30 đề trắc nghiệm khảo thí- Ctrl F để tìm đáp án chuẩn-1
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ĐỀ SỐ 1 1. In settlement by deferred payment, the letter of credit
is paid after delivery. Right or wrong?A. Completely rightB. Definitely wrongC. It dependsD. The letter of credit is not payable until a number of
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 dutyunder this contract by an event beyond his reasonable control, then this eventshall be deemed force majeure)Shortage of supplies (background, the exporter cannot getthe raw jute he need from the supplier because of ashipping delay)A. YesB. QuestionableC. No
4.The majority of shipping documents presented to banksunder documentary credit transaction are accepted onfirst 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 thelist of all required documentation is incorporated intothe contract is……A. SpecificationB. Incorporation C. ComplianceD. Verification
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…..A. AB. BC. C
10. How many timing problems are involved in DefectsLiability Period?A. ThreeB. Four
C. TwoD. Five
11. The main difference between Continent and Anglo –American contract law is the degree of…..A. CodificationB. FormationC. AutomationD. Interpretation
12. What happens if the issuing bank finds a problem withthe documents and refuses to send funds to the advisingbank 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 form the advising bank to the exporter are
always made with recourse. The exporter has to pay back theadvising bank in such a case
D. It is the responsibility of the issuing bank of payingback the advising bank in suck in case
13. What can protect both the exporter and the importer inan 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 theexporter to minimize the risk of the goods being rejectedof heavy defects liability claims?A. Winning buyer’s goodwillB. Keeping his promise
C. Negotiating detailed specificationsD. Making profit
15. Transfer of risk form the seller to the buyer (Incoterm2000) 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 nameof 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 asfollows: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 seller
C. Buyer instructs issuing bank to instruct a confirmingbank to pay under a letter of credit in favor of the seller
D. Buyer instructs issuing bank to instruct any third bankto under letter of credit in favor of the seller
20.In CIF and CIP contracts, the exporter normally assignsthe insurance agreement to……A. The buyerB. The carrierC. The issuing bank
21. In principle the buyer can reject delivered goods ifthey 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 theexporter rigorously checks documentation and submits itto the bank is…….A. Agreement
B. VerificationC. SpecificationD. Compliance
25. Which of the following discrepancies is NOT the problemwith 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 andthe 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 10days 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
delivery31. The method of payment which is dangerous for the
exporter is: A. Cash on deliveryB. Accepting a personal checkC. PrepaymentD. Export credit insurance
32. AS for Ango-American ,the decision of judge is always :A. PredictableB. ForceableC. UnpredictableD. Estimated
33. If both parties perform their duties correctly, acontract is discharged by :A. DefaultB. SuspensionC. PerformanceD. Breach
34. Dawson bought vanilla beans from Indonesia. Dawsoninstructed an American bank to open a letter of credit.One of required shipping documents was a certificate ofquality issued “ by experts”. The bank paid the exporter.The beans, when they arrived, were rubbish. The
certificate of quality was signed, however, by only one“expert”. Could the bank collect from Dawson the money ithad 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 theinsurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirm
36. The bill of lading issued by the carrier for combinedtransport 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 creditdemands 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 compliance40. Which is the most appropriate method of payment for the
exporter in the following case ? Sale of a bale (roll) ofcloth costing 200 USD to a nearly tailor’s shop with whomyou 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
discharge42. 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 Goods
C. the UN Convention on Contract for the InternationalSale of Goods
D. the UN Convention on Contract for acceptance45. How many originals and copies is the air waybill issued
according to the standard of the International AirTransport Association-TATA?A. Three originals and 3 copiesB. 3 originals and 6 copies C. 3Originals and 9 copiesD. it depends on the requirements in the letter of credit
46. The parties to a contract are not always requiredto .....A. IgnoreB. ApplyC. Refuse D. Decline
47. A ban is issued on the export of jute products by newlyelected government that has on been preparing legislationon this subject for 5 years.A. YesB. QuestionableC. No
50. The bank that the buyer asked to open a letter of creditis 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 assumptionsabout 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, bothparties 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. RescissionD. Suspension
6. In a contract, a formal definition is the best way ofclarifying what exactly the two sides have …A. ExcusedB. Negotiated
C. AgreedD. Solved
7. In negotiating a letter of credit, the step in which theexporter checks the credit to see that requireddocumentation is as agreed is …A. AgreementB. IncorporationC. VerificationD. Compliance
8. “A machine that consumes more fuel than specification” isan example of:A. Latent defectB. Patent defectC. Inherent defectD. Apparent defect
9. When the bill of lading marked “freight prepaid”. Whopays 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 roadtransport 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 ofcredit 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 bank16. 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 time
C. Weights differ between 2 documentsD. Marks and numbers differ among documents
17. “The buyer shall notify the seller of defects withoutundue delay”. This is an example of:A. Defects liability periodB. Notification periodC. Rectification periodD. Legal action period
18. Termination for convenience occurs when one partysimply decides to drop the contract andA. No reason is requiredB. Reasons are requiredC. Consultation is requiredD. Conversation is required
19. Which is the most appropriate method of payment for theexporter in the following case? A new small customer in aPacific island republic much given to politicaldisturbances. The order is for $10000 worth of assortedtextilesA. 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 whichthe list of all required documentation is incorporatedinto the contract isA. SpecificationB. IncorporationC. ComplianceD. Verification
21. In drafting an arbitration clause, the followingquestion 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 “documentarycredits”?A. Because a letter of credit is a binding agreement by a
bank to pay a certain sum of money when the exporterpresents the necessary documents to the bank.
B. Because a letter of credit is issued by an issuing bankat the request of the buyer
C. Because in a letter of credit situation, documents areexchanged for money
D. Because the documents in a letter of credit are proofsof 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 doafter receiving the documents and draft drawn from on thebuyer 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 theinvalidity 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 anexport 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 takesplace in the country ofA. The importerB. The exporter
C. The agent31. All risks covered is under … clause
A. AB. BC. C
32. A contract requiring an exporter in Ethiopia to sendthe contract goods by air for delivery in Windhoek,NamibiaA. CIF WindhoekB. 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 (Incoterm2000): 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 anexporter. Payment was by letter of credit issued byBarclays Bank. The exporter delivered a mix of cassettes,eight-track cartridges and other non- contractual goods.Discount Records tried to get an injunction to stopBarclays from paying under the letter of credit. What youthink the court would do in that case?A. The court refusedB. The court accepted
C. 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 causedthe 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 problemwith 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 avoidconfusion when we mean an assurance that the exporterwill make good defects in his goods?A. WarrantyB. GuarantyC. Defects liabilityD. Warrantee
40. If alternative means of transport of partial shipmentsare allowed perhaps by different modes of transport, the
letter of credit should have the words … between thenames of transport documentation.A. AndB. OrC. And/orD. Either B or C
41. If the price is quoted FOB Singapore, then the selleris not obliged to pay insurance and freight. Right orwrong?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 ofthe designated vessel by the buyer
D. Completely wrong, because the buyer is obliged to payfor insurance and freight on his own account if term oftrade 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 guarantee
C. Bond guaranteeD. Bid bond
45. The best solution for the exporter to make late paymentimpossible is A. A typical contract clause in which there are
regulations on the amount of interest the seller shall beentitled to receive in case of late payment.
B. An agreement with the buyer to strengthen the paymentprovisions with a payment guarantee
C. An agreement with an insurance company in case thebuyer fails to pay on time
D. A confirmed, irrevocable, at sight letter of credit.46. Defects may be which of the following?
A. Defects in materialsB. Defects in workmanshipC. BothD. None of these
47. If a dispute arises, the recital allows the court todiscover 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 arecalled…
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 acceptanceD. Offer and renewal
2. A ban is issued on the export of jute products by newlyelected governmentA. YesB. QuestionableC. No
3. Continental lawyers ……. Complicated grammar of thewhereas- 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 Incoterms2000 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 collectthe money?
A. No. it isn’tB. It is impossible by all meanC. The draft must be drawn on the buyer to the orderpayment not the bankD. Yes, it is
7. Continental law is also called…….A. Civil lawB. Common lawC. Legal systemD. Lawful case
8. Unless the letter of credit states otherwise, insurancecoverage on a CIF or CIP shipment must be for…… of theCIF or CIP value of the goodsA. 100%B. 90%C. 50%D. 110%
9. The bank helping the exporter to check the correctness ofthe documents and set the payment procedure in motionis……..A. The issuing bankB. The advising bankC. The confirming bankD. Any third bank
10. Why letter of credits are formally called documentarycredits?A. Because a letter of credit is a binding agreement by abank to pay a certain sum of money when the exporterpresents necessary documents to the bankB. Because a letter of credit is issued by a issuing bankat the request of the buyer
C. Because in a letter of credit situation, documents areexchanged for money D. Because the documents in a letter of credit are proofof trust
11. If the exporter knew the buyer’s intended purposes, andif the buyer relied on the exporter knowledge andexpertise, the buyer can reject the goods that are notsuitable for their intended purposes. This is called……A. Implied warranty of the suitability with intendedpurposesB. 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 selleris not obliged to pay insurance and freight. Right orwrong?A. Completely rightB. WrongC. Partly right, as the seller is obliged to pay only thefreight and insurance necessary to put the goods on boardof the designated vessel by the buyer.D. Completely wrong because the buyer is obliged to payfor insurance and freight on his own account if term oftrade is FOB
13. If a contract is an entire agreement, earlier lettersand 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 thegoods to the carrierA. C & FB. D & FC. C & D
15. A term or terms in a contract could raise the contractpriceA. A shorter warranty periodB. Customer order goods in one colorC. No additional packaging or safety warnings are requiredbeyond 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 ofcredit 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 theexporter is: A. taking back the defective goods and giving back themoney 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. No
22. The exporter's interests are best served byA. 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 beused? A. DDPB. CIFC. CIP
25. Delivery of the goods under most export contracts takesplace in the country of A. the importer
B. 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 specificationsis…….. 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 respectto 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
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 seatransport is called A. Seaway bill B. Marine bill of ladingC. Sea way bill
35. Which of the following discrepancies is NOT the problemwith 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 designD. Defect in quantity
37. The bill of lading issued by the carrier for roadtransport 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 theexporter'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 ofcredit 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 problemswith 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 bySGS? A. The PhilippinesB. Indonesia C. The United Kingdom
D. All A, B and C42. 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, ithas certain limitations like.... A. high premiums paid by the exporter. B. long time waiting for compensation from the insurancecompany C. long time since the buyer fails to pay up to the timethe insurance company compensates the exporter and theinability of covering 100% of the original invoice price.D. Refusal from the insurance company to quote premiumsdue to risky business or the buyers non-creditworthiness
44. Why do most exporters offer a discount for earlypayment, for example a 1% discount if payment is madewithin 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 hiscash flow D. Because the exporter just wants to get payment ondelivery
45. If the buyer come from a country which has poorreputation for enforcing awards, the best methods of paymentunder the contract is a/ an…..
