflict normally the ……..prevailsA. incotermB. contractC. incoterm and contract
43. What kind of inspection is particularly important for sophisticated items or capital goods?A. customs inspectionB. carrier’s inspectionC. per-delivery inspectionD. SGS’s inspection
44. ………. Bill of lading – found something wrong with the consignment.A. cleanB. clearC. Claused
45. In settlement by deferred payment, if the seller needs money immediately, what can he do?A. there is no way he can get money immediatelyB. he can exchange the letter of credit for cash with any agreeable bankC. the seller can realize some part of the letter of credit’s value, not its full valueD. payment is still safe but it is delayed
46. A unilateral offer can be defined as:A. an offer made of a promise in return for promiseB. an offer made of a promise in return for an actC. an offer made of an act in return for an actD. an offer made of act in return for a promise
47. A letter of credit can be either “revocable” or “ irrevocable ”. Few exporters will accept a revocable letter of credit, so the plain expression “letter of credit” generally means the irrevocable kind. The word “irrevocable”, therefore, should not always appear in the text of the credit and of the contract. Right or wrongA. wrongB. wrong, because it should always appear in the text …C. rightD. right, because in the absence a clear indication….
48. One the bank has indicated the discrepancies, what can the export 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 terms of the letter of creditC. 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 paymentD. any of the above
49. If shipment is under incoterms other than CIF or CIP, …….A. the buyer has to arrange the insurance cover by himselfB. the buyer may still ask the exporter to arrange some aspects of the insurance for himC. the exporter has to arrange the insurance cover for the goodsD. the exporter pays for insurance till the port of discharge
50. in how many originals and copies is the air waybill issued according to the standard of the international air transport association – IATA?A. Three originals and three copiesB. Three originals and six copiesC. Three originals and nine copiesD. it depend on the requirements in the letter of credit
ĐỀ 15
1. The Vienna Sales Convention is also called…a. The Uniform Law of International saleb. The Uniform Law on the Formation of contract for the international sale of
goods.c. The United Nations Convention on Contracts for the International sale of
goodsd. The United Nations Convention on Contract for acceptance.
2. In order to produce perfect products, manufacturers need to have…a. Product insuranceb. Quality assurance programc. Customer satisfactiond. Defect liability period
3. To make sure the officer signing the contract has authority to sign the contract, parties should check…a. The duplicate of signatureb. The authenticity of signaturec. The coverage of signatured. The transferability of the signature
4. When the goods arrive, if they are…., the importer can reject them, but if they… specification, he is obliged to accept them.a. Defective/ conform tob. Perfect/ conform toc. Defective/ differ fromd. Perfect/ differ from
5. An annual flooding of the River Verb ruins some of the jute intended for use in making sacka. Yesb. Questionablec. No
6. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn on the buyer from the seller?a. The bank will pay the seller immediatelyb. The bank will pay the seller as long as the documents submitted comply with
all terms of the letter of credit.c. The bank checks the documentsd. The bank agrees to pay the bill when it matures.
7. Which of the following of the method of payment is NOT possible?a. 100% of the contract price by letter of creditb. 20% prepayment and 80% by letter of creditc. 90% by letter of credit and 10% retaining until the warranty period is overd. Part of the contract price is paid by letter of credit but there is not clear
figure stated in the amount of the credit.8. Most contract contain an assurance that the exporter will… any defects in his
productsa. Make goodb. Take awayc. Alterd. Modify
9. The risk of rough handling is not covered under the cargo clause…a. Ab. Bc. Cd. B and C
10. In settlement by sight payment..a. The seller presents the necessary documents to the issuing bankb. The seller presents the necessary documents to the advising bankc. The seller presents the necessary documents to the paying bankd. The seller presents the necessary documents to the reconfirming bank
11. Shortage of suppliesa. Yesb. Questionablec. No
12. …original(s) Bill of lading constitute(s) a full seta. 1b. 2c. 3
13. If the price is quoted FCA, who pays for the freight?a. The exporterb. The carrierc. The buyerd. The forwarding agent
14. The workforce at the factory go on strikea. Yes
b. Questionablec. No
15. Which of the following examples is a latent defecta. Missing partsb. Structural weaknessc. Wrong itemsd. Broken items
16. Small purchases in private life are often in the form of…a. Cash on deliveryb. Cash against invoicec. Cash with orderd. Any of above
17. The answer for the questions of implied warranties are supplied bya. The contract provisionsb. The UCCc. Most lawsd. The contract
18. An FOB sales contract agree that the exporter can deposit the goods in a warehouse it the ship arrives late and that this counts as delivery. If the letter requires bill of lading and makes no mention of a warehouse receipt,a. The exporter will still be paid against a warehouse receiptb. The bank simply cannot pay against a warehouse receiptc. The buyer refuses to pay the exporter against a warehouse receipt.d. The buyer still has to pay the exporter against a warehouse receipt because
his designated vessel has arrived late at the port of loading. 19. Whereas-clauses…
a. Are provisionsb. Are promisesc. Are conditionsd. Are not provisions, promises or conditions
20. A volcanic eruption buries the factory in asha. Yesb. Questionablec. No
21. In contract, “partial invalidity provision” means the invalidity of one part of the contract…a. May invalidate the rest
b. Does not invalidate the restc. Affects the restd. Enforces the rest
22. Some contract set a cut-off date after which the contract…a. Is bindingb. Is effectivec. Cannot come into force
23. Quality assurance and customer satisfaction are the same issues for customer…a. In domestic marketb. In overseas marketc. Both A and bd. Neither A nor B
24. In a confirmed letter of credit, what happen if the bank pays the exporter and the issuing bank finds something wrong with the documents?a. The exporter has a problemb. The confirming bank has a problemc. It is the issuing bank which has an absolute obligation to pay the exporter
according to the terms of credit.d. The confirming ban has paid the money to the exporter and has no way of
recovering it. The confirming bank must pay the exporter without recourse.
25. Which type of payment is the most advantageous for the exportera. Credit by sight paymentb. Credit by deferred paymentc. Credit by acceptanced. Credit by negotiation
26. Who issues ocean bill of ladinga. Captainb. Exporterc. Shipping companyd. Agent
27. An offer is not always, in international practice, the first move in forming a…a. Contractb. Refusalc. Declined. Renovation
28. 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…a. Excused/force majeureb. Not excused/force majeurec. Excused/ acts of godd. Excused/ contingencies
29. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may…a. Reject the wholeb. Accept the wholec. Accept any commercial until and reject the restd. All the above
30. 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 buyerb. Because the buyer can save on the invoice pricec. Because the exporter can substantially his cash flowd. Because the exporter just wants to get payment on delivery
31. Anglo-American law does not bring the… to all casesa. Differencesb. Uniformityc. Variationsd. Different solutions
32. The clause covers General Averagea. Ab. Bc. A,B,C
33. If shipment is made on CIF or CIP terms, the letter of credit will call for…a. An insurance policyb. A letter of insurancec. A certificate of insuranced. Either A or C
34. Among a number of international bodies offering arbitration services, the… in Paris is the most prestigiousa. UCPb. ADR
c. ICCd. FAO
35. Under the public law, a company can only sign a contract…a. Even when they lacks powerb. That is beyond its powerc. Both a and bd. That is within its power
36. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exportera. CFR Lusakab. CPT Lusakac. CFR Nairobi
37. When the exporter fills in the letter credit application form, if the box “requested” for the “Confirmation of credit to the beneficiary” is ticked, what does it mean?a. It means the exporter wants the bank in his country merely handle the
paperworkb. It means the exporter wants the bank in his country make the payment
itself and recover the funds from the buyer’s bank.c. It means the exporter is double guarantee in terms of payment by a third bank
beside the issuing bank and the advising bankd. It means the confirmation from the issuing bank in terms of payment in case
the buyer defaults.38. “Door to door” service is offered. Which term should be used?
a. DDPb. CIPc. CIF
39. To avoid the danger of slow payment. Exporter try to protect themselves with a clause like this: “Payment shall be deemed to have been made only when…’a. The buyer instructs the bank to payb. The buyer pays the money into his bankc. The buyer’s bank transfers fundsd. Funds research the seller’s bank account and at his full disposal
40. The … has no power to enforce his solution to bind his parties, his task is to suggest a fair solution only.a. Judgeb. Conciliatorc. Magistrate
d. Lawyer41. Inspection of the goods by the buyer in the manufacturer’s factory is referred to
as:a. Inspection by inspection serviceb. Pre-delivery inspectionc. Post-delivery inspectiond. Customs inspections
42. … discharge a contract when one part faces an excessive burden in complying with the contracta. Suspension and non-performanceb. Frustration and impossibilityc. Disruption and preventiond. Suspension and acceptance
43. The costs of L/C amendments are normally for…a. The buyer’s accountb. The exporter’s accountc. The issuing bank’s accountd. The one who asks for such amendments
44. Transfer of risk from the seller to the buyer (Incoterm 2000): DAFa. When the goods are at frontierb. When the goods are handed to the first carrierc. When the goods across the ship’s raild. When the goods are on board
45. To avoid confusion, many contract drafters use “…” instead of “ warranty”a. Guaranteeb. Warranteec. Legal responsibilityd. Defect liability
46. Every contract is governed by…a. Common lawb. Vienna conventionc. Applicable lawd. Civil law
47. 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.
b. The actual payment therefore can be 15% more or 15% less than the stated amount.
c. The actual payment therefore can be 5% more or 5% less than the stated amount.
d. The actual payment therefore can be between 5% and 10% of the stated amount.
48. As for Anglo-American law, the decision of the judge is always…a. Predictableb. Foreseeablec. Unpredictabled. Estimated
49. The warrantor is always a..a. Bankb. Insurance companyc. Both A and Bd. Neither A nor B
50. The Incoterm… contains 13 termsa. 1990b. 2000c. 2010d. 1990 and 2000
ĐỀ 16
1. After making the shipment of the goods to the buyer, the exporters present shipping documents to....A. The issuing bankB. The advising bankC. The confirming bankD. The opening bank
2. Which type of payment is the most advantageous for the exporterA. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation
3. 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 on “expert”. Could the bank collect from Dawson the money it had paid to the exporter?A. Definitely it couldB. Probably it couldC. No it couldn’t D. No question it could
4. In international practice, problems of assignment of rights and delegation of duties can be reduced by using....A. Prior written consent of the other partyB. Prior conversation of the other partyC. Prior consultation of the other partyD. Prior talk to the other party
5. The lump-sum compensation is set too low...A. Liquidated damagesB. Quasi indemnity C. Penalty
6. The advantages of arbitration are...A. Private and foreseeable costsB. Lengthy and openC. Binding and rigid
D. Time-consuming 7. ........refer(s) to the questions of implied warranties
A. Most contractsB. Most lawsC. The UCCD. The Vienna Sales Convention
8. There are ...parties to a warranty and ....in a guaranteeA. Three/twoB. Three/threeC. Tow/threeD. Two/two
9. It is common to put the definition clause .....of the contractA. At the beginningB. Near the beginningC. At the endD. Near the end
10. A contract requiring the exporter the send the contract goods by road from Kenya to Zambia with freight paid by the exporter A. CFR LusakaB. CPT LusakaC. CFR Nairobi
11. The lump-sum compensation is set about right...A. Liquidated damagesB. Quasi indemnityC. Penalty
12. In a confirmed letter of credit, what happens if the bank pays the exporter and the issuing bank finds something wrong with the documents?A. The exporter has a problemB. The confirming bank has a problemC. It is the issuing bank which has an absolute obligation to pay the exporter
according to the terms of the creditD. To 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.
13. Which of these does mot count as a defectA. Defective designB. Misuse
C. Defective materialsD. Defective workmanship
14. Transfer of risk from the seller to the buyer (Incoterm 2000) CIPA. when the goods are at the seller’s premises B. when the goods are handed to the first carrierC. when the goods across the ship’s rail D. when the goods are on board
15. Many export contracts can not come into force due toA. certain preconditions are not metB. Force majeure C. late delivery
16. If the price is quoted CIF San Francisco, who pays for the insurance and freight A. the exporterB. the buyerC. the forwarding agentD. the confirming bank
17. 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
A. Confirmed letter of creditB. open account with no securityC. open account with bank guaranteeD. open account with export credit insurance
18. The disadvantage of ....policy is that it is set up for particular time and automatically expires
A. tailor-madeB. floatingC. open cover
19. Which of these does not require prior inspection by SGSA. The PhilippinesB. IndonesiaC. The United KingdomD. All A, B and C
20. a promise by the exporter to cure defects in his product is called:A. a product guaranteeB. a product warrantyC. a product insurance
D. a product certification 21. the entire agreement provision means... must be established within the contract itself
A. the background of the contractB. important letters and memorandaC. contract documentsD. all of these
22. export credit insurance is a kind of special privilege that an exporter may get from his government’s export incentives and support’. Right or wrong?
A. complete rightB. absolutely wrongC. neither right nor wrongD. it is not a charity. It is beneficial for both exporter and insurance company
23. In a contract under a Continental law, a recital.....A. is essentialB. is not usefulC. is not essentialD. is important
24. small purchases in private life are often in the form of.....A. cash on deliveryB. cash against invoiceC. cash with orderD. any of the above
25. the bill of lading issued by the carrier for the sea transport is called A. seaway billB. marine bill of ladingC. sea way bill
26. ........bill of lading – goods were taken on board in good conditionA. cleanB. dirtyC. claused
27. in contract negotiation, “an invitation to provide terms and condition” may mean:....
A. another name for acceptanceB. another name for an offerC. an invitation to the other party to make an offer D. an invitation to the other party to accept an offer
28. the bank that the buyer asks to open a letter of credit is called......A. the issuing bankB. the advising bankC. the confirming bankD. the opening bank
29. in international trade, if payment is made on delivery, the method of payment to be chosen will be....
