ĐỀ SỐ 1 1. In settlement by deferred payment (thanh toán trả chậm) , the letter of credit is paid

after delivery. Right or wrong?A. Completely rightB. Definitely wrongC. It dependsD. The letter of credit is not payable until a number of day

2.Which of these counts as a defect?A. Wrong design B. Fair wear and tearC. MisuseD. Missing items

3. (Note: If either party is prevented from, or delayed in, performing any duty under this contract by an event beyond his reasonable control, then this event shall be deemed force majeure)Shortage of supplies (background, the exporter cannot get the raw jute he need from the supplier because of a shipping delay)A. YesB. QuestionableC. No

4.The majority of shipping documents presented to banks under documentary credit transaction are accepted on first presentation, Right or wrong A. Completely rightB. Definitely wrongC. Neither right nor wrongD. It depends

5. A warranty is aimed at:A. Obtaining loansB. Assurance of product performanceC. Credit purchaseD. Profit making

6.The Anglo-American contract is………A. Not the entire agreementB. Traditionally the entire agreement

C. Sometimes the entire agreementD. Rarely the entire agreement

7.In negotiating a letter of credit, the step in which the list of all required documentation is incorporated into the contract is……A. Specification (speccifying) ghi rõB. Incorporation C. Compliance( submit) thực thiD. Verification (check) rà soát

8. In a contract under a Continental law, a recital……A. Is essentialB. Is importantC. Is not useful D. Is useful

9.Minimum Coverage is the so-called Cargo Clause…..p64A. AB. BC. C

10. How many timing problems are involved in Defects Liability Period? P134A. ThreeB. FourC. TwoD. Five

11. The main difference between Continent and Anglo –American contract law is the degree of…..A. Codification( bộ luật)B. FormationC. AutomationD. Interpretation

12. What happens if the issuing bank finds a problem with the documents and refuses to send funds to the advising bank to cover payment?A. The advising bank has to suffer that loss due to their carelessness in checking the

shipping documentsB. The advising bank gets its money back from the exporter

C. The payments form the advising bank to the exporter are always made with recourse. The exporter has to pay back the advising bank in such a case

D. It is the responsibility of the issuing bank of paying back the advising bank in suck in case

13. What can protect both the exporter and the importer in an export contract?A. A well-designed set of specificationsB. An itemized set of specificationC. A plain set of specificationD. None of these

14. Which of the following is the objective aimed at by the exporter to minimize the risk of the goods being rejected of heavy defects liability claims?A. Winning buyer’s goodwillB. Keeping his promiseC. Negotiating detailed specificationsD. Making profit

15. Transfer of risk form the seller to the buyer (Incoterm 2000) CIPA. When the goods are at the seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

16. The name of …………… are normally the full, registered name of the company.A. The exporterB. The buyerC. Either the exporter or the importerD. The parties

17. In a contract under a Continental law, a recital…..A. Is essentialB. Is not useful C. Is not essentialD. Is important

18………….. is opened-endedA. Tailor-madeB. FloatingC. Open cover

19. The mechanism of a confirmed letter of credit works as follows:A. Buyer instructs issuing bank to issue a letter of credit in favor of the sellerB. Buyer instructs issuing bank to instruct an advising bank to pay under a letter of

credit in favor of the sellerC. Buyer instructs issuing bank to instruct a confirming bank to pay under a

letter of credit in favor of the sellerD. Buyer instructs issuing bank to instruct any third bank to under letter of credit in

favor of the seller

20.In CIF and CIP contracts, the exporter normally assigns the insurance agreement to……A. The buyerB. The carrierC. The issuing bank

21. In principle the buyer can reject delivered goods if they do not conform to the contract. This is called…..A. Implied warranty of suitabilityB. Implied warranty of conformityC. Implied warranty of merchantabilityD. Implied warranty of fitness for intended purpose

22. A contract is not enforceable if….A. It is signed within powerB. It has a legal purposeC. It has an illegal purposeD. It has no purpose

23. The Disclaimer of warranty means:A. The seller is liable for the goodsB. The buyer is denied of some of his normal rightsC. The seller will make good any defectD. Contract prices would be far higher

24. In negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submits it to the bank is…….A. AgreementB. VerificationC. Specification

D. Compliance

25. Which of the following discrepancies is NOT the problem with the Letter of Credit?A. The credit has expired B. Document required by the credit are missingC. The credit amount is exceededD. Insurance cover is expressed in a currency other than that of the credit

26.The two terminologies which mean the same thing are….A. Guarantee and WarrantyB. Bond and SuretyC. Warranty and Defects LiabilityD. Guarantee and Insurance

27. Normally, risks are transferred at the point of……A. DeliveryB. PaymentC. Arrival

28. War risk is not included in……..A. A clause B. B ClauseC. A,B,C clause

29. Negotiation of specification between the exporter and the importer can be ………A. An effortless processB. A difficult process C. Done by an intermediary D. A simple process

30. Why do the exporters offer a discount for early payment , for example a 1% discount of payment is made within 10 days of the date of invoice ? A. Because the discount is so attractive to the buyersB. Because the buyer can save on the invoice priceC. Because the exporter can substantially improve his cash flowD. Because the exporter just want to get payment for delivery

31. The method of payment which is dangerous for the exporter is: A. Cash on deliveryB. Accepting a personal checkC. Prepayment

D. Export credit insurance32. AS for Ango-American ,the decision of judge is always :

A. PredictableB. ForceableC. UnpredictableD. Estimated

33. If both parties perform their duties correctly, a contract is discharged by :A. DefaultB. SuspensionC. PerformanceD. Breach

34. Dawson bought vanilla beans from Indonesia. Dawson instructed an American bank to open a letter of credit. One of required shipping documents was a certificate of quality issued “ by experts”. The bank paid the exporter. The beans, when they arrived, were rubbish. The certificate of quality was signed, however, by only one “expert”. Could the bank collect from Dawson the money it had paid to the exporter?A. Definitely ,it couldB. Probably, it couldC. No, it could notD. No question, it could

35.If the price is quoted FOB Singapore, who pays for the insurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirm

36. The bill of lading issued by the carrier for combined transport is called:A. Combined bill of ladingB. Combined billC. Combined transportation bill of ladingD. Combined transport bill of lading

37.In a contract the word “ whereas” means : A. “only that”B. “while”C. “when”D. “because” or “consider that”

38. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading ?

A. It is possible demandB. The original of the bill of lading for shipment by rail does not come into the

possession of the buyer.C. Such a letter of credit is certain to cause delay in paymentD. The bank insists on strict compliance

40. Which is the most appropriate method of payment for the exporter in the following case ? Sale of a bale (roll) of cloth costing 200 USD to a nearly tailor’s shop with whom you have done business for 20 years.A. Confirmed letter of credit.B. Open account with no securityC. Open account with bank guaranteeD. Open account with export credit insurance

41. IF shipment is under Incoterms other than CIF or CIP ?A. the buyer has to arrange the insurance cover by himselfB. The buyer may still ask the exporter to arrange some aspects of the insurance

for himC. The exporter has to arrange the insurance cover to the goodsD. The exporter pays for insurance till the port of discharge

42. The period during which the buyer can begin a legal action is legally called:A. NotificationB. RectificationC. Legal action periodD. Detect liability period

43. The delivery depends on A. Date of executionB. Effective date C. Preconditions

44. The Vienna Sales Convention is also called:A. the uniform Law of International SaleB. the Uniform Law on the Formation of Contract for the international Sale of GoodsC. the UN Convention on Contract for the International Sale of GoodsD. the UN Convention on Contract for acceptance

45. How many originals and copies is the air waybill issued according to the standard of the International Air Transport Association-TATA?A. Three originals and 3 copiesB. 3 originals and 6 copies C. 3Originals and 9 copies

D. it depends on the requirements in the letter of credit46. The parties to a contract are not always required to .....

A. IgnoreB. ApplyC. Refuse D. Decline

47. A ban is issued on the export of jute products by newly elected government that has on been preparing legislation on this subject for 5 years.A. YesB. QuestionableC. No

50. The bank that the buyer asked to open a letter of credit is callA. an issuing bankB. an advising bankC. confirming bankD. opening bank

ĐỀ 21. The decision of arbitrator is:…

A. Law- orientedB. Business-orientedC. Action-orientedD. Reaction-oriented

2. Under most laws, a buyer can make certain assumptions about goods. These assumptions are called (by lawyers):A. Express warrantiesB. Negotiable warrantiesC. Implied warrantiesD. Implied guarantee

3. If the force majeure event continues for too long, both parties have the right toA. Continue the contractB. Terminate the contractC. Make late delivery

4. If the price is quoted FCA, who pays for the freight?A. The exporterB. The carrierC. The buyerD. The forwarding agent

5. When parties agree to end a contract, … occurs.A. TerminationB. FrustrationC. Rescission (từ bỏ)D. Suspension

6. In a contract, a formal definition is the best way of clarifying what exactly the two sides have …A. ExcusedB. NegotiatedC. AgreedD. Solved

7. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is …A. AgreementB. IncorporationC. VerificationD. Compliance

8. “A machine that consumes more fuel than specification” is an example of:A. Latent defectB. Patent defectC. Inherent defectD. Apparent defect

9. When the bill of lading marked “freight prepaid”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement

10. Which of these is the cheapest option for the exporter?A. RepairB. Replace (part of the whole item)C. Reduce the priceD. Return the goods

11. The clause covers General AverageA. AB. BC. A, B, C

12. The bill of lading issued by the carrier for road transport is called…

A. Road bill of ladingB. Road billC. Roadway billD. Road consignment note

13. Which of the following examples is a patent defect?A. Crushed of stained garmentsB. The flooring shows signs of deteriorationC. High fuel consumptionD. Inadequately tightened nuts and bolts

14. If shipment is made on CIF or CPI terms, the letter of credit will call forA. An insurance policyB. A letter of insurance C. A certificate of insurance D. Either A or C

15. In settlement by sight paymentA. The seller presents the necessary documents to the issuing bankB. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank

16. Which of the following discrepancies is not the problem with inconsistencies among documents?A. The description of the goods on the invoice and the description of the goods in the

credit are differentB. Documents are not presented within the required timeC. Weights differ between 2 documentsD. Marks and numbers differ among documents

17. “The buyer shall notify the seller of defects without undue delay”. This is an example of:A. Defects liability periodB. Notification periodC. Rectification periodD. Legal action period

18. Termination for convenience occurs when one party simply decides to drop the contract andA. No reason is requiredB. Reasons are requiredC. Consultation is required

D. Conversation is required19. Which is the most appropriate method of payment for the exporter in the following

case? A new small customer in a Pacific island republic much given to political disturbances. The order is for $10000 worth of assorted textilesA. Open account with no securityB. Open account with bank guaranteeC. Open account with export credit insuranceD. Confirmed letter of credit

20. In negotiating a letter of credit, the step in which the list of all required documentation is incorporated into the contract isA. SpecificationB. IncorporationC. ComplianceD. Verification

21. In drafting an arbitration clause, the following question must be resolved:A. How many arbitrators sit in the court?B. What is the language of the court?C. Where is the place of the court?D. All the above

22. In a contract, consideration may consist of…A. Only rightB. Only interestC. Only profit, detriment and lossD. Right, interest, profit, detriment and loss

23. Why letters of credit are formally called “documentary credits”?A. Because a letter of credit is a binding agreement by a bank to pay a certain sum of

money when the exporter presents the necessary documents to the bank.B. Because a letter of credit is issued by an issuing bank at the request of the buyerC. Because in a letter of credit situation, documents are exchanged for moneyD. Because the documents in a letter of credit are proofs of trust.

24. Continental law has well developed private law, especially contract and …A. Commercial lawB. Corporate lawC. Community lawD. Case law

25. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn from on the buyer from the seller?

A. The bank will pay the seller immediatelyB. The bank will pay the seller as long as the documents submitted comply with all

the terms of letter of credit.C. The bank checks the documentsD. The bank agrees to pay the bill when it matures

26. In contract, “partial invalidity provision” means the invalidity of one part of the contract…A. May invalidate the restB. Does not invalidate the restC. Affects the restD. Enforces the rest

27. Who issues bill of lading?A. CaptainB. ExporterC. Shipping companyD. Agent

28. Why can a manufacturer sometimes accept a loss on an export deal?A. He wants to win a regular customerB. His factory may be short of workC. He can get some export incentives from the governmentD. Any of above

29. A disclaimer of warranty often accompanies delivery ofA. SoftwareB. HardwareC. FootwearD. Chinaware

30. Delivery of the goods under most export contracts takes place in the country ofA. The importerB. The exporterC. The agent

31. All risks covered is under … clauseA. AB. BC. C

32. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NamibiaA. CIF Windhoek

B. CIP WindhoekC. DEQ Windhoek

33. A contract is not enforceable if A. It is signed within powerB. It has a legal purposeC. It has illegal purposeD. It has no purpose

34. Transfer of risk from the seller to the buyer (Incoterm 2000): CIFA. When the goods are at the seller’s premisesB. When the goods are handled to the first carrierC. When the goods across the ship’s railD. When the goods are on board

35. Discount Records bought phonograph records from an exporter. Payment was by letter of credit issued by Barclays Bank. The exporter delivered a mix of cassettes, eight-track cartridges and other non- contractual goods. Discount Records tried to get an injunction to stop Barclays from paying under the letter of credit. What you think the court would do in that case?A. The court refusedB. The court acceptedC. The court would not involveD. The exporter will be paid although later action in the courts may oblige him

to make good any damage, he has caused the buyer.36. Negotiation of specification between the exporter and the importer can be…

A. An effortless processB. A difficult processC. Done by an intermediaryD. A simple process

37. An offer dies if it has a/an:A. AcceptanceB. AgreementC. AdoptionD. Revocation

38. Which of the following discrepancies is not the problem with the letter of credit?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired.

39. Which of the following concepts is best used to avoid confusion when we mean an assurance that the exporter will make good defects in his goods?A. WarrantyB. GuarantyC. Defects liabilityD. Warrantee

40. If alternative means of transport of partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words … between the names of transport documentation.A. AndB. OrC. And/orD. Either B or C

41. If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight. Right or wrong?A. Completely rightB. WrongC. Partly right, as the seller is obliged to pay only the freight and insurance

necessary to put the goods on board of the designated vessel by the buyerD. Completely wrong, because the buyer is obliged to pay for insurance and freight

on his own account if term of trade is FOB.42. The main concerns of the parties to contract should be…

A. Dispute managementB. Dispute avoidanceC. Dispute costD. Dispute means

43. A commercial invoice must be made out to…A. The exporter B. The shipperC. Any party endorsing the bill of ladingD. The application for the letter of credit, normally to the buyer, unless

otherwise stated in the credit.44. Another name for tender guarantee is

A. Revocation guaranteeB. Bid guaranteeC. Bond guarantee

D. Bid bond45. The best solution for the exporter to make late payment impossible is

A. A typical contract clause in which there are regulations on the amount of interest the seller shall be entitled to receive in case of late payment.

B. An agreement with the buyer to strengthen the payment provisions with a payment guarantee

C. An agreement with an insurance company in case the buyer fails to pay on timeD. A confirmed, irrevocable, at sight letter of credit.

46. Defects may be which of the following? Cả design nữaA. Defects in materialsB. Defects in workmanshipC. BothD. None of these

47. If a dispute arises, the recital allows the court to discover the real meaning of …A. The contractB. The termC. The incotermD. The appendix

48. The dockworkers in Port Verbena go on strikeA. YesB. QuestionnaireC. No

49. Defects that come to light after buyer’s acceptance are called…A. Patent defectsB. Latent defectsC. Coherent defectsD. Apparent defects = patent

ĐỀ 31. A contract is a written agreement and it follows the “meeting of minds” and….

A. Offer and declineB. Offer and refusal C. Offer and acceptance quá trình đàm phánD. Offer and renewal

2. A bank is issued on the export of jute products by newly elected governmentA. YesB. QuestionableC. No

3. Continental lawyers ……. Complicated grammar of the whereas- clauseA. Often avoidB. Often useC. Often take advantage ofD. Sometimes use

4. The clause covers General Average:A. AB. BC. A,B,C

5. The contract should regulate what happen if Incoterms 2000 and the terms of contract conflict normally the ….. prevailsA. IncotermB. ContractC. Incoterm and contract.

6. If is possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money?A. No. it isn’tB. It is impossible by all meanC. The draft must be drawn on the buyer to the order payment not the bankD. Yes, it is

7. Continental law is also called…….A. Civil lawB. Common law = case law = Anglo-American LawC. Legal systemD. Lawful case

8. Unless the letter of credit states otherwise, insurance coverage on a CIF or CIP shipment must be for…… of the CIF or CIP value of the goods

A. 100%B. 90%C. 50%D. 110%

9. The bank helping the exporter to check the correctness of the documents and set the payment procedure in motion is……..A. The issuing bankB. The advising bankC. The confirming bankD. Any third bank

10. Why letter of credits are formally called documentary credits?A. Because a letter of credit is a binding agreement by a bank to pay a certain sum of money when the exporter presents necessary documents to the bankB. Because a letter of credit is issued by a issuing bank at the request of the buyerC. Because in a letter of credit situation, documents are exchanged for money D. Because the documents in a letter of credit are proof of trust

11. If the exporter knew the buyer’s intended purposes, and if the buyer relied on the exporter knowledge and expertise, the buyer can reject the goods that are not suitable for their intended purposes. This is called……A. Implied warranty of the suitability with intended purposesB. Implied warranty of fitness for attentionC. Implied warranty of fitness for objectivesD. Implied warranty of fitness for intended purposes

12. If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight. Right or wrong?A. Completely rightB. WrongC. Partly right, as the seller is obliged to pay only the freight and insurance necessary to put the goods on board of the designated vessel by the buyer.D. Completely wrong because the buyer is obliged to pay for insurance and freight on his own account if term of trade is FOB

13. If a contract is an entire agreement, earlier letters and documents……..A. Can be used as evidenceB. Become invalidC. PrevailD. Remain important

14. The point of delivery is much the same for all…….. terms and …….. terms- when the exporter hand over the goods to the carrierA. C & FB. D & FC. C & D

15. A term or terms in a contract could raise the contract priceA. A shorter warranty periodB. Customer order goods in one colorC. No additional packaging or safety warnings are required beyond normal standardsD. A longer warranty period

16. Who issue export credit insurance?A. The buyerB. The exporterC. An insurance companyD. Any export company

17. The defects liability clause should states:A. The date of acceptanceB. Exporter’s duty if a defect comes to lightC. Both A & BD. Only A

18. If shipment is made on CIF or CIP terms, the letter of credit will call for….A. An insurance policyB. A letter of insuranceC. A certificate of insuranceD. Either A or C

19. The lump-sum compensation is set too low A. liquidated damages B. quasi indemnity C. penalty

20. To cure the defective goods, the best option for the exporter is: A. taking back the defective goods and giving back the money B. reducing the price C. replacing the goods D. dependent on the type of goods

21. The workforce at the factory goes on strike:A. Yes B. Questionable

C. No22. The exporter's interests are best served by

A. An irrevocable letter of credit. B. A confirmed letter of credit C. An at-sight letter of credit D. A combination of all of the above.