A. Revolving L/CB. At sight, confirmed L/CC. Deferred, irrevocable L/C
D. Transferable L/C46. 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 problemwith 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 thecreditH. A certificate of insurance is produced while the creditcalls for a policy
49. A contract requiring an exporter in Mozambique todeliver the contract goods Beira Mozambique for the shipmentby sea to Da esSallamTazania
A. FAS BeiraB. CIF BeiraC. FOB Da es Salaam
50. There is no connection between the letter of credit andthe sales contract. Right or wrong?A. Completely rightB. Completely wrongC. It depends
D. The buyer and the buyer may agree that all the term intheir 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 goodsby road from Kenya to Zambia with freight paid by theexporterA. CFR LusakaB. CPT LusakaC. CFR Nairobi
3. Once the bank has indicated the discrepancies, what can theexporter 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 (andif) the issuing bank permits payment
D. Any of the above4. 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 deliverthe contract goods in Beria, Mozambique, for the shipment bysea 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 thecountry are inspected by the SGS immediately beforeshipment?A. The USAB. Vietnam C. IndonesiaD. The UK
8. Dawson bought vanilla beans from Indonesia. Dawsoninstructed an American bank to open a letter of credit. Oneof the required shipping documents was a certificate ofquality issued “by experts”. The bank paid the exporter. Thebeans, when they arrived, were rubbish. The certificate ofquality was signed, however, by only one “expert”. Could thebank collect from Dawson the money it had paid to theexporter?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 ofthe credit
10. The majority of shipping documents presented to banksunder documentary credit transactions accepted on firstpresentation. 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): DDP
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
17. Shortage of supplies (Background: the exporter cannotget the raw jute from the supplier because of a shippingdelay)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 canreject them but if they … specifications, he is obliged toaccept themA. Defective/conform toB. Perfect/conform to C. Defective/differ fromD. Perfect/differ from
21. In contract, “partial invalidity provision” means theinvalidity 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 itemabroad…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 asfollows: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 theseller
C. Buyer instructs an issuing bank to instruct a confirmingbank to pay under a letter of credit in favor of theseller
D. Buyer instructs an issuing bank to instruct any thirdbank to pay under a letter of credit in favor of theseller
24. “A voltmeter that is specified as accurate within 1millivolt is accurate within only 5 millivolt” is an exampleof:A. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the seller
25. Which of the following discrepancies is NOT the problemwith 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 ofcredit 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 ofbreach 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 mostpreferred 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 exportcontract is as follows: “The price payable for the contractgoods 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 resultsof delay
D. The clause does not say where the money must be beforethe buyer is deemed to have paid, define delay in paymentand mention the consequences of delay
33. 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 oforiginal 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 ofthe letter of credit exactly and refuse an “incompleteset” waybills
35. Which of the following discrepancies is NOT the problemwith 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 offeringarbitration 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, theseassumptions are called …A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties
39. The point of delivery is much the same for all … termsand … terms-when the exporter hands the goods over to thecarrierA. 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. B
C. A,B,C42. 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 importerB. 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 thecontract A. At the beginning B. Near the beginning C. At the endD. Near the end
48. In settlement by deferred payment, the letter of creditis paid after delivery. Right or wrong?A. Completely rightB. Definitely wrongC. It dependsD. The letter of credit is not payable until a number of
days49. “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 settlingdisputes, litigation before the court is internationallyleast 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.ComplianceH.Verification
8.In a contract under a Continental law, a recital……
E.Is essential
F.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 totheir carelessness in checking the shippingdocuments
F.The advising bank gets its money back from theexporter
G.The payments form the advising bank to the exporterare always made with recourse. The exporter has topay back the advising bank in such a case
H.It is the responsibility of the issuing bank ofpaying 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 ofcredit in favor of the seller
F.Buyer instructs issuing bank to instruct anadvising bank to pay under a letter of credit infavor of the seller
G.Buyer instructs issuing bank to instruct aconfirming bank to pay under a letter of credit infavor of the seller
H.Buyer instructs issuing bank to instruct any thirdbank to under letter of credit in favor of theseller
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.PaymentF.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.Noquestion,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 61. 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 creditdemands the original bill of lading?A. It is a possible demandB. The original of the bill of lading for shipment byrail does not come into the possession of the buyer.C. Such a letter of credit is certain to cause delay inpayment.D. The bank insists on strict compliance
3. If a country ratifies the Vienna Sales Convention, in theevent 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 theexporter?A. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation
5. Dawson bought vanilla beans from Indonesia. Dawsoninstructed an American bank to open a letter of credit.
One of the required shipping documents was a certificateof quality issued “by experts”. The bank paid theexporter. The beans, when they arrived, were rubbish. Thecertificate of quality was signed, however, by only one“expert”. Could the bank collect from Dawson the money ithad 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- orientedC. Action- orientedD. Reaction- oriented
7. Among a number of international bodies offeringarbitration services, the…………….. in Paris is the mostprestigious.A. UPCB. ADRC. ICCD. FAO
8. It is common to put the definition clause……………….. of thecontract.A. at the beginningB. near the beginningC. at the endD. near the end
9. Which the following is the least desirable option for theexporter?A. Allow the buyer to repair at the exporter’s cost
B. Reduce the priceC. Return the goods and refund the priceD. Replace the defective items
10. A contract requiring an exporter in Ethiopia to sendthe 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 totransfer his right as the credit’s beneficiary to antthird party.B. It is the kind of credit which allows the firstbeneficiary to request the confirming bank to pay a thirdparty.C. It is the kind of negotiable document with which theexporter can endorse for any party.D. It is the kind of credit with which the buyer will notnecessarily know who is the actual supplier of the goods.
12. Which of the following discrepancies is NOT the problemwith 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 theissuing bankB. The seller presents the necessary documents to theadvising bank
C. The seller presents the necessary documents to thepaying bankD. The seller presents the necessary documents to thereconfirming 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 themerchandise has already arrivedC. When they reach the advising bank at the expiration ofthe 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 whichthe exporter rigorously checks documentation and submitsit to the bank is………………………………A. AgreementB. VerificationC. SpecificationD. Compliance
21. The stand-by letter of credit originated in the U.S. isused there because……………….A. it is very popular for U.S. exporters to ask forpayment 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 issuepayment guaranteeD. English banks prefer to issue demand guarantees andordinary letters of credit
22. Companies………. to use the short form of the names incontracts.A. are forcedB. are not forcedC. are allowedD. are not allowed
23. a well-designed set of specifications protects buyeragainst…………………product.A. advancedB. dented
C. inferiorD. superior
24. The risk of rough handling is not covered under thecargo clause………………..A. AB. BC. CD. B and C
25. Once the bank has indicated the discrepancies, what canthe exporter do?A. The exporter can provide the missing paperwork orcorrect errorsB. The exporter can ask the buyer to instruct the bank tochange the terms of letter of creditC. The exporter can ask the bank to process the letter ofcredit with the discrepancies but to pay pnly when (andif) 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 theletter of credit are in perfect orderB. Sometimes, the bank may question the necessity orvalue of the documentsC. The bank is not interested in the question of why thebuyer wanted a particular document presented in aparticular formD. There are no rules as to what documents a letter ofcredit may or may not require
27. If both parties perform their duties correctly, acontract is discharged by:……………A. Default
B. SuspensionC. PerformanceD. Breach
28. The point at which money is deemed to be paid mostreferred 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 cannotget the raw jute he needs from the supplier because of ashipping delay)A. YesB. QuestionableC. No
30. “ Minimum Coverage” is the so-called CargoClause……………..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 defectC. Inherent defectD. Apparent defect
34. To make sure that the officer signing the contract hasauthority to sign the contract, parties shouldcheck………………….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………………………….theparties stipulate in the contract.A. International lawB. Corporate lawC. National lawD. Business law
37. If the box “With brief advice by teletransmission” iscrossed, it means………A. The exporter wants to be informed of the issuance ofthe letter of credit by telexB. The exporter wants to begin preparations for deliveryC. The buyer’s responsibility of informing the exporterthat a letter of credit has been issued in his favor
D. The exporter wants to know about the issuance of theletter 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 (Incoterm2000): 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 andno restriction on ownership when it is………………..A. to order, blank endorsedB. surrendered, blank endorsementC. to order, endorsed
43. Negotiation of specifications between the exporter andthe 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 forthe 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 whichthe exporter checks the credit to see that requireddocumentation is as agreed is……………………..A. AgreementB. IncorporationC. VerificationD. Compliance
47. Is there any requirement that the air waybill shows thedate 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 correctlycompleted waybill cannot show this information
48. Drunken people have no…………… to sign a contractA. Contractual capacity
B. Contractual conceptC. Contractual governmentD. Contractual branch
49. A contract comes into force when an offer is made byone side and………….by other.A. AcceptedB. DeclinedC. WrittenD. Drawn
50. ………………………….is open-ended.A. tailor-madeB. floatingC. open cover
ĐỀ 8
1. 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. Rightor 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 innegotiating 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
payment5. 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 countrymerely handle the paperwork
B. It means the exporter wants the bank in his countrymake the payment itself and recover the fund from buyer’sbank
C. It means that the exporter is double guaranteed in termof payment by a third bank beside the issuing bank and theadvising bank.
D. It means the confirmation from the issuing bank in termof 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 goodsD. Dependent on type of goods
7. What would be the effect on the price of the goods tradedif 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 combinedtransport 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 sendthe 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 bindingcontract 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 theloudspeaker 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 bank
C. The seller presents the necessary documents to thepaying bank
D. The seller presents the necessary documents to thereconfirming bank21. It is common to put the definition clause …of the
contractA. At the beginningB. Near the beginningC. At the endD. Near the end
22. Under the Anglo- 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 goodswhen 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 collectmoney?A. No, it isn’tB. It is impossible by all means
C. The draft must be drawn on the buyer to order payment,not the bank
D. Yes, it is26. 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’tB. Yes, there is one in case banks are reluctant to
confirm letters of credit, especially those from obscurebanks.
C. Never is thereD. It depends.
29. The best solution for the exporter to make late paymentimpossible is….A. A typical contract clause in which there are
regulations on the amount of interest the seller shall beentitled to receive in case of late payment
B. An agreement with the buyer to strengthen the paymentprovisions with a payment guarantee
C. An agreement with an insurance company in case thebuyer fails to pay on time
D. 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 roadtransport is called…A. Road bill of ladingB. Road billC. Roadway billD. Road consignment note
32. How many timing problems are involved in DefectsLiability 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 doafter receiving the documents and draft drawn on thebuyer 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 railtransport is called……A. Railway billB. RailwaybillC. Railway consignment noteD. Railway bill of lading
38. The place of payment is very important because latepayment is subject to payment of interest and the cost ofany 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 code
B. 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 forparticular time and automatically expires.A. tailor – madeB. floatingC. open cover.