A. bank guaranteeB. open accountC. export credit insuranceD. at sight letter of credit
30. transfer of risk from the seller to the buyer (Incoterm 2000): FASA. when the goods are ex-quayB. 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
31. Anglo-American law is also called.....A. common lawB. civil lawC. law codeD. legal code
32. bill of lading is the most important document because it is a....A. document of titleB. document of negotiationC. document of freight 33. payment guarantee means....A. a bondB. a suretyC. a warrantyD. a triangle relationship among guarantor, principal and beneficial
34. the main difference between Continental and Anglo-American contract law is the degree of
A. CodificationB. FormationC. AutomationD. Interpretation
35. 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 telexB. the exporter wants to begin preparation for deliveryC. the buyer’s responsibility of informing the exporter that a letter of credit has been issued in his favorD. the exporter wants to know about the issuance of the letter of credit more quickly
36. 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,
A. the exporter will still be paid against a warehouse receiptB. the bank simply cannot pay against a warehouse receiptC. the buyer refuses to pay the exporter against a warehouse receiptD. the buyer still has to pay the exporter against the warehouse receipt because his designated vessel has arrived late at the point of loading
37. The Incoterm.....contains 13 termsA. 1990B. 2000C. 2010D. 1990 and 2000
38. “Door to door service” is offered. Which term should be used?A. DDPB. CIPC. CIF39. Drunken people have no.....to sign a contractA. contractual capacityB. contractual conceptC. contractual governmentD. contractual branch
40. The point at which money is deemed to be paid most preferred by buyer is.....A. when the buyer pays the money into his bankB. when the buyer’s bank transfers fundsC. when the buyer instructs the bank to payD. when the funds reach the seller’s bank account
41. Under most laws, a buyer can make certain assumptions about goods. These assumptions are called (by lawers):A. express warranties
B. negotiable warrantiesC. implied warrantiesD. implied guarantee
42. An offer is not always, in international practice, the first move in forming a....A. contractB. refusalC. declineD. renovation
43. How many timing problems are there in the defect liability period?A. oneB. twoC. threeD. four
44. Returned shipment to the exporter’s country means: A. the deal is total loss for the exporterB. the exporter takes back the whole shipmentC. the exporter makes a small profitD. the deal is total loss for the importer
45. The guarantor is usually a....A. bankB. insurance companyC. both A and BD. neither A nor B
46. Which of the following examples is latent defect?A. missing partsB. structural weaknesses C. wrong itemsD. broken items
47. If both parties perform their duties exactly according to the contract, the contract is.....
A. discharged by performanceB. discharged for performanceC. discharged to performanceD. discharged with performance48. What if a letter of credit requires “an appropriate wildlife certificate”?A. it is a vague requirementB. the bank and the exporter may have different views on what is “appropriate”
C. it should be more specific like what the certificate must show and who should issue it D. all of the above
49. Which of the following discrepancies is NOT the problem with Insurance?A. documents are not presented within the required timeB. the sum insured is below the figure required C. the insurance risks are not those specified in the creditD. a certificate of insurance is product while the credit calls for a policy
50. The court of arbitration applies whatever........the parties stipulate in the contractA. international lawB. corporate lawC. national lawD. business law
ĐỀ 171. 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 do in this case?A. The court refusedB. The court acceptedC. The court would not involveD. The exporter will be paid - although later action in the courts may oblige him
to make good any damage he caused the buyer2. In contracts, ...... is not normally allowed
A. Delegation of dutiesB. Assignment of rightsC. Performance of obligationsD. Fulfillment of duties
3. Which of the following is NOT the method of issuing the letter of creditA. By emailB. By airmailC. By mailD. By teletransmission
4. "A machine that consumes more fuel than specifications" is an example ofA. Latent defectB. Patent defectC. Inherent defectD. Apparent defect
5. Which of the following discrepancies is not the problem with the Letter of Credit?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired
6. The parties to a contract are not always required to... the Vienna Sales ConventionA. IgnoreB. ApplyC. RefuseD. Decline
7. Defects may be which of the following?
A. Defects in materialsB. Defects in workmanshipC. BothD. None of these
8. The lump-sum compensation is set about right A. Liquidated damages.B. quasi indemnity C. penalty
9. Which of the following statement is TRUEA. The amount of the credit should be expressed clearly in figuresB. The amount of the credit should be expressed clearly in words to prevent
misunderstanding.C. The amount of the credit should be expressed both in figures and in words.D. It is obligatory to use the ISO currency code in stating the amount of the credit.
10. Which type of bill of lading is negotiableA. surrenderB. straightC. to order
11. Which of these counts as a defectA. wrong designB. Fair wear and tearC. MisuseD. Missing items
12. The Vienna Sales Convention is also calledA. The Uniform Law of International SaleB. The Uniform Law on the Formation of Contracts for the International Sale of
GoodsC. The United Nations Convention on Contracts for the Interntional Sale of
GoodsD. The United Nations Convention on Contracts for acceptance
13. Earthquake, volcanic eruption and lighting are covered under the cargo clauseA. AB. BC. CD. A and B
14. If a dispute arises, the recital allows the court to discover the real meaning of...A. the contract
B. the termC. the incotermD. the appendix
15. In order to produce perfect products, manufacturers need to have.......A. product insuranceB. quality assurance programsC. customer satisfactionD. defect liability period
16. Transfer of risk from the seller to the buyer ( Incoterm 2000): DEQA. When the goods are ex-quayB. When the goods are handed to the first carrierC. When the goods across the ship's railD. When the goods are on board17. To make sure that the officer signing the contract has authority to sign the
contract, parties should check...A. The duplicate of the signatureB. The authenticity of the signatureC. The coverage of the signatureD. The transferability of the signature
18. In negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submits it to the bank is.....A. AgreementB. VerificationC. SpecificationD. Compliance
19. Feeble-minded people lack.... to enter contractsA. moneyB. timeC. contractual capacityD. intelligence
20. Of the three options available for setting disputes, litigation before the court is internationally least attractive as it is...A. Expensive and legalisticB. Business - like and flexibleC. Time-saving and privateD. Fast and acceptable
21. Elderly people are... to deal with a contract
A. UnableB. AbleC. ImpossibleD. Unaffordable
22. A grace period sometimes used to...A. avoid penaltyB. facilitate early deliveryC. avoid liquidated damages
23. Inspection by... reveals discrepancies in qualityA. customs officersB. the carrierC. the exporterD. the importer
24. IN a contract, the word "whereas" means....A. "only that"B. "while"C. "when"D. "because" or " considering that"
25. Disclaimer of warranty often accompaniesA. Contracts for hardwareB. Contracts for footwearC. Contracts for glasswareD. Contracts for software
26. What does prompt payment of the letter of credit depend on?A. It depends on the presentation of correct documentation of the exporterB. It depends on the kinds of documents which must be presented by the exporterC. It depends on the willingness of the buyerD. It depends on the time of checking the documents from both advising bank and
issuing bank27. 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 means?A. It means the exporter wants the bank in his country merely handle the paperworkB. It means the exporter wants the bank in his country make the payment itself
and recover the funds from the buyer's bankC. It means the exporter is double guaranteed in terms of payment by a third bank
beside the issuing bank and the advising bank
D. It means the confirmation from the issuing bank in terms of payment in case the buyer defaults.28. In settlement by sign payment.....
A. The seller presents the necessary documents to the issuing bank.B. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank
29. The essence of Continental Law is....A. CodificationB. VerificationC. AuthenticationD. Ratification
30. The workforce at the factory go on strikeA. YesB. QuestionableC. No
31. In CIF and CIP contracts, ...... must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier
32. In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association IATA?A. Three originals and three copiesB. Three originals and six copiesC. Three originals and nine copiesD. It depends on the requirements in the letter of credit
33. Once the bank has indicated the discrepancies, what can the exporter do?A. The exporter can provide the missing paperwork or correct errorsB. The exporter can ask the buyer to instruct bank to change the terms of the letter of
creditC. 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 paymentD. any of the above
34. Which of the following is NOT considered to be special requirement in a sale/purchase contract?A. Containers are required to be fumigated before shipment
B. Upgraded packaging materialsC. Goods must be packed according to export standardsD. Health inspection for foodstuffs
35. Which of the following method of payment is NOT possibleA. 100% of the contract price by letter of creditB. 20% prepayment and 80% by letter of creditC. 90% by letter of credit and 10% retaining until the warranty period is overD. 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.36. Failure to meet specifications is a:
A. Defect in workmanshipB. Defect in materialC. Defect in designD. Defect in quantity
37. In principle the buyer can reject delivered goods if they do not conform to the contract. This is called...A. Implied warranty of suitabilityB. Implied warranty of conformityC. Implied warranty of mechantabilityD. Implied warranty of fitness for intended purpose
38. If the price is quoted FAS Osaka, who pays for the freight?A. The shipperB. The exporterC. The forwarding agentD. The buyer
39. When the Bill of lading marked "freight prepaid”. Who pays for the freight?A The BuyerB. The SellerC. The agentD. It depends on the agreement.
40. In contract negotiation, " an invitation to provide terms and condition" may mean.....A. Another name for acceptanceB. Another name for an offerC. An invitation to the other party to make an offerD. An invitation to the other party to accept an offer
41. Defects include:A. mistake
B. misuseC. fair wear and tearD. workmanship
42. A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by...A. The buyerB. The exporterC. A bankD. A third party
43. A marine bill of lading becomes negotiable document and no restriction on ownership when it is....A. to order, blank endorsedB. surrendered, blank endorsementC. to order, endorsed
44. "Door to door service" is offered. Which term should be used?A. DDPB. CIPC. CIF
45. With a well-designed set of specifications, the seller can protect its....A. reputationB. productionC. resolutionD. profitability
46. 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 interest
the seller shall be entitled to receive in case of late paymentB. An agreement with the buyer to strengthen the payment provisions with a payment
guaranteeC. An agreement with an insurance company in case the buyer fails to pay on timeD. A confirmed, irrevocable, at sight letter or credit.
47. A contract requiring the exporter to send the contract goods by road from Keyna to Zambia with freight paid by the exporterA. CFR LusakaB. CPT LusakaC. CFR Nairobi
48. It is common to put the definition clause..... of the contractA. at the beginning
B. near the beginningC. at the endD. near the end
49. 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 of
money when the exporter presents the necessary documents to the bank.B. Because the 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 moneyD. Because the documents in a letter of credit are proofs of trust.
50. The things that the exporter should keep in mind in negotiating payment are....A. Payment method, timing, place, delay and results of delayB. How payment will be made and the date of paymentC. Where the money must be before payments is considered complete and what delay
in payment is excusableD. Results of non-excusable delay in payment and time of payment
Đề 18
Câu 1:
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 confirming bank.
Cau 2
What happens first when a bank resuses to pay under a letter of credit?
A. The bank will cite a “discrepancy”, some aspect of the documemtation that is not in line
with the terms of the credit.
B. A check - list of commonly cited discrepancies will be used by bank.
C. The exporter will have to re-submit their shipping documents.
D. The exporter must contact the buyer asking the buyer to instruct the issuing bank to
extend the date of the credit.
Câu 3:
In negotiating a letter of credit, the step in which the exporter checks the credit to see that
required documentation is as agreed is……….
A. Agreement.
B. Incorporation.
C. Verification.
D. Compliance.
Cau 4
Transfer of risk from the seller to the buyer (incoterm 2000): CFR
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.
Câu 5
Within the four alternatives of the at – sight Letter of credit, which one is the least satisfatory for
the exporter?
A. Settlement by payment.
B. Settlement by deferred payment.
C. Settlement by acceplance.
D. Settlement by nogatiation.
Cau 6
Of the three options available for setting disputes, litigation before the court is internationnnally
least attractive as it is……
A. Expensive and legalistic.
B. Business- like and flexible.
C. Time-saving and private.
D. Fast and acceptable.
Câu 7:
In settlement by deferred payment, if the seller needs money immediately, what can he do?
A. There is no way he can get money immediately.
B. He can exchange the letter of credit for cash with any agreeable bank.
C. The seller can realize some part of the letter of credit’s value, not its full value.
D. Payment is still safe but it is delayed.
Cau 8
According to the UCC, how long is the legal action period?
A. Two years.
B. Three years.
C. Four years.
D. one years.
Câu 9:
The ….. has no power to enforce his solution or to bind the parties, his task is to suggest a fiar
solution only.
A. Judge.
B. Conciliator.
C. Magistrate.
D. Lawyer.
Cau 10
If the price is quoted CIF San Francisco, who pays for the in ssurance and freight?
A. The exporter.
B. The buyer.
C. The forwarding agent.
D. The confirming bank.
Cau 11
The risk of rough handing is not corvered under the cargo claus….
A. A
B. B
C. C
D. B and C
Cau 12
The question of warranty is disposive. This means:
A. It is fixed.
B. The exporter can usually exclude all warranties.
C. The exporter must include it in the contract.
D. It is non-exsitent.
Cau13
Which type of payment is the most advantageous for the exporter
A. Credit by sight payment.
B. Credit by deferred payment.
C. Credit by acceptance.
D. Credit by negotiation.
Cau 14
…….. can create no – contract situations
A. Only duress
B. Only fraud
C. Onlymistake
D. Duress, fraud and mistake all
Cau 15
A volcanic eruption burries the factory in ash
A. Yes
B. Questionable
C. No
Cau 16
Many export contaracts cannot come intoforce due to………
A. Certain preconditions are not met
B. Force majeure
C. Late delivery
Cau 17
Transfer of risk from 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.
Cau 18
Companies ….. to use the short from of the names in contracts
A. Are forced
B. Aer not forced
C. Are allowed
D. Are not allowed
Cau 19
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
B. CIF Beira
C. Fob Dar es Salaam
Cau 20
Continental Law copes with ……
A. Personal problems
B. International trade
C. National issues
D. Individual conflicts
Cau 21
IN contract, ……. Is not normally allowed
A. Delegation of duties
B. Assignment of rights
C. Performance of obligations
D. Fulfillment of duties
Cau 22
“A voltmeter that is specified as accurate within 1 millivolt is accurate within only 5 millivolt” is
an example of.
A. Defective design
B. Difective maters
C. Defective workmanship
D. Misuse by the seller
Cau 23
If a dispute arises, the recital allows the court to discover the real meaning of ……..
A. The contract
B. The term
C. The incoterm
D. The appendix
Cau 24
In settlement by sight payment ………..
A. The seller presents the necessary document to the issuing bank
B. The seller presents the necessary document to the advising bank
C. The seller presents the necessary document to the paying bank
D. The seller presents the necessary document to the reconfirming bank
Cau 25
If the price is quoted FAS Osaka, who pays for the freight
A. The shipper
B. The exporter
C. The forwarding agent
D. The buyer
Câu 26:
The point at which money is deaamed to be paid most preffered by the seller….
A. When the buyer pays the money into his bank B. When the buyer’s bank transfers fundsC. When the buyer’s instructs the bank to pay D. When the funds reach the seller’s bank account
27: In negotiating a letter of credit , the step in the buyer applies for the letter of credit
specifying the agreed documentatiom…….
A.Incorporation
B. Vertication
C. Compliance
D. Non of the above
Câu 28:
The seller shall make good the defect of damage as soon as practicable and at his own cost”. This
is an example
A. Legal action period B. Notification period C. Rectification periodD. Defect liability period
Câu 29: W hen the exporter fill in the letter of credit application form , if the box requestef for
the Confirmation of credit to the beneficiary is ticked, what does it mean ?
A. Its mean the exporter wants the bank in his country merely handle the paperworkB. Its mean the exporter wants the bank in his country make the payment itself and recover
the funds from the buyer’s bank C. Its mean the exporter double quaranteed in term of payment by the third bank beside the
issuing bank and the advising bank D. Its mean the confirmation from the issuing bank interms of payment in case the buyer
defauts
Câu 30:
A term or terms in a contract could raise the contract price
A. A shorter warranty period B. Customer orders goods in one colorC. No additional packaging or safety warning are required beyond normal standardsD. A longer warranty period
Câu 31. Who usually has to pay for curing defects?
A. The buyerB. The sellerC. Both the buyer and the sellerD. The manufacturer
Câu 32. Which of the following examples is a talent defect?
A. Missing partsB. Structural weaknessC. Wrong itemsD. Broken items
Câu 33. A contract that is ultra vires is……
A. Well EnforceableB. UnenforceableC. Valid D. Effective
Câu 34. The main difference between Continental andAnglo- American contract law is the
degree of ……
A. CodificationB. Formation C. AutomationD. Interpretation
Câu 35. The final quality hurdle is the …..during which the exporter is liable to cure defects that
come to light in the goods.
A. Guarantee period B. Deffect liability period
C. Correction methods D. Quality assurance requirement
Câu 36: A letter of credit either “ revocable” and “irrevocable” letter of credit, so the plain
expression “ letter of credit generally mean the irrevocable kind. The word “ irrevocable”,
therefore. Should not always appear in the text of the credit and of the contract. Right or wrong?