23. …………..are the explanations.A. Definition clauses B. Whereas-recital clauses C. Preamble clauses D. Annex clauses

24. 'Door to door service" is offered. Which term should be used? A. DDPB. CIFC. CIP

25. Delivery of the goods under most export contracts takes place in the country of A. the importerB. the exporterC. the agent

26. Continental Law does not require long and contracts. A. Loose B. Lax C. Brief D. Detailed

27. The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specifications is…….. in business. A. lucrative B. risky C. advantageous D. common

28. The answers to background questions are written A. through the whereas-recital B. through the annex C. through provisions D. through conditions

29. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may

A. reject the whole B. accept the whole C. accept any commercial unit and reject the rest D. All the above

30. The advantages of arbitration are A. Private and foreseeable costs B. Lengthy and open C. Binding and rigid D. Time – consuming

31. . Whereas-clauses.A. are provisions B. are promises C. are conditions D. are not provisions, promises or conditions( they are explanation)

32. In terms of payment in international trade. A. Risk rises and cost rises as well B. Risk falls and cost falls as a consequence C. Risk and cost have no relationship with each other D. Risk and cost rise and fall together

33. Defects such as wrong items, broken or missing parts, scratches, and so on are called A. patent defects B. latent defects C. inherent defects D. concealed defects

34. The bill of lading issued by the carrier for sea transport is called A. Seaway bill B. Marine bill of ladingC. Sea way bill

35. Which of the following discrepancies is NOT the problem with the Letter of Credit? A. The shipment was short B. The shipment was late. C. There is no endorsement if endorsement is necessary. D. The credit has expired.

36. Failure to meet specifications is a A. Defect in workmanship B. Defect in material C. Defect in design

D. Defect in quantity37. The bill of lading issued by the carrier for road transport is called

A. Road bill of lading B. Road bill C. Roadway bill D. Road consignment note

38. Mowing the buyer to repair the equipment at the exporter's cost …….A. is always the best choice for the exporter B. is always the worst choice for the exporter C. is often safe for the exporterD. is often unsafe for the exporter

39. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading? A. It is a possible demand. B. The original of the bill of lading for shipment by rail does not come into the

possession of the buyer. C. Such a letter of credit is certain to cause delay in payment D. The bank insists on strict compliance.

40. Partial invalidity clause can help to avoid problems with contacts that……. E. might infringe government regulations F. violate the trade laws G. discourage trade H. both b and c

41. Which of these does not require prior inspection by SGS? A. The PhilippinesB. Indonesia C. The United Kingdom D. All A, B and C

42. In a contract, the word" whereas" means A. only that"B. ‘while'C. when' D. because' or 'considering that'

43. Export credit insurance is very attractive; however, it has certain limitations like.... A. high premiums paid by the exporter. B. long time waiting for compensation from the insurance company

C. long time since the buyer fails to pay up to the time the insurance company compensates the exporter and the inability of covering 100% of the original invoice price. D. Refusal from the insurance company to quote premiums due to risky business or the buyers non-creditworthiness

44. Why do most exporters offer a discount for early payment, for example a 1% discount if payment is made within 10 days of the date of invoice? A. Because the discount is so attractive to the buyer B. Because the buyer can save on the invoice price C. Because the exporter can substantially improves his cash flow D. Because the exporter just wants to get payment on delivery

45. If the buyer come from a country which has poor reputation for enforcing awards, the best methods of payment under the contract is a/ an…..

A. Revolving L/CB. At sight, confirmed L/CC. Deferred, irrevocable L/CD. Transferable L/C

46. Who issues bank guarantee?A. The buyerB. The exporterC. Any third partyD. A bank

47. Inspection by the buyer is called:A. Independent inspectionB. Inspection of goods prior to the shipmentC. Open package inspectionD. Customs inspection

48. Which of the following discrepancy is NOT the problem with insurance?E. Document are not presented with the required timeF. The sum insured below the figure requiredG. the insurance risks are not those specified in the creditH. A certificate of insurance is produced while the credit calls for a policy

49. A contract requiring an exporter in Mozambique to deliver the contract goods Beira Mozambique for the shipment by sea to Da esSallamTazania

A. FAS BeiraB. CIF BeiraC. FOB Da es Salaam

50. There is no connection between the letter of credit and the sales contract. Right or wrong?A. Completely rightB. Completely wrongC. It dependsD. The buyer and the buyer may agree that all the term in their sales contract must be stated in the L/C

Đề 4:

1. There are … parties to a warranty and … in a guaranteeA. 3/2B. 3/3C. 2/3D. 2/2

2. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporterA. CFR LusakaB. CPT LusakaC. CFR Nairobi

3. Once the bank has indicated the discrepancies, what can the exporter do?A. The exporter can provide the missing paperwork or correct errorsB. The exporter can ask the buyer to instruct the bank to change the items of the letter of

creditC. The exporter can ask the bank to process the letter of credit with the discrepancies but

to pay only when (and if) the issuing bank permits paymentD. Any of the above

4. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NamibiaA. CIF WindhoekB. CIP WindhoekC. DEQ Windhoek

5. A contract requiring an exporter in Mozambique to deliver the contract goods in Beria, Mozambique, for the shipment by sea to Dar es Salaam, TanzaniaA. FAS BeiraB. CIF BeiraC. FOB Dar es Salaam

6. The two terminologies which mean the same thing are …A. Guarantee and warrantyB. Bond and suretyC. Warranty and defects liabilityD. Guarantee and insurance

7. Which country requires that all goods imported into the country are inspected by the SGS immediately before shipment?A. The USAB. Vietnam C. IndonesiaD. The UK

8. Dawson bought vanilla beans from Indonesia. Dawson instructed an American bank to open a letter of credit. One of the required shipping documents was a certificate of quality issued “by experts”. The bank paid the exporter. The beans, when they arrived, were rubbish. The certificate of quality was signed, however, by only one “expert”. Could the bank collect from Dawson the money it had paid to the exporter?A. Definitely, it couldB. Probably, it couldC. No, it couldn’tD. No question, it could

9. Which of the following method of payment is NOT possible?A. 100% of the contract price by letter of creditB. 20% prepayment and 80% by letter of creditC. 90% by letter of credit and 10% retaining until the warranty period is overD. Part of the contract price is paid by letter of credit but there is not a clear figure

stated in the amount of the credit10. The majority of shipping documents presented to banks under documentary credit

transactions accepted on first presentation. Right or wrong?A. Completely rightB. Definitely wrongC. Neither right nor wrongD. It depends

11. In a contract under a Continental law, a recital ….A. Is essential B. Is not usefulC. Is not essential D. Is important

12. In a contract, consideration may consist of …A. Only rightB. Only interestC. Only profit detriment, and lossD. Right, interest, profit, detriment, and loss

13. Which type of bill of lading is negotiableA. SurrenderB. StraightC. To order

14. A unilateral offer can be defined as:A. An offer made of a promise in return for a promiseB. An offer made of a promise in return for an actC. An offer made of an act in return for an actD. An offer made of act in return for a promise

15. Small purchase in private life are often in the form of …

A. Cash on deliveryB. Cash against invoiceC. Cash with orderD. Any of the above

16. Transfer of risk from the seller to the buyer (Incoterms 2000): DDPA. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

17. Shortage of supplies (Background: the exporter cannot get the raw jute from the supplier because of a shipping delay)A. Yes B. QuestionableC. No

18. The defect liability clause should state:A. The date of acceptanceB. Exporter’s duty if a defect comes to lightC. Both A and BD. Only A

19. Continental law is also called …A. Civil lawB. Common lawC. Legal lawD. Lawful case

20. When the goods arrive, if they are …, the importer can reject them but if they … specifications, he is obliged to accept themA. Defective/conform toB. Perfect/conform to C. Defective/differ fromD. Perfect/differ from

21. In contract, “partial invalidity provision” means the invalidity of one part of the contract …A. May invalidate the rest B. Does not invalidate the restC. Affects the rest D. Enforces the rest

22. For the exporter, the option to repair a defective item abroad…A. Is negligentB. Can be costlyC. Is always the best choiceD. Is always the worst choice

23. The mechanism of a confirmed letter of credit works as follows:A. Buyer instructs issuing bank to issue a letter of credit in favor of the sellerB. Buyer instructs an issuing bank to instruct an advising bank to pay under a letter of

credit in favor of the sellerC. Buyer instructs an issuing bank to instruct a confirming bank to pay under a

letter of credit in favor of the sellerD. Buyer instructs an issuing bank to instruct any third bank to pay under a letter of

credit in favor of the seller24. “A voltmeter that is specified as accurate within 1 millivolt is accurate within only 5

millivolt” is an example of:A. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the seller

25. Which of the following discrepancies is NOT the problem with inconsistencies among the document?A. The description of the goods on the invoice and the description of the goods in the

credit are differentB. Documents are not presented within the required timeC. Weights differ between two documentsD. Marks and numbers differ among documents

26. The bank notifying the exporter that the letter of credit has been opened is called …A. The issuing bank B. The advising bankC. The confirming bankD. The opening bank

27. … is open-ended A. Tailor-madeB. FloatingC. Open cover

28. … happens when one party ends the contract because of breach by the orderA. CancellationB. SuspensionC. ImpossibilityD. Termination

29. Who issues ocean bill of ladingA. Captain B. ExporterC. Shipping companyD. Agent

30. The point at which money is deemed to be paid most preferred by buyer is …

A. When the buyer pays the money into his bankB. When the buyer’s bank transfers fundsC. When the buyer instructs the bank to pay D. When the funds reach the seller’s bank account

31. An offer dies if it has a/an …A. AcceptanceB. AgreementC. Adoption D. Revocation

32. A price and payment clause taken from an export contract is as follows: “The price payable for the contract goods as specified in annex A is $500,000”. What is missing?A. The clause does not specify how payment will be madeB. The clause does not specify when payment is dueC. The clause lacks all the necessary five steps in negotiating payment mode, time,

place, delay and results of delayD. The clause does not say where the money must be before the buyer is deemed to have

paid, define delay in payment and mention the consequences of delay33. An endlessly renewed liability for defects is called:

A. Eternal warranty B. Ephemeral warrantyC. External warrantyD. Explicit warranty

34. What if a letter of credit calls for “a complete set of original air waybills”?A. The exporter has to present the full set of original air waybills if he want to get

payment from the bankB. The exporter cannot provide the complete setC. This is obviously a mistakeD. Only the second original of the air waybill goes to the consignee. The bank, however,

will follow the wording of the letter of credit exactly and refuse an “incomplete set” waybills

35. Which of the following discrepancies is NOT the problem with the Letter of Credit?A. The credit has expiredB. Documents required by the credit are missingC. The credit amount is exceededD. Insurance cover is expressed in a currency other than that of the credit

36. Among a number of international bodies offering arbitration services, the … in Paris is the most prestigiousA. UCPB. ADRC. ICCD. FAO

37. Transfer of risk from the seller to the buyer (Incoterms 200):CIPA. When the goods are at the seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

38. If the buyer can make certain assumptions about goods-even if the exporter gives no express warranty, these assumptions are called …A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties

39. The point of delivery is much the same for all … terms and … terms-when the exporter hands the goods over to the carrierA. C and FB. D and FC. C and D

40. What an offer is made, it is not applicable when it has …?A. SuspensionB. RenovationC. RevocationD. Adaption

41. The clause covers General AverageA. AB. BC. A,B,C

42. Transfer of risk from the seller to the buyer (Incoterm 2000): DESA. When the goods are ex-shipB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

43. The cheapest mode of transport is …A. By seaB. By airC. By road

44. Continental law has well developed private law, especially contract and …A. Commercial lawB. Corporate lawC. Community lawD. Case law

45. A liquidated damages clause protects …A. The exporter rather than the importer

B. The importer rather than the exporterC. Both sidesD. Neither the exporter nor the importer

46. Who issues export credit insurance?A. The buyerB. The exporterC. An insurance companyD. An export company

47. It is common to put the definition clause … of the contract A. At the beginning B. Near the beginning C. At the endD. Near the end

48. In settlement by deferred payment, the letter of credit is paid after delivery. Right or wrong?A. Completely rightB. Definitely wrongC. It dependsD. The letter of credit is not payable until a number of days

49. “repair by the buyer” provision is often …A. Welcome by the sellerB. Beneficial to the sellerC. Avoided by the sellerD. Imposed by the seller

50. One of the three options available for settling disputes, litigation before the court is internationally least attractive as it …A. Expensive and legalisticB. Business-like and flexibleC. Time-saving and privateD. Fast and acceptable

Đè 5

1.Directions: Choose the answer that suits the question most

In settlement by deferred payment, the letter of credit is paid after delivery . Right

or wrong ?

E. Completely rightF. Definitely wrongG. It dependsH. The letter of credit is not payable until a number of day

2.Directions: 4 answer choices are given below each sentence. Choose the best

answer then then mark the letter A, B, C, D on the screen

Which of these counts as a defect?

E. Wrong design F. Fair wear and tearG. MisuseH. Missing items

3. Directions: Read the sentence given below. Choose the best answer that fits the

situation. Then mark the letter A,B,C on the screen.

(Note: If either party is prevented from, or delayed in, performing any duty under

this contract by an event beyond his reasonable control, then this event shall be

deemed force majeure.)

Shortage of supplies( background, the exporter cannot get the raw jute he need

from the supplier because of a shipping delay)

D. YesE. QuestionableF. No

4.Directions: Choose the answer that suits the question most

The majority of shipping documents presented to banks under documentary credit

transaction are accepted on first presentation, Right or wrong

E. Completely rightF. Definitely wrongG. Neither right nor wrongH. It depends

5.Directions: 4 answer choices are given below each sentence. Choose the best

answer then then mark the letter A, B, C, D on the screen

A warranty is aimed at:

E. Obtaining loansF. Assurance of product performanceG. Credit purchaseH. Profit making

6. Directions: A word or phrase is missing in each of the sentences below.

Directions: 4 answer choices are given below each sentence. Choose the best

answer to completed . then mark the letter A, B, C, D on the screen

The Anglo-American contract is………

E. Not the entire agreementF. Traditionally the entire agreement G. Sometimes the entire agreementH. Rarely the entire agreement

7. In negotiating a letter of credit, the step in which the list of all required

documentation is incorporated into the contract is……

E. SpecificationF. Incorporation G. Compliance

H. Verification

8.In a contract under a Continental law, a recital……

E. Is essentialF. Is important G. Is not useful H. Is useful

9.Minimum Coverage is the so-called Cargo Clause…..

D. AE. BF. C

10. How many timing problems are involved in Defects Liability Period?

E. ThreeF. FourG. TwoH. Five

11.The main difference between Continent and Anglo –American contract law is

the degree of…..

E. CodificationF. FormationG. AutomationH. Interpretation

12. What happens if the issuing bank finds a problem with the documents and

refuses to send funds to the advising bank to cover payment ?

E. The advising bank has to suffer that loss due to their carelessness in checking the shipping documents

F. The advising bank gets its money back from the exporter G. The payments form the advising bank to the exporter are always made with

recourse. The exporter has to pay back the advising bank in such a case

H. It is the responsibility of the issuing bank of paying back the advising bank in suck in case

13.What can protect both the exporter and the importer in an export contract?

E. A well-designed set of specificationsF. An itemized set of specificationG. A plain set of specificationH. None of these

14.Which of the following is the objective aimed at by the exporter to minimize

the risk of the goods being rejected of heavy defects liability claims?

E. Winning buyer’s goodwillF. Keeping his promiseG. Negotiating detailed specificationsH. Making profit

15.Transfer of risk form the seller to the buyer ( incoterm 2000) CIP

E. When the goods are at the seller’s premisesF. When the goods are handed to the first carrierG. When the goods across the ship’s railH. When the goods are on board

16.The name of …………… are normally the full, registered name odf the

company.

E. The exporterF. The buyerG. Either the exporter or the importerH. The parties

17. In a contract under a Continental law, a recital…..

E. Is essentialF. Is not useful G. Is not essentialH. Is important

18………….. is opened-ended

D. Tailor-madeE. FloatingF. Open cover

19.The mechanism of a confirmed letter of credit works as follows:

E. Buyer instructs issuing bank to issue a letter of credit in favor of the sellerF. Buyer instructs issuing bank to instruct an advising bank to pay under a

letter of credit in favor of the sellerG. Buyer instructs issuing bank to instruct a confirming bank to pay under

a letter of credit in favor of the sellerH. Buyer instructs issuing bank to instruct any third bank to under letter of

credit in favor of the seller

20. In CIF and CIP contracts, the exporter normally assigns the insurance

agreement to……

D. The buyerE. The carrierF. The issuing bank

21. In principle the buyer can reject delivered goods if they do not conform to the

contract. This is called…..

E. Implied warranty of suitabilityF. Implied warranty of conformityG. Implied warranty of merchantabilityH. Implied warranty of fitness for intended purpose

22. A contract is not enforceable if….

E. It is signed within powerF. It has a legal purposeG. It has an illegal purposeH. It has no purpose

23. The Disclaimer of warranty means:

E. The seller is liable for the goodsF. The buyer is denied of some of his normal nightsG. The seller will make good any defectH. Contract prices would be far higher

24. In negotiating a letter of credit, the step in which the exporter rigorously.

Checks documentation and submits it to the bank is…….

E. AgreementF. VerificationG. SpecificationH. Compliance

25. Which of the following discrepancies is NOT the problem with the Letter of

Credit?

E. The credit has expired F. Document required by the credit are missingG. The credit amount is exceededH. Insurance cover is expressed in a currency other than that of the credit

26.The two terminologies which mean the same thing are….

E. Guarantee and WarrantyF. Bond and SuretyG. Warranty and Defects LiabilityH. Guarantee and Insurance

27.Normally, Risks are transferred at the point of……

D. DeliveryE. Payment

F. Arrival

28.War risk is not included in……..

D. A clause E. B ClauseF. A,B,C clause

29.Negotiation of specification between the exporter and the importer can be

………

E. An effortless processF. A difficult process G. Done by an intermediary H. A simple process

30. Why do the exporters offer a discount for early payment , for example a 1%

discount of payment is made winthin 10 days of the date of invoice ?

A. Because the discount is so attractive to the buyers

B. Because the buyer can save on the invoice price

C. Because the exporter can sustantially improve his cash flow

D. Because the exporter just want to get payment for delivery

31. The method of payment which is dangerous for the exporter is :

A. Cash on delivery

B. Accepting a personal check

C. Prepayment

D. Export credit insurance

32. AS for Ango-American ,the decision of judge is always :

A. Predictable

B. Forseeable

C. Unpredictable

D. Estimated

33. If both parties perform their duties correctly, a contract is discharged by :

A. Default

B. Suspension

C. Performance

D. Breach

34. Dawson bought vanilla beans from Indonesia. Dawson instructed an American

bank to open a letter of credit. One of required shipping documents was a

certificate of quality issued “ by experts”. The bank paid the exporter. The beans,

when they arrived,were rubbish. The certificate of quality was signed,however,by

only one “expert”. Could the bank collect from Dawson the money it had paid to

the exporter?

A. Definitely ,it could

B. Probably,it could

C.No,it could not

D.No question,it could

35.If the price is quoted FOB Singapore,who pays for the insurance and freight?