43. Termination for default occurs when the contract namescertain………….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 hasauthority to sign the contract, parties shouldcheck………………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, thequestion of who pays for the consequential loss or damageis often………A. agreeableB. controversialC. non – negotiableD. amicable
47. In settlement by deferred payment, if the seller needsmoney 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 9
1. There is no connection between the letter of credit andthe sales contract. Right or wrong?
A. Completely right
B. Completely wrong
C. It depends
D. Exporter and the buyer may agree that all the terms intheir sales contract must be stated in the letter of credit.
2. Quality assurance and customer satisfaction are the sameissues for customers .
A. in domestic market
B. in overseas markets
C. Both A and B
D. neither A nor B
3. A marine bill of lading can be negotiable document withwhich….
A. The buyer can use it to resell the goods duringshipment
B. The exporter can use itto resell the goods duringshipment
C. The issuing bank can use itto resell the goods toanother customer.
D. The buyer can use itto negotiate a price with thenegotiating bank4. Which of the following is NOT the method of issuing the
letter of credit?
A. By email
B. By airmail
C. By mailD. By teletransmission.
5. Anglo-American law is also called…..
A. Civil law
B. Legal code
C. Common Law
D. Law code6. How do you know Bill of lading is "Marine Bill of
lading”?There is a…..
A. on board notation
B. consignee
C. shipper7. Continental law prevails in ……..
A. The USA
B. Europe
C. The Vienna convention system
D. All countries in the world8. 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 problemwith 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 law
B. 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 theexporter 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 aresupplied byA The contract provisionsB. The UCCC. Most lawsD. The contract
16. A contract comes into force when an offer is made by oneside and....by the other.A AcceptedB. DeclinedC. writtenD. Drawn
17. Companies . . . . . . . . to use the short form of thenames 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 speci cations, the sellerfican protect its and avoid costs.A. reputationB. productionC. resolutionD. pro tabilityfi
21. "Minim1nn Coverage” is the so-called CargoClause .......A. AB. BC. C
22. The bill oflading issued by the carrier for roadtransport is called .A Road bill ofladingB. Road billC. Roadway billD. Road consignment note
23. To avoid confusio11_ many contract drafters use"..........” instead of “warranty”.A guaranteeB. warrantee
C. legal responsibilityD. defect liability
24. The place of payment is very important because latepayment is subject to payment of interest and the cost ofany 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 de nitionfiC. 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 bindthe 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 sold
B. The last date for presentation of documents to thebank
C. 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 timeand 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 Certi cate of Origin required?fiA. 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 thecontract 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 indemnityC. penalty
37. 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 pricequotation 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 leastattractive 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" iscrossed, 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 theissuing bank.
B. The seller presents the necessary documents to theadvising bank.
C. The seller presents the necessary documents to thepaying bank.
D. The seller presents the necessary documents to thereconfirming bank42. Which type of bill of lading is negotiable?
A. surrenderB. straightC. to order
43. A contract requiring the exporter to send the contractgoods by road from Kenya to Zambia with freight paid bythe exporter. A. CFR LusakaB. CPT LusakaC. CFR Nairobi
44. The things that the exporter should keep in mind innegotiating 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 findssomething 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 thecredit
D. The confirming bank has paid the money to the exporterand has no way of recovering it. The confirming bank mustpay 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 revocableletter of credit, so the plain expression "letter ofcredit" generally means the irrevocable kind. The word
"irrevocable", therefore, should not always appear in thetext 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 eventshall be deemed force majeure.)
Shortage of supplies (Background: The exporter cannot getthe raw jute he needs from the supplier because the CentralBank will not give him foreign exchange to pay the supplier)
A. YesB. QuestionableC. No
49. Inspection of the goods by the buyer in themanufacturer'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, theseassumptions 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 checkthe credit to see that required documentation is asagreed 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 problemof 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 bank7. 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.
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 themanufacturer’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 railtransport 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 newlyelected government that has been preparing legislation onthis 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 ofCommerce, for example, states that payment of interestson overdue sums payable to the seller is … by …a. Excused/force majeureb. Not excused/force majeurec. Excused/Acts of Godd. Excused/Contingencies
15. Companies … to use the short form of the name in thecontracts.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 formof …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 forinsurance and freight?
a. The exporterb. The buyerc. 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 thesellera. 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 beneficiaryto any third party
b. It is the kind of credit which allows the firstbeneficiary to request the confirming bank to pay a thirdparty.
c. It is the kind of negotiable document with which theexporter can endorse for any third party
d. It is the kind of credit with which the buyer will notnecessarily 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 choice
d. Is always the worst choice.27. The majority of shipping documents presented to banks
under documentary credit transactions are accepted onfirst presentation. Right or wrong?a. Completely rightb. Definitely wrongc. Neither right nor wrongd. It depends
28. Unless the LC states otherwise, insurance coverage on aCIF 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 beestablished 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 orwrong?a. Rightb. Wrongc. In depends on the type of credit
d. Neither right nor wrong.32. How to make a bill of lading negotiable
a. Stamp the word “Negotiable” across the surface of thebill of lading.
b. In the Consignee box, do not write anything, just leaveit blank
c. 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 ifthey 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 forinsurance and freight?a. The buyerb. The exporterc. The issuing bankd. The forwarding agent
35. Cancellation on … grounds makes no legal sensea. Greatb. Genuinec. Triviald. Acceptable
36. An offer dies if it has a/an…a. Acceptanceb. Agreementc. Adoptiond. Revocation
37. The period during which the buyer can begin a legalaction is legally called:a. Notification periodb. Rectification periodc. Legal action periodd. Defect liability period
38. What if a LC requires “an appropriate wildlifecertificate”?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 thecargo clause …a. Ab. Bc. Cd. B and C
40. What can a manufacturer sometimes accept a loss on anexport 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 theexporter is:a. Taking back the defective goods and giving back the
moneyb. Reducing the price
c. Replacing the goodsd. Dependent on the type of goods
42. Transfer of risk from the seller to the buyer (Incoterm2000): 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 poorreputation for enforcing awards, the best method ofpayment 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 successfulbusiness?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 exporterstry 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
disposal48. Export credit insurance which gives the exporter an
acceptable level of security in terms of payment shall bepaid 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 badlyor not at all, the guarantor will pay the buyer, withinstated 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 isused 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 anacceptable level of security in terms of payment shall bepaid 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 ofcredit” generally means the irrevocable kind. The word“irrevocable”, therefore, should not always appear in thetext 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’srules
C. 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 deadlineB. 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, bothparties 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 thefreight?A. The buyerB. The exporterC. The carrierD. The forwarding agent
10. A payment guarantee simply commits the bank to pay ifthe 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 acontract …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 successfulbusiness?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 ordershipper, 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 theparties, 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 bankto 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 date
C. Precondition21. 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 policy22. 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
days23. What is a transferable credit?
A. It is the kind of credit which allows the exporter totransfer his right as the credit’s beneficiary to any thirdparty
B. It is the kind of credit which allows the firstbeneficiary to request the confirming bank to pay a thirdparty
C. It is the kind of negotiable document with which theexporter can endorse for any third party
D. It is kind of credit with which the buyer will notnecessarily 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 buyer
C. The forwarding agentD. The confirming bank
25. CIF and CIP contracts are especially confusing sincethey 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 priceD. None of these
28. 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 accordingto 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 theexporter in the following case? A contract for supply ofcloth worth $5,000 per month to the government of Oceanea– a prosperous country. Duration of the contract is 2years, but renewable. Contract represents 25% ofturnover.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 theexporter in the following case? A contract for supply ofcloth worth $5,000 per month to the government of Oceanea– a prosperous country. Duration of the contract is 2years, but renewable. Contract represents 0.5% ofturnover.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
discharge35. There are … parties to a warranty and … in a guarantee
A. 3/2B. 3/3C. 2/3D. 2/2
36. Under most laws, a buyer can make certain assumptionsabout 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 pricequotation 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 fromthe 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. Revocation
41. “A machine that consumes more fuel than specifications”is an example ofA. Latent defectB. Patent defectC. Inherent defectD. Apparent defect
42. The “exporter’s wording” and the “buyer’s wording” inthe 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 privilegethat an exporter may get from his government’s exportincentives 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 company48. 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. Frustration
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 seller
C. Buyer instructs an issuing bank to instruct a confirming bank to pay under a letter of credit in favor of the seller
D. Buyer instructs an issuing bank to instruct any thirdparty bank to pay under a letter of credit in favor of the seller
4. 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 country
C. 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 eventbeyond 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
disposal9. 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
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. MaterialsC. 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 beginning
C. 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 oscònlicts, 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 doafter 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 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 goodsover 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 exporter
A. 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. IncorporationC. 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 insuarance
D. At sight letter of credit35. 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 delay
D. The clause does not say where the money must be before the buyer is deemed to have paid, define delayin payment and mention the consequences of delay
36. 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. UnilateralB. 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 endorsed
D. Fill the words “to order” in the Consignee box40. 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 beestablished 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 forparticular time and automatically expires.A. Tailor-madeB. FloatingC. Open cover
4. If the price is quoted CIU Marseille, who pays forinsurance 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 needsmore money immediately, what can he do?A. There is no way he can get money immediately
B. He can exchange the letter of credit cash with anyagreement bank
C. The seller can realize some part of the letter ofcredit’s value, not its full value
D. 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 buyerD. 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 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. The…….. has no power to enforce his solution or to bindthe parties, his task is to suggest a fair solutiononlyA. 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 missingparts, scratches, and so on are called….A. Patent defectsB. Latent defectsC. Inherent defectsD. Concealed defects
12. The court of arbitration applies whatever……theparties 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, acontract….A. Can be one sidedB. Can be two-sidedC. Can be either one-sided and two-sidedD. Must be two-sided
15. In negotiating a letter of credit, the step inwhich the exporter rigorously checks documentation andsubmit it to the bank is…..A. AgreementB. VerificationC. SpecificationD. Compliance
16. If the price is quoted FCA, who pays for thefreight?A. The exporterB. The carrierC. The buyerD. The forwarding agent
17. As for Anglo- American, the decision of the judgeis 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 theimporter 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 legalproblem caused by A. Misspelling namesB. Mistyping namesC. Misreading namesD. Misaccepting names
21. What is the transferable credit
A. It’s a kind of credit which allows the exporter totransfer his right as the credit’s beneficiary to anythird party.
B. It’s a kind of credit which allows the firstbeneficiary to request the confirming bank to pay athird party
C. It’s a kind of negotiating document with which theexporter can endorse for any third party
D. It’s a kind of credit with which the buyer will notnecessarily know who is the actual supplier of thegoods.
22. The lump-sum compensation is set too high…A. Liquidated damagesB. Quasi indemnity C. Penalty
23. The advising bank never pays the exporterdirectly. 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 theexporter’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. Rescission
D. Suspension26. In CIF and CIP contract,….must pay for insurance
from the point of delivery to the named point ofarrivalA. The exporterB. The importerC. The carrier
27. “Exporter credit insurance is a kind of specialprivilege 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 inwhich the exporter checks the credit to see thatrequired documentation is as agreed is….A. AgreementB. IncorporationC. VerificationD. Compliance
30. Different legal systems regulate that rejection ofdelivered goods must be total… can be partialA. Or
B. AndC. And/orD. Nor
31. If the price is quoted FOB Singapore, then theseller 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 thegoods on board of the designated vessel by thebuyer.