A. Wrong B. Wrong, because it should always appear in the text of the credit and the contract
according to the ICC’s rulesC. RightD. Right, because in the absence of a clear indication, letter of credit are deemded to be
irrevocable
Câu 37. The word “ cash” in international trade means……..
A. Coins and notesB. Gold C. Checks or bank transfersD. Prepayment
Câu 38. Whck of these does not require prior inspection by SGS?
A. The philippinessB. IndonesiaC. The United KingdomD. All A, B, C
Câu 39. A lockout Background the worker have been striking for one day a week . the
managerment locks the workers out of factory until they agree to end the strike
A. YesB. QuestionableC. No
Câu 40. General average has the condition…….
A. The ship was in dangerB. The caption decided to lighten the ship and the ship arrived the destination safetyC. The caption decided to lighten the ship and the ship arrived the destination safety with the
remaining cargoD. A & C
Câu 41. Transfer of risk from the seller to the buyer ( Incoterm 2000). FOB
A. When the goods are at the seller premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s rail D. When the goods are on board
Câu 42. In negotiating specification, conflict can arise
A. Within the importer’s own teamB. Between the importer and the exporterC. Between the exporter’s own teamD. All of the above
Câu 43: Continental law is widely used for………
A. International issuesB. National issuesC. Both International issues and National issues D. Neither International issues and National issues
Câu 44. Another name for Tender Guarantee is……
A. Revocable guaranteeB. Bid GuaranteeC. Bond guaranteeD. Bid bond
Câu 45. A promise by the exporter to cure defects in his product is called:
A. A product guaranteeB. Product warrantyC. A product insuranceD. A product certification
Câu 46. The name of parties to contract are often on …. of the contract
A. The first pageB. The second pageC. The last pageD. All pages
Câu 47. The first step in negotiating a letter of credit is……
A. IncorporationB. SpecificationC. AgreementD. Vertification
Câu 48. The contract requiring an exporter in Ethiopia to send the contract goods by air for
delivery in Windhoek, namibia
A. CIF WinhoekB. CIP Winhoek C. DEQ Winhoek
Caau49. In contract “ partial invalidity provision” means the invalidity of one part of the
contract…….
A. May invalidate the restB. Does not invalidate the restC. Affects the restD. Enforce the rest
Câu 50. What does prompt payment of lettet of credit depend on ?
A. Its depend on the presentation of correct documentation of the exporterB. Its depend on the kind of documents which must be presented by the exporterC. Its depend on the willingness of the buyerD. Its depend on the time of checking the document from both advising bank and issuing
bank
ĐỀ 191. 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 money back from the exporterC. The payments from the advising bank to the exporter are always made with
resource. 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 such
a case2. With a well-designed set of specifications, the seller can protect its… and avoid costs
A. ReputationB. ProductionC. ResolutionD. profitability
3. The cheapest mode of transport:A. By seaB. by airC. by road
4. What is transferable credit ?A. It is the kind of credit which allows the exporter to transfer his right as the credit’s
beneficiary to any third partyB. It is the kind of credit which allows the first beneficiary to request the
confirming bank to pay a third partyC. It is the kind of negotiable document with which the exporter can endorse for any
third partyD. It is the kind of credit with which the buyer will not necessarily know who is the
actual supplier of the goods5. As the consequences of a defect can be expensive, the question of who pays for the
consequential loss or damage is often..A. Agreeable B. ControversialC. Non-negotiableD. Amicable
6. There are … parties to a warranty and… in a guarantee
A. Three/twoB. Three/threeC. Two/threeD. Two/two
7. How many types of implied warranties are there ?A. TwoB. ThreeC. FourD. five
8. What do export insurance premiums depend on:A. Type of goods exportedB. Creditworthiness of the buyerC. The political stability of the buyer’s countryD. All of the above
9. A contract comes into force when an offer is made by one side and … by the otherA. AcceptedB. DeclinedC. WrittenD. Drawn
10. The place of delivery is doubly important to the exporter because the date of… normally depends on time and place of deliveryA. InsuranceB. PaymentC. invoice
11. The mechanism of a confirmed letter of credit works as follow:A. Buyer instructs issuing bank to issue letter of credit in favor of the sellerB. Buyer instructs issuing bank to instruct advising bank to pay under the letter of
credit in favor of the sellerC. Buyer instructs an issuing bank to instruct a confirming bank to pay under a
letter of credit in favor of the sellerD. Buyer instructs issuing bank to instruct any third bank to pay under the letter of
credit in favor of the seller12. Many export contracts cannot come into force due to :
A. Certain preconditions are not metB. Force majeureC. Late delivery
13. Why do few exporters ask for bank guarantees as security for payment
A. Because they are not expensive to set upB. Because they run into trouble so oftenC. Because they are conditional guaranteesD. Because the letter of credit is much preferred
14. As for Anglo-American law, the decision of the judge is always..A. PredictableB. ForeseeableC. UnpredictableD. Estimated
15. Among a number of international bodies offering arbitration services, the… in Paris is the most prestigiousA. UCPB. ADRC. ICCD. FAO
16. Defects such as wrong items, broken or missing parts, scratches, and so on are called…A. Patent defectsB. Latent defectsC. Inherent defectsD. Concealed defects
17. A commercial invoice must be made out to..A. The exporterB. The shipperC. Any party endorsing the bill of ladingD. The applicant for the letter of credit, normally to the buyer, unless otherwise
stated in credit18. The bank helping the exporter to check the correctness of the documents and set the
payment procedure in motion isA. The issuing bankB. The advising bankC. Confirming bankD. Any third bank
19. In a contract under a Continental law, recitalA. Is essentialB. Is not usefulC. Is not essential
D. Is important20. “ Full set on board ocean bills of lading to order shipper, blank endorsed”. In this
clause shipper meansA. ExporterB. ImporterC. bankD. A or B or C. it depends on situation
21. As soon as the exporter receives advice that the letter of credit has been opened, what should he do ?A. He should check that it complies with the agreement he negotiated with the
buyerB. He should check if there is any document that he does not understand C. He should check if there is any requirement that he does not agree toD. He should check if there is any necessary amendment to the terms of the letter of
credit22. “ A voltmeter that is specified as accurate within 1 millivolt is accurate within only 5
millivolt” is an example of A. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the seller
23. The “ order of precedence” among the documents explainsA. The authority of the documentsB. The meaning of the documentsC. The value of the documentsD. The assignment of the documents
24. Why can a manufacturer sometimes accept a loss on an export dealA. He wants to win a regular customerB. His factory may be short of workC. He can get some export incentives from the governmentD. any of the above ( want to win a regular customer, his factory may be short of work, he can get some export incentives from the government )
25. Partial invalidity clause can help to avoid problems with contracts that..A. might infringe government regulationsB. violate the trade lawsC. discourage trade D. Both B and C
26. Which of the following discrepancies is not the problem with the letter of credit ?A. the credit has expiredB. documents required by the credit are missingC. the credit amount is exceededD. insurance cover is expressed in a currency other than that of the credit
27. Which is the most appropriate method of payment for the exporter in the following case ?A contract for supply cloth worth $5,000 per month to the government Oceanea – a
prosperous country. Duration of the contract is 2 years, but renewable. Contract represents 0.5% of turnover.
A. open account with no securityB. open account with bank guaranteeC. open account with export credit insuranceD. Export credit insurance is advisable . Selling on open account with no security
at all is also possible.28. If the price is quoted CPT Vancouver, who pays for the freight ?
A. The exporterB. the forwarding agentC. the buyerD. the confirming bank
29. Beside the commercial invoice, the transport document and insurance document, what do “ Other documents” include ?A. certificate of originB. Certificate of inspectionC. a health inspectionD. any of the above
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 yearsA. yesB. questionableC. No
31. It’s always good for the exporter to promote his skills and the excellence of his products…A. in the contract documents B. in the payment clauseC. in the recitalD. in the delivery clause
32. A ban is issued on the export of jute products by newly elected governmentA. yes B. questionableC. no
33. When the bill of lading marked “ freight prepaid”. Who pays for the freightA. the buyerB. the sellerC. the agentD. it depends on the agreement
34. Anglo-American law isA. law codeB. case lawC. civil lawD. legal code
35. Which of the following examples is a latent defect ?A. missing partsB. structural weaknessesC. wrong itemsD. broken items
36. The applicable law governs questions concerning the validity,…., performance of contractA. interpretationB. paymentC. correctionD. Acceptance
37. In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association – IATA ?A. three originals and three copiesB. three originals and six copiesC. three originals and nine copiesD. it depends on the requirements in the letter of credit
38. Transer of risk from the seller to the buyer ( Incoterm 2000): CIFA. when the goods are at the seller’s premisesB. when the goods are handed to the first carrierC. when the goods across the ship’s rail D. when the goods are on board
39. 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 A. open account with no securityB. open account with bank guaranteeC. open account with export credit insuranceD.confirmed letter of credit
40. The buyer can reject goods that are not of saleable quality. This is calledA. implied warranty of suitabilityB. implied warranty of conformityC. implied warranty of merchantabilityD. implied warranty of fitness for intended purpose
41. When parties agree to end a contract, ….occursA. terminationB. frustrationC. rescissionD. suspension
42. Who issues ocean bill of lading ?A. captainB. exporterC. shipping companyD. agent
43. Under the public law, a company can only sign a contractA. even when they lack powersB. that is beyond its powerC. both A and BD. that is within its power
44. In a confirmed letter of credit, what happens if the bank pays the exporter and the issuing bank finds something wrong with the documents ?A. the exporter has a problemB. the confirming bank has a problemC. it is the issuing bank which has an absolute obligation to pay the exporter
according to the terms of the creditD. 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 recourse45. Which of the following is essential to successful business ?
A. qualityB. customer satisfactionC. correct making and packagingD. on-time delivery
46. The things that the exporter should keep in mind in negotiating payment areA. Payment mode, timing, place, delay and result of delayB. how payment will be made and the date of paymentC. where the money must be before payment is considered complete and what delay
in payment is excusableD. results of non-excusable delay in payment and time of payment
47. A marine bill of lading becomes negotiable document and no restriction on ownership when it is..A. to order, blank endorsedB. surrendered, blank endorsementC. to order, endorsed
48. Termination for default occurs when the contract names certain ….which allow one side to terminateA. time limitsB. defaultsC. situationsD. conditions
49. What can protect both the exporter and importer in an export contract ?A. a well-designed set of specificationsB. an itemized set of specificationsC. a plain set of specificationsD. none of these
50. The bill of lading issued by the carrier for air transport is calledA. air waybillB. air bill of ladingC. air way bill of ladingD. airway bill
ĐỀ 20
1. A contract comes into force when an offer is made by one side and…by the otherA. AcceptedB. DeclinedC. WrittenD. drawn
2. 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 ?A. It means the exporter wants the bank in his country merely handle the paperworkB. It means the exporter wants the bank in his country make the payment itself
and recover the funds from the buyer’s bankC. It means the exporter is double guaranteed in terms of payment by a third bank
beside the issuing bank and the advising bankD. It means the confirmation from the issuing bank in terms of payment in case the
buyer defaults3. Within the four alternatives of the at-sight letter of credit, which one is the least
satisfactory for the exporter ?A. settlement by sight paymentB. settlement by deferred paymentC. settlement by acceptanceD. Settlement of negotiation
4. The mechanism of a confirmed letter of credit works as follow:A. Buyer instructs issuing bank to issue letter of credit in favor of the sellerB. Buyer instructs issuing bank to instruct advising bank to pay under the letter of
credit in favor of the sellerC. Buyer instructs an issuing bank to instruct a confirming bank to pay under a
letter of credit in favor of the sellerD. Buyer instructs issuing bank to instruct any third bank to pay under the letter of
credit in favor of the seller5. In drafting an arbitration clause, the following questions 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 of the above
6. 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
A. andB. orC. and/orD. either B or C
7. Which of the following examples is a patent defect ?A. crushed or stained garmentsB. the flooring shows signs of deteriorationC. high fuel consumptionD. inadequately tightened nuts and bolts
8. The expiry date of the letter of credit is….A. the date the exporter will be paid for the goods soldB. the last date of presentation of documents to the bankC. the date the letter of credit is no longer effectiveD. the last date the shipment should be made by the exporter
9. War risk is not included:A. A clauseB. B clauseC. A, B, C clause
10. In contract negotiation, “an invitation to provide terms and condition” may mean:A. another name for acceptanceB. another name for an offerC. An invitation to the other party to make an offerD. an invitation to the other party to accept an offer
11. Transfer of risk of the seller to the buyer (Incoterm 2000) DESA. when the goods are ex-shipB. when the goods are handed to the first carrierC. when the goods across the ship’s rail D. when the goods are on board
12. The bank that the buyer asks to open a letter of credit is called:A. the issuing bankB. the advising bankC. the confirming bankD. the opening bank
13. “ The seller shall make good the defect or damages as soon as practicable and at his own cost”. This is an example of:A. legal action periodB. notification period
C. rectification periodD. defect liability period
14. “ A radio lacks the wires connecting the loudspeaker to the amplifier” is an example of :A. defective designB. defective materialsC. defective workmanshipD. misuse by the buyer
15. In negotiating a letter of credit, the step in which the list of all required documentation is incorporated into the contract is:A. specificationB. incorporationC. Compliance
D. verification16. If the price is quoted CFR HaiPhong, who pay for the freight ?
A. the buyerB. the exporterC. the carrierD. the forwarding agent
17. Who issues ocean bill of lading?A. captainB. exporterC. shipping companyD. agent
18. Why do few exporters ask for bank guarantees as security for payment ?A. Because they are not expensive to set upB. Because they run into trouble so oftenC. Because they are conditional guaranteesD. Because the letter of credit is much preferred
19. An offer dies if it has a/an …A. acceptanceB. agreementC. adoptionD. revocation
20. The place of delivery ( CIP, CIF ) should not be confused with the…of the goodsA. departureB. destination
C. transshipment21. 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
amountB. the actual payment therefore can be 15% more or 15% less than the stated amountC. the actual payment therefore can be 5% more or 5% less than the stated amountD. the actual payment therefore can be between 5 % and 10% of the stated amount
22. Drunken people have no…to sign contractA. contractual capacityB. contractual conceptC. contractual governmentD. contractual branch
23. As the consequences of a defect can be expensive, the question of who pays for the consequential loss or damage is often…A. agreeableB. controversialC. non-negotiableD. amicable
24. How many timing problems are involved in Defect Liability Period ?A. threeB. fourC. twoD. five
25. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is:A. agreementB. incorporationC. veritificationD. compliance
26. 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 creditB. a check-list of commonly cited discrepancies may be used by banksC. the exporter will have to re-submit their shipping documentsD. the exporter must contact the buyer asking the buyer to instruct the issuing bank to
extend the date of credit
27. The background of the contract is provided in the form of:A. a clauseB. a definitionC. the annexD. a whereas-recital
28. The cheapest mode of transport is:A. by seaB. by airC. by road
29. A contract that is ultra vires is:A. well enforceableB. unenforceableC. validD. effective
30. Which of these does not require prior inspection by SGS ?A. the PhilippinesB. the IndonesiaC. the United KingdomD. all A,B and C
31. After making the shipment of the goods to the buyer, the exporter presents the shipping documents to…A. the issuing bankB. the advising bankC. confirming bankD. opening bank
32. …..are the explanationsA. definition clausesB. whereas-recital clausesC. preamble clausesD. annex clauses
33. An FOB sales contract agrees that the exporter can deposit the goods in the warehouse if the ship arrives late and that this country is delivery. If the letter of credit requires a bill of lading and makes no mention of a warehouse receipt,A. the exporter will still be paid against a warehouse receiptB. the bank simply cannot pay against a warehouse receiptC. the buyer refuses to pay the exporter against a warehouse receipt
D. the buyer still has to pay the exporter against the warehouse receipt because his designated vessel has arrived late at the port of loading34. ….refer to the questions of implied warranties
A. most contractsB. most lawsC. the UCCD. the Vienna Sales Convention
35. There is no connection between the letter of credit and the sales contract. Right or wrong ?A. completely rightB. completely wrongC. it dependsD. the exporter and the buyer may agree that all the terms in their sales contract must
be stated in the letter of credit36. A grace period is sometimes used to ….