A.The exporter

B.The buyer

C.The forwarding agent

D.The confirm

36. The bill of lading issued by the carrier for combined transport is called:

A. Combined bill of lading

B. Combined bill

C. Combined transportation bill of lading

D. Combined transport bill of lading

37.In a contract the word “ whereas” means :

A. “only that”

B. “while”

C. “when”

D. “because” or “consider that”

38. Assuming shipment is by rail, what if a letter of credit demands the original bill

of lading ?

A. It is possible demand

B. The original of the bill of lading for shipment by rail does not come into the

possession of the buyer.

C.Such a letter of credit is certain to cause delay in payment

D. The bank insists on strict compliance

39. UNABLE TO SEE

40. Which is the most appropriate method of payment for the exporter in the

following case ? Sale of a bale (roll) of cloth costing 200 USD to a nearly tailor’s

shop with whom you have done business for 20 years.

A. Confirmed letter of credit.

B.Open account with no security

C. Open account with bank guarantee

D.Open account with export credit insurance

41. IF shipment is under Incoterms other than CIF or CIP ?

A. the buyer has to arrange the insurance cover by himself

B.The buyer may still ask the exporter to arrange some espects of the

insurance for him

C.The exporter has to arrange the insurance cover to the goods

D.The exporter pays for insurance till the port of discharge

42. The period during which the buyer can begin a legal action is legally called:

A.Notification

B. Rectification

C.Legal action period

D.Detect liability period

43. The delivery depends on

A. Date of excution

B. Effective date

C.Preconditions

44. the Vienna Sales Convention is also called:

A. the uniform Law of International Sale

B. the Uniform Law on the Formation of Contract for the international Sale of

Goods

C. the UN Convention on Contract for the International Sale of Goods

D.the UN Convention on Contract for acceptance

45. How many originals and copies is the air waybill issued according to the

standard of the International Air Transport Association-TATA?

A. Three originals and 3 copies

B. 3 originals and 6 copies

C. 3Originals and 9 copies

D. it depends on the requirements in the letter of credit

46. the parties to a contract are not always required to .....

A. Ignore

B. Apply

C.Refuse

D.Decline

47. A ban is issued on the export of jute products by newly elected government

that has on been preparing legislation on this subject for 5 years.

A.Yes

B. Questionable

C.No

50. the bank that the buyer asked to open a letter of credit is call

A. an issuing bank

B. an advising bank

C. confirming bank

D. opening bank

51. Dịch san tiếngViệt

The following documents shall be forwarded to BUYER’s bank immediately after

loading date: Signed Commercial Invoice in 03 originals; Clean “ Shipped on

Board ” Ocean Bill of Lading in complete set of at least 03originals and 03 non-

negotiable copies signed and made out “ To order of Vietcombank Hanoi” ;

Packing list in triplicate.

ĐỀ 6

1. If both parties perform their duties exactly according to the contract, the contract is….A. Discharged by performanceB. Discharged for performanceC. Discharged to performanceD. Discharges with performance

2. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading?A. It is a possible demandB. The original of the bill of lading for shipment by rail does not come into the possession of the buyer.C. Such a letter of credit is certain to cause delay in payment.D. The bank insists on strict compliance

3. If a country ratifies the Vienna Sales Convention, in the event of conflicts, the Vienna Sales Convention can…… ……….. the national law.A. Prevail overB. Conform toC. FollowD. Adapt

4. Which type of payment is the most advantageous for the exporter?A. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation

5. Dawson bought vanilla beans from Indonesia. Dawson instructed an American bank to open a letter of credit. One of the required shipping documents was a certificate of quality issued “by experts”. The bank paid the exporter. The beans, when they arrived, were rubbish. The certificate of quality was signed, however, by only one “expert”. Could the bank collect from Dawson the money it had paid to the exporter?A. Definitely, it couldB. Probably, it couldC. No, it couldn’tD. No question, it could

6. The decision of arbitrators is……………….A. Law- orientedB. Business- oriented

C. Action- orientedD. Reaction- oriented

7. Among a number of international bodies offering arbitration services, the…………….. in Paris is the most prestigious.A. UPCB. ADRC. ICCD. FAO

8. It is common to put the definition clause……………….. of the contract.A. at the beginningB. near the beginningC. at the endD. near the end

9. Which the following is the least desirable option for the exporter?A. Allow the buyer to repair at the exporter’s costB. Reduce the priceC. Return the goods and refund the priceD. Replace the defective items

10. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Namibia.A. CIF WinhoekB. CIF WinhoekC. DEQ Winhoek

11. What is a transferable credit?A. It is the kind of credit which allows the exporter to transfer his right as the credit’s beneficiary to ant third party.B. It is the kind of credit which allows the first beneficiary to request the confirming bank to pay a third party.C. It is the kind of negotiable document with which the exporter can endorse for any party.D. It is the kind of credit with which the buyer will not necessarily know who is the actual supplier of the goods.

12. Which of the following discrepancies is NOT the problem with the Letter of Credit?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired

13. In settlement by sight payment…………………………..A. The seller presents the necessary documents to the issuing bankB. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank

14. When are documents considered to be stale?A. When they reach the issuing bank too lateB. When they are submitted to the opening bank after the merchandise has already arrivedC. When they reach the advising bank at the expiration of the letter of creditD. When they are refused by the issuing bank

15. The word “cash” in international trade means……………A. Coins and notesB. GoldC. Checks or bank transfersD. Prepayment

16. Failure to meet specifications is a:A. Defect in workmanshipB. Defect in materialC. Defect in designD. Defect in quantity

17. Inspection by carrier on dispatch is often carried out:A. In seller’s countryB. In buyer’s countryC. At seaD. At customs area

18. The dock workers in Port Verbena go on strike.A. YesB. QuenstionalbleC. No

19. Continental law is based on a……………………………….A. Case lawB. Common lawC. Legal codeD. Legal system

20. in negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submits it to the bank is………………………………

A. AgreementB. VerificationC. SpecificationD. Compliance

21. The stand-by letter of credit originated in the U.S. is used there because……………….A. it is very popular for U.S. exporters to ask for payment from their buyers of customersB. it is much more convenient to ask for one in the U.S. instead of the ordinary letters of creditC. the banking law in some states forbids banks to issue payment guaranteeD. English banks prefer to issue demand guarantees and ordinary letters of credit

22. Companies………. to use the short form of the names in contracts.A. are forcedB. are not forcedC. are allowedD. are not allowed

23. a well-designed set of specifications protects buyer against…………………product.A. advancedB. dentedC. inferiorD. superior

24. The risk of rough handling is not covered under the cargo clause………………..A. AB. BC. CD. B and C

25. Once the bank has indicated the discrepancies, what can the exporter do?A. The exporter can provide the missing paperwork or correct errorsB. The exporter can ask the buyer to instruct the bank to change the terms of letter of creditC. The exporter can ask the bank to process the letter of credit with the discrepancies but to pay pnly when (and if) the issuing bank permits paymentD. Any of the above

26. Which of the following statement is wrong?A. The bank must check if the documents specified in the letter of credit are in perfect order

B. Sometimes, the bank may question the necessity or value of the documentsC. The bank is not interested in the question of why the buyer wanted a particular document presented in a particular formD. There are no rules as to what documents a letter of credit may or may not require

27. If both parties perform their duties correctly, a contract is discharged by:……………A. DefaultB. SuspensionC. PerformanceD. Breach

28. The point at which money is deemed to be paid most referred by buyer is……………….A. When the buyer pays the money into his bankB. When the buyer’s bank transfers fundsC. When the buyer instructs the bank to payD. When the funds reach the seller’s bank account

29. Shortage of supplies (Background: The exporter cannot get the raw jute he needs from the supplier because of a shipping delay)A. YesB. QuestionableC. No

30. “ Minimum Coverage” is the so-called Cargo Clause……………..A. AB. BC. C

31. A disclaimer of Warranty often accompanies delivery of:A. SoftwareB. HardwareC. FootwearD. Chinaware

32. The defects liability period is also called:A. Warranty periodB. Guarantee periodC. Correction action periodD. Legal action period

33. “A machine that consumes more fuel than specifications” is an example ofA. Latent defectB. Patent defect

C. Inherent defectD. Apparent defect

34. To make sure that the officer signing the contract has authority to sign the contract, parties should check………………….A. The duplicate of the signatureB. The authenticity of the signatureC. The coverage of the signatureD. The transferability of the signature

35. Disclaimer of warranty often accompanies:A. Contracts for hardwareB. Contracts for footwearC. Contracts for glasswareD. Contracts for software

36. The court of arbitration applies whatever………………………….the parties stipulate in the contract.A. International lawB. Corporate lawC. National lawD. Business law

37. If the box “With brief advice by teletransmission” is crossed, it means………A. The exporter wants to be informed of the issuance of the letter of credit by telexB. The exporter wants to begin preparations for deliveryC. The buyer’s responsibility of informing the exporter that a letter of credit has been issued in his favorD. The exporter wants to know about the issuance of the letter of credit more quickly

38. In international trade, if payment is made on delivery, the method of payment to be chosen will be……………………………….A. Bank guaranteeB. Open accountC. Export credit insuranceD. At sight letter of credit

39. In a contract, the word “wheras” means………………………………A. “only that”B. “while”C. “when”D. “because” or “considering that”

40. Which of the following examples is a patent defect?A. Crushed or stained garmentsB. The flooring shows signs of deteriorationC. High fuel consumptionD. Inadequately tightened nuts and bolts

41. Transfer of risk from the seller to the buyer (Incoterm 2000): DESA. When the goods are ex-shipB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

42. A marine Bill of lading becomes negotiable document and no restriction on ownership when it is………………..A. to order, blank endorsedB. surrendered, blank endorsementC. to order, endorsed

43. Negotiation of specifications between the exporter and the importer can be………………..A. an effortless processB. a difficult processC. done by an intermediaryD. a simple process

44. If the price is quoted CIF San Francisco, who pays for the insurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirming bank

45. Who issues ocean bill of lading?A. CaptainB. ExporterC. Shipping companyD. Agent

46. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is……………………..A. AgreementB. IncorporationC. VerificationD. Compliance

47. Is there any requirement that the air waybill shows the date of the lights?A. No, there isn’tB. Yes, there isC. Never is there such a requirementD. No, it is an incorrect requirement because a correctly completed waybill cannot show this information

48. Drunken people have no…………… to sign a contractA. Contractual capacityB. Contractual conceptC. Contractual governmentD. Contractual branch

49. A contract comes into force when an offer is made by one side and………….by other.A. AcceptedB. DeclinedC. WrittenD. Drawn

50. ………………………….is open-ended.A. tailor-madeB. floatingC. open cover

ĐỀ 81. A Contract is not enforceable if….

A. It is signed within powerB. It has a legal purposeC. It has an illegal purposeD. It has no purpose

2. The advising bank never pays the exporter directly. Right or wrong?A. RightB. WrongC. It depend on type of creditD. Neither right or wrong

3. A mistake about the goods in a contract means there is no ….A. Meeting of acceptanceB. Meeting of mindsC. Meeting of conceptsD. Meeting of agreementCorrect answer: B

4. The things that the exporter should keep in mind in negotiating payment are …A. Payment mode, timing, place, delay and results of delayB. How payment will be made and the date of paymentC. Where the money must be before payment is considered to complete and what

delay in payment is excusableD. Results of non- excusable delay in payment and time of payment

5. When the exporter fills in the letter of credit application form, if the box “requested” for the “ Confirmation of credit to the beneficiary” is ticked, what does this mean?A. It means the exporter wants the bank in his country merely handle the paperworkB. It means the exporter wants the bank in his country make the payment itself and

recover the fund from buyer’s bankC. It means that the exporter is double guaranteed in term of payment by a third bank

beside the issuing bank and the advising bank.D. It means the confirmation from the issuing bank in term of payment in case the

buyer defaults 6. To cure the defective goods, the best option for the exporter is :

A. Taking back the defective goods and giving back the moneyB. Reducing priceC. Replacing the goods

D. Dependent on type of goods7. What would be the effect on the price of the goods traded if the buyer wants the goods

sooner?A. The price of goods will go upB. The price of goods will go downC. There is no change in priceD. The price of goods will go up as extra costs involved due to extra working

shifting from the manufacturer8. Transfer of risk from the seller to the buyer ( Incoterm 2000) : DDU

A. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

9. What if the often place of expiry of the credit?A. At the counters of the issuing bankB. At the counters of the advising bankC. At the counters of the confirming bankD. At the counters of the negotiating bank

10. A bill of lading with the note is….A. Clean bill of ladingB. Claused bill of ladingC. Clear bill of lading

11. The bill of lading issued by the carrier for combined transport is called…A. Combined bill of ladingB. Combined billC. Combined transportation bill of ladingD. Combined transport bill of lading

12. In term of payment in international trade,…A. Risk rises and cost rise as wellB. Risk falls and cost falls as a consequenceC. Risk and cost have no relationship with each otherD. Risk and cost rise and fall together

13. A Contract is requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NamibiaA. CFA WindhoekB. CIP WindhoekC. DEQ Windhoek

14. Which of following is not needed for a legally binding contract to be in force?A. Written contractB. Offer and acceptanceC. ConsiderationD. Conversation

15. Elderly people are …to deal with contractA. UnableB. AbleC. ImpossibleD. Unaffordable

16. “The radio lacks the wires to connecting the loudspeaker to the amplifier” is an example of :A. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the buyer Correct answer: C

17. The essence of Continental law is…A. VerificationB. AuthenticationC. CodificationD. Acceptance

18. The arbitrators’ awards are…A. Consultative and examinatorialB. Final and enforceableC. Referable and reverableD. All of above

19. …is open-endedA. Tailor-madeB. FloatingC. Open cover

20. In settlement by signt payment …A. The seller presents the necessary documents to the issuing bankB. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank

21. It is common to put the definition clause …of the contract

A. At the beginningB. Near the beginningC. At the endD. Near the end

22. Under the Angola- American law, a contract must give….A. Both sides rights and dutiesB. Each side rightsC. Each side dutiesD. Not duties but rights

23. The exporter should have no liability for the goods when they are….A. Beyond his controlB. In his controlC. Under his control

24. A well-designed set of specifications protects:A. The exporterB. The importerC. Both partiesD. Neither of these

25. It is possible for beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect money?A. No, it isn’tB. It is impossible by all meansC. The draft must be drawn on the buyer to order payment, not the bankD. Yes, it is

26. Which type of payment is the most advantageous for the exporter?A. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation

27. Another name for warranty is……..A. GuaranteeB. Defect liabilityC. Legal responsibilityD. Warrantee

28. Is there any ‘reconfirming’ bank?A. No, there isn’t

B. Yes, there is one in case banks are reluctant to confirm letters of credit, especially those from obscure banks.

C. Never is thereD. It depends.

29. The best solution for the exporter to make late payment impossible is….A. A typical contract clause in which there are regulations on the amount of interest

the seller shall be entitled to receive in case of late paymentB. An agreement with the buyer to strengthen the payment provisions with a payment

guaranteeC. An agreement with an insurance company in case the buyer fails to pay on timeD. A confirmed, irrevocable, at sight letter of credit

30. All risks covered under ….clauseA. AB. BC. C

31. The bill of lading issued by the carrier for road transport is called…A. Road bill of ladingB. Road billC. Roadway billD. Road consignment note

32. How many timing problems are involved in Defects Liability Period?A. ThreeB. FourC. TwoD. Five

33. “A machine that consumes more fuel than specifications” is an example ofA. Latent defectB. Patent defectC. Inherent defectD. Apparent defect

34. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn on the buyer from the seller?A. The bank will pay the seller immediatelyB. The bank will pay the seller as long as the documents submitted comply with all

the terms of the letter of creditC. The bank checks the documentsD. The bank agrees to pay the bill when it matures.

35. To avoid confusion, many contract drafters use “……..” instead of “warranty”A. GuaranteeB. WarranteeC. Legal responsibilityD. Defect liability

36. Which of these requires prior inspection by SGS?A. IndonesiaB. MalaysiaC. ThailandD. Vietnam

37. The bill of lading issued by the carrier for rail transport is called……A. Railway billB. RailwaybillC. Railway consignment note or rail consignment noteD. Railway bill of lading

38. The place of payment is very important because late payment is subject to payment of interest and the cost of any delay along the payment route properly belongs to….A. The buyerB. The exporterC. The bank of the exporterD. The bank of the buyer

39. A decision of arbitrators is…………….A. Law - orientedB. Business - orientedC. Action – orientedD. Reaction – oriented

40. Anglo – American law develops through………….A. Law codeB. Arbitrators’ decisionsC. Court decisionsD. Legal system

41. The costs of L/C amendments are normally for………A. the buyer’s accountB. the exporter’s accountC. the issuing bank’s accountD. the one who asks for such amendments

42. The disadvantage of……policy is that it is set up for particular time and automatically expires.A. tailor – madeB. floatingC. open cover.

43. Termination for default occurs when the contract names certain………….which allow one side to terminate.A. Time limitsB. DefaultsC. SituationsD. Conditions

44. “Minimum Coverage” is so-called Cargo ClauseA. AB. BC. C

45. To make sure that the officer signing the contract has authority to sign the contract, parties should check………………A. The duplicate of the signatureB. The authenticity of the signatureC. The coverage of the signatureD. The transferability of the signature

46. As the consequences of a defect can be expensive, the question of who pays for the consequential loss or damage is often………A. agreeableB. controversialC. non – negotiableD. amicable

47. In settlement by deferred payment, if the seller needs money immediately, what can he do?A. There is no way he can get money immediatelyB. He can exchange the letter of credit for cash with any agreeable bank.C. The seller can realize some part of the letter of credit’s value, not its full valueD. Payment is still safe but it is delayed

48. War risk is not included in………A. A clauseB. B clauseC. A,B,C clause

49. Inspection by the buyer is called:A. Independent inspectionB. Inspection of goods prior to shipmentC. Open package inspectionD. Customs inspection

ĐỀ 91. There is no connection between the letter of credit and the sales contract. Right or

wrong?A. Completely right B. Completely wrong C. It dependsD. Exporter and the buyer may agree that all the terms in their sales contract must be

stated in the letter of credit.2. Quality assurance and customer satisfaction are the same issues for customers .

A. in domestic marketB. in overseas markets C. Both A and BD. neither A nor B

3. A marine bill of lading can be negotiable document with which….A. The buyer can use itto resell the goods during shipment B. The exporter can use itto resell the goods during shipment C.  The issuing bank can use itto resell the goods to another customer.D. The buyer can use itto negotiate a price with the negotiating bank

4. Which of the following is NOT the method of issuing the letter of credit?A. By emailB. By airmailC. By mailD. By teletransmission.

5. Anglo-American law is also called…..A. Civil lawB. Legal codeC. Common LawD. Law code

6. How do you know Bill of lading is "Marine Bill of lading”?There is a…..A. on board notationB. consigneeC. shipper

7. Continental law prevails in ……..A. The USAB. EuropeC. The Vienna convention systemD. All countries in the world

8. When the Bill of lading marked "freight prepaid”. Who pays for the freight?A The BuyerB. The SellerC. The agentD. It depends on the agreement.

9. An offer dies if it has a/an .A. AcceptanceB. AgreementC. AdoptionD. Revocation.

10. Which of the following discrepancies is NOT the problem with the Letter of Credit?A. The credit has expired.B. Documents required by the credit are missing.C. The credit amount is exceeded.D. Insurance cover is expressed in a currency otherthan that of the credit.11. Parties to contract for the sale of goods are free to choose.