D. Completely wrong, because the buyer is obliged to payinsurance and freight on his own account if term oftrade is FOB.
32. Beside the commercial invoice, the transportdocument and the insurance document, what does “Otherdocument” 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 isA. VerificationB. AuthenticationC. Codification
D. Acceptance35. Continental law copes with
A. Personnel problemsB. International tradeC. National issuesD. Individual conflicts
36. If the price is quoted FAS Osaka, who pays thefreight?A. The shipperB. The exporterC. The forwarding agentD. The buyer
37. Which of the following is the least desirableoption 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 documentwith which?
A. The buyer can use it to resell the goods duringshipment
B. The exporter can use it to resell the goods duringshipment
C. The issue bank can use it to resell the goods toanother customers
D. The buyer can use it to negotiate a price with anegotiating bank
41. Which type of payment is the most advantageous forthe exporter A. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation
42. A contract requiring an exporter in Mozambique todeliver the contract goods in Beira, Mozambique, forthe 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 mindin 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 include
A. Mistakes
B. 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. Dawsoninstructed American bank to open a letter of credit.One of requirement shipping documents was a certificateand quality issues ‘by experts”. The bank paid theexporter. The beans, when they arrived, were rubbish.The certificate of quality was signed, however, by onlyone “expert”. Could the bank collect from Dawson themoney 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 onan export dealA. He wants to win a regular customerB. His factory may by short of workC. He can get some export incentives from governmentD. Any of the above
48. In which situation should the exporters use exportcredit insuranceA. Long- term customersB. Transactions represent a high proportion of their
turnover
C. Buyer are willing to spend money on a paymentguarantee
D. In a seller’s market49. Normally, risk are transferred at the point of
A. DeliveryB. PaymentC. Arrival
50. Which of the following is not the reason why theexporter 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, theseassumptions are called…….A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties
2. The entire agreement clause means that all documents arepredate 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 takesplace in the country of A. the importer B. the exporter C. the agent
4. As soon as the exporter receives advice that the letterof credit has been opened, what should he do? A. He should check that it complies with the agreement henegotiated with the buyer. B. He should check if there is any document that he doesnot understand. C. He should check if there is any requirement that hedoes not agree to. D. He should check if there is any necessary amendment tothe terms of the letter of credit.
5. What happens first when a bank refuses to pay under aletter of credit?
A. The bank will cite a 'discrepancy*, some aspect of thedocumentation that is not in line with the terms of thecredit. B. A check— list of commonly cited discrepancies will beused by banks. C. The exporter will have to re-submit their shippingdocuments. D. The exporter must contact the buyer asking the buyerto instruct the issuing bank to extend the date of thecredit.
6. Beside the commercial invoice, the transport document andinsurance 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 combinedtransport 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 arecalled A. patent defects B. latent defects C. coherent defects
D. apparent defects10. 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 ornot at all, the guarantor will pay the buyer: withinstated 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 contractprice A. A shorter warranty period. B. Customer orders goods in one color. C. No additional packaging or safety warnings arerequired 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 contractdocument clause. A. letters B. general conditions C. the IncotermsD. any of the above
17. Which of the following is left to the applicable law toregulate? 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 thecountry are inspected by the SGS immediately beforeshipment?A. the USAB. VietnamC. IndonesiaD. The UK
21. The answer to the questions of implies warranties aresupplied byA. The contract provisionB. The UCCC. Most lawD. The contract
22. What happen if the issuing bank finds a problem with thedocuments and refuses to send funds to the advising bankto cover payment?A. The advising bank has to suffer that loss due to theircarelessness in checking shipping documentsB. The advising bank gets money back from exporterC. The payment from the advising bank to the exporter arealways made with recourse. The exporter…D. It is the responsibility of the issuing bank of payingback the advising bank in such a case
23. The place of delivery (CIP, CIF) should not be confusedwith the… of the goodsA. DepartureB. DestinationC. Transshipment
24. Partial invalidity clause can help to avoid problemswith the contracts that…A. might infringe government regulations
B. violate the trade lawsC. discourage tradeD. both B and C
25. In negotiating a letter of credit, the step in which theexporter rigorously checks documentation and submit it tothe bank is…A. agreementB. verificationC. specificationD. compliance
26. “a radio lacks the wires connecting to loudspeaker tothe amplifier” is an example ofA. defective designB. defective materialC. defective workmanshipD. misuse by the buyer
27. Transfer of risk from seller to the buyer (incoterm2000) 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 sellercan protect its… and avoids costA. reputationB. productionC. resolutionD. productivity
31. Is the any requirement that the air waybill shows thedate 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 theexporter?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 thefreight?A. The shipperB. The exporterC. The forwarding agentD. The buyer
34. The exporter’s right to “cure” any defects in hisdelivery is ….. .A. Out of questionB. Advantageous to himC. Disadvantageous to himD. Detrimental to him
35. Which of the following discrepancies is NOT problem withthe Bill of Lading?A. The bill of lading “unclean”B. the bill of landing shows shipment between portsorther than those specified in the creditC. the description of the goods on the invoice and thedescription 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 todiscover 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 thebuyer defaults. The payment guarantee is usually for ….Ofthe 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 incoterm2000 and the terms of the contract conflict normally the……..prevailsA. incotermB. contractC. incoterm and contract
43. What kind of inspection is particularly important forsophisticated items or capital goods?A. customs inspectionB. carrier’s inspectionC. per-delivery inspectionD. SGS’s inspection
44. ………. Bill of lading – found something wrong with theconsignment.A. cleanB. clearC. Claused
45. In settlement by deferred payment, if the seller needsmoney 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 anyagreeable bankC. the seller can realize some part of the letter ofcredit’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 revocableletter of credit, so the plain expression “letter ofcredit” generally means the irrevocable kind. The word“irrevocable”, therefore, should not always appear in thetext 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 canthe export do?A. the exporter can provide the missing paperwork orcorrect errorsB. the exporter can ask the buyer to instruct the bank tochange the terms of the letter of creditC. the exporter can ask the bank to process the letter ofcredit with the discrepancies but to pay only when (andif) 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 byhimselfB. the buyer may still ask the exporter to arrange someaspects of the insurance for himC. the exporter has to arrange the insurance cover forthe goodsD. the exporter pays for insurance till the port ofdischarge
50. in how many originals and copies is the air waybillissued according to the standard of the international airtransport 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 hasauthority 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 canreject them, but if they… specification, he is obligedto 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 thejute intended for use in making sacka. Yes
b. Questionablec. No
6. In settlement by acceptance, what will the bank doafter receiving the documents and draft drawn on thebuyer 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 ofcredit.
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 NOTpossible?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 theamount of the credit.
8. Most contract contain an assurance that the exporterwill… any defects in his productsa. Make goodb. Take awayc. Alterd. Modify
9. The risk of rough handling is not covered under thecargo clause…a. Ab. Bc. C
d. B and C10. In settlement by sight payment..
a. The seller presents the necessary documents to theissuing bank
b. The seller presents the necessary documents to theadvising bank
c. The seller presents the necessary documents to thepaying bank
d. The seller presents the necessary documents to thereconfirming bank
11. Shortage of suppliesa. Yesb. Questionablec. No
12. …original(s) Bill of lading constitute(s) a fullseta. 1b. 2c. 3
13. If the price is quoted FCA, who pays for thefreight?a. The exporterb. The carrierc. The buyerd. The forwarding agent
14. The workforce at the factory go on strikea. Yesb. Questionablec. No
15. Which of the following examples is a latentdefect
a. Missing partsb. Structural weaknessc. Wrong itemsd. Broken items
16. Small purchases in private life are often in theform of…a. Cash on deliveryb. Cash against invoicec. Cash with orderd. Any of above
17. The answer for the questions of impliedwarranties are supplied bya. The contract provisionsb. The UCCc. Most lawsd. The contract
18. An FOB sales contract agree that theexporter can deposit the goods in a warehouseit the ship arrives late and that this countsas delivery. If the letter requires bill of lading andmakes 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 vesselhas 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 inasha. Yesb. Questionablec. No
21. In contract, “partial invalidity provision”means the invalidity of one part of thecontract…a. May invalidate the restb. Does not invalidate the restc. Affects the restd. Enforces the rest
22. Some contract set a cut-off date after which thecontract…a. Is bindingb. Is effectivec. Cannot come into force
23. Quality assurance and customer satisfaction arethe 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 ifthe bank pays the exporter and the issuing bank findssomething wrong with the documents?a. The exporter has a problem
b. The confirming bank has a problemc. It is the issuing bank which has an absolute
obligation to pay the exporter according to the termsof credit.
d. The confirming ban has paid the money to the exporterand has no way of recovering it. The confirming bankmust pay the exporter without recourse.
25. Which type of payment is the most advantageous forthe 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 internationalpractice, the first move in forming a…a. Contractb. Refusalc. Declined. Renovation
28. The force majeure clause suggested by theinternational chamber of commerce, for example, statesthat payment of interest on overdue sums payable to theseller is…by…a. Excused/force majeureb. Not excused/force majeurec. Excused/ acts of god
d. Excused/ contingencies29. 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 earlypayment, for example a 1% discount if payment is madewithin 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
delivery31. 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, theletter 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 offeringarbitration services, the… in Paris is the mostprestigiousa. UCPb. ADRc. ICCd. FAO
35. Under the public law, a company can only sign acontract…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 thecontract goods by road from Kenya to Zambia withfreight paid by the exportera. CFR Lusakab. CPT Lusakac. CFR Nairobi
37. When the exporter fills in the letter creditapplication 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 fromthe buyer’s bank.
c. It means the exporter is double guarantee in terms ofpayment by a third bank beside the issuing bank andthe advising bank
d. It means the confirmation from the issuing bank interms of payment in case the buyer defaults.