A. avoid penaltyB. facilitate early deliveryC. avoid liquidated damages
37. Continental law copes with…A, personal problemsB. international tradeC. national issuesD. individual conflicts
38. What does it mean by “ irrevocable” letter of credit ?A. it means the letter of credit can be cancelled at any time by the buyer or issuing
bankB. it means the letter of credit cannot be cancelled at any time by the buyer or
the issuing bankC. it means the lette of credit can be cancelled if the beneficiary agrees to do soD. it meand the letter of credit can only be cancelled if the buyer agrees to do so
39. A ban is issued on the export of jute products by newly elected governmentA. yesB. questionableC. no
40. If the price is quoted FOB Singapore, who pays for the insurance and freight ?A. the exporterB. the buyer
C. the forwarding agentD. the confirming bank
41. The disadvantages of…policy is that it is set up for particular time and automatically expiresA. tailor-madeB. floatingC. open cover
42. Inspection by the buyer is called:A. independent inspectionB. inspection of goods prior to shipmentC. open package inspectionD. customs inspection
43. “ Nuts and bolts are inadequately tightened” represents:A. defective materialsB. defective designC. defective workmanshipD. misuse
44. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter:A. CFR LusakaB. CPT LusakaC. CFR Nairobi
45. Most contracts contain an assurance that the exporter will………..any defects in his productsA. make goodB. take awayC. alter
D. modify46. The delivery depends on..
A. date of executionB. effective dateC. preconditions
47. What do export insurance premiums depend on ?A. type of goods exportedB. creditworthiness of the buyerC. the political stability of the buyer’s countryD. all of above
48. Among a number of international bodies offering arbitration services, the…in Paris is the most prestigiousA. UCPB. ADRC. ICCD. FAO
49. The names of…are normally the full, registered name of the CompanyA. the exporterB. the buyerC. either the exporter or the buyerD. the parties
50. The parties to a contract are not always required to…. The Vienna Sales ConventionA. ignoreB. applyC. refuseD. decline
ĐỀ 21
1. Anglo- American law is also called:A. Civil lawB. Legal codeC. Common lawD. Law code
2. The first step in negotiating a letter of credit is:A. IncorporationB. SpecificationC. AgreementD. Verification
3. A mistake about the goods in a contract means there no……..A. Meeting of acceptanceB. Meeting of mindsC. Meeting of conceptsD. Meeting of agreement
4. Is it possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money?D. No. it isn’tE. It is impossible by all meanF. The draft must be drawn on the buyer to the order payment not the bankE. Yes, it is
5. A contract that is ultra vires is…….A. Well enforceableB. UnenforceableC. ValidD. Effective
6. Most contracts contain an assurance that the exporter will …….. any defects in his productsA. Make goodB. Take awayC. AlterD. Modify
7. A warranty is aimed at:A. Obtaining loansB. Assurance of product performance
C. Credit purchaseD. Profit making
8. It’s always good for the exporter to promote his skills and the excellence of his products……A. In the contracts documentsB. In the payment clauseC. In the recitalD. In the delivery clause
9. To avoid the dangers of the slow payment, exporters try to protect themselves with a clause like this:” payment shall be deemed to have been made only when…..”A. The buyer instructs the bank to payB. The buyer pays the money into his bankC. The buyer’s bank transfers fundsD. Funds reach the seller’s bank account and at his full disposal
10. The essence of Continental law isA. CodificationB. VerificationC. AuthenticationD. Ratification
11. Allowing the buyer to repair the equipment at the exporter’s cost ……..A. Is always the best choice to the exporterB. Is always the worst choice to the exporterC. Is often safe for exporterD. Is often unsafe for exporter
12. A contract comes into force when an offer is made by one side and …… by otherA. AcceptedB. DeclinedC. WrittenD. Drawn
13. Termination may be for…..A. DisruptionB. AuthenticationC. ConvenienceD. Adoption
14. In settlement by deferred payment, the letter of credit is paid after delivery. Right or wrong?A. Completely right
B. Definitely wrongC. It dependsD. The letter of credit is not payable until a number of days
15. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading?
A. It is possible demandB. The original of the bill of lading for shipment by rail does not come into the possession of the buyer.C. Such a letter of credit is certain to cause delay in payment
D. The bank insists on strict compliance16. (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)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)A. YesB. QuestionableC. No
17. Who usually pays for curing defects?A. The importerB. The exporterC. Both partiesD. A third party
18. Elderly people are …to deal with contractE. UnableF. AbleG. ImpossibleH. Unaffordable
19. 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……..A. Revolving L/CB. At sight, confirmed L/CC. Deferred, irrevocable L/CD. Transferable L/C
20. Which of the following is essential to successful business?E. QualityF. Customer satisfaction
G. Correct marking and packagingH. On-time delivery
21. Different legal systems regulate that rejection of delivered goods must be total ………can be partial.A. OrB. AndC. And/orD. Nor
22. If both parties perform their duties exactly according to the contract, the contract is……….E. Discharged by performanceF. Discharged for performanceG. Discharged to performanceH. Discharged with performance
23. (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)A fire burns down the factoryA. YesB. QuestionableC. No
24. The grace period is sometimes used to …..A. Avoid penaltyB. Facilitate early deliveryC. Avoid liquidated damages
25. To make sure that the officer signing the contract has authority to sign the contract, parties should check………………E. The duplicate of the signatureF. The authenticity of the signatureG. The coverage of the signatureH. The transferability of the signature
26. A term or terms in a contract could raise the contract priceE. A shorter warranty periodF. Customer order goods in one colorG. No additional packaging or safety warnings are required beyond normal standardsH. A longer warranty period
27. The disadvantage of……policy is that it is set up for particular time and automatically expires.D. tailor – madeE. floatingF. open cover
28. ………….. is opened-endedA. Tailor-madeB. FloatingC. Open cover
29. The bank helping the exporter to check the correctness of the documents and set the payment procedure in motion isA. The issuing bankB. The advising bankC. The confirming bankD. Any third bank
30. Delivery of the goods under the most export contracts take place in a country of :A. The importerB. The exporterC. The agent
31. The stand-by letter of credit originated in the US is used there because …E. It is very popular for US exporters to ask for payment from their buyers or
customers.F. It is much more convenient to ask for one in the US instead of the ordinary letters
of credit.G. The banking law in some states forbids banks to issue payment guarantee H. English banks prefer to issue demand guarantees and ordinary letters of credit.
32. The method of payment which is dangerous for the exporter is: A. Cash on deliveryB. Accepting a personal checkC. PrepaymentD. Export credit insurance
33. Another name for tender guarantee is E. Revocation guaranteeF. Bid guaranteeG. Bond guaranteeH. Bid bond
34. …….bill of lading- goods were taken on board in good conditions
A. CleanB. DirtyC. Claused
35. (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)A volcanic eruption buries the factory in ashA. YesB. QuestionableC. No
36. The entire agreement clause means that all documents that predicts the contract A. Are still validB. Become importantC. Become invalidD. Can be used as evidence
37. A guarantee is:A. A UnilateralB. B. TripartiteC. C. BilateralD. D. Multilateral
38. When the bill of lading marked “freight collected”. Who pays for freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement
39. The greatest fear for the exporter is :A. Being unable to meet the delivery deadlineB. Being unable to meet the specification of the goodsC. Being unable to get paid for the goods soldD. Having no guarantee for payment
40. If shipment is made on CIF or CPI terms, the letter of credit will call forE. An insurance policyF. A letter of insurance G. A certificate of insurance H. Either A or C
41. The final quality hurdle is the ……….. during which the exporter is liable to cure defects that come to light in the goods.
A. Guarantee periodB. Defect liability periodC. Correction methodsD. Quality assurance requirements
42. Earthquake, volcanic eruption and lighting are not covered under the cargo clause ….A. AB. BC. CD. B and C
43. 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?A. The UCCB. The BGBC. Continental lawD. English law
44. The lump-sum compensation is set about right A. A. liquidated damages.B. B. quasi indemnity C. C. penalty
45. 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 FB. D and FC. C and D
46. Export credit insurance is very attractive; however, it has certain limitations like …….A. High premium paid by the exporterB. Long time waiting for compensation from the insurance companyC. 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 buyer’s non- creditworthiness.47. Which type of payment is the most advantageous for the exporter?
E. Credit by sight paymentF. Credit by deferred paymentG. Credit by acceptanceH. Credit by negotiation
48. Transfer of risks from the seller to the buyer ( Incoterm 2000) : CPTA. When the goods are at seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
49. The period during which the buyer can begin a legal action is legally called:A. NotificationB. RectificationC. Legal action periodD. Detect liability period
50. A payment guarantee simply commits the bank to pay if the buyer defaults. The payment guarantee is usually for… of the contract price E. 100%F. Less than 100%G. 10%H. Between 5% and 10%
ĐỀ 22
1. 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?A. The UCCB. The BGBC. Continental lawD. English law
2. Bill of lading is the most important because it is a…..A. Document of titleB. Document of negotiationC. Document of freight
3. 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?A.Winning buyer’s goodwillB. Keeping this promiseC. Negotiating detailed specificationsD. Making profit
4. In a contract under a Continental law, a recital….A. is essentialB. is not usefulC. is not essentialD. is important
5. Exporters prefer:A. the return of the defective item to the replacement of itB. the replacement of the defective item to the return of itC. the return of the goods and refund of the priceD. non of these
6. The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specifications is…in businessA. lucrativeB. riskyC. advantageousD. common
7.In settlement by acceptance, the kind of bill of exchange being sent together with other documents to the accepting bank is…A. Sight draft
B. Short-term draftC. Time draftD. Long-term draft
8. What are common discrepancies reported by banks in practice?A. They are problems with the letter of creditB. They are problems with the Bill of ladingC. They are problems with insurance and/or the inconsistencies among the documentsD. Any of the above
9. There is no connection between the letter of credit and the sales contract. Right or wrong?A. Completely rightB. Completely wrongC. It dependsD. The exporter and the buyer may agree that all the term in their sales contract must be stated in the letter of credit
10. The parties to a contract are not always required to…the Vienna Sales ConventionA. IgnoreB. ApplyC. RefusesD. Decline
11. 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 ladingB. It means the exporter must produce three original out of the whole three which have been issued by the shipping companyC. It means the number of originals and that of copies of the marine bill of lading required are always the sameD. It means the marine bill of lading must be issued in three originals and three copies
12. The rules of international common law decide the law that applies for the contract if the contract does not specify the….A. Common lawB. Civil lawC. Case lawD. Applicable law
13. Within most Anglo-American jurisdictions, a contractA. can be one-sidedB. can be two-sided
C. can be either one-sided or two-sidedD. must be two-sided
14. 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 wants to get payment from the bankB. The exporter cannot provide the complete setC. 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
15. Which of the following discrepancies is NOT the problem with InsuranceA. Documents are not presented within the required timeB. The sum insured is below the figure requiredC. The insurance risks are not those specified in the creditD. A certificate of insurance is produced while the credit calls for a policy
16. The buyer can reject goods that are not of saleable quality. This is called…A. Implied warranty of the suitabilityB. Implied warranty of conformityC. Implied warranty of merchantabilityD. Implied warranty of fitness for intended purpose
17. Contract documents must be given…….in case of contradictionsA. an order of seniorityB. anorder of precedenceC. order of rulesD. either a or b
18. As for Anglo-American law, the decision of the judge is always….A. PredictableB. ForeseeableC. UnpredictableD. Estimated
19. To make sure that the officer signing the contract has authority to sign the contract, parties should check…..A. The duplicate of the signatureB. The authenticity of the signatureC. The coverage of the signatureD. The transferability of the signature
20. The cheapest mode of transport is…
A. by seaB. by airC. by road
21. The lump-sum compensation is set too high A. liquidate damagesB. quasi indemnityC. penalty
22. The cost of L/C amendments are normally for….A. the buyer’s accountB. the exporter’s accountC. the issuing bank’s accountD. the one who asks for such amendments
23. According to the UCC, how long is the legal action period?A. Two yearsB. Three yearsC. Four yearsD. One years
24. 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 documentsB. A letter of credit is like a bill of exchange given for the price of goodsC. A letter of credit ranks as cash and must be honoredD. No set off or counterclaim is allowed to detract from a letter of credit
25. What is a letter of credit requires “an appropriate wildlife certificate”?A. It is a vague requirementB. The bank and the exporter may have different views on what is “appropriate”C. It should be more specific like what the certificate must show and who should issue itD. All of the above
26. Open cover is not a policy: the….will write a policy if requiredA. InsurerB. ImporterC. Exporter
27…..refer(s) to the questions of implied warrantiesA. Most contractsB. Most lawsC. The UCC
D. The Vienna Sales Convention28. A contract requiring the exporter to send the contract goods by road from Kenya to
Zambia with freight paid by the exporter.A. CFR LusakaB. CPT LusakaC. CFR Nairobi
29. A grace period is sometimes used to….A. avoid penaltyB. facilitate early deliveryC. avoid liquidated damages
30. Which of these does not count as a defect?A. Defective designB. MisuseC. Defective materialsD. Defective workmanship
31. Partial invalidity clause can help to avoid problems with contracts that…A. might infringe government regulationsB. violate the trade lawsC. discourage tradeD. both b and c
32. If shipment is made on CIF or CIP terms, the letter of credit will call for….A. An insurance policyB. A letter of insuranceC. A certificate of insuranceD. Either A or C
33. Is there any requirement that the air waybill shows the date of the flight?A. No, there isn’tB. Yes, there isC. Never is there such a requirementD. No, it is an incorrect requirement because a correctly completed waybill cannot show this information
34. The contract should regulate what happens if Incoterm 2000 and the term of the contract conflict: normally the ….prevailsA. IncotermB. ContractC. Incoterm and contract
35. In CIF and CIP contracts,… must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier
36. The disadvantages…of policy is that it is set up for paticular time and automatically expiresA. tailor-madeB. floatingC. open cover
37. Defects may be which of the following?A. Defects in materialsB. Defects in workmanshipC. BothD. None of these
38. The bank helping the exporter to check the correctness of the documents and set the payment procedure in motions is….A. The issuing bankB. The advising bankC. The confirming bankD. Any third bank
39. What are the set of assumptions with which a price quotation is based?A. Mode of payment, timing, place of paymentB. Delay in payment and results of delayC. Choices of method of paymentD. Delivery, payment and warranty terms
40. ….Bill of lading-goods were taken on board in good condition.A. cleanB. dirtyC. claused
41. Anglo-American law isA. Law codeB. Case lawC. Civil lawD. Legal code
42. The decision of arbitrators isA. Law-oriented
B. Business-orientedC. Action-orientedD. Reaction-oriented
43. “Export credit insurance is a kind of special privilege that an exporter may get from his government’s export incentives and suport”. Right or wrong?A. Completely rightB. Absolutely wrongC. Neither right or wrongD. It is not a charity. It is beneficial for both exporter and insurance company
44. If the box “With brief advice by teletransmission” is crossed, it means….A. The exporter wants to be informed of the inssuance of the letter of credit by telexB. The exporter wants to begin preparations for deliveryC. The buyer’s responsibility of informing the exporter that a letter of credit has been issued in his favorD. The exporter wants to know about the inssuance of the letter of credit more quickly
45. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may….A. reject the wholeB. accept the wholeC. accept any commercial unit and reject the restD. All the above
46……..is two-sided proceduresA. TerminationB. CancellationC. RescissionD. Suspension
47. Transfer of risk from the seller to the buyer ( Incoterm 2000 ): CPTA. When the goods are At the seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
48. In a contract, the word “whereas” means….A. “only that”B. “while”C. “when”
D. “because” or “considering that”49. “ Full set on board ocean bills of lading to order shipper, bank endorsed”. In this
clause shipper means….A. ExporterB. ImporterC. BankD. A or B or C. It depends on the situation
50.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 do in that case?A. The court refusedB. The court acceptedC. The court would not involveD. The exporter will be paid-although later action in the courts may oblige him to make good any damage he has caused the buyer.