A. Applicable lawB. International lawC. Corporate lawD. Business law

12. There are panics to a warranty and in a guarantee.A three/twoB. three/threeC. two/threeD. two/two

13. To cure the defective goods, the best option for the exporter is:A. taking back the defective goods and giving back the moneyB. reducing the priceC. replacing the goodsD. dependent on the type of goods

14. The Anglo-American contract is......A. not the entire agreementB. traditionally the entire agreementC. sometimes the entire agreementD. rarely the entire agreement

15. The answers to the questions of implied warranties are supplied byA The contract provisions

B. The UCCC. Most lawsD. The contract

16. A contract comes into force when an offer is made by one side and....by the other.A AcceptedB. DeclinedC. writtenD. Drawn

17. Companies . . . . . . . . to use the short form of the names in contracts. A. are forced B. are not forcedC. are allowedD. are not allowed

18. The two terminologies which mean the same thing are.... A Guarantee and Warranty B. Bond and Surety C. Warranty and Defects Liability D. Guarantee and Insurance

19. A guarantee is:A UnilateralB. TripartiteC. BilateralD. Multilateral

20. With a well-designed set of specifications, the seller can protect its and avoid costs.A. reputationB. productionC. resolutionD. profitability

21. "Minim1nn Coverage” is the so-called Cargo Clause .......A. AB. BC. C

22. The bill oflading issued by the carrier for road transport is called .A Road bill ofladingB. Road billC. Roadway bill

D. Road consignment note23. To avoid confusio11_ many contract drafters use "..........” instead of “warranty”.

A guaranteeB. warranteeC. legal responsibilityD. defect liability

24. The place of payment is very important because late payment is subject to payment of interest and the cost of any delay along the payment route properly belongs toA The buyerB. The exporterC. The bank of the exporterD. The bank of the buyer

25. The background of the contractis provided in the form .A. a clauseB. a definitionC. the annexD. a whereas-recital

26. The lump-sum compensation is set too high . A. liquidated damages B. quasi indemnity C. penalty

27. There has no power to enforce his solution or to bind the parties, his task is to suggest affair solution only.A JudgeB. ConciliatorC. MagistrateD. Lawyer

28. Who signs "shipped on board" notation?A CaptainB. ExporterC. Shipping companyD. Agent

29. The expiry date of the letter of credit is.....A. The date the exporter will be paid for goods soldB. The last date for presentation of documents to the bankC. The date the letter of credit no longer effectiveD. The last date the shipment should be made by the exporter.

30. The place of delivery is doubly important to the exporter because the date of …..normally depends on time and place of delivery. A. insurance B. payment C. invoice

31. ............can create 110- contract situations A. Only duress B. Only fraud C. Only mistakeD. Duress,fraud, and mistake all

32. Why is the Certificate of Origin required?A. Because the goods imported are under a preferential tariff or other

agreement.B. Because the exporter has to prove that his exported goods are legal.C. Because the exporter has to show his proof of paying tax to the customs in the

buyer's country.D. Because it is one of the key requirements under the letter of credit's terms.

33. After making the shipment of goods to the buyer, the exporter presents the shipping documents to...A. The issuing bankB. The advising bankC. The confirming bankD. The opening bank

34. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, Namibia_ A. CIF Windhoek B. CIP Windhoek C. DEQ Windhoek

35. A commercial invoice must be made out to A. The exporter. B. The shipper. C. Any party endorsing the bill of lading. D. The applicant for the letter of credit, normally to the buyer, unless otherwise

stated in the credit.36. The lump-sum compensation is set about right

A. liquidated damages.B. quasi indemnity

C. penalty37. Failure to meet specifications is a:

A. Defect in workmanshipB. Defect in materialC. Defect in design D. Defect in quantity

38. What are the set of assumptions with which a price quotation is based? A. Mode of payment, timing, place of payment. B. Delay in payment and results of delay. C. Choices of method of payment D. Delivery, payment and warranty terms.

39. Of the three options available for settling disputes, litigation before the court is internationally least attractive as it is: A. Expensive and legalistic B. Business- like and flexible C. Time-saving and private D. Fast and acceptable

40. If the box "With brief advice by teletransmission" is crossed, it means: A. The exporter wants to be informed of the issuance of the letter of credit by

telex. B. The exporter wants to begin preparations for delivery. C. The buyer’s responsibility of informing the exporter that a letter of credit has been

issued in his favor. D. The exporter wants to know about the issuance of the letter of credit more quickly.

41. In settlement by sight payment A. The seller presents the necessary documents to the issuing bank. B. The seller presents the necessary documents to the advising bank. C. The seller presents the necessary documents to the paying bank. D. The seller presents the necessary documents to the reconfirming bank

42. Which type of bill of lading is negotiable? A. surrenderB. straightC. to order

43. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter. A. CFR LusakaB. CPT Lusaka

C. CFR Nairobi44. The things that the exporter should keep in mind in negotiating payment are .....

A. Payment mode, timing, place, delay and results of delay. B. How payment will be made and the date of payment.C. Where the money must be before payment is considered complete and what delay

in payment is excusable.D. Results of non- excusable delay in payment and time of payment.

45. In a confirmed letter of credit, what happens if the bank pays the exporter and the issuing bank finds something wrong with the documents? A. The exporter has a problemB. The confirming bank has a problem. C. It is the issuing bank which has an absolute obligation to pay the exporter

according to the terms of the credit D. The confirming bank has paid the money to the exporter and has no way of

recovering it. The confirming bank must pay the exporter without recourse.46. If a dispute arises, the recital allows the court to discover the real meaning of :

A. the contractB. the termC. the incotermD. the appendix

47. A letter of credit can be either "revocable" or "irrevocable". Few exporters will accept a revocable letter of credit, so the plain expression "letter of credit" generally means the irrevocable kind. The word "irrevocable", therefore, should not always appear in the text of the credit and of the contract. Right or wrong?A. Wrong. B. Wrong, because it should always appear in the text of the credit and of the

contract according to the ICC's rules. C. Right. D. Right, because in the absence of a clear indication, letter of credit are deemed to be

irrevocable.48. (Note: If either party is prevented from, or delayed in, performing any duty under this

Contract by an event beyond his reasonable control, then this event shall be deemed force majeure.)Shortage of supplies (Background: The exporter cannot get the raw jute he needs from

the supplier because the Central Bank will not give him foreign exchange to pay the supplier)

A. Yes

B. QuestionableC. No

49. Inspection of the goods by the buyer in the manufacturer's factory is referred to as:A. Inspection by inspection serviceB. Pre-delivery inspectionC. Post-delivery inspectionD. Customs inspections

50. If the buyer can make certain assumptions about goods - even if the exporter gives no express warranty, these assumptions are called....A. explicit warrantiesB. exotic warrantiesC. unspoken warrantiesD. implied warranties

ĐỀ 101. The incoterm … contains 13 terms.

a. 1990b. 2000c. 2010d. 1990 and 2000

2. In negotiating a LC, the step in which the exporter check the credit to see that required documentation is as agreed is…a. Agreementb. Incorporationc. Verificationd. Compliance

3. The question of warranty is disposive. This mean:a. It is fixedb. The exporter can usually exclude all warrantiesc. The exporter must include it in the contractd. It is non-existent

4. which of the following discrepancies is NOT the problem of the Bill of Lading?a. The bill of lading is “unclean”b. The bill of lading shows shipment between ports other than those specified in the

creditc. The descriptions of the goods in the invoice and the description of the goods

in the credit are differentd. There is no endorsement if endorsement is necessary

5. Inspection by carrier on dispatch is often carried out:a. In seller’ countryb. In buyer’s countryc. At sead. At customs area

6. In settlement by sign payment…a. The seller present the necessary documents to the issuing bankb. The seller present the necessary documents to the advising bankc. The seller present the necessary documents to the paying bankd. The seller present the necessary documents to the reconfirming bank

7. What are the set of assumptions with which a price quotation is based?a. Mode of payment, timing, place of paymentb. Delay in payment and results of delay

c. Choices of method of paymentd. Delivery, payment and warranty terms.

8. Defect includea. Mistakeb. Materialsc. Fair wear and teard. Misuse

9. Anglo-American law, a contract must give…a. Both sides rights and dutiesb. Each side rightsc. Each side dutiesd. No duties but rights

10. Inspection of the goods by the buyer in the manufacturer’s factory is referred to as:a. Inspection by inspection serviceb. Pre-delivery inspectionc. Post-delivery inspectiond. Customs inspection

11. The bill of lading issued by the carrier for rail transport is called…a. Railway billb. Rail waybillc. Railway consignment noted. Railway bill of lading.

12. A ban is issued on the export of jute products by newly elected government that has been preparing legislation on this subject for 5 yearsa. Yesb. Questionablec. No

13. Termination may be for…a. Disruptionb. Authenticationc. Convenienced. Adoption

14. The force majeure suggested by International Chamber of Commerce, for example, states that payment of interests on overdue sums payable to the seller is … by …a. Excused/force majeureb. Not excused/force majeurec. Excused/Acts of God

d. Excused/Contingencies15. Companies … to use the short form of the name in the contracts.

a. Are forcedb. Are not forcedc. Are allowedd. Are not allowed

16. In a contract under a Continental Law, a recital…a. Is essentialb. Is importantc. Is not usefuld. Is useful

17. The delivery depends on…a. Date of executionb. Effective datec. Preconditions

18. Normally, Risks are transferred at the point of…a. Deliveryb. Paymentc. Arrival

19. Elderly people are … to deal with a contracta. Unableb. Ablec. Impossibled. Unaffordable

20. To background of the contract is provided in the form of …a. A clauseb. A definitionc. The annexd. A whereas-recital

21. Transfer of the risk from the seller to the buyer (Incoterm 2000): DEQa. When the goods are ex-quayb. When the goods are handed to the first carrierc. When the goods across the ship’s raild. When the goods are on board

22. In the price quoted CIF San Francisco, who pays for insurance and freight?a. The exporterb. The buyer

c. The forwarding agentd. The confirming bank

23. Where is often the place of expiry of the credit?a. At the counter of the issuing bankb. At the counter of the advising bankc. At the counter of the confirming bankd. At the counter of the negotiating bank

24. Which corrective method is least favorable for the sellera. Replace the wrong itemsb. Reduce the price c. Return the goods and refund the priced. Repair the goods

25. What is transferable credit?a. It is the kind of credit which allows the exporter to transfer his right as exporter as

the credit’s beneficiary to any third partyb. It is the kind of credit which allows the first beneficiary to request the

confirming bank to pay a third party.c. It is the kind of negotiable document with which the exporter can endorse for any

third partyd. It is the kind of credit with which the buyer will not necessarily know who is the

actual supplier of the goods.26. For the exporter, the option to repair a defective item abroad…

a. Is negligentb. Can be costlyc. Is always the best choiced. Is always the worst choice.

27. The majority of shipping documents presented to banks under documentary credit transactions are accepted on first presentation. Right or wrong?a. Completely rightb. Definitely wrongc. Neither right nor wrongd. It depends

28. Unless the LC states otherwise, insurance coverage on a CIF or CIP shipment must be for … of the CIF (or CIP) value of the goods.a. 100 %b. 90 %c. 50 %

d. 110 %29. Anglo-American law develops through…

a. Law Codeb. Arbitrator’s decisionsc. Court decisionsd. Legal system

30. The entire agreement provision means … must be established within the contract itself.a. The background of the contractb. Important letters and memorandac. Contract documentsd. All of these

31. The advising never pays the exporter directly, right or wrong?a. Rightb. Wrongc. In depends on the type of creditd. Neither right nor wrong.

32. How to make a bill of lading negotiablea. Stamp the word “Negotiable” across the surface of the bill of lading.b. In the Consignee box, do not write anything, just leave it blankc. Make the bill of lading blank endorsedd. Fill the words “to order” in the Consignee box.

33. In principle the buyer can reject delivered goods if they do not conform the contract. This is called…a. Implied warranty of suitabilityb. Implied warranty of conformityc. Implied warranty of merchantabilityd. Implied warranty of fitness for intended purpose

34. If the price is quoted CIP Marsellie, who pays for insurance and freight?a. The buyerb. The exporterc. The issuing bankd. The forwarding agent

35. Cancellation on … grounds makes no legal sensea. Greatb. Genuinec. Trivial

d. Acceptable36. An offer dies if it has a/an…

a. Acceptanceb. Agreementc. Adoptiond. Revocation

37. The period during which the buyer can begin a legal action is legally called:a. Notification periodb. Rectification periodc. Legal action periodd. Defect liability period

38. What if a LC requires “an appropriate wildlife certificate”?a. It’s a vague argumentb. The bank and the exporter may have different on what is “different”c. It should be more specific like what the certificate must show and who should

issue itd. All of the above

39. The risk of rough handling is not covered under the cargo clause …a. Ab. Bc. Cd. B and C

40. What can a manufacturer sometimes accept a loss on an export dea?a. He wants to win a regular customerb. His factory may be short of workc. He can get some export incentives from the governmentd. Any of the above

41. To cure the defective goods, the best option for the exporter is:a. Taking back the defective goods and giving back the moneyb. Reducing the pricec. Replacing the goodsd. Dependent on the type of goods

42. Transfer of risk from the seller to the buyer (Incoterm 2000): DDUa. When the goods are at the buyer’s premisesb. When the goods are handed to the first carrierc. When the goods across the ship’s raild. When the goods are on board

43. The workforce at the factory go on strikea. Yesb. Questionablec. No

44. If the buyer comes from the country which has the poor reputation for enforcing awards, the best method of payment under the contract is a /an…a. Revolving LCb. At sight, confirmed LCc. Deferred, irrevocable LCd. Transferable LC

45. Which of the following is essential to a successful business?a. Qualityb. Customer satisfactionc. Correct marking and packagingd. On-time delivery

46. The clause covers General Averagea. Ab. Bc. A,B,C

47. The avoid the dangers of slow payment, the exporters try to protect themselves with a clause like this “ Payment shall be deemed to have been made only when…”?a. The buyer instructs the bank to payb. The buyer pays the money to his bankc. The buyer’s bank transfers fundsd. Funds reach the seller’s bank account and at his full disposal

48. Export credit insurance which gives the exporter an acceptable level of security in terms of payment shall be paid by…a. The buyerb. The exporterc. A bankd. An insurance company

49. In contracts, … is not normally alloweda. Delegation of dutiesb. Assignment of rightsc. Performance of obligationsd. Fulfillment of duties

50. In a performance guarantee, if the seller works badly or not at all, the guarantor will pay the buyer, within stated limits, …a. 100% of the loss of the beneficiaryb. The costs of the principal’s failure to performc. The whole contract priced. Between 5 and 10 % contract price

ĐỀ 111. In a contract under a Continental law, a recital …

A. Is essential B. Is importantC. Is not usefulD. Is useful

2. The stand-by letter of credit originated in the US is used there because …A. It is very popular for US exporters to ask for payment from their buyers or

customers.B. It is much more convenient to ask for one in the US instead of the ordinary letters

of credit.C. The banking law in some states forbids banks to issue payment guarantee D. English banks prefer to issue demand guarantees and ordinary letters of credit.

3. If the price is quoted FOB Singapore, who pays for the insurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirming bank

4. Export credit insurance which gives the exporter an acceptable level of security in terms of payment shall be paid by …A. The buyerB. The exporterC. A bankD. An insurance company

5. A letter of credit can be either “revocable” or “irrevocable”. Few exporters will accept a revocable letter of credit, so the plain expression “letter of credit” generally means the irrevocable kind. The word “irrevocable”, therefore, should not always appear in the text of the credit and of the contract. Right or wrong?A. WrongB. Wrong, because it should always appear in the context of the credit and of the

contract according to the ICC’s rulesC. RightD. Right, because in the absence of a clear indication, letter of credit are deemed to be

irrevocable.6. The greatest fear for the exporter is…

A. Being unable to meet the delivery deadline

B. Being unable to meet the specifications of the goodsC. Being unable to get paid for the goods soldD. Having no guarantee for payment

7. If the force majeure event continues for too long, both parties have the right to …A. Continue the contractB. Terminate the contract C. Make late delivery

8. The Incoterms … contains 11 termsA. 1990B. 2000C. 2010

9. If the price is quoted CFR HaiPhong, who pays for the freight?A. The buyerB. The exporterC. The carrierD. The forwarding agent

10. A payment guarantee simply commits the bank to pay if the buyer defaults. The payment guarantee is usually for…A. 100%B. Less than 100%C. 10%D. Between 5% and 10%

11. Under the public law, a company can only sign a contract …A. Even when they lack powersB. That is beyond its powerC. Both a and bD. That is within its power

12. Returned shipment to the exporter’s country means:A. The deal is a total loss for the exporterB. The exporter takes back the whole shipmentC. The exporter makes a small profitD. The deal is a total loss for the importer

13. Which of the following is essential to successful business?A. QualityB. Customer satisfaction C. Correct marking and packagingD. On-time delivery

14. Transfer of risk from the seller to the buyer (Incoterms 2000): FASA. When the good are ex-quayB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

15. The advising bank never pays the exporter directly. Right or wrong?A. RightB. WrongC. It depends on the type of creditD. Neither right or wrong

16. “Full set on board ocean bills of lading to order shipper, blank endorsed”. In this clause shipper means…A. Exporter B. ImporterC. BankD. A or B or C. It depends on the situation

17. The … has no power to enforce his solution to bind the parties, his task is to suggest a fair solution only.A. Judge B. ConciliatorC. Magistrate D. Lawyer

18. The lump-sum compensation is set too high …A. Liquidated damagesB. Quasi indemnityC. Penalty

19. It is possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money?A. No, it isn’t B. It is impossible by all meansC. The draft must be drawn on the buyer to order payment, not the bankD. Yes, it is

20. The delivery depends on …A. Date of execution B. Effective dateC. Precondition

21. Which of the following discrepancies is NOT the problem with Insurance?

A. Documents are not presented within the required timeB. The sum insured is below the figure requiredC. The insurance risks are not those specified in the creditD. A certificate of insurance is produces while the credit calls for a policy

22. In settlement by deferred payment, the letter of credit is paid after delivery. Right or wrong?A. Completely rightB. Definitely wrongC. It dependsD. The letter of credit is not payable until a number of days

23. What is a transferable credit?A. It is the kind of credit which allows the exporter to transfer his right as the credit’s

beneficiary to any third partyB. It is the kind of credit which allows the first beneficiary to request the

confirming bank to pay a third partyC. It is the kind of negotiable document with which the exporter can endorse for any

third party D. It is kind of credit with which the buyer will not necessarily know who is the

actual supplier of the goods24. If the price is quoted CIF San Francisco, who pays for the insurance and freight?