38. “Door to door” service is offered. Which termshould be used?a. DDPb. CIPc. CIF
39. To avoid the danger of slow payment. Exporter tryto protect themselves with a clause like this: “Paymentshall 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 disposal40. The … has no power to enforce his solution to
bind his parties, his task is to suggest a fairsolution only.a. Judgeb. Conciliatorc. Magistrated. Lawyer
41. Inspection of the goods by the buyer in themanufacturer’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 anexcessive burden in complying with the contracta. Suspension and non-performance
b. 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, howmuch 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% and10% of the stated amount.
48. As for Anglo-American law, the decision of thejudge 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 party
D. Prior talk to the other party5. 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 warrantiesA. 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 Lusaka
B. 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 termsof the credit
D. To confirming bank has paid the money to the exporterand 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 delivery16. If the price is quoted CIF San Francisco, who paysfor the insurance and freight A. the exporterB. the buyerC. the forwarding agentD. the confirming bank
17. Which is the most appropriate method of payment forthe exporter in the following case? Sale of a bale (roll)of cloth costing $200 to a nearby tailor’s shop with whomyou have done business for 20 yearsA. 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 upfor particular time and automatically expiresA. tailor-madeB. floatingC. open cover
19. Which of these does not require prior inspection bySGS
A. The PhilippinesB. IndonesiaC. The United KingdomD. All A, B and C
20. a promise by the exporter to cure defects in hisproduct is called:
A. a product guaranteeB. a product warrantyC. a product insurance
D. a product certification 21. the entire agreement provision means... must beestablished within the contract itselfA. the background of the contractB. important letters and memorandaC. contract documentsD. all of these
22. export credit insurance is a kind of specialprivilege that an exporter may get from his government’sexport 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 company23. 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 formof.....
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 seatransport is called
A. seaway billB. marine bill of ladingC. sea way bill
26. ........bill of lading – goods were taken on board ingood condition
A. cleanB. dirtyC. claused
27. in contract negotiation, “an invitation to provideterms 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 offer28. 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 ondelivery, 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): FAS
A. 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 law
B. civil lawC. law codeD. legal code
32. bill of lading is the most important document becauseit 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” iscrossed, it means....
A. the exporter wants to be informed of the issuance ofthe letter of credit by telexB. the exporter wants to begin preparation for deliveryC. the buyer’s responsibility of informing the exporterthat a letter of credit has been issued in his favorD. the exporter wants to know about the issuance of theletter of credit more quickly
36. an FOB sales contract agrees that the exporter candeposit the goods in a warehouse if the ship arrives late
and that this counts as delivery. If the letter of creditrequires a bill of lading and makes no mention of awarehouse 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 thewarehouse receipt because his designated vessel hasarrived 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 shouldbe 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 mostpreferred by buyer is.....A. when the buyer pays the money into his bankB. when the buyer’s bank transfers funds
C. 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 assumptionsabout goods. These assumptions are called (by lawers):A. express warrantiesB. 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 defectliability 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 exactlyaccording 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 viewson what is “appropriate”C. it should be more specific like what the certificatemust show and who should issue it D. all of the above
49. Which of the following discrepancies is NOT theproblem 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 policy50. The court of arbitration applies whatever........theparties stipulate in the contractA. international lawB. corporate lawC. national law
ĐỀ 171. Discount Records bought phonograph records from an
exporter. Payment was by letter of credit issued byBarclays Bank. The exporter delivered a mix of cassettes,eight-track cartridges and other non - contractual goods.Discount Records tried to get an injunction to stopBarclays from paying under the letter of credit. What youthink 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 causedthe 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 theletter 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 problemwith 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 negotiable
A. 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
acceptance13. 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 thecourt to discover the real meaning of...A. the contractB. the termC. the incotermD. the appendix
15. In order to produce perfect products, manufacturersneed to have.......A. product insurance
B. 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 stepin which the exporter rigorously checks documentation andsubmits it to the bank is.....A. AgreementB. VerificationC. SpecificationD. Compliance
19. Feeble-minded people lack.... to entercontractsA. moneyB. timeC. contractual capacityD. intelligence
20. Of the three options available for settingdisputes, litigation before the court is internationallyleast 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 acontractA. 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 inqualityA. 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 ofcredit 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 thebuyer's bank
C. It means the exporter is double guaranteed in terms ofpayment by a third bank beside the issuing bank and theadvising bank
D. It means the confirmation from the issuing bank interms of payment in case the buyer defaults.28. In settlement by sign payment.....
A. The seller presents the necessary documents to theissuing bank.
B. The seller presents the necessary documents to theadvising bank
C. The seller presents the necessary documents to thepaying bank
D. The seller presents the necessary documents to thereconfirming bank29. 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 payfor insurance from the point of delivery to the namedpoint of arrivalA. The exporterB. The importerC. The carrier
32. In how many originals and copies is the airwaybill issued according to the standard of theInternational 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 thediscrepancies, 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 credit
C. The exporter can ask the bank to process the letter ofcredit with the discrepancies but to pay only when (and if)the issuing bank permits payment
D. any of the above34. 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
35. Which of the following method of payment isNOT 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 thecredit.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 deliveredgoods if they do not conform to the contract. This iscalled...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 paysfor the freight?A. The shipperB. The exporterC. The forwarding agentD. The buyer
39. When the Bill of lading marked "freight prepaid”. Whopays for the freight?A The BuyerB. The SellerC. The agentD. It depends on the agreement.
40. In contract negotiation, " an invitation toprovide 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. mistakeB. misuseC. fair wear and tearD. workmanship
42. A bank guarantee which gives the exporter anacceptable level of security in terms of payment shall bepaid by...A. The buyerB. The exporterC. A bankD. A third party
43. A marine bill of lading becomes negotiabledocument 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. Whichterm 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 makelate payment impossible is....A. A typical contract clause in which there are
regulations on the amount of interest the seller shall beentitled to receive in case of late payment
B. An agreement with the buyer to strengthen the paymentprovisions with a payment guarantee
C. An agreement with an insurance company in case thebuyer fails to pay on time
D. 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 withfreight paid by the exporterA. CFR LusakaB. CPT Lusaka
C. CFR Nairobi48. It is common to put the definition
clause..... of the contractA. at the beginningB. 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 exporterpresents the necessary documents to the bank.
B. Because the letter of credit is issued by an issuingbank at the request of the buyer.
C. Because in a letter of credit situation, documents areexchanged for money
D. Because the documents in a letter of credit are proofsof 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 comeintoforce 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 paperwork
B. 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 periodC. 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 . themanagerment 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 team
B. 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 WinhoekC. 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 exporter
B. Its depend on the kind of documents which must be presented by the exporter
C. 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 bankto 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 theadvising bank in such a case.
D. It is the responsibility of the issuing bank of payingback the advising bank in such a case2. With a well-designed set of specifications, the seller
can protect its… and avoid costsA. 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 totransfer his right as the credit’s beneficiary to any thirdparty
B. It is the kind of credit which allows the firstbeneficiary to request the confirming bank to pay a thirdparty
C. It is the kind of negotiable document with which theexporter can endorse for any third party
D. It is the kind of credit with which the buyer will notnecessarily 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 damageis often..A. Agreeable B. ControversialC. Non-negotiableD. Amicable
6. There are … parties to a warranty and… in a guaranteeA. 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 country
D. 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 theexporter because the date of… normally depends on timeand place of deliveryA. InsuranceB. PaymentC. invoice
11. The mechanism of a confirmed letter of credit works asfollow: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 ofthe seller
D. Buyer instructs issuing bank to instruct any third bankto pay under the letter of credit in favor of theseller
12. 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 assecurity 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 isalways..A. PredictableB. ForeseeableC. UnpredictableD. Estimated
15. Among a number of international bodies offeringarbitration services, the… in Paris is the mostprestigiousA. 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 credit
18. The bank helping the exporter to check the correctnessof the documents and set the payment procedure in motionisA. 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 essentialD. Is important
20. “ Full set on board ocean bills of lading to ordershipper, 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 theletter 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 anexample of
A. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the seller
23. The “ order of precedence” among the documentsexplainsA. 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 anexport 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, hisfactory may be short of work, he can get some exportincentives from the government )
25. Partial invalidity clause can help to avoid problemswith 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 problemwith 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 theexporter in the following case ?A contract for supply cloth worth $5,000 per month to the
government Oceanea – a prosperous country. Duration of thecontract 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 documentand 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 newlyelected government that has been preparing legislation onthis subject for five yearsA. yesB. questionableC. No
31. It’s always good for the exporter to promote his skillsand 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 newlyelected governmentA. yes B. questionableC. no
33. When the bill of lading marked “ freight prepaid”. Whopays 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 thevalidity,…., performance of contractA. interpretationB. payment
C. correctionD. Acceptance
37. In how many originals and copies is the air waybillissued according to the standard of the International AirTransport 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 ( Incoterm2000): 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 theexporter in the following case ?A new small customer in a Pacific island republic much
given to political disturbances. The order is for $10,000worth 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 saleablequality. 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, ….occurs
A. 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 thebank pays the exporter and the issuing bank findssomething 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 thecredit
D. the confirming bank has paid the money to the exporterand has no way of recovering it. The confirming bank mustpay 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 innegotiating 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
payment47. 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 namescertain ….which allow one side to terminateA. time limitsB. defaultsC. situationsD. conditions
49. What can protect both the exporter and importer in anexport 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 airtransport 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 oneside and…by the otherA. AcceptedB. DeclinedC. WrittenD. drawn
2. When the exporter fills in the letter of creditapplication 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 thebuyer’s bank
C. It means the exporter is double guaranteed in terms ofpayment by a third bank beside the issuing bank and theadvising bank
D. It means the confirmation from the issuing bank interms 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 theexporter ?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 asfollow:
A. Buyer instructs issuing bank to issue letter of creditin favor of the seller
B. Buyer instructs issuing bank to instruct advising bankto pay under the letter of credit in favor of the seller
C. Buyer instructs an issuing bank to instruct aconfirming bank to pay under a letter of credit in favor ofthe seller
D. Buyer instructs issuing bank to instruct any third bankto 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 shipmentsare allowed perhaps by different modes of transport, theletter of credit should have the words….between the namesof transport documentsA. 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 bank
C. the date the letter of credit is no longer effectiveD. the last date the shipment should be made by the
exporter9. War risk is not included:
A. A clauseB. B clauseC. A, B, C clause
10. In contract negotiation, “an invitation to provide termsand 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 (Incoterm2000) 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 creditis called:A. the issuing bankB. the advising bankC. the confirming bankD. the opening bank
13. “ The seller shall make good the defect or damages assoon as practicable and at his own cost”. This is anexample of:A. legal action periodB. notification periodC. rectification period
D. defect liability period14. “ 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 thelist of all required documentation is incorporated intothe 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 securityfor 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 beconfused with the…of the goodsA. departureB. destinationC. transshipment
21. When there are words like “about” or “approximately” inthe letter of credit’s amount, how much can the actualpayment 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 amount22. Drunken people have no…to sign contract
A. contractual capacityB. contractual conceptC. contractual governmentD. contractual branch
23. As the consequences of a defect can be expensive, thequestion of who pays for the consequential loss or damageis often…A. agreeableB. controversial
C. non-negotiableD. amicable
24. How many timing problems are involved in DefectLiability Period ?A. threeB. fourC. twoD. five
25. In negotiating a letter of credit, the step in which theexporter checks the credit to see that requireddocumentation is as agreed is:A. agreementB. incorporationC. veritificationD. compliance
26. What happens first when a bank refuses to pay under aletter of credit?A. the bank will cite a “discrepancy”, some aspect of the
documentation that is not in line with the terms of thecredit
B. a check-list of commonly cited discrepancies may beused by banks
C. the exporter will have to re-submit their shippingdocuments
D. the exporter must contact the buyer asking the buyerto instruct the issuing bank to extend the date of credit27. The background of the contract is provided in the form
of:A. a clauseB. a definitionC. the annex
D. a whereas-recital28. 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 bySGS ?A. the PhilippinesB. the IndonesiaC. the United KingdomD. all A,B and C
31. After making the shipment of the goods to the buyer, theexporter 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 candeposit the goods in the warehouse if the ship arriveslate and that this country is delivery. If the letter of
credit requires a bill of lading and makes no mention ofa 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 arrivedlate 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 andthe 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 letterof 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 issues