ĐỀ 231. Title to the goods passes…
A. With risksB. Without risksC. With documents
2. Partial invalidity clause can help to avoid problems with contracts that …A. Might infringe government regulationsB. Violate the trade lawsC. Discourage tradeD. Both B and C
3. Which of the following discrepancies is NOT the problem with inconsistencies among the document?A. The description of the goods on the invoice and the description of the goods in the
credit are differentB. Documents are not presented with the required timeC. Weights differ between two documentsD. Marks and number differ among documents
4. Drunken people have no … to sign a contractA. Contractual capacityB. Contractual conceptC. Contractual governmentD. Contractual branch
5. Cancellation on … grounds makes no legal senseA. Great B. Genuine C. Trivial D. Acceptable
6. The … has no power to enforce his solution or to bind the parties, his task is to suggest a fair solution onlyA. Judge B. ConciliatorC. MagistrateD. Lawyer
7. In settlement by acceptance, what will the bank do after receiving the documents and draft on the buyer from the seller?A. The bank will pay the seller immediately
B. The bank will pay the seller as long as the documents submitted comply with all the terms of the letter of credit
C. The bank checks the documentsD. The bank agrees to pay the bill when it matures
8. “Full set on board ocean bills of lading to order shipper, bank endorsed”. In this clause shipper means…A. ExporterB. ImporterC. BankD. A or B or C. it depends on the situation
9. A bill of lading with the note is …A. Clean bill of lading B. Clause bill of ladingC. Clear bill of lading
10. The exporter should have no liability for the goods when they are …A. Beyond his controlB. In his controlC. Under his control
11. Export credit insurance which gives the exporter an acceptance level of security in terms of payment shall be paid by …A. The buyerB. The exporterC. A bank D. An insurance company
12. If a contract is the entire agreement, earlier letters and documents …A. Can be used as evidenceB. Become invalidC. PrevailD. Remain important
13. Shortage of supplies (Background: the exporter cannot get the raw jute he needs from the supplier because of a shipping delay)A. YesB. QuestionableC. No
14. If a dispute arises, the recital allows the court to discover the real meaning of …A. The contractB. The term
C. The incotermsD. The appendix
15. The method of payment which is completely safe for the seller in small purchases is …A. Open accountB. Cash on deliveryC. Cash against invoiceD. Cash with order
16. The applicable law governs questions concerning the validity, … , performance of contracts.A. InterpretationB. PaymentC. CorrectionD. Acceptance
17. The force majeure clause suggested by the International Chamber of Commerce, for example, states the payment of interest on overdue sums payable to the seller is … by …A. Excused/force majeureB. Not excused/force majeureC. Excused/Acts of GodD. Excused/contingencies
18. Why can a manufacturer sometimes accept a loss on an export dealA. He wants to win a regular customerB. His factory may be short of workC. Ha can get some export incentives from the governmentD. Any of the above
19. Defects such as wrong items, broken or missing parts, scratches, and so on are called …A. Patent defectsB. Latten defectsC. Inherent defectsD. Concealed defects
20. Transfer risk from the seller to the buyer (Incoterms 2000): DDPA. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board21.
21. In a contract under a Continental law, a recital …A. Is essential B. Is importantC. Is not useful D. Is useful
22. A liquidated damages clause protects …A. The exporter rather than the importerB. The importer rather than the exporterC. Both sidesD. Neither the exporter nor the importer
23. If the price is quoted FOB Singapore, who pays for the insurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirming bank
24. Earthquake, volcanic eruption and lighting are covered under the cargo clause …A. AB. BC. CD. A and B
25. A well-designed set of specifications protects:A. The exporterB. The importerC. Both partiesD. Neither of these
26.27. What if a letter of credit requires “an appropriate wildlife certificate”?
A. It is a vague requirementB. The bank and the exporter may have different views on what is “appropriate”C. It should be more specific like what the certificate must show and who should
issue itD. All of these above
28. In principle the buyer can reject delivered goods if they do not conform to the contract. This is called …A. Implied warranty of suitabilityB. Implied warranty of conformityC. Implied warranty of merchantability
D. Implied warranty of fitness for intended purpose29. 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 belongs to …A. The buyerB. The exporterC. The bank of the exporterD. The bank of the buyer
30. Which of these is the cheapest option for the exporter?A. RepairB. Replace (part or whole item)C. Reduce the priceD. Return the goods
31. If the buyer can make certain assumptions about goods-even if the exporter gives no express warranty, these assumptions are called…A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties
32. It is … to identify latent defect than patent defect.A. EasierB. More complicatedC. More effectiveD. Better
33. Independent inspection reports on …A. The weight of the goodsB. The size of the goodsC. Both A and BD. None of these
34. Two parties sign a contractA. The contract is bindingB. The contract is effectiveC. The contract is binding and effective
35. Which of the following is NOT the method of issuing letter of the credit?A. By emailB. By airmail C. By mailD. By teletransmission
36. The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specifications is … in businessA. LucrativeB. RiskyC. AdvantageousD. Common
37. In CIF and CIP contracts, … must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier
38. The decision of arbitrators is …A. Law-orientedB. Business-orientedC. Action-orientedD. Reaction-oriented
39. The Vienna Sales Conventions is also called: …A. The Uniform Law of International SaleB. The Uniform Law on the Contracts for the International Sale of GoodsC. The United Nations Convention on Contracts for the International Sale of
GoodsD. The United Nations Convention on Contracts for acceptance
40. If a country ratifies the Vienna Convention, in the event of conflict, the Vienna Sales Convention can … the National law.A. Prevail overB. Conform to C. FollowD. Adapt
41. Who issues a bank guarantee?A. The buyerB. The exporterC. Any third partyD. A bank
42. What would be the effect on the price of the goods traded of the buyer wants the goods sooner?A. The price of the goods will go upB. The price of the goods will go down
C. There is no change in priceD. The price of the goods will go up as extra costs involved due to extra working
shift from the manufacturer43. If alternative means of transport of partial shipments are allowed perhaps by different
modes of transport, the letter of credit should have the words … between the names of transport documents.A. And B. OrC. And/orD. Either B or C
44. Which of the following discrepancies is NOT the problem with the Bill of Lading?A. The bill of lading is “unclean”B. The bill of lading shows shipment between ports other than those specified in the
creditC. The discrepancies of the goods on the invoice and the description of the goods
in the credit are differentD. There is no endorsement if the endorsement is necessary
45. Who signs “shipped on board” notation?A. Captain B. ExporterC. Shipping companyD. Agent
46. 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 line with the term of the creditB. A check –list of commonly cited discrepancies will be used by banksC. The exporter will have to re-submit their shipping documentD. The exporter must contract the buyer asking the buyer to instruct the issuing banj
to extend the date of the credit47. The defects liability period is also called:
A. Warranty periodB. Guarantee periodC. Correction action periodD. Legal action period
48. Anglo-American law is …A. Law codeB. Case law
C. Civil lawD. Legal code
49. Shortage of supplies (background: the exporter cannot get the raw jute he needs from the supplier because the Central Bank will not give him foreign exchange to pay the supplier)A. YesB. QuestionableC. No
50. A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by …A. The buyerB. The exporterC. A bankD. A third party
Đề 241. The point at which money is deemed to be paid most referred by buyer
is……………….A. When the buyer pays the money into his bankB. When the buyer’s bank transfers fundsC. When the buyer instructs the bank to payD. When the funds reach the seller’s bank account
2. If the price is quoted FOB Singapore, who pays for the insurance and freight?E. The exporterF. The buyerG. The forwarding agentH. The confirm
3. Defects that come to light after buyer’s acceptance are called…E. Patent defectsF. Latent defectsG. Coherent defectsH. Apparent defects
4. Replacing a defective product helps to keep the ……… of customer.A. GoodwillB. Good imageC. Good businessD. Wellbeing
5. If the force majeure event continues for too long, both parties have the right toD. Continue the contractE. Terminate the contractF. Make late delivery
6. Parties to contract for the sale of goods are free to choose.A. Applicable lawB. International lawC. Corporate lawD. Business law
7. Which of the following is not the method of issuing the letter of credit?E. By emailF. By airmailG. By mailH. By teletransmission
8. When an offer is made, it is not applicable when it has…..?
A. SuspensionB. RenovationC. RevocationD. Adaptation
9. In drafting an arbitration clause, the following question must be resolved:E. How many arbitrators sit in the court?F. What is the language of the court?G. Where is the place of the court?H. All the above
10. Which corrective method is least favorable for the sellere. Replace the wrong itemsf. Reduce the price g. Return the goods and refund the priceh. Repair the goods
11. … happens when one party end the contract because of breach by the otherA. CancellationB. SuspensionC. ImpossibilityD. Termination
12. Defects such as wrong items, broken or missing parts, scratches, and so on are called E. patent defects F. latent defects G. inherent defects H. concealed defects
13. In a guarantee, a guarantor is often:E. The buyerF. The sellerG. The bankH. The manufacturer
14. If alternative means of transport of partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words … between the names of transport documentation.E. AndF. OrG. And/orH. Either B or C
15. The costs of L/C amendments are normally for………
E. the buyer’s accountF. the exporter’s accountG. the issuing bank’s accountH. the one who asks for such amendments
16. 'Door to door service" is offered. Which term should be used? D. DDPE. CIFF. CIP
17. If a contract is an entire agreement, earlier letters and documents……..E. Can be used as evidenceF. Become invalidG. PrevailH. Remain important
18. Anglo-American law is also called…..A. Civil lawB. Legal codeC. Common LawD. Law code
19. Which of these allow(s) rejection if only defective or non-conforming goods?A. English lawB. German law and the Vienna Sales ConventionC. The UCCD. Vietnamese law
20. 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.
21. When the bill of lading marked “freight collected”. Who pays for freight?E. The buyerF. The sellerG. The agentH. It depends on the agreement
22. …original(s) Bill of lading constitute(s) a full setd. 1e. 2f. 3
23. The exporter must know the legal identity of the buyer ………… that may arise.A. Resolve payment problemsB. Settle disputesC. Solve problemsD. All of these
24. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn from on the buyer from the seller?E. The bank will pay the seller immediatelyF. The bank will pay the seller as long as the documents submitted comply with all the terms of letter of credit.G. The bank checks the documentsH. The bank agrees to pay the bill when it matures
25. Returned shipment to the exporter’s country means:E. The deal is a total loss for the exporterF. The exporter takes back the whole shipmentG. The exporter makes a small profitH. The deal is a total loss for the importer
26. Transfer of risk from the seller to the buyer ( Incoterm 2000) : DDU E. When the goods are at the buyer’s premisesF. When the goods are handed to the first carrierG. When the goods across the ship’s railH. When the goods are on board
27. In some legal system, the buyer has the right … duty to inspect delivered goodsA. andB. OrC. and/orD. but
28. The workforce at the factory goes on strike ( force majeure)D. Yes E. Questionable F. No
29. Which of the following discrepancies is NOT the problem with the Letter of Credit?I. The credit has expired J. Document required by the credit are missingK. The credit amount is exceededL. Insurance cover is expressed in a currency other than that of the credit
30. Who usually pays for curing defects?
A. The buyerB. The sellerC. Both the buyer and the sellerD. The manufacturer
31. In most guarantees, the bank agrees to pay “on first demand” which means…A. Serious and objective conditions must be met by the beneficiary before claiming payment of the guaranteeB. With demur or objectionC. Without cavil and demurD. Without demur or objection
32. A fire burns down the factory ( force majeure)D. YesE. QuestionableF. No
33. A ban is issued on the export of jute products by newly elected governmentD. YesE. QuestionableF. No
34. Which of the following is NOT true?E. A letter of credit is a binding agreement by the buyer to pay a certain sum of money when the exporter presents the necessary documentsF. A letter of credit is like a bill of exchange given for the price of goodsG. A letter of credit ranks as cash and must be honoredH. No set off or counterclaim is allowed to detract from a letter of credit
35. Another name for Tender Guarantee is …E. Revocation guaranteeF. Bid guaranteeG. Bond guaranteeH. Bid bond
36. The parties to a contract are not always required to... the Vienna Sales ConventionE. IgnoreF. ApplyG. RefuseH. Decline
37. What are common discrepancies reported by banks in practice?E. They are problems with the letter of creditF. They are problems with the Bill of lading
G. They are problems with insurance and/or the inconsistencies among the documentsH. Any of the above
38. Why letters of credit are formally called “documentary credits”?E. Because a letter of credit is a binding agreement by a bank to pay a certain sum of money when the exporter presents the necessary documents to the bank.F. Because a letter of credit is issued by an issuing bank at the request of the buyerG. Because in a letter of credit situation, documents are exchanged for moneyH. Because the documents in a letter of credit are proofs of trust.
39. Inspection by the ………. Is called “ open package inspection”A. Custom officersB. CarrierC. ExporterD. Importer
40. Termination may be for…e. Disruptionf. Authenticationg. Convenienceh. Adoption
41. In international trade, if payment is made on delivery, the method of payment to be chosen will be……………………………….A. Bank guaranteeB. Open accountC. Export credit insuranceD. At sight letter of credit
42. In contract, “partial invalidity provision” means the invalidity of one part of the contract…E. May invalidate the restF. Does not invalidate the restG. Affects the restH. Enforces the rest
43. Beside the commercial invoice, the transport document and the insurance document, what does “Other document” include?E. A certificate of originF. A certificate of inspectionG. A health inspectionH. Any of the above
44. When the bill of lading marked “freight prepaid”. Who pays for the freight?
E. The buyerF. The sellerG. The agentH. It depends on the agreement
45. The best solution for the exporter to make late payment impossible is E. A typical contract clause in which there are regulations on the amount of interest the seller shall be entitled to receive in case of late payment.F. An agreement with the buyer to strengthen the payment provisions with a payment guaranteeG. An agreement with an insurance company in case the buyer fails to pay on timeH. A confirmed, irrevocable, at sight letter of credit.