A. The exporter B. The buyerC. The forwarding agentD. The confirming bank

25. CIF and CIP contracts are especially confusing since they name the point of …A. DepartureB. DestinationC. Embarkation

26. Continental law is widely used for …A. International issuesB. National issuesC. Both national and international issuesD. Neither international nor national issues

27. Exporter prefers:A. The return of the defective item to the replacement of itB. The replacement of the defective item to the return of it C. The return of the goods and refund of the price

D. None of these28. Under Anglo-American law, a contract must give …

A. Both side rights and dutiesB. Each side rightsC. Each side dutiesD. Not duties but rights

29. If both parties perform their duties exactly according to the contract, the contract is …A. Discharged by performanceB. Discharged for performanceC. Discharged to performanceD. Discharged with performance

30. Which is the most appropriate method of payment for the exporter in the following case? A contract for supply of cloth worth $5,000 per month to the government of Oceanea – a prosperous country. Duration of the contract is 2 years, but renewable. Contract represents 25% of turnover.A. Open account with bank guaranteeB. Open account with export credit insuranceC. If possible, a bank guarantee. Otherwise, export credit insuranceD. Confirmed letter of credit

31. Another name for Tender Guarantee is …A. Revocation guaranteeB. Bid guaranteeC. Bond guaranteeD. Bid bond

32. Which is the most appropriate method of payment for the exporter in the following case? A contract for supply of cloth worth $5,000 per month to the government of Oceanea – a prosperous country. Duration of the contract is 2 years, but renewable. Contract represents 0.5% of turnover.A. Open account with no securityB. Open account with bank guaranteeC. Open account with export credit insuranceD. Export credit insurance is advisable. Selling on open account with no security at

all is also possible33. The answer to background question are written …

A. Through the whereas-recitalB. Through the annexC. Through provisions

D. Through conditions34. If shipment is under Incoterms other than CIF or CIP …

A. The buyer has to arrange the insurance cover by himselfB. The buyer may still ask the exporter to arrange some aspects of the insurance for

himC. The exporter has to arrange the insurance cover the goodsD. The exporter pays for insurance till the port of discharge

35. There are … parties to a warranty and … in a guaranteeA. 3/2B. 3/3C. 2/3D. 2/2

36. Under most laws, a buyer can make certain assumptions about goods. These assumptions are called (by lawyers):A. Express warrantiesB. Negotiable warrantiesC. Implied warrantiesD. Implied guarantee

37. A contract that is ultra vires is ..A. Well enforceableB. UnenforceableC. ValidD. Effective

38. What are the set of assumptions with which a price quotation is based?A. Mode of payment, timing, place of paymentB. Delay in payment and results of delayC. Choices of method of paymentD. Delivery, payment and warranty items

39. In CIF and CIP contract, … must pay for insurance from the point of delivery to the named point of arrival.A. The exporterB. The importerC. The carrier

40. An offer dies if it has a/an …A. AcceptanceB. AgreementC. Adoption

D. Revocation41. “A machine that consumes more fuel than specifications” is an example of

A. Latent defectB. Patent defectC. Inherent defectD. Apparent defect

42. The “exporter’s wording” and the “buyer’s wording” in the defects liability provision represent:A. A major contract issueB. A minor contract issueC. NonsenseD. Profit and loss of each party

43. Who usually pays for the defects?A. The importerB. The exporterC. Both partiesD. A third parties

44. Two parties sign a contractA. The contract is bindingB. The contract is effectiveC. The contract is binding and effective

45. Liquidated damages clause protects …A. The exporter rather than the importerB. The importer rather than the exporterC. Both sidesD. Neither exporter nor the importer

46. The arbitrators’ awards are …A. Consultative and examinatorialB. Final and enforceable C. Referable and reverableD. All of the above

47. “Export credit insurance is a kind of special privilege that an exporter may get from his government’s export incentives and support”. Right or wrong?A. Completely rightB. Absolutely wrong C. Neither right nor wrongD. It is not a charity. It is beneficial for both exporter and insurance company

48. The essence of Continental law is …A. Verification B. AuthenticationC. CodificationD. Acceptance

49. The defects liability clause should state:A. The date of acceptanceB. Exporter’s duty if a defect comes to lightC. Both A and BD. Only A

50. When parties agree to end a contract, ….occurs.A. TerminationB. FrustrationC. RescissionD. Suspension

ĐỀ 12

Đề 12:

1. The lump-sum compensation is set too low…A. Liquidated damagesB. Quasi indemnityC. Penalty

2. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NambiaA. CIF WindhoekB. CIP WindhoekC. DEQ Windhoek

3. The machanism of a confirmed letter of credit in favor of the sellerA. Buyer instructs issuing bank to issue a letter of credit in favor of the sellerB. Buyer instructs an issuing bank to instruct an advising bank to pay under a

letter of credit in favor of the sellerC. Buyer instructs an issuing bank to instruct a confirming bank to pay

under a letter of credit in favor of the sellerD. Buyer instructs an issuing bank to instruct any third party bank to pay under a

letter of credit in favor of the seller4. Under most laws, a buyer can make certain assumption about good. These

assumption are called (by lawers):A. Express warrantiesB. Negotiable warrantiesC. Implied warrantiesD. Implied guarantee

5. Inspection by carrier on dispatch is often carried out:A. In seller’s countryB. In buyer’s countryC. At seaD. At customs area

6. The defect liability clause should state:A. the date of acceptanceB. exporter’s duty if a defect comes to lightC. both A and BD. only “A”

7. (Note: If either party is prevented from, or delayed in, performing any duty under this contract by an event beyond his reasonable control, this shall be deemed force majeure)Shortage of supplies (Background: The exporter cannot get the raw jute he needs

from the supplier because of a chipping delay).

A. YesB. QuestionableC. No

8. To avoid the dangers of slow payment, exporter try to protect themselves with a clause like this: “Payment shall be deemed to have been made only when:A. The buyer instructs the bank to payB. The buyer pays the money into his bankC. The buyer’s bank transfer fundsD. Funds reach the seller’s bank account and at his full disposal

9. Where is often the place of expiry of the creditA. At the counters of the issuing bankB. At the counters of the advising bankC. At the counters of the confirming bankD. At the counters of the negotiating bank

10. The advantages of arbitration are…A. Private and foreseeable costsB. Lengthy and openC. Binding and rigidD. Time-consuming

11. Which of these does not count as defect?A. Defective designB. MisuseC. Defective materialsD. Defective workmanship

12. Independent inspection reports on…A. The weight of the goodsB. The size of the goodsC. Both A and BD. None of these

13. Termination for convenience occurs when one party simply decides to drop the contract and…A. No reason is requiredB. Reasons are requiredC. Consultation is requiredD. Conversation is required

14. In a contract under a Continental law, a recital…A. is essentialB. is importantC. is not usefulD. is useful

15. Defects include:A. mistakeB. Materials

C. Fair wear and tearD. Misuse

16. As for Anglo-American law, the decision os the judge is always…A. PredictableB. ForeseeableC. UnpredictableD. Estimated

17. It is common to put the definition clause… of the contract.A. at the beginningB. near the beginningC. at the endD. near the end

18. The main difference between continental and Anglo-American law is the degree of…A. CodificationB. FormationC. AutomationD. Interpretation

19. The first step in negotiating a letter of credit is…A. incoporationB. SpecificationC. AgreementD. Verification

20. The Anglo-American contract is…A. not the entire agreementB. traditionally the entire agreementC. sometimes the entire agreementD. rarely the entire agreement

21. If a country ratifies the Vienna Sales Convention, in the event os cònlicts, the Vienna Sales Convention can… the national law.A. Prevail overB. Conform toC. FollowD. Adapt

22. In negotiating a letter of credit, the first step in which the buyer applies for the letter of credit specifying the agreed documentation is…A. incoporationB. verificationC. ComplianceD. None of the above

23. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn on the buyer from the seller?A. The bank will pay the seller immediately

B. The bank will pay the seller as long as the documents submitted comply with all the terms of the letter of credit

C. The bank checks the documentsD. The bank agrees to pay the bill when it matures.

24. The bill of lading issued by the carrier for air transport is called..A. Air waybillB. Air bill of ladingC. Air way bill of ladingD. Airway bill

25. The guarantor is usually a…A. bankB. insurance companyC. both A and BD. Neither A nor B

26. Who issues export credit insurance?A. The buyerB. The exporterC. An insurance companyD. Any export company

27. Elderly people are… to deal with a contractA. UnableB. AbleC. ImpossibleD. Unaffordable

28. The point of delivery is much the same for all… terms and .. . terms- when the exporter hands the goods over to the carrierA. C and FB. D and FC. C and D

29. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporterA. CFA LusakaB. CPT LusakaC. CFR nảiobi

30. In a guarantee, a guarantor is often:A. The buyerB. The sellerC. The bankD. The manufacturer

31. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed isA. AgreementB. Incorporation

C. VerificationD. Compliance

32. (Note: If either party is prevented from, or delayed in, performing any duty under this contract by an event beyond his reasonable control, this shall be deemed force majeure)A lockout (Background:The workers have been striking for one day a week. The

management locks the workers out of factory until they agree to end the strike

A. YesB. QuestionableC. No

33. The disadvantage of … policy is that it is set up for particular time and automatically expiresA. tailor-madeB. floatingC. open cover

34. In international trade, if payment is made on delivery, the method of payment to be chosen will beA. Bank guaranteeB. Open accountC. Export credit insuaranceD. At sight letter of credit

35. A price and payment clause taken from an export contract is as follows: “ The price payable for the contract goods as specified in Annex A is $5000,000”. What is missing?A. The clause does not specify how payment will be madeB. The clause does not specify when payment is dueC. The clause lacks all the necessary five steps in negotiating payment like

payment mode, time, place, delay and results of delayD. The clause does not say where the money must be before the buyer is deemed

to have paid, define delay in payment and mention the consequences of delay36. Is it possible for the beneficiary (exporter) sometimes, though not often, to make a

draft on the bank to collect the moneyA. No, it isn’tB. It is impossible by all meansC. The draft must be drawn on the buyer to order payment, not the bankD. Yes, it is

37. Two Parties sign a contractA. The contract is bindingB. The contract is effectiveC. The contract is binding and effective

38. A guarantee is:A. Unilateral

B. TripartiteC. BilateralD. Multilateral

39. How to make a bill of lading negotiable?A. Stamp the word “Negotiable” across the surface the bill of ladingB. In the Consignee box, do not write anything, jusst leave it blankC. Make the bill of lading blank endorsedD. Fill the words “to order” in the Consignee box

40. Anglo-American law is called…A. Civil lawB. Legal codeC. Common lawD. Law code

41. Inspection of the goods by the buyer in the manufacturer’s factory is refered to ấ:A. Inspection by inspection serviceB. Pre-delivery inspectionC. Post-delivery inspectionD. Customs inspection

42. What is a letter of credit calls for “a complete set of original air waybills”?A. The exporter has to present the full set of original air waybills if he wants to

get payment from the bankB. The exporter cannot provide the complete setC. This is obviously a mistakeD. Only the second original of the air waybill goes to the consignee. The bank,

however, will follow the wording of the letter of credit axactly and refuse an “incomplete set” waybills

43. Anglo-American law is:A. Law codeB. Case lawC. Civil lawD. Legal code

44. A bank guarantee which gives the exporter an acceptable lavel of security in terms of payment shall be paid by…A. The buyerB. The exporterC. A bankD. A third party

45. When the Bill of lading marked “freight prepaid”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement

46. If the force majeure event continues for too long, both parties have the right to…

A. continue the contractB. terminate the contractC. make late delivery

47. Feeble-minded people are legally unable to … contractA. SignB. DeclineC. RefuseD. Resign

48. Which of the following is not the method of issuing the letter of credit?A. By emailB. By airmailC. By mailD. By teletransmission

49. War risk is not included in…A. A clauseB. B clauseC. A, B, C clause

50. “Minimum Coverage” is so-called Cargo Clause…A. AB. BC. C

ĐỀ 13

1. The entire agreement position means….. must be established within the contract itselfA. The background of the contractB. Important letter and memorandaC. Contract documentsD. All of these

2. All risks covered is under…. clauseA. AB. BC. C

3. The disadvantage of policy….. is that it’s set up for particular time and automatically expires.A. Tailor-madeB. FloatingC. Open cover

4. If the price is quoted CIU Marseille, who pays for insurance and freight?A. The buyerB. The exporterC. The issuing bankD. The forwarding agent

5. There are …….parties to a warranty and….in a guarantyA. three/twoB. Three/threeC. Two/threeD. Two/two

6. In settlement by deferred payment, if the seller needs more money immediately, what can he do?A. There is no way he can get money immediatelyB. He can exchange the letter of credit cash with any agreement bankC. The seller can realize some part of the letter of credit’s value, not its full valueD. Payment is still safe but it’s delayed.

7. What does prompt payment of the letter of credit depend on?A. It depends on the presentation of correct documentation of the exporterB. It depends on kind of the documents which must be presented by the exporterC. It depends on the willingness of the buyer

D. It depends on the time of checking the documents from both advising bank and issuing bank.

8. Where is the often place of expiry of the creditA. At the counters of the issuing bankB. At the counters of the advising bankC. At the counters of the confirming bankD. At the counters of the negotiating bank

9. The…….. has no power to enforce his solution or to bind the parties, his task is to suggest a fair solution onlyA. JudgeB. ConciliatorC. MagistrateD. Lawyer

10. In the contract, consideration may consist of…..A. Only rightB. Only interestC. Only profit, detriment and lossD. Right, interest, detriment and loss

11. Defects such as wrong items, broken and missing parts, scratches, and so on are called….A. Patent defectsB. Latent defectsC. Inherent defectsD. Concealed defects

12. The court of arbitration applies whatever……the parties stipulate in the contractA. International lawB. Corporate lawC. National lawD. Business law

13. Every contract is governed by ….A. Common lawB. Vienne ConventionC. Applicable lawD. Civil law

14. Within most Anglo – American jurisdictions, a contract….A. Can be one sidedB. Can be two-sided

C. Can be either one-sided and two-sidedD. Must be two-sided

15. In negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submit it to the bank is…..A. AgreementB. VerificationC. SpecificationD. Compliance

16. If the price is quoted FCA, who pays for the freight?A. The exporterB. The carrierC. The buyerD. The forwarding agent

17. As for Anglo- American, the decision of the judge is always…A. PredictableB. ForeseeableC. UnpredictableD. Estimated

18. Transfer of risk from the seller to the buyer ( Incoterm 2000) DDUA. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are the board

19. What can protect both the exporter and the importer in an exporter contractA. A well- designed set of specificationsB. An itemized der of specificationsC. A plain set of specificationD. None of these

20. The hereinafter called wording can prevent legal problem caused by A. Misspelling namesB. Mistyping namesC. Misreading namesD. Misaccepting names

21. What is the transferable creditA. It’s a kind of credit which allows the exporter to transfer his right as the

credit’s beneficiary to any third party.

B. It’s a kind of credit which allows the first beneficiary to request the confirming bank to pay a third party

C. It’s a kind of negotiating document with which the exporter can endorse for any third party

D. It’s a kind of credit with which the buyer will not necessarily know who is the actual supplier of the goods.

22. The lump-sum compensation is set too high…A. Liquidated damagesB. Quasi indemnity C. Penalty

23. The advising bank never pays the exporter directly. Right or wrong?A. RightB. WrongC. It depends on type of credit D. Neither right or wrong

24. Allowing the buyer to repair the equipment at the exporter’s costA. Is always the best choice for the exporterB. Is always the worst choice for the exporterC. Is often safe for the exporterD. Is often unsafe for the exporter

25. When parties agree to end a contract…..occurs A. TerminationB. FrustrationC. RescissionD. Suspension

26. In CIF and CIP contract,….must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier

27. “Exporter credit insurance is a kind of special privilege that an exporter may get from his government ‘s export incentives and support’. Right or wrong?A. Completely rightB. Absolutely wrongC. Neither right or wrongD. It’s not a charity. It’s beneficial for both exporter and insurance company

28. “Nuts and bolts are inadequately tightened” represent:

A. Defective materialsB. Defective designC. Defective workmanshipD. Misuse

29. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is….A. AgreementB. IncorporationC. VerificationD. Compliance

30. Different legal systems regulate that rejection of delivered goods must be total… can be partialA. OrB. AndC. And/orD. Nor

31. If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight. Right or wrong?A. Completely rightB. WrongC. Partly right, as the seller is not obliged to pay only the insurance and

freight necessary to put the goods on board of the designated vessel by the buyer.

D. Completely wrong, because the buyer is obliged to pay insurance and freight on his own account if term of trade is FOB.

32. Beside the commercial invoice, the transport document and the insurance document, what does “Other document” include?A. A certificate of originB. A certificate of inspectionC. A health inspectionD. Any of the above

33. Who signs “Shipped on board” notation?A. CaptainB. ExporterC. Shipping companyD. Agent

34. The essence of Continental law is

A. VerificationB. AuthenticationC. CodificationD. Acceptance

35. Continental law copes withA. Personnel problemsB. International tradeC. National issuesD. Individual conflicts

36. If the price is quoted FAS Osaka, who pays the freight?A. The shipperB. The exporterC. The forwarding agentD. The buyer

37. Which of the following is the least desirable option for the exporter?A. Allow the buyer to repair exporter’s costB. Reduce the priceC. Return the goods and refund the priceD. Replace the defective items

38. Inspection for the buyer is calledA. Independent inspectionB. Inspection for goods prior to shipmentC. Open package inspectionD. Customs inspection

39. A contract is not enforceable ifA. It’s signed within powerB. It has a legal purposeC. It has an illegal purposeD. It has no purpose

40. A marine bill of lading can be negotiable document with which?A. The buyer can use it to resell the goods during shipmentB. The exporter can use it to resell the goods during shipmentC. The issue bank can use it to resell the goods to another customersD. The buyer can use it to negotiate a price with a negotiating bank

41. Which type of payment is the most advantageous for the exporter A. Credit by sight paymentB. Credit by deferred payment

C. Credit by acceptanceD. Credit by negotiation

42. A contract requiring an exporter in Mozambique to deliver the contract goods in Beira, Mozambique, for the shipment by sea to Dar es Salaam, TanzaniaA. FAS BeiraB. CIF BeiraC. FOB Dar es Salaam

43. The things that the exporter should keep in mind in negotiating payment areA. Payment mode, timing, place, delay and result of delayB. How payment will be made and the date of paymentC. Where the money must be before payment is considered complete and what

delay in payment is excusableD. Result and non-excusable delay in payment and time of payment.

44. Defects includeA. MistakesB. MaterialsC. Fair wear and tearD. Misuse

45. What of these do not count as defect A. Defective designB. MisuseC. Defects materialsD. Defects workmanship

46. Dawson bought vanilla beans from Indonesia. Dawson instructed American bank to open a letter of credit. One of requirement shipping documents was a certificate and quality issues ‘by experts”. The bank paid the exporter. The beans, when they arrived, were rubbish. The certificate of quality was signed, however, by only one “expert”. Could the bank collect from Dawson the money it had paid to the exporter?A. Definitely, it couldB. Probably, it couldC. No, it couldn’tD. No question, it could

47. Why can a manufacturer sometime accept a loss on an export dealA. He wants to win a regular customerB. His factory may by short of workC. He can get some export incentives from government

D. Any of the above48. In which situation should the exporters use export credit insurance

A. Long- term customersB. Transactions represent a high proportion of their turnoverC. Buyer are willing to spend money on a payment guaranteeD. In a seller’s market

49. Normally, risk are transferred at the point ofA. DeliveryB. PaymentC. Arrival

50. Which of the following is not the reason why the exporter prefers a longer expiry period of the creditA. He wants to save bank chargeB. He wants enough time after delivery to present the documentC. He wants to have enough time to collect and discrepancies that be discovered

by the bankD. He wants to spare some time for any unexpected thing preventing his

presentation of documents on times.