D. individual conflicts38. What does it mean by “ irrevocable” letter of credit ?
A. it means the letter of credit can be cancelled at anytime by the buyer or issuing bank
B. it means the letter of credit cannot be cancelled atany time by the buyer or the issuing bank
C. it means the lette of credit can be cancelled if thebeneficiary agrees to do so
D. it meand the letter of credit can only be cancelled ifthe buyer agrees to do so39. 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 theinsurance and freight ?A. the exporterB. the buyerC. the forwarding agentD. the confirming bank
41. The disadvantages of…policy is that it is set up forparticular 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 contractgoods by road from Kenya to Zambia with freight paid bythe exporter:A. CFR LusakaB. CPT LusakaC. CFR Nairobi
45. Most contracts contain an assurance that the exporterwill………..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 offeringarbitration services, the…in Paris is the mostprestigiousA. UCPB. ADR
C. ICCD. FAO
49. The names of…are normally the full, registered name ofthe 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 thereno……..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 collectthe 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 exporterwill …….. any defects in his productsA. Make goodB. Take awayC. AlterD. Modify
7. A warranty is aimed at:A. Obtaining loansB. Assurance of product performanceC. Credit purchaseD. Profit making
8. It’s always good for the exporter to promote his skillsand 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 tryto protect themselves with a clause like this:” paymentshall 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
disposal10. The essence of Continental law is
A. CodificationB. VerificationC. AuthenticationD. Ratification
11. Allowing the buyer to repair the equipment at theexporter’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 byone 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 creditis paid after delivery. Right or wrong?A. Completely rightB. Definitely wrongC. It dependsD. The letter of credit is not payable until a number of
days15. 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 byrail does not come into the possession of the buyer.C. Such a letter of credit is certain to cause delayin 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 thisevent shall be deemed force majeure)A lockout (Background: The workers have been striking for
one day a week. The management locks the workers out offactory 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 poorreputation for enforcing awards, the best method ofpayment 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 successfulbusiness?E. QualityF. Customer satisfaction
G. Correct marking and packagingH. On-time delivery
21. Different legal systems regulate that rejection ofdelivered goods must be total ………can be partial.A. OrB. AndC. And/orD. Nor
22. If both parties perform their duties exactly accordingto 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 anyduty under this contract by an event beyond his reasonable control, then thisevent 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 hasauthority to sign the contract, parties shouldcheck………………E. The duplicate of the signatureF. The authenticity of the signatureG. The coverage of the signature
H. The transferability of the signature26. 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 forparticular 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 correctnessof the documents and set the payment procedure in motionisA. The issuing bankB. The advising bankC. The confirming bankD. Any third bank
30. Delivery of the goods under the most export contractstake place in a country of :A. The importerB. The exporterC. The agent
31. The stand-by letter of credit originated in the US isused there because …
E. It is very popular for US exporters to ask for paymentfrom their buyers or customers.
F. It is much more convenient to ask for one in the USinstead of the ordinary letters of credit.
G. The banking law in some states forbids banks to issuepayment guarantee
H. English banks prefer to issue demand guarantees andordinary 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 goodconditionsA. CleanB. DirtyC. Claused
35. (Note: If either party is prevented from, or delayed in, performing anyduty under this contract by an event beyond his reasonable control, then thisevent shall be deemed force majeure)A volcanic eruption buries the factory in ashA. YesB. QuestionableC. No
36. The entire agreement clause means that all documentsthat 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”. Whopays 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 ofcredit 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 theexporter is liable to cure defects that come to light inthe goods.
A. Guarantee periodB. Defect liability periodC. Correction methodsD. Quality assurance requirements
42. Earthquake, volcanic eruption and lighting are notcovered 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 andconcurrent 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 goodsover to the carrier.A. C and FB. D and FC. C and D
46. Export credit insurance is very attractive; however, ithas certain limitations like …….A. High premium paid by the exporter
B. Long time waiting for compensation from the insurancecompany
C. Long time since the buyer fails to pay up to the timethe insurance company compensates the exporter and theinability of covering 100% of the original invoice price.
D. Refusal from the insurance company to quote premiumsdue 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 legalaction is legally called:A. NotificationB. RectificationC. Legal action periodD. Detect liability period
50. A payment guarantee simply commits the bank to pay ifthe buyer defaults. The payment guarantee is usually for…of the contract price E. 100%F. Less than 100%G. 10%
ĐỀ 221. The legal action period varies greatly from law to law.
Which of these defines this period that is equal to andconcurrent 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 theexporter to minimize the risk of the goods being rejectedor 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 ofitB. the replacement of the defective item to the return ofitC. the return of the goods and refund of the price
D. non of these6. 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 exchangebeing sent together with other documents to the acceptingbank is…A. Sight draftB. Short-term draftC. Time draftD. Long-term draft
8. What are common discrepancies reported by banks inpractice?A. They are problems with the letter of creditB. They are problems with the Bill of ladingC. They are problems with insurance and/or theinconsistencies among the documentsD. Any of the above
9. There is no connection between the letter of credit andthe sales contract. Right or wrong?A. Completely rightB. Completely wrongC. It dependsD. The exporter and the buyer may agree that all the termin their sales contract must be stated in the letter ofcredit
10. The parties to a contract are not always required to…theVienna 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 andthree copies of the marine bill of ladingB. It means the exporter must produce three original outof the whole three which have been issued by the shippingcompanyC. It means the number of originals and that of copies ofthe marine bill of lading required are always the sameD. It means the marine bill of lading must be issued inthree originals and three copies
12. The rules of international common law decide the lawthat applies for the contract if the contract does notspecify 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-sidedC. can be either one-sided or two-sidedD. must be two-sided
14. What if a letter of credit calls for “a complete set oforiginal air waybills”?
A. The exporter has to present the full set of originalair 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 tothe consignee. The bank, however, will follow the wordingof the letter of credit exactly and refuse an “incompleteset” waybills
15. Which of the following discrepancies is NOT the problemwith 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 thecreditD. A certificate of insurance is produced while the creditcalls for a policy
16. The buyer can reject goods that are not of saleablequality. 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 ofcontradictionsA. 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 isalways….A. Predictable
B. ForeseeableC. UnpredictableD. Estimated
19. To make sure that the officer signing the contract hasauthority 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 actionperiod?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 buyerto pay a certain sum of money when the exporter presentsthe necessary documentsB. A letter of credit is like a bill of exchange given forthe price of goodsC. A letter of credit ranks as cash and must be honoredD. No set off or counterclaim is allowed to detract from aletter of credit
25. What is a letter of credit requires “an appropriatewildlife certificate”?A. It is a vague requirementB. The bank and the exporter may have different views onwhat is “appropriate”C. It should be more specific like what the certificatemust show and who should issue itD. All of the above
26. Open cover is not a policy: the….will write a policy ifrequiredA. InsurerB. ImporterC. Exporter
27…..refer(s) to the questions of implied warrantiesA. Most contractsB. Most lawsC. The UCCD. The Vienna Sales Convention
28. A contract requiring the exporter to send the contractgoods by road from Kenya to Zambia with freight paid bythe exporter.A. CFR LusakaB. CPT Lusaka
C. CFR Nairobi29. 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 problemswith 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 ofcredit 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 thedate 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 correctlycompleted waybill cannot show this information
34. The contract should regulate what happens if Incoterm2000 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 fromthe 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 forpaticular 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 correctnessof the documents and set the payment procedure inmotions is….A. The issuing bankB. The advising bankC. The confirming bankD. Any third bank
39. What are the set of assumptions with which a pricequotation is based?A. Mode of payment, timing, place of payment
B. 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 goodcondition.A. cleanB. dirtyC. claused
41. Anglo-American law isA. Law codeB. Case lawC. Civil lawD. Legal code
42. The decision of arbitrators isA. Law-orientedB. Business-orientedC. Action-orientedD. Reaction-oriented
43. “Export credit insurance is a kind of special privilegethat an exporter may get from his government’s exportincentives and suport”. Right or wrong?A. Completely rightB. Absolutely wrongC. Neither right or wrongD. It is not a charity. It is beneficial for both exporterand insurance company
44. If the box “With brief advice by teletransmission” iscrossed, it means….A. The exporter wants to be informed of the inssuance ofthe letter of credit by telexB. The exporter wants to begin preparations for delivery
C. The buyer’s responsibility of informing the exporterthat a letter of credit has been issued in his favorD. The exporter wants to know about the inssuance of theletter of credit more quickly
45. According to the UCC, if the goods fail in any respectto 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 ( Incoterm2000 ): 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 ordershipper, bank endorsed”. In this clause shipper means….A. ExporterB. ImporterC. Bank
D. A or B or C. It depends on the situation50.Discount Records bought phonograph records from an
exporter. Payment was by letter of credit issued byBarclays Bank. The exporter delivered a mix of cassetteseight- track cartridges and other non-contractual goods.Discount Records tried to get an injunction to stopBarclays from paying under the letter of credit. What youthink 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 thecourts may oblige him to make good any damage he hascaused 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 withcontracts 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 problemwith 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 theparties, his task is to suggest a fair solution onlyA. Judge
B. ConciliatorC. MagistrateD. Lawyer
7. In settlement by acceptance, what will the bank do afterreceiving the documents and draft on the buyer from theseller?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
8. “Full set on board ocean bills of lading to ordershipper, 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 goodswhen they are …A. Beyond his controlB. In his controlC. Under his control
11. Export credit insurance which gives the exporter anacceptance level of security in terms of payment shall bepaid by …A. The buyerB. The exporter
C. A bank D. An insurance company
12. If a contract is the entire agreement, earlier lettersand documents …A. Can be used as evidenceB. Become invalidC. PrevailD. Remain important
13. Shortage of supplies (Background: the exporter cannotget the raw jute he needs from the supplier because of ashipping delay)A. YesB. QuestionableC. No
14. If a dispute arises, the recital allows the court todiscover the real meaning of …A. The contractB. The term C. The incotermsD. The appendix
15. The method of payment which is completely safe for theseller in small purchases is …A. Open accountB. Cash on deliveryC. Cash against invoiceD. Cash with order
16. The applicable law governs questions concerning thevalidity, … , performance of contracts.A. InterpretationB. PaymentC. Correction
D. Acceptance17. The force majeure clause suggested by the International
Chamber of Commerce, for example, states the payment ofinterest 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 anexport 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 (Incoterms2000): 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 theinsurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirming bank
24. Earthquake, volcanic eruption and lighting are coveredunder 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 ifthey 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
29. The place of payment is very important because latepayment is subject to payment of interest and the cost ofany 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, theseassumptions 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 issuingletter 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 fromthe 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
acceptance40. If a country ratifies the Vienna Convention, in the
event of conflict, the Vienna Sales Convention can … theNational 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 goodstraded of 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 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, theletter of credit should have the words … between thenames of transport documents.