46. Which is the most appropriate method of payment for the exporter in the following case? Sale of a bale (roll) of cloth costing 200 USD to a nearly tailor’s shop with whom you have done business for 20 years.E. Confirmed letter of credit.F. Open account with no securityG. Open account with bank guarantee
H. Open account with export credit insurance47. The lump-sum compensation is set about right A. liquidated damages.B. quasi indemnity C. penalty
48. In terms of payment in international trade. E. Risk rises and cost rises as well F. Risk falls and cost falls as a consequence G. Risk and cost have no relationship with each other H. Risk and cost rise and fall together
49. Contract documents must be given…….in case of contradictionsE. an order of seniorityF. an order of precedenceG. order of rulesH. either A or B
50. The essence of Continental law is…E. VerificationF. AuthenticationG. CodificationH. Acceptance
ĐỀ 25
1. The Vienna Sales Convention is also called:A. The Uniform Law of International SaleB. The Uniform Law on the Formation of Contracts for the international Sale of
GoodsC. The United Nations Convention on Contracts for the International Sale of
Goods D. The United Nations Convention on Contracts for acceptance
2. A well-designed set of specifications protects:A. The exporterB. The importerC. Both partiesD. Neither of these
3. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may.....A. Reject the wholeB. Accept the wholeC. Accept any commercial unit and reject the restD. All the above
4. What kind of inspection is particularly important for sophisticated items or capital goods?A. Customs inspectionB. Carrier’s inspectionC. Pre-delivery inspectionD. SGS’s inspection
5. When the bill of lading marked “freight prepaid”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement
6. It is.......to identify latent defect than patent defectA. EasierB. More complicatedC. More effectiveD. Better
7. When the goods arrive, if they are........, the importer can reject them but if they....specifications, he is obliged to accept themA. Defective/conform toB. Perfect/conform toC. Defective/differ fromD. Perfect/differ from
8. Different legal system regulate that rejection of delivered goods must be total........can be partial A. OrB. AndC. And/orD. Nor
9. Which of the following is NOT considered to be special requirement in a sale/purchase contract?A. Containers are required to be fumigated before shipmentB. Upgraded packaging materialsC. Goods must be packed according to export standardsD. Health inspection for foodstuffs
10. In settlement by sight payment......A. The seller presents the necessary documents to the issuing bankB. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank
11. Shortage of supplies (Background: The exporter cannot get the raw jute he needs from the supplier because the Central Bank will not give him foreign exchange to pay the supplier) A. YesB. QuestionableC. No
12. Who issues a bank guaranteeA. The buyerB. The exporterC. Any third partyD. A bank
13. Which type of payment is the most advantageous for the exporter?A. Credit by sight paymentB. Credit by deferred payment
C. Credit by acceptanceD. Credit by negotiation
14. Feeble-minded people are legally unable to … contractA. SignB. DeclineC. RefuseD. Resign
15. The answer to the question of implied warranties are supplied by:A. The contract provisionB. The UCCC. Most lawsD. The contract
16. 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 goodsA. 100%B. 90%C. 50%
D. 110%17. Once the bank has indicated the discrepancies, what can the exporter do?
A.The exporter canprovide the missing paperwork or correct errorsB.The exporter can ask the buyer to instruct the bank to change the terms off the letter
of creditC.The exporter can ask the bank to process the LC with the discrepancies but to pay
only when (and if) the issuing bank permits paymentD.Any of the above
18. … happens when one party end the contract because of breach by the otherA. CancellationB. SuspensionC. ImpossibilityD. Termination
19. A contract is not enforceable if…A. it is signed within powerB. It has a legal purposeC. It has an illegal purposeD. It has no purpose
20. In some legal system, the buyer has the right … duty to inspect delivered goods
A. andB. OrC. and/orD. but
21. Termination may be for…A. DisruptionB. AuthenticationC. ConvenienceD. Adoption
22. Transfer of risk from the seller to the buyer (Incoterm 2000) FASA. When the goods are ex-quayB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the good are on board
23. The disadvantage of … policy is that it is set up for particular time and automatically expiresA. tailor-madeB. floatingC. Open cover
24. A contract requiring the exporter to send the contract goods by road from Kenia to Zambia with freight paid by the exporterA. CFR LusakaB. CPT LusakaC. CFR Nairobi
25. Transfer of risk from the seller to the buyer (Incoterm 2000) DESA. When the goodsare ex-shipB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
26. Which of the following is not true?A. a LC is binding agreement by the buyer to pay a certain sum of money when
the exporter presents the necessary documentsB. A letter of credit is like a bill of exchange given for the price of goodsC. A letter of credit ranks as cash and must be honoredD. No set off or counterclaim is allowed to detract from a letter of credit
27. In contract negotiation, “an invitation to provide terms and conditions” may mean:…A. Another name for acceptance
B. Another name for an offerC. An invitation to the other party to make an offerD. An invitation to the other party to accept an offer
28. In a contract under a Continental law, a recital…A. is essentialB. Is not usefulC. is not essentialD. is important
29. The greatest fear for the exporter is…A. Being unable to meet the delivery deadlineB. Being unable to meet the specifications of the goodsC. Being unable to get paid for the goods soldD. Having no guarantee for payment
30. When there are words like “about” or “approximately” in the LC’s amount, how much can the actual payment be?A. The actual payment therefore can be 10% more or 10% less than the stated
amountB. The actual payment therefore can be 15% more or 15% less than the stated amountC. The actual payment therefore can be 5% more or 5% less than the stated amountD. The actual payment therefore can be between 5% and 10% of the stated amount
31. Which of the following is not the reason why the exporter prefer a longer expiry period of credit?A. He wants to save bank chargesB. He wants enough time after deliver to present the documentsC. He wants to have enough time to correct any discrepancies that might be
discovered by the bankD. he wants to spare some time for any unexpected things preventing his presentation of documents on time
32. Agreements, under Anglo-American law, are of…A. two typesB. Three typesC. Four typesD. Five types
33. In principle the buyer can reject delivers goods if they do not confirm to the contract. This is called…A. Implied warranty of suitabilityB. Implied warranty of conformity
C. Implied warranty of marchantabilityD. Implied warranty of fitness for intended purpose
34. Earthquake, volcanic eruption and lighting are not coverd under the cargo clause…A. AB. BC. CD. B and C
35. In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association-IATA?A. Three originals and three copiesB. Three originals and six copiesC. Three originals and nine copiesD. It depends on the requirements in the LC
36. The bank helping the exporter to chack the correctness of the documents and set the payment procedure in motion is…A. The issuing bankB. The advising bankC. The confirming bankD. Any third party
37. Which type of bill of lading is negotiable?A. surrenderB. straightC. to order
38. The two terminologies which mean the same thing are…A. Guarantee and WarrantyB. Bond and SuretyC. Warranty and defects liabilityD. Guarantee and Insurance
39. …. Bill of lading-goods were taken on board in good conditionA. CleanB. DirtyC. Claused
40. The names of…. Are normally the full, registered name of the companyA, the exporterB. the buyerC. either the exporter or the importerD. the parties
41. In a contract, a formal definition is the best way od clarifying what exactly the two sides have….A. ExcudedB. negotiatedC. AgreedD. solved
42. In most guarantee, the bank agree to pay “on first demand” which means…A. Serious and objective conditions must be met by the beneficiary before claiming
payment of the guaranteeB. With demur or objectionC. Without cavil and demurD. Without demur or objection
43. The contract should regulate what happen if Incoterm 2000 and the terms of the contract conflict normally the …. PrevailsA. IncotermB. ContractC. Incoterm and contract
44. The entire agreement clause means that all documents that predate the contract…..A. are still validB. become importantC. become invalidD. can be used as evidence
45. After making the shipment of the good to the buyer, the exporter presents the shipping documents to….A. the issuing bankB. the advising bankC. the confirming bankD. the opening bank
46. If the box “With brief advice by teletransmission” is crossed, it means….A. The exporter want to be informed of the issuance of the LC by telexB. The exporter wants to begin preparations for deliveryC. The buyer’s responsibility of informing the exporter that a letter of credit has been
issued in his favorD. The exporter wants to know about the issuance of the LC more quickly
47. In contract, …. Is not normally allowedA. Delegation of dutiesB. Assignment of rights
C. Performance of obligationsD. Fulfillment of duties
48. Inspection by the buyer is calledA. Independent inspectionB. Inspection of good prior to shipmentC. Open package inspectionD. Customs inspection
49. Beside the commercial invoice, the transport document and insurance document, what do “Other documents” include?A. A certificate of OriginB. A certificate of InspectionC. A health InspectionD. Any of the above
50. The point at which money is deemed to be paid most preferred by the seller isA. When the buyer pays the money into his bankB. When the buyer’s bank transfer fundsC. When the buyer instruct the bank to payD. When the funds reach the seller’s bank account
ĐỀ 26
1. The official mailing addresses of the parties are given in...A. The noticesB. The appendicesC. The exhibitsD. The adoption
2. If shipment is under Incoterms other than CIF or CIP,......A. The buyer has to arrange the insurance cover by himselfB. 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 for the goodsD. The exporter pays for insurance till the port of discharge
3. Who signs “shipped on board” notation?A. CaptainB. Exporter C. Shipping companyD. Agent
4. The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specification is......in businessA. LucrativeB. RiskyC. AdvantageousD. Common
5. A contract comes into force when an offer is made by one side and.....by the otherA. AcceptedB. DeclinedC. WrittenD. Drawn
6. A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by....A. The buyerB. The exporterC. A bankD. A third party
7. A bill of lading with the note is A. Clean bill of ladingB. Claused bill of lading
C. Clear bill of lading8. Where is often the place of expiry of the credit?
A. At the counters of the issuing bankB. At the counters of the advising bankC. At the counters of the confirming bankD. At the counters of the negotiating bank
9. For the exporter, the option to repair a defective item abroad......A. Is negligentB. Can be costlyC. Is always the best choiceD. Is always the worst choice
10. Anglo-American law is also called:A. Common lawB. Civil lawC. Law codeD. Legal code
11. If both parties perform their duties exactly according to the contract, the contract is.........A. Discharged by performanceB. Discharged for performanceC. Discharged to performanceD. Discharged with performance
12. 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 with the terms of creditB. A check – list of commonly cited discrepancies will be used by banksC. The exporter will have to re-submit their shipping documentsD. The exporter must contact the buyer asking the buyer to instruct the issuing
bank to extend the date of credit13. What do export insurance premiums depend on?
A. Type of goods exported B. Creditworthiness of the buyerC. The political stability of the buyer’s countryD. All of the above
14. Continental law is also called...A. Civil lawB. Common law
C. Legal systemD. Lawful case
15. What is transferable credit?A. It is the kind of credit which allows the exporter to transfer his right as the
credit’s beneficiary to any third partyB. It is the kind of credit which allows the first beneficiary to request the
confirming bank to pay a third partyC. It is the kind of negotiable document with which the exporter can endorse for
any third partyD. It is the kind of credit with which the buyer will not necessarily know who is
the actual supplier of the goods 16. The Incoterm....contains 11 terms
A. 1990B. 2000C. 2010
17. When a contract is canceled, a payment problem arises, the party in breach has a.....case of paymentA. StrongB. WeakC. SolidD. Big
18. Delivery of the goods under most export contracts takes place in the country of ........A. The importerB. The exporterC. The agent
19. Which of the following is NOT a method of issuing the letter of creditA. By emailB. By airmailC. By mailD. By teletransmission
20. When the bill of lading marked “freight prepaid”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement
21. Exporters prefer:
A. The return of the defective item to the replacement of itB. The replacement of the defective item to the return of itC. The return of the goods and refund of the priceD. None of these
22. .........refer(s) to the questions of implied warrantiesA. Most contractsB. Most lawsC. The UCCD. The Vienna Sales Convention
23. Another name for Tender Guarantee is.......A. Revocation guaranteeB. Bid guaranteeC. Bond guaranteeD. Bid bond
24. Who issues ocean bill of lading?A. CaptainB. ExporterC. Shipping companyD. Agent
25. 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 on “expert”. Could the bank collect from Dawson the money it had paid to the exporter?E. Definitely it couldF. Probably it couldG. No it couldn’t H. No question it could
26. If the buyer can make certain assumptions about goods – even if the exporter gives no express warranty, these assumptions are called.......A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties
27. When the bill of lading marked “ freight collected”. Who pays for the freight?A. The buyer
B. The sellerC. The agentD. In depends on the agreement
28. The risk of rough handling is not covered under the cargo clause.......A. AB. BC. CD. B and C
29. Who issues the bank guarantee?A. The buyerB. The exporterC. The third partyD. A bank
30. 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,A. the exporter will still be paid against a warehouse receiptB. the bank simply cannot pay against a warehouse receiptC. the buyer refuses to pay the exporter against a warehouse receiptD. the buyer still has to pay the exporter against the warehouse receipt because his designated vessel has arrived late at the point of loading
31. Drunken people have no......to sign a contractA. Contractual capacityB. Contractual conceptC. Contractual governmentD. Contractual branch
32. 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......A. Revolving L/CB. At sight confirmed L/CC. Deferred irrevocable L/CD. Transferable L/C
33. In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association – IATA?A. 3 originals and 3 copiesB. 3 originals and 6 copiesC. 3 originals and 9 copies
D. It depends on the requirements in the letter of credit34. Transfer of risk from the seller to the buyer (Incoterm 2000). DDU
A. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s rail D. When the goods are on board
35. Which of the following discrepancies is NOT the problem with Insurance?A. documents are not presented within the required timeB. the sum insured is below the figure required C. the insurance risks are not those specified in the creditD. a certificate of insurance is product while the credit calls for a policy
36. Inspection by......reveals discrepancies in quality A. Custom officersB. The carrierC. The exporterD. The importer
37. A grace period is sometimes used to.......A. Avoid penaltyB. Facilitate early deliveryC. Avoid liquidated damages
38. In international contracts, parties try to exclude assignment of rights without......A. Memorandum of understandingB. Written consent of partiesC. A letter of referenceD. A personal letter
39. There is no connection between the letter of credit and the sales contract. Right or wrong?A. Completely rightB. Completely wrongC. It depends D. The exporter and the buyer may agree that all the terms in their sales contract
must be stated in the letter of credit 40. The dock workers in Port Verbena go on strike
A. YesB. Questionable C. No
41. Within the four alternatives of the at sight letter of credit, which one is the least satisfactory for the exporter?A. Settlement by sight paymentB. Settlement by deferred paymentC. Settlement by acceptanceD. Settlement by negotiation
42. .....is open-endedA. Tailor-madeB. FloatingC. Open cover
43. Which of the following statement is wrong?A. The bank must check is the documents specified in the letter of credit are in
perfect orderB. Sometimes, the bank may question the necessity or value of the documentsC. The bank is not interested in the question of why the buyer wanted a particular
document presented in a particular formD. There are no rules as to what documents a letter of credit may or may not
require44. All of the following are objectives that the exporter tries to minimize the risk of
the goods being rejected or of heavy defects liability claims EXCEPT A. The quality specifiedB. The confidence in the buyerC. On-time delivery
45. “A radio lacks the wires connecting the loudspeaker to the amplifier” is an example ofA. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the buyer
46. Of the three options available for settling disputes, litigation before the court is internationally least attractive as it is......A. Expensive and legalisticB. Business-like and flexibleC. Time-saving and privateD. Fast and acceptable
47. A disclaimer of warranty often accompanies delivery of A. Software
B. HardwareC. FootwearD. Chinaware
48. In some legal systems, the buyer has the right.......duty to inspect delivered goodsA. AndB. OrC. And/orD. But
49. Feeble-minded people lack.....to enter contractsA. MoneyB. TimeC. Contractual capacity D. Intelligence
50. In contracts, .....is not normally allowedA. Delegation of dutiesB. Assignment of rightsC. Performance of obligationsD. Fulfillment of duties
ĐỀ 27
1. The things that the exporter should keep in mind in negotiating payment are....E. Payment method, timing, place, delay and results of delayF. How payment will be made and the date of paymentG. Where the money must be before payments is considered complete and what delay
in payment is excusableH. Results of non-excusable delay in payment and time of payment
2. Under Anglo-American law, exporters have rights to...A. Withdraw an offerB. Withdraw common lawC. Withdraw case lawD. Withdraw legal law
3. In international contracts, parties try to exclude assignment of rights without...A. A memorandum of understandingB. Written consent of partiesC. A letter of referenceD. A personal letter
4. Failure to meet specifications is a:E. Defect in workmanshipF. Defect in materialG. Defect in designH. Defect in quantity
5. In most guarantees, the bank agrees to pay "on first demand" which means....A. Serious and objective conditions must be met by the beneficiary before claiming
payment of the guaranteeB. With demur or objectionC. Without cavil and demurD. Without demur or objection
6. A contract is ultra vires is....A. well enforceableB. unenforceableC. validD. effective
7. A commercial invoice must be made out to A. The exporter.
B. The shipper.
C. Any party endorsing the bill of lading.
D. The applicant for the letter of credit, normally to the buyer, unless otherwise
stated in the credit.