ĐỀ 141. If the buyer can make certain assumptions about goods- even if the exporter give no

express warranty, these assumptions are called…….A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties

2. The entire agreement clause means that all documents are predate the contract………A. are still valid B. become important C. become invalid D. can be used as evidence

3. Delivery of the goods under most export contracts takes place in the country of A. the importer B. the exporter C. the agent

4. As soon as the exporter receives advice that the letter of credit has been opened, what should he do? A. He should check that it complies with the agreement he negotiated with the buyer. B. He should check if there is any document that he does not understand. C. He should check if there is any requirement that he does not agree to. D. He should check if there is any necessary amendment to the terms of the letter of credit.

5. What happens first when a bank refuses to pay under a letter of credit? A. The bank will cite a 'discrepancy*, some aspect of the documentation that is not in line with the terms of the credit. B. A check— list of commonly cited discrepancies will be used by banks. C. The exporter will have to re-submit their shipping documents. D. The exporter must contact the buyer asking the buyer to instruct the issuing bank to extend the date of the credit.

6. Beside the commercial invoice, the transport document and insurance document, what do 'Other documents' include? A. A Certificate of Origin. B. A Certificate of Inspection. C. A health Inspection. D. Any of the above.

7. The elmise covers General Average. A. A B. B C. A, B, C

8. The bill of lading issued by the carrier for combined transport is called A. Combined bill of lading B. Combined bill C. Combined transportation bill of lading D. Combined transport bill of lading

9. Defects that come to light after buyer's acceptance are called A. patent defects B. latent defects C. coherent defects D. apparent defects

10. The bank noting the exporter that the letter of credit has been opened is called A. The issuing bank. B. The advising bank. C. The confirming bank. D. The opening bank.

11. The main difference between Continental and Anglo-American contract law is the degree of A. Codification B. FormationC. Automation D. Interpretation

12. The answers to background questions are written ………A. through the whereas-recital B. through the annex C. through provisions D. through conditions

13. In a performance guarantee: if the seller works badly or not at all, the guarantor will pay the buyer: within stated limits, A. 100% of the loss of the beneficiaryB. the costs of the principal's failure to perform 710…C. the whole contract price (C va D sai)D. between 5% and 10% of the contract price

14. A term or terms in a contract could raise the contract price

A. A shorter warranty period. B. Customer orders goods in one color. C. No additional packaging or safety warnings are required beyond normal standards. D. A longer warranty period.

15. If a contract is the entire agreement, earlier letters and documents A. can be used as evidence B. become invalid C. prevail D. remain important

16. In a contract, ……….can be incorporated into contract document clause. A. letters B. general conditions C. the IncotermsD. any of the above

17. Which of the following is left to the applicable law to regulate? The notification period B. The rectification period C. The legal action period D. The length of the defect liability period

18. When offer is made, it is not applicable when it has…..?A. SuspensionB. RenovationC. RevocationD. Adaptation

19. Continental law is also called…..A. Civil lawB. Common lawC. Legal systemD. Lawful case

20. Which countries require that all goods imported into the country are inspected by the SGS immediately before shipment?A. the USAB. VietnamC. IndonesiaD. The UK

21. The answer to the questions of implies warranties are supplied byA. The contract provision

B. The UCCC. Most lawD. The contract

22. What happen if the issuing bank finds a problem with the documents and refuses to send funds to the advising bank to cover payment?A. The advising bank has to suffer that loss due to their carelessness in checking shipping documentsB. The advising bank gets money back from exporterC. The payment from the advising bank to the exporter are always made with recourse. The exporter…D. It is the responsibility of the issuing bank of paying back the advising bank in such a case

23. The place of delivery (CIP, CIF) should not be confused with the… of the goodsA. DepartureB. DestinationC. Transshipment

24. Partial invalidity clause can help to avoid problems with the contracts that…A. might infringe government regulationsB. violate the trade lawsC. discourage tradeD. both B and C

25. In negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submit it to the bank is…A. agreementB. verificationC. specificationD. compliance

26. “a radio lacks the wires connecting to loudspeaker to the amplifier” is an example ofA. defective designB. defective materialC. defective workmanshipD. misuse by the buyer

27. Transfer of risk from seller to the buyer (incoterm 2000) CFR:A. when the goods are at the seller’s premiseB. when the goods are handed to the first carrierC. when the goods across the ship railD. when the goods are on board

28. Feeble- minded people are legally unable to… contractsA. signB. declineC. refuseD. resign

29. Many export contracts cannot come into force due to…A. certain preconditions are not metB. force majorC. late delivery

30. With a well- designed set of specifications, the seller can protect its… and avoids costA. reputationB. productionC. resolutionD. productivity

31. Is the any requirement that the air waybill shows the date of the flight?A. No, there isn’tB. Yes. There isC. never is there such requirementD. No. it is an incorrect requirement because…

32. Which type of payment is the most advantageous for the exporter?A. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation

33. If the price is quote FAS Osaka, who pays for the freight?A. The shipperB. The exporterC. The forwarding agentD. The buyer

34. The exporter’s right to “cure” any defects in his delivery is ….. .A. Out of questionB. Advantageous to himC. Disadvantageous to himD. Detrimental to him

35. Which of the following discrepancies is NOT problem with the Bill of Lading?A. The bill of lading “unclean”

B. the bill of landing shows shipment between ports orther than those specified in the creditC. the description of the goods on the invoice and the description of the goods in the credit are differentD. there is no endorsement if endorsement is necessary

36. Transfer of the risk from the select to the buyer (incoterm 2000): DDUA. when the goods are at the buyer’s premisesB. when the goods are handed to the first carrierC. when the goods across the ship’s railD. when the goods are on broad

37. If a dispute arises, the recital allows the court to discover the real meaning of ….. .A. the contractB. the termC. the incotermD. the appendix

38. The disclaimer of warranty means:A. the seller is liable for the goodsB. the buyer is denied of some of his normal nightC. the seller will make good any defectD. contract prices would be far higher

39. A payment guarantee simply comits the bank to pay if the buyer defaults. The payment guarantee is usually for ….Of the contract price.A. 100%B. less than 100%C. 10%D. between 5% and 10%

40. The first step in negotiating a letter of credit is …………A. incorporationB. specificationC. agreementD. verification

41. A contract is not enforceable if ……….. .A. it is signed within powerB. it has a legal purposeC. it has an illegal purposeD. it has no purpose

42. The contract should regulate what happens if incoterm 2000 and the terms of the contract conflict normally the ……..prevailsA. incotermB. contractC. incoterm and contract

43. What kind of inspection is particularly important for sophisticated items or capital goods?A. customs inspectionB. carrier’s inspectionC. per-delivery inspectionD. SGS’s inspection

44. ………. Bill of lading – found something wrong with the consignment.A. cleanB. clearC. Claused

45. In settlement by deferred payment, if the seller needs money immediately, what can he do?A. there is no way he can get money immediatelyB. he can exchange the letter of credit for cash with any agreeable bankC. the seller can realize some part of the letter of credit’s value, not its full valueD. payment is still safe but it is delayed

46. A unilateral offer can be defined as:A. an offer made of a promise in return for promiseB. an offer made of a promise in return for an actC. an offer made of an act in return for an actD. an offer made of act in return for a promise

47. A letter of credit can be either “revocable” or “ irrevocable ”. Few exporters will accept a revocable letter of credit, so the plain expression “letter of credit” generally means the irrevocable kind. The word “irrevocable”, therefore, should not always appear in the text of the credit and of the contract. Right or wrongA. wrongB. wrong, because it should always appear in the text …C. rightD. right, because in the absence a clear indication….

48. One the bank has indicated the discrepancies, what can the export do?A. the exporter can provide the missing paperwork or correct errors

B. the exporter can ask the buyer to instruct the bank to change the terms of the letter of creditC. the exporter can ask the bank to process the letter of credit with the discrepancies but to pay only when (and if) the issuing bank permits paymentD. any of the above

49. If shipment is under incoterms other than CIF or CIP, …….A. the buyer has to arrange the insurance cover by himselfB. the buyer may still ask the exporter to arrange some aspects of the insurance for himC. the exporter has to arrange the insurance cover for the goodsD. the exporter pays for insurance till the port of discharge

50. in how many originals and copies is the air waybill issued according to the standard of the international air transport association – IATA?A. Three originals and three copiesB. Three originals and six copiesC. Three originals and nine copiesD. it depend on the requirements in the letter of credit

ĐỀ 15

1. The Vienna Sales Convention is also called…a. The Uniform Law of International saleb. The Uniform Law on the Formation of contract for the international sale of

goods.c. The United Nations Convention on Contracts for the International sale of

goodsd. The United Nations Convention on Contract for acceptance.

2. In order to produce perfect products, manufacturers need to have…a. Product insuranceb. Quality assurance programc. Customer satisfactiond. Defect liability period

3. To make sure the officer signing the contract has authority to sign the contract, parties should check…a. The duplicate of signatureb. The authenticity of signaturec. The coverage of signatured. The transferability of the signature

4. When the goods arrive, if they are…., the importer can reject them, but if they… specification, he is obliged to accept them.a. Defective/ conform tob. Perfect/ conform toc. Defective/ differ fromd. Perfect/ differ from

5. An annual flooding of the River Verb ruins some of the jute intended for use in making sacka. Yesb. Questionablec. No

6. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn on the buyer from the seller?a. The bank will pay the seller immediatelyb. The bank will pay the seller as long as the documents submitted comply with

all terms of the letter of credit.c. The bank checks the documentsd. The bank agrees to pay the bill when it matures.

7. Which of the following of the method of payment is NOT possible?a. 100% of the contract price by letter of creditb. 20% prepayment and 80% by letter of creditc. 90% by letter of credit and 10% retaining until the warranty period is overd. Part of the contract price is paid by letter of credit but there is not clear

figure stated in the amount of the credit.8. Most contract contain an assurance that the exporter will… any defects in his

productsa. Make goodb. Take awayc. Alterd. Modify

9. The risk of rough handling is not covered under the cargo clause…a. Ab. Bc. Cd. B and C

10. In settlement by sight payment..a. The seller presents the necessary documents to the issuing bankb. The seller presents the necessary documents to the advising bankc. The seller presents the necessary documents to the paying bankd. The seller presents the necessary documents to the reconfirming bank

11. Shortage of suppliesa. Yesb. Questionablec. No

12. …original(s) Bill of lading constitute(s) a full seta. 1b. 2c. 3

13. If the price is quoted FCA, who pays for the freight?a. The exporterb. The carrierc. The buyerd. The forwarding agent

14. The workforce at the factory go on strikea. Yes

b. Questionablec. No

15. Which of the following examples is a latent defecta. Missing partsb. Structural weaknessc. Wrong itemsd. Broken items

16. Small purchases in private life are often in the form of…a. Cash on deliveryb. Cash against invoicec. Cash with orderd. Any of above

17. The answer for the questions of implied warranties are supplied bya. The contract provisionsb. The UCCc. Most lawsd. The contract

18. An FOB sales contract agree that the exporter can deposit the goods in a warehouse it the ship arrives late and that this counts as delivery. If the letter requires bill of lading and makes no mention of a warehouse receipt,a. The exporter will still be paid against a warehouse receiptb. The bank simply cannot pay against a warehouse receiptc. The buyer refuses to pay the exporter against a warehouse receipt.d. The buyer still has to pay the exporter against a warehouse receipt because

his designated vessel has arrived late at the port of loading. 19. Whereas-clauses…

a. Are provisionsb. Are promisesc. Are conditionsd. Are not provisions, promises or conditions

20. A volcanic eruption buries the factory in asha. Yesb. Questionablec. No

21. In contract, “partial invalidity provision” means the invalidity of one part of the contract…a. May invalidate the rest

b. Does not invalidate the restc. Affects the restd. Enforces the rest

22. Some contract set a cut-off date after which the contract…a. Is bindingb. Is effectivec. Cannot come into force

23. Quality assurance and customer satisfaction are the same issues for customer…a. In domestic marketb. In overseas marketc. Both A and bd. Neither A nor B

24. In a confirmed letter of credit, what happen if the bank pays the exporter and the issuing bank finds something wrong with the documents?a. The exporter has a problemb. The confirming bank has a problemc. It is the issuing bank which has an absolute obligation to pay the exporter

according to the terms of credit.d. The confirming ban has paid the money to the exporter and has no way of

recovering it. The confirming bank must pay the exporter without recourse.

25. Which type of payment is the most advantageous for the exportera. Credit by sight paymentb. Credit by deferred paymentc. Credit by acceptanced. Credit by negotiation

26. Who issues ocean bill of ladinga. Captainb. Exporterc. Shipping companyd. Agent

27. An offer is not always, in international practice, the first move in forming a…a. Contractb. Refusalc. Declined. Renovation

28. The force majeure clause suggested by the international chamber of commerce, for example, states that payment of interest on overdue sums payable to the seller is…by…a. Excused/force majeureb. Not excused/force majeurec. Excused/ acts of godd. Excused/ contingencies

29. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may…a. Reject the wholeb. Accept the wholec. Accept any commercial until and reject the restd. All the above

30. Why do most exporters offer a discount for early payment, for example a 1% discount if payment is made within 10 days of the date of invoice?a. Because the discount is so attractive to the buyerb. Because the buyer can save on the invoice pricec. Because the exporter can substantially his cash flowd. Because the exporter just wants to get payment on delivery

31. Anglo-American law does not bring the… to all casesa. Differencesb. Uniformityc. Variationsd. Different solutions

32. The clause covers General Averagea. Ab. Bc. A,B,C

33. If shipment is made on CIF or CIP terms, the letter of credit will call for…a. An insurance policyb. A letter of insurancec. A certificate of insuranced. Either A or C

34. Among a number of international bodies offering arbitration services, the… in Paris is the most prestigiousa. UCPb. ADR

c. ICCd. FAO

35. Under the public law, a company can only sign a contract…a. Even when they lacks powerb. That is beyond its powerc. Both a and bd. That is within its power

36. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exportera. CFR Lusakab. CPT Lusakac. CFR Nairobi

37. When the exporter fills in the letter credit application form, if the box “requested” for the “Confirmation of credit to the beneficiary” is ticked, what does it mean?a. It means the exporter wants the bank in his country merely handle the

paperworkb. It means the exporter wants the bank in his country make the payment

itself and recover the funds from the buyer’s bank.c. It means the exporter is double guarantee in terms of payment by a third bank

beside the issuing bank and the advising bankd. It means the confirmation from the issuing bank in terms of payment in case

the buyer defaults.38. “Door to door” service is offered. Which term should be used?

a. DDPb. CIPc. CIF

39. To avoid the danger of slow payment. Exporter try to protect themselves with a clause like this: “Payment shall be deemed to have been made only when…’a. The buyer instructs the bank to payb. The buyer pays the money into his bankc. The buyer’s bank transfers fundsd. Funds research the seller’s bank account and at his full disposal

40. The … has no power to enforce his solution to bind his parties, his task is to suggest a fair solution only.a. Judgeb. Conciliatorc. Magistrate

d. Lawyer41. Inspection of the goods by the buyer in the manufacturer’s factory is referred to

as:a. Inspection by inspection serviceb. Pre-delivery inspectionc. Post-delivery inspectiond. Customs inspections

42. … discharge a contract when one part faces an excessive burden in complying with the contracta. Suspension and non-performanceb. Frustration and impossibilityc. Disruption and preventiond. Suspension and acceptance

43. The costs of L/C amendments are normally for…a. The buyer’s accountb. The exporter’s accountc. The issuing bank’s accountd. The one who asks for such amendments

44. Transfer of risk from the seller to the buyer (Incoterm 2000): DAFa. When the goods are at frontierb. When the goods are handed to the first carrierc. When the goods across the ship’s raild. When the goods are on board

45. To avoid confusion, many contract drafters use “…” instead of “ warranty”a. Guaranteeb. Warranteec. Legal responsibilityd. Defect liability

46. Every contract is governed by…a. Common lawb. Vienna conventionc. Applicable lawd. Civil law

47. When there are words like “about” or “approximately” in the letter of credit’s amount, how much can the actual payment be?a. The actual payment therefore can be 10% more or 10% less than the

stated amount.

b. The actual payment therefore can be 15% more or 15% less than the stated amount.

c. The actual payment therefore can be 5% more or 5% less than the stated amount.

d. The actual payment therefore can be between 5% and 10% of the stated amount.

48. As for Anglo-American law, the decision of the judge is always…a. Predictableb. Foreseeablec. Unpredictabled. Estimated

49. The warrantor is always a..a. Bankb. Insurance companyc. Both A and Bd. Neither A nor B

50. The Incoterm… contains 13 termsa. 1990b. 2000c. 2010d. 1990 and 2000

ĐỀ 16

1. After making the shipment of the goods to the buyer, the exporters present shipping documents to....A. The issuing bankB. The advising bankC. The confirming bankD. The opening bank

2. Which type of payment is the most advantageous for the exporterA. Credit by sight paymentB. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation

3. Dawson bought vanilla beans from Indonesia. Dawson instructed an American bank to open a letter of credit. One of the required shipping documents was a certificate of quality issued “by experts”. The bank paid the exporter. The beans, when they arrived, were rubbish. The certificate of quality was signed, however, by only on “expert”. Could the bank collect from Dawson the money it had paid to the exporter?A. Definitely it couldB. Probably it couldC. No it couldn’t D. No question it could

4. In international practice, problems of assignment of rights and delegation of duties can be reduced by using....A. Prior written consent of the other partyB. Prior conversation of the other partyC. Prior consultation of the other partyD. Prior talk to the other party

5. The lump-sum compensation is set too low...A. Liquidated damagesB. Quasi indemnity C. Penalty

6. The advantages of arbitration are...A. Private and foreseeable costsB. Lengthy and openC. Binding and rigid

D. Time-consuming 7. ........refer(s) to the questions of implied warranties

A. Most contractsB. Most lawsC. The UCCD. The Vienna Sales Convention

8. There are ...parties to a warranty and ....in a guaranteeA. Three/twoB. Three/threeC. Tow/threeD. Two/two

9. It is common to put the definition clause .....of the contractA. At the beginningB. Near the beginningC. At the endD. Near the end

10. A contract requiring the exporter the send the contract goods by road from Kenya to Zambia with freight paid by the exporter A. CFR LusakaB. CPT LusakaC. CFR Nairobi

11. The lump-sum compensation is set about right...A. Liquidated damagesB. Quasi indemnityC. Penalty

12. In a confirmed letter of credit, what happens if the bank pays the exporter and the issuing bank finds something wrong with the documents?A. The exporter has a problemB. The confirming bank has a problemC. It is the issuing bank which has an absolute obligation to pay the exporter

according to the terms of the creditD. To confirming bank has paid the money to the exporter and has no way of

recovering it. The confirming bank must pay the exporter without resource.