A. And B. OrC. And/orD. Either B or C
44. Which of the following discrepancies is NOT the problemwith 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 aletter 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 thecredit47. The defects liability period is also called:
A. Warranty periodB. Guarantee period
C. Correction action periodD. Legal action period
48. Anglo-American law is …A. Law codeB. Case lawC. Civil lawD. Legal code
49. Shortage of supplies (background: the exporter cannotget the raw jute he needs from the supplier because theCentral Bank will not give him foreign exchange to paythe supplier)A. YesB. QuestionableC. No
50. A bank guarantee which gives the exporter an acceptablelevel 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 theinsurance and freight?E. The exporterF. The buyerG. The forwarding agentH. The confirm
3. Defects that come to light after buyer’s acceptance arecalled…E. Patent defectsF. Latent defectsG. Coherent defectsH. Apparent defects
4. Replacing a defective product helps to keep the ……… ofcustomer.A. GoodwillB. Good imageC. Good businessD. Wellbeing
5. If the force majeure event continues for too long, bothparties have the right toD. Continue the contractE. Terminate the contractF. Make late delivery
6. Parties to contract for the sale of goods are free tochoose.A. Applicable lawB. International lawC. Corporate lawD. Business law
7. Which of the following is not the method of issuing theletter of credit?E. By emailF. By airmailG. By mailH. By teletransmission
8. When an offer is made, it is not applicable when ithas…..?A. SuspensionB. RenovationC. RevocationD. Adaptation
9. In drafting an arbitration clause, the following questionmust 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 thesellere. 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 ofbreach 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 shipmentsare allowed perhaps by different modes of transport, theletter of credit should have the words … between thenames 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 beused? D. DDPE. CIFF. CIP
17. If a contract is an entire agreement, earlier lettersand 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 ornon-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 ofcredit 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”. Whopays for freight?E. The buyer
F. 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 doafter receiving the documents and draft drawn from on thebuyer from the seller?E. The bank will pay the seller immediatelyF. The bank will pay the seller as long as the documentssubmitted 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 rail
H. 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 ( forcemajeure)D. Yes E. Questionable F. No
29. Which of the following discrepancies is NOT the problemwith 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 thanthat 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 firstdemand” which means…A. Serious and objective conditions must be met by thebeneficiary 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 newlyelected governmentD. YesE. QuestionableF. No
34. Which of the following is NOT true?E. A letter of credit is a binding agreement by the buyerto pay a certain sum of money when the exporter presentsthe necessary documentsF. A letter of credit is like a bill of exchange given forthe price of goodsG. A letter of credit ranks as cash and must be honoredH. No set off or counterclaim is allowed to detract from aletter 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 inpractice?
E. They are problems with the letter of creditF. They are problems with the Bill of ladingG. They are problems with insurance and/or theinconsistencies among the documentsH. Any of the above
38. Why letters of credit are formally called “documentarycredits”?E. Because a letter of credit is a binding agreement by abank to pay a certain sum of money when the exporterpresents the necessary documents to the bank.F. Because a letter of credit is issued by an issuing bankat the request of the buyerG. Because in a letter of credit situation, documents areexchanged for moneyH. Because the documents in a letter of credit are proofsof trust.
39. Inspection by the ………. Is called “ open packageinspection”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 account
C. Export credit insuranceD. At sight letter of credit
42. In contract, “partial invalidity provision” means theinvalidity 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 documentand 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”. Whopays 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 paymentimpossible is E. A typical contract clause in which there areregulations on the amount of interest the seller shall beentitled to receive in case of late payment.F. An agreement with the buyer to strengthen the paymentprovisions with a payment guaranteeG. An agreement with an insurance company in case thebuyer fails to pay on timeH. A confirmed, irrevocable, at sight letter of credit.
46. Which is the most appropriate method of payment for theexporter in the following case? Sale of a bale (roll) ofcloth costing 200 USD to a nearly tailor’s shop with whomyou 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 ofcontradictionsE. 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 toconform 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 forsophisticated 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”. Whopays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement
6. It is.......to identify latent defect than patent defect
A. EasierB. More complicatedC. More effectiveD. Better
7. When the goods arrive, if they are........, the importercan reject them but if they....specifications, he isobliged to accept themA. Defective/conform toB. Perfect/conform toC. Defective/differ fromD. Perfect/differ from
8. Different legal system regulate that rejection ofdelivered goods must be total........can be partial A. OrB. AndC. And/orD. Nor
9. Which of the following is NOT considered to be specialrequirement 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 bank
D. The seller presents the necessary documents to thereconfirming bank
11. Shortage of supplies (Background: The exporter cannotget the raw jute he needs from the supplier because theCentral Bank will not give him foreign exchange to paythe 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 theexporter?A. Credit by sight paymentB. Credit by deferred paymentC. 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 aresupplied by:A. The contract provisionB. The UCCC. Most laws
D. The contract16. 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) theissuing bank permits payment
D. Any of the above18. … 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 toinspect 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 (Incoterm2000) 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 forparticular time and automatically expiresA. tailor-madeB. floatingC. Open cover
24. A contract requiring the exporter to send the contractgoods by road from Kenia to Zambia with freight paid bythe exporterA. CFR LusakaB. CPT LusakaC. CFR Nairobi
25. Transfer of risk from the seller to the buyer (Incoterm2000) DESA. When the goodsare 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 board26. Which of the following is not true?
A. a LC is binding agreement by the buyer to pay acertain sum of money when the exporter presents thenecessary documents
B. A letter of credit is like a bill of exchange givenfor the price of goods
C. A letter of credit ranks as cash and must be honoredD. No set off or counterclaim is allowed to detract from
a letter of credit27. In contract negotiation, “an invitation to provide terms
and conditions” 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
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” inthe 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 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% lessthan the stated amount
D. The actual payment therefore can be between 5% and 10%of the stated amount
31. Which of the following is not the reason why theexporter 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 thingspreventing 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 theydo not confirm to the contract. This is called…A. Implied warranty of suitabilityB. Implied warranty of conformityC. Implied warranty of marchantabilityD. Implied warranty of fitness for intended purpose
34. Earthquake, volcanic eruption and lighting are notcoverd under the cargo clause…A. AB. BC. C
D. B and C35. In how many originals and copies is the air waybill
issued according to the standard of the International AirTransport 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 correctnessof the documents and set the payment procedure in motionis…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 goodconditionA. CleanB. DirtyC. Claused
40. The names of…. Are normally the full, registered name ofthe company
A, the exporterB. the buyerC. either the exporter or the importerD. the parties
41. In a contract, a formal definition is the best way odclarifying what exactly the two sides have….A. ExcudedB. negotiatedC. AgreedD. solved
42. In most guarantee, the bank agree to pay “on firstdemand” 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 Incoterm2000 and the terms of the contract conflict normally the…. PrevailsA. IncotermB. ContractC. Incoterm and contract
44. The entire agreement clause means that all documentsthat 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, theexporter 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” iscrossed, 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 quickly47. In contract, …. Is not normally allowed
A. Delegation of dutiesB. Assignment of rightsC. 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 documentand 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 mostpreferred 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 givenin...A. The noticesB. The appendicesC. The exhibitsD. The adoption
2. If shipment is under Incoterms other than CIF orCIP,......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 specificationis......in businessA. LucrativeB. RiskyC. AdvantageousD. Common
5. A contract comes into force when an offer is made byone side and.....by the other
A. AcceptedB. DeclinedC. WrittenD. Drawn
6. A bank guarantee which gives the exporter an acceptablelevel of security in terms of payment shall be paidby....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 ladingC. Clear bill of lading
8. 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 itemabroad......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 exactlyaccording 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 payunder a letter of credit?A. The bank will cite a “discrepancy”, some aspect of
the documentation that is not in line with with theterms of credit
B. A check – list of commonly cited discrepancies willbe used by banks
C. The exporter will have to re-submit their shippingdocuments
D. The exporter must contact the buyer asking the buyerto instruct the issuing bank to extend the date ofcredit
13. 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 lawC. Legal systemD. Lawful case