8. The best solution for the exporter to make late payment impossible is....E. A typical contract clause in which there are regulations on the amount of interest
the seller shall be entitiled to receive in case of late paymentF. An agreement with the buyer to strenthen the payment probisions with a payment
guaranteeG. An agreement with an insurance company in case the buyer fails to pay on timeH. A confirmed, irrevocable, at sight letter or credit.
9. Which of these is the cheapest option for the exporterA. RepairB. ReplaceC. Reduce the priceD. Return the goods
10. Which of the following is NOT the method of issuing the letter of credit?A. By emailB. By airmailC. By mailD. By teletransmission
11. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading?A. It is a possible demandB. The original of the bill of lading for shipment by rail does not come into the
possession of the buyerC. Such a letter of credit is certain to cause delay in paymentD. The bank insists on strict compliance
12. A ban is issued on the exporter of jute products by newly elected governmentA. YesB. QuestionableC. No
13. Transfer of risk from the seller to the buyer ( Incoterm 2000): CPTA. When the goods are At the seller's premisesB. When the goods are handed to the first carrierC. When the goods across the ship's railD. When the goods are on board
14. The cheapest mode of transport is....A. by seaB. by airC. by road
15. 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
16. Payment guarantee means...A. bondB. surelyC. warrantyD. A triangle relationship amongst guarantor, principal and beneficiary
17. Two parties sign a contractA. The contract is bindingB. The contract is effectiveC. The contract is binding and effective
18. The defect liability clause should stateA. the date of acceptanceB. exporter's duty if a defect comes to lightC. both A and BD. Only "A"
19. If the price is quoted CIF San Francisco, who pays for the insurance and freightA. The exporterB. The buyerC. The forwarding agentD. The confirming bank
20. Within the four alternatives of the at-sight Letter of credit, which one is the least satisfactory for the exporter?A. Settlement by sight paymentB. Settlement by deferred paymentC. Settlement by acceptanceD. Settlement by negotiation
21. Termination for convenience occurs when one party simply decides to drop the contract and....A. No reason is requiredB. Reasons are requiredC. Consultation is requiredD. Conversation is required
22. If the price is quoted CPT Vancouver, who pays for the freightA. The exporterB. The forwarding agentC. The buyerD. The confirming bank
23. It is common to put the definition clause.... of the contractA. at the beginningB. near the beginningC. at the endD. near the end
24. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NamibiaA. CIF WindhoekB. CIP WindhoekC. DEQ Windhoek
25. The exporter's interest are best served by.....A. An irrevocable letter of creditB. A confirmed letter of creditC. An at-sight letter of creditD. A combination of all of the above
26. In contracts,........ is not normally allowedA. Delegation of dutiesB. Assignement of rightsC. Performance of obligationsD. Fulfillment of duties
27. Elderly people are... to deal with a contractE. UnableF. AbleG. ImpossibleH. Unaffordable
28. Export credit insurance which gives the exporter an acceptable level of payment shall be paid by....A. The buyerB. The exporterC. A bankD. An insurance company
29. Transfer of risk from the seller to the buyer ( Incoterm 2000): FOBA. When the goods are At the seller's premisesB. When the goods are handed to the first carrierC. When the goods across the ship's railD. When the goods are on board
30. How to make a bill of lading negotiableA. Stamp the word "Negotiable" across the surface the bill of ladingB. In the Consignee box, do not write anything, just leave it blankC. Make the bill of lading blank endorsedD. Fill the words " to order" in the Consignee box
31. The risk of rough handling is not covered under the cargo clause....A. AB. BC. CD. B and C
32. ..... happens when one party ends the contract because of breach by the otherA. CancellationB. SuspensionC. ImpossibilityD. Termination
33. 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 distuebances. The order is for $10,000 worth of assorted textilesA. Open account with no securityB. Open account with bank guaranteeC. Open account with export credit insuranceD. Confirmed letter of credit
34. Feeble-minded people lack.... to enter contractsA. moneyB. timeC. contractual capacity
D. intelligence35. The decision of arbitrators is....
A. Law-orientedB. Business-orientedC. Action-orientedD. Reaction - oriented
36. the place of delivery is doubly important to the exporter because the date of....normally depends on time and place of deliveryA. InsuranceB. PaymentC. Invoice
37. If the price is quoted CFR HaiPhong, who pays for the freight?A. The buyerB. The exporterC. The carrierD. The forwarding agent
38. The word "cash" in international trade means.....A. Coins and notesB. GoldC. Checks or bank transfersD. Prepayment
39. A warranty protects....A. the exporterB. the importerC. neither the exporter nor the importerD. both the exporter and the importer
40. The defects liability period is also calledA. Warranty periodB. Guarantee periodC. Correction action periodD. Legal action period
41. The bill of lading issued by the carrier for road transport is called....A. Road bill of ladingB. Road billC. Roadway billD. Road consignment note
42. Exporter prefer:
A. the return of the defective item to the replacement of itB. the replacement of the defective item to the return of itC. the return of the goods and return of the priceD. none of these
43. Open package inspection is synonymous with:A. Buyer's inspectionB. Independent inspectionC. Customs inspectionD. Pre-delivery inspection
44. In a contract under a Continental law, a recital....A. is essentialB. is importantC. is not usefulD. is useful
45. The two terminologies which mean the same thing are.....A. Guarantee and WarrantyB. Bond and SuretyC. Warranty and Defects LiabilityD. Guarantee and Insurance
46. If the price is quoted FCA, who pays for the freightA. The exporterB. The carrierC. The buyerD. The forwarding agent
47. A warranty is aimed at:A. Obtaining loansB. Assurance of product performanceC. Credit purchaseD. Profit making
48. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may....A. reject the wholeB. accept the wholeC. accept any commercial unit and reject the restD. All the above
49. A promise by the exporter to cure defects in his product is calledA. A product guarantee
B. A product warrantyC. A product insuranceD. A product certification
50. Feeble-minded people are legally unable to..... contractsA. SignB. DeclineC. RefuseD. Resign
ĐỀ 281. As the consequences of a defect can be expensive, the question of who pays the
consequential loss or damage is often…A. AgreeableB. ControversialC. Non-negotiableD. Amicable
2. In negotiating a letter of credit, the step in which the exporter rigorously check the documentation and submit it to the bank is…A. AgreementB. VerificationC. SpecificationD. Compliance
3. Among a number of international bodies offering arbitration service, the … in Paris is the most prestigious.A. UCPB. ADRC. ICCD. FAO
4. In contracts, … is not normally allowed.A. Delegation of dutiesB. Assignment of rightsC. Performance of obligationD. Fulfillment of duties
5. If shipment is made on CIF or CIP terms, the letter of credit will call for…A. An insurance policyB. A letter of insuranceC. A certificate of insuranceD. Either A or C
6. A warranty protects …A. The exporterB. The importerC. Neither the exporter nor the importerD. Both the exporter and the importer
7. A well-designed set of specifications protects buyers against … productA. Advanced
B. DentedC. InferiorD. Superior
8. Why can a manufacturer sometimes accept a loss on an export deal?A. He wants to win a regular customerB. His factory may be short of workC. He can get some export incentives from the governmentD. Any of the above
9. Who issues ocean bill of lading?A. CaptainB. ExporterC. Shipping companyD. Agent
10. Transfer of risk from the seller to the buyer (Incoterm 2000): DDUA. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods are across the ship’s railD. When the goods are on board
11. … discharge a contract when one party faces an excessive burden in complying with the contractA. Suspension and non-performanceB. Frustration and impossibilityC. Disruption and preventionD. Suspension and acceptance
12. … is open-endedA. Tailor-madeB. FloatingC. Open cover
13. In contract negotiation, “an invitation to provide terms and condition” may mean…A. Another name for acceptanceB. Another name for an offerC. An invitation for the other party to make an offerD. An invitation to the other to accept an offer
14. A payment guarantee simply commits the bank if the buyer defaults. The payment guarantee is usually for … of the contract price.A. 100%B. Less than 100%
C. 10%D. Between 5% and 10 %
15. Inspection by … reveals discrepancies in qualityA. Customs officersB. The carrierC. The exporterD. The importer
16. An unilateral offer can be defined as…A. An offer made of a promise in return for a promiseB. An offer made of a promise in return for an actC. An offer made of an act in return for an actD. An offer made of an act in return for a promise
17. In negotiation a letter or credit, the step in which the list of all required documentations is incorporated in the contract is…A. SpecificationB. IncorporationC. ComplianceD. Verification
18. Transfer of risk from the seller to the buyer (incoterm 2000): CFRA. When the goods are at the seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
19. Which of the following discrepancies is NOT the problem with the letter of credit?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired
20. “door to door” service is offered. Which term should be used?A. DDPB. CIPC. CIF
21. War risk is not included in …A. A clauseB. B clauseC. A,B,C clause
22. Under the public law, the company can only sign a contract …
A. Even when they lack powerB. That is beyond its powerC. Both a and bD. That is within its power
23. … can create no – contract situationA. Only duressB. Only fraudC. Only mistakeD. Duress, fraud and mistake all
24. The guarantor is usually a…A. BankB. Insurance companyC. Both a and bD. Neither a nor b
25. In the box “with brief advice by teletransmission” is crossed, it means …A. The exporter wants to be informed of the issuance of the LC by telexB. The exporter wants to begin preparation for deliveryC. The buyer’s responsibility of informing the exporter that the LC has been issued at
his favorD. The exporter wants to know about the issuance of the LC more quickly
26. Which of the following is NOT a discrepancy found with the commercial invoice?A. The description of the good on the invoice does not conform to the description in
the LCB. The amount shown on the invoice is more than the amount permitted by the LCC. The invoice is required to be certified or notarized by the LC does not state exactly
the kind of certification made by whomD. The documents required to be signed are not signed
27. In international practice, problem of assignment of rights and delegation of duties can be reduced by using …A. Prior written consent of the other partyB. Prior conversation of the other partyC. Prior consultation of the other partyD. Prior talk to the other party
28. The first step in negotiating a LC is…A. IncorporationB. SpecificationC. Agreement
D. Verification29. A grace period is sometimes used to …
A. Avoid penaltyB. Facilitate early deliveryC. Avoid liquidated damages
30. Inspection of the goods by the buyer in the manufacturer’s factory is referred to as …A. Inspection by inspection serviceB. Pre-delivery inspectionC. Post-delivery inspectionD. Customs inspection
31. The point at which money is deemed to be paid most preferred by buyer is …A. When the buyer pays the money into his bankB. When the buyer’s bank transfers fundC. When the buyer instructs the bank to payD. When the funds reach the seller’s bank account
32. Most contracts contain an assurance that the exporter will … any defects in his productA. Make goodB. Take awayC. AlterD. Modify
33. All the following are objectives that the exporter tries to achieve to minimize the risk of the goods being rejected or heavy defects liability claims EXCEPTA. The quality specifiedB. The confidence in the buyerC. On-time delivery
34. The mechanism of a confirmed LC works as followA. Buyer instructs issuing bank to issue a LC in favor of the sellerB. Buyer instructs issuing bank to instruct an advising bank to pay under a LC in
favor of the sellerC. Buyer instructs issuing bank to instruct a confirming bank to pay under a LC
in favor of the sellerD. Buyer instructs issuing bank to instruct a third bank to pay under a LC in favor of
the seller35. In a guarantee, a guarantor if often
A. The buyerB. The seller
C. The bankD. The manufacturer
36. The entire agreement clause means that all documents that predicts the contract E. Are still validF. Become importantG. Become invalidH. Can be used as evidence
37. The name of parties to contract are often on … of the contractA. The 1st pageB. The 2nd pageC. The last pageD. All pages
38. Why do few exporters ask for bank guarantees as security for payment?A. Because they are not expensive to set upB. Because they run into trouble so oftenC. Because they are conditional guaranteesD. Because LC is much preferred
39. “minimum coverage” is the so-called Cargo Clause …A. AB. BC. C
40. If both parties perform their duties exactly according to the contract, the contract is …A. Discharged by performanceB. Discharged for performanceC. Discharged to performanceD. Discharged with performance
41. If a contract is the entire agreement, earlier letter and documents …A. Can be used as evidenceB. Become invalidC. PrevailD. Remain important
42. If the price is quoted CIP Vancouver, who pays for the freight?A. The exporterB. The forwarding agentC. The buyerD. The confirming bank
43. In settlement by deferred payment, if the seller needs money immediately the what can he do?A. There is no way he can get the money immediatelyB. He can exchange the LC for cash with any agreeable bankC. The seller can realize some parts of the LC’s value, not its full valueD. Payment is still safe but it is delayed
44. In CIF and CIP contracts, the exporter normally assigns the insurance agreement to …A. The buyerB. The carrierC. The issuing bank
45. What is a transferable credit?A. It is the kind of credit which allows the exporter to transfer his right as the credit ‘s
beneficiary to any third partyB. It is the kind of credit which allows the 1st beneficiary to request the
confirming bank to pay a third partyC. It is the kind of negotiable document with which the exporter can endorse by any
third partyD. It is the kind of credit with which the buyer will not necessarily know who is the
actual supplier of the goods46. The lump-sum compensation is set too high …
A. Liquidated damagesB. Quasi indemnityC. Penalty
47. … refer(s) to the questions of implied warranties.A. Most contractsB. Most lawsC. The UCCD. The Vienna State Convention
48. Which of the following method of payment is not possible?A. 100& of the contract price by LCB. 20% repayment and 80% by LCC. 90% by LC and 10% retaining until the warrantee period is overD. Part of the contract price is paid by LC but there is not a clear figure stated
in the amount of the credit49. Transfer of risk from the seller to the buyer (Incoterm 2000): FAS
A. When the goods are ex-quayB. When the goods are handed to the 1st carrier
C. When the goods across the ship’s railD. When the goods are on board
50. In CIP and CIF contracts, ... must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier
ĐỀ 291. Agreement, under Anglo-American law, are of_________
A. 2 typesB. 3C. 4D. 5
2. Another name for warranty is ________A. GuaranteeB. Defect liabilityC. Legal responsibilityD. Warrantee
3. “Door to door service” is offered. Which term should be used?A. DDPB. CIPC. CIF
4. The things that the exporter should keep in mind in negotiating payment areA. Payment mode, timing, place, delay and results of delayB. How payment will be made and the date of paymentC. Where the money must be before payment is considered complete and what delay in
payment is excusableD. Results of non-excusable delay in payment and time of payment
5. Of the 3 options available for setting disputes, litigation before the court is internationally least attractive as it is___A. Expensive and legalisticB. Biz-like and flexibleC. Time-saving and privateD. Fast and acceptable
6. The clause covers General AverageA. AB. BC. A, B, C
7. Transfer of risk from the seller to the buyer (Incoterm 2000): FASA. When the goods are ex-quayB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board
8. Most contracts contain an assurance that the exporter will___ any defects in his productsA. Make goodB. Take awayC. AlterD. Modify
9. Which of these does not count as a defect?A. Defective design
B. MisuseC. Defective materialsD. Defective workmanship