13. Which of these does mot count as a defectA. Defective designB. Misuse

C. Defective materialsD. Defective workmanship

14. Transfer of risk from the seller to the buyer (Incoterm 2000) CIPA. when the goods are at the seller’s premises B. when the goods are handed to the first carrierC. when the goods across the ship’s rail D. when the goods are on board

15. Many export contracts can not come into force due toA. certain preconditions are not metB. Force majeure C. late delivery

16. If the price is quoted CIF San Francisco, who pays for the insurance and freight A. the exporterB. the buyerC. the forwarding agentD. the confirming bank

17. Which is the most appropriate method of payment for the exporter in the following case? Sale of a bale (roll) of cloth costing $200 to a nearby tailor’s shop with whom you have done business for 20 years

A. Confirmed letter of creditB. open account with no securityC. open account with bank guaranteeD. open account with export credit insurance

18. The disadvantage of ....policy is that it is set up for particular time and automatically expires

A. tailor-madeB. floatingC. open cover

19. Which of these does not require prior inspection by SGSA. The PhilippinesB. IndonesiaC. The United KingdomD. All A, B and C

20. a promise by the exporter to cure defects in his product is called:A. a product guaranteeB. a product warrantyC. a product insurance

D. a product certification 21. the entire agreement provision means... must be established within the contract itself

A. the background of the contractB. important letters and memorandaC. contract documentsD. all of these

22. export credit insurance is a kind of special privilege that an exporter may get from his government’s export incentives and support’. Right or wrong?

A. complete rightB. absolutely wrongC. neither right nor wrongD. it is not a charity. It is beneficial for both exporter and insurance company

23. In a contract under a Continental law, a recital.....A. is essentialB. is not usefulC. is not essentialD. is important

24. small purchases in private life are often in the form of.....A. cash on deliveryB. cash against invoiceC. cash with orderD. any of the above

25. the bill of lading issued by the carrier for the sea transport is called A. seaway billB. marine bill of ladingC. sea way bill

26. ........bill of lading – goods were taken on board in good conditionA. cleanB. dirtyC. claused

27. in contract negotiation, “an invitation to provide terms and condition” may mean:....

A. another name for acceptanceB. another name for an offerC. an invitation to the other party to make an offer D. an invitation to the other party to accept an offer

28. the bank that the buyer asks to open a letter of credit is called......A. the issuing bankB. the advising bankC. the confirming bankD. the opening bank

29. in international trade, if payment is made on delivery, the method of payment to be chosen will be....

A. bank guaranteeB. open accountC. export credit insuranceD. at sight letter of credit

30. transfer of risk from the seller to the buyer (Incoterm 2000): FASA. when the goods are ex-quayB. when the goods are handed to the first carrier C. when the goods across the ship’s rail D. when the goods are on board

31. Anglo-American law is also called.....A. common lawB. civil lawC. law codeD. legal code

32. bill of lading is the most important document because it is a....A. document of titleB. document of negotiationC. document of freight 33. payment guarantee means....A. a bondB. a suretyC. a warrantyD. a triangle relationship among guarantor, principal and beneficial

34. the main difference between Continental and Anglo-American contract law is the degree of

A. CodificationB. FormationC. AutomationD. Interpretation

35. if the box “With brief advice by teletransmission” is crossed, it means....

A. the exporter wants to be informed of the issuance of the letter of credit by telexB. the exporter wants to begin preparation for deliveryC. the buyer’s responsibility of informing the exporter that a letter of credit has been issued in his favorD. the exporter wants to know about the issuance of the letter of credit more quickly

36. an FOB sales contract agrees that the exporter can deposit the goods in a warehouse if the ship arrives late and that this counts as delivery. If the letter of credit requires a bill of lading and makes no mention of a warehouse receipt,

A. the exporter will still be paid against a warehouse receiptB. the bank simply cannot pay against a warehouse receiptC. the buyer refuses to pay the exporter against a warehouse receiptD. the buyer still has to pay the exporter against the warehouse receipt because his designated vessel has arrived late at the point of loading

37. The Incoterm.....contains 13 termsA. 1990B. 2000C. 2010D. 1990 and 2000

38. “Door to door service” is offered. Which term should be used?A. DDPB. CIPC. CIF39. Drunken people have no.....to sign a contractA. contractual capacityB. contractual conceptC. contractual governmentD. contractual branch

40. The point at which money is deemed to be paid most preferred by buyer is.....A. when the buyer pays the money into his bankB. when the buyer’s bank transfers fundsC. when the buyer instructs the bank to payD. when the funds reach the seller’s bank account

41. Under most laws, a buyer can make certain assumptions about goods. These assumptions are called (by lawers):A. express warranties

B. negotiable warrantiesC. implied warrantiesD. implied guarantee

42. An offer is not always, in international practice, the first move in forming a....A. contractB. refusalC. declineD. renovation

43. How many timing problems are there in the defect liability period?A. oneB. twoC. threeD. four

44. Returned shipment to the exporter’s country means: A. the deal is total loss for the exporterB. the exporter takes back the whole shipmentC. the exporter makes a small profitD. the deal is total loss for the importer

45. The guarantor is usually a....A. bankB. insurance companyC. both A and BD. neither A nor B

46. Which of the following examples is latent defect?A. missing partsB. structural weaknesses C. wrong itemsD. broken items

47. If both parties perform their duties exactly according to the contract, the contract is.....

A. discharged by performanceB. discharged for performanceC. discharged to performanceD. discharged with performance48. What if a letter of credit requires “an appropriate wildlife certificate”?A. it is a vague requirementB. the bank and the exporter may have different views on what is “appropriate”

C. it should be more specific like what the certificate must show and who should issue it D. all of the above

49. Which of the following discrepancies is NOT the problem with Insurance?A. documents are not presented within the required timeB. the sum insured is below the figure required C. the insurance risks are not those specified in the creditD. a certificate of insurance is product while the credit calls for a policy

50. The court of arbitration applies whatever........the parties stipulate in the contractA. international lawB. corporate lawC. national lawD. business law

ĐỀ 171. Discount Records bought phonograph records from an exporter. Payment was by

letter of credit issued by Barclays Bank. The exporter delivered a mix of cassettes, eight-track cartridges and other non - contractual goods. Discount Records tried to get an injunction to stop Barclays from paying under the letter of credit. What you think the court would do in this case?A. The court refusedB. The court acceptedC. The court would not involveD. The exporter will be paid - although later action in the courts may oblige him

to make good any damage he caused the buyer2. In contracts, ...... is not normally allowed

A. Delegation of dutiesB. Assignment of rightsC. Performance of obligationsD. Fulfillment of duties

3. Which of the following is NOT the method of issuing the letter of creditA. By emailB. By airmailC. By mailD. By teletransmission

4. "A machine that consumes more fuel than specifications" is an example ofA. Latent defectB. Patent defectC. Inherent defectD. Apparent defect

5. Which of the following discrepancies is not the problem with the Letter of Credit?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired

6. The parties to a contract are not always required to... the Vienna Sales ConventionA. IgnoreB. ApplyC. RefuseD. Decline

7. Defects may be which of the following?

A. Defects in materialsB. Defects in workmanshipC. BothD. None of these

8. The lump-sum compensation is set about right A. Liquidated damages.B. quasi indemnity C. penalty

9. Which of the following statement is TRUEA. The amount of the credit should be expressed clearly in figuresB. The amount of the credit should be expressed clearly in words to prevent

misunderstanding.C. The amount of the credit should be expressed both in figures and in words.D. It is obligatory to use the ISO currency code in stating the amount of the credit.

10. Which type of bill of lading is negotiableA. surrenderB. straightC. to order

11. Which of these counts as a defectA. wrong designB. Fair wear and tearC. MisuseD. Missing items

12. The Vienna Sales Convention is also calledA. The Uniform Law of International SaleB. The Uniform Law on the Formation of Contracts for the International Sale of

GoodsC. The United Nations Convention on Contracts for the Interntional Sale of

GoodsD. The United Nations Convention on Contracts for acceptance

13. Earthquake, volcanic eruption and lighting are covered under the cargo clauseA. AB. BC. CD. A and B

14. If a dispute arises, the recital allows the court to discover the real meaning of...A. the contract

B. the termC. the incotermD. the appendix

15. In order to produce perfect products, manufacturers need to have.......A. product insuranceB. quality assurance programsC. customer satisfactionD. defect liability period

16. Transfer of risk from the seller to the buyer ( Incoterm 2000): DEQA. When the goods are ex-quayB. When the goods are handed to the first carrierC. When the goods across the ship's railD. When the goods are on board17. To make sure that the officer signing the contract has authority to sign the

contract, parties should check...A. The duplicate of the signatureB. The authenticity of the signatureC. The coverage of the signatureD. The transferability of the signature

18. In negotiating a letter of credit, the step in which the exporter rigorously checks documentation and submits it to the bank is.....A. AgreementB. VerificationC. SpecificationD. Compliance

19. Feeble-minded people lack.... to enter contractsA. moneyB. timeC. contractual capacityD. intelligence

20. Of the three options available for setting disputes, litigation before the court is internationally least attractive as it is...A. Expensive and legalisticB. Business - like and flexibleC. Time-saving and privateD. Fast and acceptable

21. Elderly people are... to deal with a contract

A. UnableB. AbleC. ImpossibleD. Unaffordable

22. A grace period sometimes used to...A. avoid penaltyB. facilitate early deliveryC. avoid liquidated damages

23. Inspection by... reveals discrepancies in qualityA. customs officersB. the carrierC. the exporterD. the importer

24. IN a contract, the word "whereas" means....A. "only that"B. "while"C. "when"D. "because" or " considering that"

25. Disclaimer of warranty often accompaniesA. Contracts for hardwareB. Contracts for footwearC. Contracts for glasswareD. Contracts for software

26. What does prompt payment of the letter of credit depend on?A. It depends on the presentation of correct documentation of the exporterB. It depends on the kinds of documents which must be presented by the exporterC. It depends on the willingness of the buyerD. It depends on the time of checking the documents from both advising bank and

issuing bank27. When the exporter fills in the letter of credit application form, if the box "requested"

for the " Confirmation of credit to the beneficiary" is ticked, what does it means?A. It means the exporter wants the bank in his country merely handle the paperworkB. It means the exporter wants the bank in his country make the payment itself

and recover the funds from the buyer's bankC. It means the exporter is double guaranteed in terms of payment by a third bank

beside the issuing bank and the advising bank

D. It means the confirmation from the issuing bank in terms of payment in case the buyer defaults.28. In settlement by sign payment.....

A. The seller presents the necessary documents to the issuing bank.B. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank

29. The essence of Continental Law is....A. CodificationB. VerificationC. AuthenticationD. Ratification

30. The workforce at the factory go on strikeA. YesB. QuestionableC. No

31. In CIF and CIP contracts, ...... must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier

32. In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association IATA?A. Three originals and three copiesB. Three originals and six copiesC. Three originals and nine copiesD. It depends on the requirements in the letter of credit

33. Once the bank has indicated the discrepancies, what can the exporter do?A. The exporter can provide the missing paperwork or correct errorsB. The exporter can ask the buyer to instruct bank to change the terms of the letter of

creditC. The exporter can ask the bank to process the letter of credit with the discrepancies

but to pay only when (and if) the issuing bank permits paymentD. any of the above

34. Which of the following is NOT considered to be special requirement in a sale/purchase contract?A. Containers are required to be fumigated before shipment

B. Upgraded packaging materialsC. Goods must be packed according to export standardsD. Health inspection for foodstuffs

35. Which of the following method of payment is NOT possibleA. 100% of the contract price by letter of creditB. 20% prepayment and 80% by letter of creditC. 90% by letter of credit and 10% retaining until the warranty period is overD. Part of the contract price is paid by letter of credit but there is not a clear

figure stated in the amount of the credit.36. Failure to meet specifications is a:

A. Defect in workmanshipB. Defect in materialC. Defect in designD. Defect in quantity

37. In principle the buyer can reject delivered goods if they do not conform to the contract. This is called...A. Implied warranty of suitabilityB. Implied warranty of conformityC. Implied warranty of mechantabilityD. Implied warranty of fitness for intended purpose

38. If the price is quoted FAS Osaka, who pays for the freight?A. The shipperB. The exporterC. The forwarding agentD. The buyer

39. When the Bill of lading marked "freight prepaid”. Who pays for the freight?A The BuyerB. The SellerC. The agentD. It depends on the agreement.

40. In contract negotiation, " an invitation to provide terms and condition" may mean.....A. Another name for acceptanceB. Another name for an offerC. An invitation to the other party to make an offerD. An invitation to the other party to accept an offer

41. Defects include:A. mistake

B. misuseC. fair wear and tearD. workmanship

42. A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by...A. The buyerB. The exporterC. A bankD. A third party

43. A marine bill of lading becomes negotiable document and no restriction on ownership when it is....A. to order, blank endorsedB. surrendered, blank endorsementC. to order, endorsed

44. "Door to door service" is offered. Which term should be used?A. DDPB. CIPC. CIF

45. With a well-designed set of specifications, the seller can protect its....A. reputationB. productionC. resolutionD. profitability

46. The best solution for the exporter to make late payment impossible is....A. A typical contract clause in which there are regulations on the amount of interest

the seller shall be entitled to receive in case of late paymentB. An agreement with the buyer to strengthen the payment provisions with a payment

guaranteeC. An agreement with an insurance company in case the buyer fails to pay on timeD. A confirmed, irrevocable, at sight letter or credit.

47. A contract requiring the exporter to send the contract goods by road from Keyna to Zambia with freight paid by the exporterA. CFR LusakaB. CPT LusakaC. CFR Nairobi

48. It is common to put the definition clause..... of the contractA. at the beginning

B. near the beginningC. at the endD. near the end

49. Why letters of credit are formally called "documentary credits"?A. Because a letter of credit is a binding agreement by a bank to pay a certain sum of

money when the exporter presents the necessary documents to the bank.B. Because the letter of credit is issued by an issuing bank at the request of the buyer.C. Because in a letter of credit situation, documents are exchanged for moneyD. Because the documents in a letter of credit are proofs of trust.

50. The things that the exporter should keep in mind in negotiating payment are....A. Payment method, timing, place, delay and results of delayB. How payment will be made and the date of paymentC. Where the money must be before payments is considered complete and what delay

in payment is excusableD. Results of non-excusable delay in payment and time of payment

Đề 18

Câu 1:

If the price is quoted FOB Singapore, who pays for the insurance and freight?

A. The exporter.

B. The buyer.

C. The forwarding agent.

D. The confirming bank.

Cau 2

What happens first when a bank resuses to pay under a letter of credit?

A. The bank will cite a “discrepancy”, some aspect of the documemtation that is not in line

with the terms of the credit.

B. A check - list of commonly cited discrepancies will be used by bank.

C. The exporter will have to re-submit their shipping documents.

D. The exporter must contact the buyer asking the buyer to instruct the issuing bank to

extend the date of the credit.

Câu 3:

In negotiating a letter of credit, the step in which the exporter checks the credit to see that

required documentation is as agreed is……….

A. Agreement.

B. Incorporation.

C. Verification.

D. Compliance.

Cau 4

Transfer of risk from the seller to the buyer (incoterm 2000): CFR

A. When the goods are At the seller’s premises.

B. When the goods are handed to the first carrier.

C. When the goods across the ship’s rail.

D. When the goods are on board.

Câu 5

Within the four alternatives of the at – sight Letter of credit, which one is the least satisfatory for

the exporter?

A. Settlement by payment.

B. Settlement by deferred payment.

C. Settlement by acceplance.

D. Settlement by nogatiation.

Cau 6

Of the three options available for setting disputes, litigation before the court is internationnnally

least attractive as it is……

A. Expensive and legalistic.

B. Business- like and flexible.

C. Time-saving and private.

D. Fast and acceptable.

Câu 7:

In settlement by deferred payment, if the seller needs money immediately, what can he do?

A. There is no way he can get money immediately.

B. He can exchange the letter of credit for cash with any agreeable bank.

C. The seller can realize some part of the letter of credit’s value, not its full value.

D. Payment is still safe but it is delayed.

Cau 8

According to the UCC, how long is the legal action period?

A. Two years.

B. Three years.

C. Four years.

D. one years.

Câu 9:

The ….. has no power to enforce his solution or to bind the parties, his task is to suggest a fiar

solution only.

A. Judge.

B. Conciliator.

C. Magistrate.

D. Lawyer.

Cau 10

If the price is quoted CIF San Francisco, who pays for the in ssurance and freight?

A. The exporter.

B. The buyer.

C. The forwarding agent.

D. The confirming bank.

Cau 11

The risk of rough handing is not corvered under the cargo claus….

A. A

B. B

C. C

D. B and C

Cau 12

The question of warranty is disposive. This means:

A. It is fixed.

B. The exporter can usually exclude all warranties.

C. The exporter must include it in the contract.

D. It is non-exsitent.

Cau13

Which type of payment is the most advantageous for the exporter

A. Credit by sight payment.

B. Credit by deferred payment.

C. Credit by acceptance.

D. Credit by negotiation.

Cau 14

…….. can create no – contract situations

A. Only duress

B. Only fraud

C. Onlymistake

D. Duress, fraud and mistake all

Cau 15

A volcanic eruption burries the factory in ash

A. Yes

B. Questionable

C. No

Cau 16

Many export contaracts cannot come intoforce due to………

A. Certain preconditions are not met

B. Force majeure

C. Late delivery

Cau 17

Transfer of risk from the seller to the buyer (incoterm 2000): CIP

A. When the goods are At the seller’s premises.

B. When the goods are handed to the first carrier.

C. When the goods across the ship’s rail.

D. When the goods are on board.

Cau 18

Companies ….. to use the short from of the names in contracts

A. Are forced

B. Aer not forced

C. Are allowed

D. Are not allowed

Cau 19

A contract requiring an exporter in Mozambique to deliver the contract goods in Beira,

Mozambique, for the shipment by sea to Dar es Salaam, Tanzania.

A. FAS Beira

B. CIF Beira

C. Fob Dar es Salaam

Cau 20

Continental Law copes with ……

A. Personal problems

B. International trade

C. National issues

D. Individual conflicts

Cau 21

IN contract, ……. Is not normally allowed

A. Delegation of duties

B. Assignment of rights

C. Performance of obligations

D. Fulfillment of duties

Cau 22

“A voltmeter that is specified as accurate within 1 millivolt is accurate within only 5 millivolt” is

an example of.

A. Defective design

B. Difective maters

C. Defective workmanship

D. Misuse by the seller

Cau 23

If a dispute arises, the recital allows the court to discover the real meaning of ……..

A. The contract

B. The term

C. The incoterm

D. The appendix

Cau 24

In settlement by sight payment ………..

A. The seller presents the necessary document to the issuing bank

B. The seller presents the necessary document to the advising bank

C. The seller presents the necessary document to the paying bank

D. The seller presents the necessary document to the reconfirming bank

Cau 25

If the price is quoted FAS Osaka, who pays for the freight

A. The shipper

B. The exporter

C. The forwarding agent

D. The buyer

Câu 26:

The point at which money is deaamed to be paid most preffered by the seller….

A. When the buyer pays the money into his bank B. When the buyer’s bank transfers fundsC. When the buyer’s instructs the bank to pay D. When the funds reach the seller’s bank account

27: In negotiating a letter of credit , the step in the buyer applies for the letter of credit

specifying the agreed documentatiom…….