15. What is transferable credit?
A. It is the kind of credit which allows the exporter totransfer his right as the credit’s beneficiary to anythird party
B. It is the kind of credit which allows the firstbeneficiary to request the confirming bank to pay athird party
C. It is the kind of negotiable document with which theexporter can endorse for any third party
D. It is the kind of credit with which the buyer willnot necessarily know who is the actual supplier ofthe goods
16. The Incoterm....contains 11 termsA. 1990B. 2000C. 2010
17. When a contract is canceled, a payment problemarises, the party in breach has a.....case of paymentA. StrongB. WeakC. SolidD. Big
18. Delivery of the goods under most export contractstakes place in the country of ........A. The importerB. The exporterC. The agent
19. Which of the following is NOT a method of issuingthe letter of creditA. By emailB. By airmailC. By mail
D. By teletransmission20. 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 impliedwarrantiesA. 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. Dawsoninstructed an American bank to open a letter of credit.One of the required shipping documents was acertificate of quality issued “by experts”. The bankpaid the exporter. The beans, when they arrived, wererubbish. The certificate of quality was signed,however, by only on “expert”. Could the bank collectfrom 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 aboutgoods – 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 “ freightcollected”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. In depends on the agreement
28. The risk of rough handling is not covered underthe 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 candeposit the goods in a warehouse if the ship arriveslate and that this counts as delivery. If the letter ofcredit requires a bill of lading and makes no mentionof a warehouse receipt,A. the exporter will still be paid against a warehousereceiptB. the bank simply cannot pay against a warehousereceiptC. the buyer refuses to pay the exporter against awarehouse receiptD. the buyer still has to pay the exporter against thewarehouse receipt because his designated vessel hasarrived 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 poorreputation for enforcing awards, the best method ofpayment 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 airwaybill issued according to the standard of theInternational Air Transport Association – IATA?A. 3 originals and 3 copiesB. 3 originals and 6 copiesC. 3 originals and 9 copiesD. It depends on the requirements in the letter of
credit34. 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 rail D. When the goods are on board
35. Which of the following discrepancies is NOT theproblem 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 thecreditD. a certificate of insurance is product while thecredit calls for a policy
36. Inspection by......reveals discrepancies inquality A. Custom officersB. The carrierC. The exporterD. The importer
37. A grace period is sometimes used to.......A. Avoid penaltyB. Facilitate early delivery
C. 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 ofcredit 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 theletter 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 sightletter of credit, which one is the least satisfactoryfor 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 theletter of credit are in perfect order
B. Sometimes, the bank may question the necessity orvalue of the documents
C. The bank is not interested in the question of why thebuyer wanted a particular document presented in aparticular form
D. There are no rules as to what documents a letter ofcredit may or may not require
44. All of the following are objectives that theexporter tries to minimize the risk of the goods beingrejected 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 theloudspeaker to the amplifier” is an example ofA. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the buyer
46. Of the three options available for settlingdisputes, litigation before the court isinternationally 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 accompaniesdelivery of A. Software
B. HardwareC. FootwearD. Chinaware
48. In some legal systems, the buyer has theright.......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 271. 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
payment2. 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 excludeassignment 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 firstdemand" which means....A. Serious and objective conditions must be met by the
beneficiary before claiming payment of the guarantee
B. 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 paymentimpossible is....E. A typical contract clause in which there are
regulations on the amount of interest the seller shallbe entitiled to receive in case of late payment
F. An agreement with the buyer to strenthen the paymentprobisions with a payment guarantee
G. An agreement with an insurance company in case thebuyer fails to pay on time
H. A confirmed, irrevocable, at sight letter or credit.9. Which of these is the cheapest option for the exporter
A. RepairB. ReplaceC. Reduce the priceD. Return the goods
10. Which of the following is NOT the method of issuing theletter of credit?A. By emailB. By airmailC. By mailD. By teletransmission
11. Assuming shipment is by rail, what if a letter ofcredit 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 bynewly 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 ofcredit 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 beneficiary17. Two parties sign a contract
A. 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 forthe insurance and freightA. The exporterB. The buyerC. The forwarding agentD. The confirming bank
20. Within the four alternatives of the at-sight Letter ofcredit, which one is the least satisfactory for theexporter?A. Settlement by sight paymentB. Settlement by deferred payment
C. Settlement by acceptanceD. Settlement by negotiation
21. Termination for convenience occurs when one partysimply 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 thefreightA. The exporterB. The forwarding agentC. The buyerD. The confirming bank
23. It is common to put the definition clause.... of thecontractA. at the beginningB. near the beginningC. at the endD. near the end
24. A contract requiring an exporter in Ethiopia to sendthe 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 acontractE. UnableF. AbleG. ImpossibleH. Unaffordable
28. Export credit insurance which gives the exporter anacceptable 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 thecargo clause....A. AB. BC. CD. B and C
32. ..... happens when one party ends the contract becauseof breach by the otherA. CancellationB. SuspensionC. ImpossibilityD. Termination
33. Which is the most appropriate method of payment for theexporter in the following case? A new small customer in aPacific island republic much given to politicaldistuebances. The order is for $10,000 worth of assortedtextilesA. 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 capacityD. intelligence
35. The decision of arbitrators is....A. Law-orientedB. Business-orientedC. Action-orientedD. Reaction - oriented
36. the place of delivery is doubly important to theexporter because the date of....normally depends on timeand place of deliveryA. InsuranceB. PaymentC. Invoice
37. If the price is quoted CFR HaiPhong, who pays for thefreight?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 roadtransport is called....A. Road bill of ladingB. Road bill
C. 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 thingare.....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 respectto 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 hisproduct is calledA. A product guaranteeB. 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 isoften…A. AgreeableB. ControversialC. Non-negotiableD. Amicable
2. In negotiating a letter of credit, the step in which theexporter rigorously check the documentation and submit itto the bank is…A. AgreementB. VerificationC. SpecificationD. Compliance
3. Among a number of international bodies offeringarbitration service, the … in Paris is the mostprestigious.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 ofcredit will call for…A. An insurance policyB. A letter of insurance
C. 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 buyersagainst … productA. AdvancedB. DentedC. InferiorD. Superior
8. Why can a manufacturer sometimes accept a loss on anexport 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 (Incoterm2000): 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 anexcessive 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 provideterms 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 thebuyer defaults. The payment guarantee is usually for … ofthe 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 act
C. 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 whichthe list of all required documentations is incorporatedin the contract is…A. SpecificationB. IncorporationC. ComplianceD. Verification
18. Transfer of risk from the seller to the buyer (incoterm2000): 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 problemwith 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 beused?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 acontract …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” iscrossed, 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 quickly26. 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 LC
C. The invoice is required to be certified or notarized bythe LC does not state exactly the kind of certification madeby whom
D. The documents required to be signed are not signed27. 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. AgreementD. Verification
29. 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 themanufacturer’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 mostpreferred 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 exporterwill … any defects in his productA. Make goodB. Take awayC. AlterD. Modify
33. All the following are objectives that the exportertries to achieve to minimize the risk of the goods beingrejected 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 sellerC. The bankD. The manufacturer
36. The entire agreement clause means that all documentsthat predicts the contract E. Are still validF. Become importantG. Become invalid
H. Can be used as evidence37. 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 assecurity 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 accordingto 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 letterand documents …A. Can be used as evidenceB. Become invalidC. PrevailD. Remain important
42. If the price is quoted CIP Vancouver, who pays for thefreight?
A. The exporterB. The forwarding agentC. The buyerD. The confirming bank
43. In settlement by deferred payment, if the seller needsmoney 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 assignsthe 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 thirdparty
B. It is the kind of credit which allows the 1st
beneficiary to request the confirming bank to pay a thirdparty
C. It is the kind of negotiable document with which theexporter can endorse by any third party
D. It is the kind of credit with which the buyer will notnecessarily 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 notpossible?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): FASA. When the goods are ex-quayB. When the goods are handed to the 1st carrierC. When the goods across the ship’s railD. When the goods are on board
50. In CIP and CIF contracts, ... must pay for insurancefrom 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
payment5. 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 designB. 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 acceptablelevel 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 withwhich___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 bank16. 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 LC17. With a well-designed set of specification, the seller
can protect its____ and avoid costsA. ReputationB. ProductionC. Resolution
D. Profitability18. 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 bank
B. Because the LC is issued by an issuing bank at the request of the buyer
C. Because in a LC situation, documents are exchanged for money
D. Because the documents in a LC are proofs of trust20. The answer to background question are written ______
A. Through the whereas-recital (giốngcâu 10)21. A disclaimer of warranty often accompanies delivery of
A. 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 Lusaka
C. CFR Nairobi30. 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 contractB. 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 of
A. 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, bothparties 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 waybills
46. Export credit insurance is very attractive, however, has certain limitations likeA. 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 ofcovering 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 ordershipper, 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 arecalled: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 exchangebeing sent together with other documents to the acceptingbank 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 needsmoney 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 full valueD. Payment is still safe but is delayed
8. A ban is issued on the export of jute products by newlyelected government that has been preparing legislation onthis subject of five years(Note: If either party is prevented from, or delayed in performing any dutyunder this Contract by an event beyond his reasonable control, then this eventshall be deemed force majeure)A. YesB. QuestionableC. No
9. The force majeure clause suggested by the InternationalChamber of Commerce, for example, states that payment ofinterest 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 orCIP,…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 exporterprefers 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, ithas 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 theinability of covering 100% of the original invoice price.
H. Refusal from the insurance company to quote premiumsdue to risky business or the buyer’s non- creditworthiness.16. In settlement by sight payment,…
A. The sellers present the necessary documents to theissuing bank
B. The sellers present the necessary documents to theadvising bank
C. The sellers presents the necessary documents to thepaying bank
D. The sellers presents the necessary documents to thereconfirming bank17. 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 todiscover the real meaning of…
A. The contractB. The termC. The incotermD. The appendix
19. Transfer of risk from the seller to the buyer (Incoterm2000) : 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’tB. Yes. There is one in case banks are reluctant to
confirm letter of credit, especially those from obscurebanks
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 canthe 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 ( andif) the issuing bank permits payment
D. Any of the above25. 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 successfulbusiness?A. QualityB. Customer satisfactionC. Correct making and packagingD. On-time delivery
28. When the bill of lading marked “freight collected”. Whopays for freight?I. The buyer
J. The sellerK. The agentL. It depends on the agreement
29. The “exporter’s wording” and the “Buyer’s wording” inthe 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 theexporter because the date of…. Normally depends on timeand place of delivery.A. InsuranceB. PaymentC. Invoice
31. Within the four alternatives of the at-sight letter ofcredit, which of one is the least satisfactory for theexporter?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 notesB. 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 legalproblem cause by :……A. Misspelling namesB. Mistyping namesC. Misreading namesD. Misaccepting names
38. A bank guarantee which gives the exporter anacceptable level of security in term of payment shall bepaid by….A. The buyerB. The exporterC. A bankD. A third party
39. “The Buyer shall notify the Seller of defects withoutundue delay”. This is example of:A. Defect liability period
B. Notification periodC. Rectification periodD. Legal action period
40. …………...happens when one party ends the contract becauseof breach by the other.A. CancellationB. SuspensionC. ImpossibilityD. Termination
41. In principle, the buyer and reject delivered goods ifthey 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 normaluse. 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 rail
H. 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 exporterwill make the goods defects in his goods?A. WarrantyB. Guarantee C. Defects liabilityD. Warrantee
46. Why do most exporters offer a discount for earlypayment, for example 1% discount if payment is madewithin 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
delivery47. The court of arbitration applies whatever ………….. the
parties stipulate in the contractA. International lawB. Corporate law
C. National lawD. Business law48. ………….. is two-sided proceduresA. TerminationB. CancellationC. RescissionD. Suspension
49. A contract that is ultra vires is…………A. Well enforceableB. Unenforceable