10. The background of the contract is provided in the form of ____A. A clauseB. A definitionC. The annexD. A whereas-recital
11. A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid byA. The buyerB. The exporterC. A bank D. A 3rd party
12. Which of the following is the least desirable option for the exporter?A. Allow the buyer to repair at the exporter’s costB. Reduce the priceC. Return the goods and refund the priceD. Replace the defective items
13. “The buyer shall notify the Seller of defects without undue delay”. This is the example ofA. Defects liability periodB. Notification periodC. Rectification periodD. Legal action period
14. The contract should regulate what happens if Incoterm 2000 and the terms of the contract conflict: Normally the ____ prevailesA. IncotermB. ContractC. Incoterm and contract
15. A marine bill of lading can be negotiable document with which___A. The buyer can use it to resell the goods during shipmentB. The exporter can use it to resell the goods during shipmentC. The issuing bank can use it to resell the goods to another customerD. The buyer can use it to negotiate a price with the negotiating bank
16. As soon as the exporter receives advice that the LC has been opened, what should he do?A. He should check that it complies with the agreement he negotiated with the
buyerB. HE should check if there is any documents that he does not understandC. He should check if there is any requirement that he does not agree toD. He should check if there is any necessary amendment to the terms of the LC
17. With a well-designed set of specification, the seller can protect its____ and avoid costsA. ReputationB. Production
C. ResolutionD. Profitability
18. Unless otherwise agreed, the insurance is “minimum cover”- cargo clause_____A. AB. BC. C
19. Why LCs are formally called “documentary credits”?A. Because a LC is a binding agreement by a bank to pay a certain sum of money when
the exporter presents the necessary documents to the bankB. Because the LC is issued by an issuing bank at the request of the buyerC. Because in a LC situation, documents are exchanged for moneyD. Because the documents in a LC are proofs of trust
20. The answer to background question are written ______A. Through the whereas-recital (giốngcâu 10)
21. A disclaimer of warranty often accompanies delivery ofA. A softwareB. HardwareC. FootwearD. Chinaware
22. Continental Law copes with_____A. Personal problemsB. International tradeC. National issuesD. Individual conflicts
23. In which situation should exporters use export credit insurance?A. Long-term customersB. Transactions represent a high proportion of their turnoverC. Buyers are willing to spend money on a payment guaranteeD. In a seller’s market
24. What would be the effect on the price of the goods traded if the buyer wants the goods sooner?A. The price of the goods will go upB. The price of the goods will go downC. There is no chance in priceD. The price of the goods will go up extra costs involved due to extra working shift
from the manufacturer25. “The seller shall make good the defect or damage as soon as practicable and at his own
cost”A. Legal action periodB. Notification periodC. Rectification periodD. Defect liability period
26. Whereas-clauses____
A. Are provisionsB. Are promisesC. Are conditionsD. Are not provisions, promises or conditions
27. The bank notifying the exporter that the LC has been opened is called____A. The issuing bankB. The advising bankC. The confirming bankD. The opening bank
28. Which of the following is not the reason why the exporter prefers a longer expiry period of credit?A. He wants to save bank chargesB. He wants enough time after delivery to present the documentsC. He wants to have enough time to correct any discrepancies that might be discovered
by the bankD. He wants to spare some time for any unexpected things preventing his presentation of
documents on time29. A contract requiring the exporter to send the contract goods by road from Kenya to
Zambia with freight paid by the exporterA. CFA LusakaB. CPT LusakaC. CFR Nairobi
30. The exporter should have no liability for the goods when they are_____A. Beyond his controlB. In his controlC. Under his control
31. Which of the following examples is a patent defect?A. Crushed or stained garmentsB. The flooring shows signs of deteriorationC. High fuel consumptionD. Inadequately tightened nuts and bolts
32. Bill of lading is the most important document because it is a _____A. Document of titleB. Document of negotiationC. Document of freight
33. Which of the following is not considered to be special requirement in a sale/purchase contract?A. Containers are required to be fumigated before shipmentB. Upgraded packing materialsC. Goods must be packed according to export standardsD. Health inspection for foodstuffs
34. If a dispute arises, the recital allows the court to discover the real meaning of ____A. The contract
B. The termC. The incotermD. The appendix
35. Why can a manufacturer sometimes accept a loss on an export deal?A. He wants to win a regular customerB. His factory may be short of workC. He can get some export incentives from the GovD. All of the above
36. “ A machine that consumes more fuel than specification” is an example ofA. Latent defectB. Patent defectC. Inherent defectD. Apparent defect
37. Continental law is based on a ______A. Case lawB. Common lawC. Legal codeD. Legal system
38. Transfer of risk from the seller to the buyer: CIFA. When the goods are at the seller’s premisesB. When the goods are handed to the 1st carrierC. When the goods across the ship’s railD. When the goods are on board
39. Which of the following discrepancies is not the prob with the LC?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired
40. In a contract under a continental law, a recital _____A. Is essentialB. Is not usefulC. Is not essentialD. Is important
41. Assuming shipment is by rail, what if a LC demands the original bill of lading?A. It is a possible demandB. The original of the BL for shipment by rail doesn’t come into possessions of the
buyerC. Such a LC is certain to cause delay in paymentD. The bank insists on strict compliance
42. _____________ is 2-sided proceduresA. TerminationB. CancellationC. Rescission
D. Suspension43. A volcanic eruption buries the factory in ash (force majeure)
A. YesB. QuestionableC. No
44. If the force majeure event continues for too long, both parties have the right toa. Continue the contractb. Terminate the contractc. Make late delivery
45. What if a LC calls for a complete set of original air waybills?A. The exporter has to present the full set of original air waybills if he wants to get
payment from the bankB. The exporter cannot provide the complete setC. This is obviously a mistakeD. Only the 2nd original of the air waybill goes to the consignee. The bank, however,
will follow the wording of the LC exactly and refuse an incomplete set waybills46. Export credit insurance is very attractive, however, has certain limitations like
A. High premiums paid by the ExB. Long time waiting for compensation from the insurance companyC. Long time since the buyer fails to pay up to the time the insurance company
compensates the Ex and the inability of covering 100% of the original invoice price
D. Refusal from the insurance company to quote premiums due to risky biz of the buyer’s non-creditworthiness
47. Anglo-American law brings the ____ in the individual caseA. JusticeB. UniformityC. ConsistencyD. Legacy
48. Another name for tender guarantee is _____A. Revocation guaranteeB. Bid guaranteeC. Bond guaranteeD. Bid bond
49. Full set on board ocean Bills of lading to order shipper, blank endorsed. In this clause shipper means____A. ExporterB. ImporterC. BankD. A, B, C. It depends on the situation
50. Full set on board ocean Bills of lading to order shipper, blank endorsed. In this clause shipper means____E. ExporterF. ImporterG. BankH. A, B, C. It depends on the situation
ĐỀ 30
1. Defects that come to light after buyer’s acceptance are called:A. Patent defectsB. Latent defectsC. Coherent defectsD. Apparent defects
2. A commercial invoice must be made out to:A. The exporterB. The shipperC. Any party endorsing the bill of ladingD. The applicant of the letter of credit, normally to the buyer, unless otherwise
stated in the credit3. Delivery of the goods under the most export contracts take place in a country of :
D. The importerE. The exporterF. The agent
4. If the price is quoted EXW, who pays for freight?A. The exporterB. The buyerC. The forwarding agentD. The advising bank
5. In settlement by acceptance, the kind of bill of exchange being sent together with other documents to the accepting bank is …A. Sight draftB. Short-term draftC. Time draftD. Long-term draft
6. A inspection by the buyer is called:A. Independent inspectionB. Inspection of goods prior to shipmentC. Open package inspectionD. Customs inspection
7. In settlement by deferred payment, if the seller needs money immediately, what can he do?A. There is no way he can get money immediatelyB. He can exchange the letter of credit for cash with any agreeable bank
C. The seller can realize some part of the letter of credit’s value, not full valueD. Payment is still safe but is delayed
8. A ban is issued on the export of jute products by newly elected government that has been preparing legislation on this subject of five years(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)A. YesB. QuestionableC. No
9. 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…..A. Excused/ force majeureB. Not excused/ force majeureC. Excused/ Acts of GodD. Excused/ contingencies
10. If the shipment is under Incoterm 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 insurance for him.C. The exporter has to arrange the Insurance cover for the goodsD. The exporter pays for insurance till the port of discharge.
11. The bill of lading is issued by the carrier for combined transport is calledA. Combined bill of ladingB. Combined billC. Combined transportation bill of ladingD. Combined transport bill of lading
12. Which the following is NOT the reason why the exporter prefers a longer expiry period of credit?A. He wants to save bank chargesB. He wants enough time after delivery to present the documentC. He wants to have enough time to correct any discrepancies that might be
discovered by the bankD. He wants to spare some times for any unexpected things preventing his
presentation of documents on time.13. 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 court?C. Where is the place of court?D. All of above
14. Which type bill of lading is negotiable?A. SurrenderB. StraightC. To order
15. Export credit insurance is very attractive; however, it has certain limitations like …E. High premium paid by the exporterF. Long time waiting for compensation from the insurance companyG. 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.
H. Refusal from the insurance company to quote premiums due to risky business or the buyer’s non- creditworthiness.16. In settlement by sight payment,…
A. The sellers present the necessary documents to the issuing bankB. The sellers present the necessary documents to the advising bankC. The sellers presents the necessary documents to the paying bankD. The sellers presents the necessary documents to the reconfirming bank
17. A machine that consumes more fuel than specification is example of:A. Latent defectB. Patent defectC. Coherent defectD. Apparent defect
18. In a disputes arise, the recital allows the court to discover the real meaning of…A. The contractB. The termC. The incotermD. The appendix
19. Transfer of risk from the seller to the buyer (Incoterm 2000) : CIPA. When the goods are at the seller’s premisesB. When the goods are handed to the first carrier C. When the goods across the ship’s railD. When the goods are on board
20. Is there any “reconfirming bank” ?A. No, there isn’t
B. Yes. There is one in case banks are reluctant to confirm letter of credit, especially those from obscure banks
C. Never is thereD. It depends
21. The Disclaimer of warranty means:A. The seller is liable for goodsB. The buyer is denied of some of his normal rightsC. The seller will make good any defectD. Contract price would be far higher
22. The incoterm …. Contains 11 itemsA. 1990B. 2000C. 2010
23. Where is the often place of expiry of the credit?A. At the courters of the issuing bankB. At the courters of the advising bankC. At the courters of the confirming bankD. At the courters of negotiating bank
24. Once the bank has indicated the discrepancies, what can the exporter do?A. The exporter can provide the missing paperwork or correct errorsB. The exporter can ask the buyer to instruct the bank to change the terms of the letter
of creditC. 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 paymentD. Any of the above
25. Beside the commercial invoice, he transport document and insurance document , what do “Other documents” include?A. A certificate of originB. A certificate of inspectionC. A health inspectionD. Any of the above
26. The answer for background questions are written:A. Through the whereas-recitalB. Through the annexC. Through provisionsD. Through conditions
27. Which of the following is essential to successful business?
A. QualityB. Customer satisfactionC. Correct making and packagingD. On-time delivery
28. When the bill of lading marked “freight collected”. Who pays for freight?I. The buyerJ. The sellerK. The agentL. It depends on the agreement
29. The “exporter’s wording” and the “Buyer’s wording” in the defect liability provision represent:A. A major contract issueB. A minor contract issueC. Nonsense D. Profit and loss of each party
30. The place of delivery is doubly important to the exporter because the date of…. Normally depends on time and place of delivery.A. InsuranceB. PaymentC. Invoice
31. Within the four alternatives of the at-sight letter of credit, which of one is the least satisfactory for the exporter?A. Settlement by sight paymentB. Settlement by deferred paymentC. Settlement by acceptanceD. Settlement by negotiation
32. Title of the goods passes ……A. With risksB. Without risksC. With documents
33. Elderly people are …….. to deal with a contract.A. UnableB. AbleC. ImpossibleD. Unaffordable
34. The word “cash” in international trade means….A. Coins and notes
B. GoldC. Checks and bank transfersD. Prepayment
35. Continental law is based on a ….A. Case lawB. Common lawC. Legal codeD. Legal system
36. The background of contract is provided in the form of …A. The clauseB. The definitionC. The annexD. A whereas-recital
37. The hereinafter called wording can prevent legal problem cause by :……A. Misspelling namesB. Mistyping namesC. Misreading namesD. Misaccepting names
38. A bank guarantee which gives the exporter an acceptable level of security in term of payment shall be paid by….A. The buyerB. The exporterC. A bankD. A third party
39. “The Buyer shall notify the Seller of defects without undue delay”. This is example of:A. Defect liability periodB. Notification periodC. Rectification periodD. Legal action period
40. …………...happens when one party ends the contract because of breach by the other.A. CancellationB. SuspensionC. ImpossibilityD. Termination
41. In principle, the buyer and reject delivered goods if they do not conform to the contract. This is called…….
A. Implied warranty of suitabilityB. Implied warranty of conformityC. Implied warranty of merchantabilityD. Implied warranty of fitness for intended purpose
42. The goods become deteriorated as a result of normal use. This process is called:A. Fair playB. Fair wear and tearC. Faults not present on deliveryD. Farewell
43. The greatest fear for the exporter is :E. Being unable to meet the delivery deadlineF. Being unable to meet the specification of the goodsG. Being unable to get paid for the goods soldH. Having no guarantee for payment
44. Transfer of risks from the seller to the buyer ( Incoterm 2000) : CPTE. When the goods are at seller’s premisesF. When the goods are handed to the first carrierG. When the goods across the ship’s railH. When the goods are on board
45. Which of the following concepts is best used to avoid confusion when we mean an assurance that the exporter will make the goods defects in his goods?A. WarrantyB. Guarantee C. Defects liabilityD. Warrantee
46. Why do most exporters offer a discount for early payment, for example 1% discount if payment is made within 10 days of the date of invoice?A. Because the discount is so attractive to the buyerB. Because the buyer can save on the invoice priceC. Because the exporter can substantially improve his cash flowD. Because the exporter just wants to get payment on delivery
47. The court of arbitration applies whatever ………….. the parties stipulate in the contractA. International lawB. Corporate law
C. National lawD. Business law
48. ………….. is two-sided proceduresA. TerminationB. CancellationC. RescissionD. Suspension
49. A contract that is ultra vires is…………A. Well enforceableB. UnenforceableC. Valid D. Effective
50. The name of parties to the contract are often on ………..of the contractA. The first pageB. The second pageC. The last pageD. All pages