A.Incorporation

B. Vertication

C. Compliance

D. Non of the above

Câu 28:

The seller shall make good the defect of damage as soon as practicable and at his own cost”. This

is an example

A. Legal action period B. Notification period C. Rectification periodD. Defect liability period

Câu 29: W hen the exporter fill in the letter of credit application form , if the box requestef for

the Confirmation of credit to the beneficiary is ticked, what does it mean ?

A. Its mean the exporter wants the bank in his country merely handle the paperworkB. Its mean the exporter wants the bank in his country make the payment itself and recover

the funds from the buyer’s bank C. Its mean the exporter double quaranteed in term of payment by the third bank beside the

issuing bank and the advising bank D. Its mean the confirmation from the issuing bank interms of payment in case the buyer

defauts

Câu 30:

A term or terms in a contract could raise the contract price

A. A shorter warranty period B. Customer orders goods in one colorC. No additional packaging or safety warning are required beyond normal standardsD. A longer warranty period

Câu 31. Who usually has to pay for curing defects?

A. The buyerB. The sellerC. Both the buyer and the sellerD. The manufacturer

Câu 32. Which of the following examples is a talent defect?

A. Missing partsB. Structural weaknessC. Wrong itemsD. Broken items

Câu 33. A contract that is ultra vires is……

A. Well EnforceableB. UnenforceableC. Valid D. Effective

Câu 34. The main difference between Continental andAnglo- American contract law is the

degree of ……

A. CodificationB. Formation C. AutomationD. Interpretation

Câu 35. The final quality hurdle is the …..during which the exporter is liable to cure defects that

come to light in the goods.

A. Guarantee period B. Deffect liability period

C. Correction methods D. Quality assurance requirement

Câu 36: A letter of credit either “ revocable” and “irrevocable” letter of credit, so the plain

expression “ letter of credit generally mean the irrevocable kind. The word “ irrevocable”,

therefore. Should not always appear in the text of the credit and of the contract. Right or wrong?

A. Wrong B. Wrong, because it should always appear in the text of the credit and the contract

according to the ICC’s rulesC. RightD. Right, because in the absence of a clear indication, letter of credit are deemded to be

irrevocable

Câu 37. The word “ cash” in international trade means……..

A. Coins and notesB. Gold C. Checks or bank transfersD. Prepayment

Câu 38. Whck of these does not require prior inspection by SGS?

A. The philippinessB. IndonesiaC. The United KingdomD. All A, B, C

Câu 39. A lockout Background the worker have been striking for one day a week . the

managerment locks the workers out of factory until they agree to end the strike

A. YesB. QuestionableC. No

Câu 40. General average has the condition…….

A. The ship was in dangerB. The caption decided to lighten the ship and the ship arrived the destination safetyC. The caption decided to lighten the ship and the ship arrived the destination safety with the

remaining cargoD. A & C

Câu 41. Transfer of risk from the seller to the buyer ( Incoterm 2000). FOB

A. When the goods are at the seller premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s rail D. When the goods are on board

Câu 42. In negotiating specification, conflict can arise

A. Within the importer’s own teamB. Between the importer and the exporterC. Between the exporter’s own teamD. All of the above

Câu 43: Continental law is widely used for………

A. International issuesB. National issuesC. Both International issues and National issues D. Neither International issues and National issues

Câu 44. Another name for Tender Guarantee is……

A. Revocable guaranteeB. Bid GuaranteeC. Bond guaranteeD. Bid bond

Câu 45. A promise by the exporter to cure defects in his product is called:

A. A product guaranteeB. Product warrantyC. A product insuranceD. A product certification

Câu 46. The name of parties to contract are often on …. of the contract

A. The first pageB. The second pageC. The last pageD. All pages

Câu 47. The first step in negotiating a letter of credit is……

A. IncorporationB. SpecificationC. AgreementD. Vertification

Câu 48. The contract requiring an exporter in Ethiopia to send the contract goods by air for

delivery in Windhoek, namibia

A. CIF WinhoekB. CIP Winhoek C. DEQ Winhoek

Caau49. In contract “ partial invalidity provision” means the invalidity of one part of the

contract…….

A. May invalidate the restB. Does not invalidate the restC. Affects the restD. Enforce the rest

Câu 50. What does prompt payment of lettet of credit depend on ?

A. Its depend on the presentation of correct documentation of the exporterB. Its depend on the kind of documents which must be presented by the exporterC. Its depend on the willingness of the buyerD. Its depend on the time of checking the document from both advising bank and issuing

bank

ĐỀ 191. What happens if the issuing bank finds a problem with the documents and refuses to

send funds to the advising bank to cover payment?A. The advising bank has to suffer that loss due to their carelessness in checking the

shipping documentsB. The advising bank gets its money back from the exporterC. The payments from the advising bank to the exporter are always made with

resource. The exporter has to pay back the advising bank in such a case.D. It is the responsibility of the issuing bank of paying back the advising bank in such

a case2. With a well-designed set of specifications, the seller can protect its… and avoid costs

A. ReputationB. ProductionC. ResolutionD. profitability

3. The cheapest mode of transport:A. By seaB. by airC. by road

4. What is transferable credit ?A. It is the kind of credit which allows the exporter to transfer his right as the credit’s

beneficiary to any third partyB. It is the kind of credit which allows the first beneficiary to request the

confirming bank to pay a third partyC. It is the kind of negotiable document with which the exporter can endorse for any

third partyD. It is the kind of credit with which the buyer will not necessarily know who is the

actual supplier of the goods5. As the consequences of a defect can be expensive, the question of who pays for the

consequential loss or damage is often..A. Agreeable B. ControversialC. Non-negotiableD. Amicable

6. There are … parties to a warranty and… in a guarantee

A. Three/twoB. Three/threeC. Two/threeD. Two/two

7. How many types of implied warranties are there ?A. TwoB. ThreeC. FourD. five

8. What do export insurance premiums depend on:A. Type of goods exportedB. Creditworthiness of the buyerC. The political stability of the buyer’s countryD. All of the above

9. A contract comes into force when an offer is made by one side and … by the otherA. AcceptedB. DeclinedC. WrittenD. Drawn

10. The place of delivery is doubly important to the exporter because the date of… normally depends on time and place of deliveryA. InsuranceB. PaymentC. invoice

11. The mechanism of a confirmed letter of credit works as follow:A. Buyer instructs issuing bank to issue letter of credit in favor of the sellerB. Buyer instructs issuing bank to instruct advising bank to pay under the letter of

credit in favor of the sellerC. Buyer instructs an issuing bank to instruct a confirming bank to pay under a

letter of credit in favor of the sellerD. Buyer instructs issuing bank to instruct any third bank to pay under the letter of

credit in favor of the seller12. Many export contracts cannot come into force due to :

A. Certain preconditions are not metB. Force majeureC. Late delivery

13. Why do few exporters ask for bank guarantees as security for payment

A. Because they are not expensive to set upB. Because they run into trouble so oftenC. Because they are conditional guaranteesD. Because the letter of credit is much preferred

14. As for Anglo-American law, the decision of the judge is always..A. PredictableB. ForeseeableC. UnpredictableD. Estimated

15. Among a number of international bodies offering arbitration services, the… in Paris is the most prestigiousA. UCPB. ADRC. ICCD. FAO

16. Defects such as wrong items, broken or missing parts, scratches, and so on are called…A. Patent defectsB. Latent defectsC. Inherent defectsD. Concealed defects

17. A commercial invoice must be made out to..A. The exporterB. The shipperC. Any party endorsing the bill of ladingD. The applicant for the letter of credit, normally to the buyer, unless otherwise

stated in credit18. The bank helping the exporter to check the correctness of the documents and set the

payment procedure in motion isA. The issuing bankB. The advising bankC. Confirming bankD. Any third bank

19. In a contract under a Continental law, recitalA. Is essentialB. Is not usefulC. Is not essential

D. Is important20. “ Full set on board ocean bills of lading to order shipper, blank endorsed”. In this

clause shipper meansA. ExporterB. ImporterC. bankD. A or B or C. it depends on situation

21. As soon as the exporter receives advice that the letter of credit has been opened, what should he do ?A. He should check that it complies with the agreement he negotiated with the

buyerB. He should check if there is any document that he does not understand C. He should check if there is any requirement that he does not agree toD. He should check if there is any necessary amendment to the terms of the letter of

credit22. “ A voltmeter that is specified as accurate within 1 millivolt is accurate within only 5

millivolt” is an example of A. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the seller

23. The “ order of precedence” among the documents explainsA. The authority of the documentsB. The meaning of the documentsC. The value of the documentsD. The assignment of the documents

24. Why can a manufacturer sometimes accept a loss on an export dealA. He wants to win a regular customerB. His factory may be short of workC. He can get some export incentives from the governmentD. any of the above ( want to win a regular customer, his factory may be short of work, he can get some export incentives from the government )

25. Partial invalidity clause can help to avoid problems with contracts that..A. might infringe government regulationsB. violate the trade lawsC. discourage trade D. Both B and C

26. Which of the following discrepancies is not the problem with the letter of credit ?A. the credit has expiredB. documents required by the credit are missingC. the credit amount is exceededD. insurance cover is expressed in a currency other than that of the credit

27. Which is the most appropriate method of payment for the exporter in the following case ?A contract for supply cloth worth $5,000 per month to the government Oceanea – a

prosperous country. Duration of the contract is 2 years, but renewable. Contract represents 0.5% of turnover.

A. open account with no securityB. open account with bank guaranteeC. open account with export credit insuranceD. Export credit insurance is advisable . Selling on open account with no security

at all is also possible.28. If the price is quoted CPT Vancouver, who pays for the freight ?

A. The exporterB. the forwarding agentC. the buyerD. the confirming bank

29. Beside the commercial invoice, the transport document and insurance document, what do “ Other documents” include ?A. certificate of originB. Certificate of inspectionC. a health inspectionD. any of the above

30. A ban is issued on the export of jute products by newly elected government that has been preparing legislation on this subject for five yearsA. yesB. questionableC. No

31. It’s always good for the exporter to promote his skills and the excellence of his products…A. in the contract documents B. in the payment clauseC. in the recitalD. in the delivery clause

32. A ban is issued on the export of jute products by newly elected governmentA. yes B. questionableC. no

33. When the bill of lading marked “ freight prepaid”. Who pays for the freightA. the buyerB. the sellerC. the agentD. it depends on the agreement

34. Anglo-American law isA. law codeB. case lawC. civil lawD. legal code

35. Which of the following examples is a latent defect ?A. missing partsB. structural weaknessesC. wrong itemsD. broken items

36. The applicable law governs questions concerning the validity,…., performance of contractA. interpretationB. paymentC. correctionD. Acceptance

37. In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association – IATA ?A. three originals and three copiesB. three originals and six copiesC. three originals and nine copiesD. it depends on the requirements in the letter of credit

38. Transer of risk from the seller to the buyer ( Incoterm 2000): CIFA. when the goods are at the seller’s premisesB. when the goods are handed to the first carrierC. when the goods across the ship’s rail D. when the goods are on board

39. Which is the most appropriate method of payment for the exporter in the following case ?A new small customer in a Pacific island republic much given to political

disturbances. The order is for $10,000 worth of assorted textiles A. open account with no securityB. open account with bank guaranteeC. open account with export credit insuranceD.confirmed letter of credit

40. The buyer can reject goods that are not of saleable quality. This is calledA. implied warranty of suitabilityB. implied warranty of conformityC. implied warranty of merchantabilityD. implied warranty of fitness for intended purpose

41. When parties agree to end a contract, ….occursA. terminationB. frustrationC. rescissionD. suspension

42. Who issues ocean bill of lading ?A. captainB. exporterC. shipping companyD. agent

43. Under the public law, a company can only sign a contractA. even when they lack powersB. that is beyond its powerC. both A and BD. that is within its power

44. In a confirmed letter of credit, what happens if the bank pays the exporter and the issuing bank finds something wrong with the documents ?A. the exporter has a problemB. the confirming bank has a problemC. it is the issuing bank which has an absolute obligation to pay the exporter

according to the terms of the creditD. the confirming bank has paid the money to the exporter and has no way of

recovering it. The confirming bank must pay the exporter without recourse45. Which of the following is essential to successful business ?

A. qualityB. customer satisfactionC. correct making and packagingD. on-time delivery

46. The things that the exporter should keep in mind in negotiating payment areA. Payment mode, timing, place, delay and result of delayB. how payment will be made and the date of paymentC. where the money must be before payment is considered complete and what delay

in payment is excusableD. results of non-excusable delay in payment and time of payment

47. A marine bill of lading becomes negotiable document and no restriction on ownership when it is..A. to order, blank endorsedB. surrendered, blank endorsementC. to order, endorsed

48. Termination for default occurs when the contract names certain ….which allow one side to terminateA. time limitsB. defaultsC. situationsD. conditions

49. What can protect both the exporter and importer in an export contract ?A. a well-designed set of specificationsB. an itemized set of specificationsC. a plain set of specificationsD. none of these

50. The bill of lading issued by the carrier for air transport is calledA. air waybillB. air bill of ladingC. air way bill of ladingD. airway bill

ĐỀ 20

1. A contract comes into force when an offer is made by one side and…by the otherA. AcceptedB. DeclinedC. WrittenD. drawn

2. When the exporter fills in the letter of credit application form, if the box “requested” for the “ Confirmation of credit to the beneficiary” is ticked, what does it mean ?A. It means the exporter wants the bank in his country merely handle the paperworkB. It means the exporter wants the bank in his country make the payment itself

and recover the funds from the buyer’s bankC. It means the exporter is double guaranteed in terms of payment by a third bank

beside the issuing bank and the advising bankD. It means the confirmation from the issuing bank in terms of payment in case the

buyer defaults3. Within the four alternatives of the at-sight letter of credit, which one is the least

satisfactory for the exporter ?A. settlement by sight paymentB. settlement by deferred paymentC. settlement by acceptanceD. Settlement of negotiation

4. The mechanism of a confirmed letter of credit works as follow:A. Buyer instructs issuing bank to issue letter of credit in favor of the sellerB. Buyer instructs issuing bank to instruct advising bank to pay under the letter of

credit in favor of the sellerC. Buyer instructs an issuing bank to instruct a confirming bank to pay under a

letter of credit in favor of the sellerD. Buyer instructs issuing bank to instruct any third bank to pay under the letter of

credit in favor of the seller5. In drafting an arbitration clause, the following questions must be resolved:

A. How many arbitrators sit in the court ?B. What is the language of the court ?C. Where is the place of the court ?D. All of the above

6. If alternative means of transport or partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words….between the names of transport documents

A. andB. orC. and/orD. either B or C

7. Which of the following examples is a patent defect ?A. crushed or stained garmentsB. the flooring shows signs of deteriorationC. high fuel consumptionD. inadequately tightened nuts and bolts

8. The expiry date of the letter of credit is….A. the date the exporter will be paid for the goods soldB. the last date of presentation of documents to the bankC. the date the letter of credit is no longer effectiveD. the last date the shipment should be made by the exporter

9. War risk is not included:A. A clauseB. B clauseC. A, B, C clause

10. In contract negotiation, “an invitation to provide terms and condition” may mean:A. another name for acceptanceB. another name for an offerC. An invitation to the other party to make an offerD. an invitation to the other party to accept an offer

11. Transfer of risk of the seller to the buyer (Incoterm 2000) DESA. when the goods are ex-shipB. when the goods are handed to the first carrierC. when the goods across the ship’s rail D. when the goods are on board

12. The bank that the buyer asks to open a letter of credit is called:A. the issuing bankB. the advising bankC. the confirming bankD. the opening bank

13. “ The seller shall make good the defect or damages as soon as practicable and at his own cost”. This is an example of:A. legal action periodB. notification period

C. rectification periodD. defect liability period

14. “ A radio lacks the wires connecting the loudspeaker to the amplifier” is an example of :A. defective designB. defective materialsC. defective workmanshipD. misuse by the buyer

15. In negotiating a letter of credit, the step in which the list of all required documentation is incorporated into the contract is:A. specificationB. incorporationC. Compliance

D. verification16. If the price is quoted CFR HaiPhong, who pay for the freight ?

A. the buyerB. the exporterC. the carrierD. the forwarding agent

17. Who issues ocean bill of lading?A. captainB. exporterC. shipping companyD. agent

18. Why do few exporters ask for bank guarantees as security for payment ?A. Because they are not expensive to set upB. Because they run into trouble so oftenC. Because they are conditional guaranteesD. Because the letter of credit is much preferred

19. An offer dies if it has a/an …A. acceptanceB. agreementC. adoptionD. revocation

20. The place of delivery ( CIP, CIF ) should not be confused with the…of the goodsA. departureB. destination

C. transshipment21. When there are words like “about” or “approximately” in the letter of credit’s

amount, how much can the actual payment be ?A. the actual payment therefore can be 10% more or 10% less than the stated

amountB. the actual payment therefore can be 15% more or 15% less than the stated amountC. the actual payment therefore can be 5% more or 5% less than the stated amountD. the actual payment therefore can be between 5 % and 10% of the stated amount

22. Drunken people have no…to sign contractA. contractual capacityB. contractual conceptC. contractual governmentD. contractual branch

23. As the consequences of a defect can be expensive, the question of who pays for the consequential loss or damage is often…A. agreeableB. controversialC. non-negotiableD. amicable

24. How many timing problems are involved in Defect Liability Period ?A. threeB. fourC. twoD. five

25. In negotiating a letter of credit, the step in which the exporter checks the credit to see that required documentation is as agreed is:A. agreementB. incorporationC. veritificationD. compliance

26. What happens first when a bank refuses to pay under a letter of credit?A. the bank will cite a “discrepancy”, some aspect of the documentation that is

not in line with the terms of the creditB. a check-list of commonly cited discrepancies may be used by banksC. the exporter will have to re-submit their shipping documentsD. the exporter must contact the buyer asking the buyer to instruct the issuing bank to

extend the date of credit

27. The background of the contract is provided in the form of:A. a clauseB. a definitionC. the annexD. a whereas-recital

28. The cheapest mode of transport is:A. by seaB. by airC. by road

29. A contract that is ultra vires is:A. well enforceableB. unenforceableC. validD. effective

30. Which of these does not require prior inspection by SGS ?A. the PhilippinesB. the IndonesiaC. the United KingdomD. all A,B and C

31. After making the shipment of the goods to the buyer, the exporter presents the shipping documents to…A. the issuing bankB. the advising bankC. confirming bankD. opening bank

32. …..are the explanationsA. definition clausesB. whereas-recital clausesC. preamble clausesD. annex clauses

33. An FOB sales contract agrees that the exporter can deposit the goods in the warehouse if the ship arrives late and that this country is delivery. If the letter of credit requires a bill of lading and makes no mention of a warehouse receipt,A. the exporter will still be paid against a warehouse receiptB. the bank simply cannot pay against a warehouse receiptC. the buyer refuses to pay the exporter against a warehouse receipt

D. the buyer still has to pay the exporter against the warehouse receipt because his designated vessel has arrived late at the port of loading34. ….refer to the questions of implied warranties

A. most contractsB. most lawsC. the UCCD. the Vienna Sales Convention

35. There is no connection between the letter of credit and the sales contract. Right or wrong ?A. completely rightB. completely wrongC. it dependsD. the exporter and the buyer may agree that all the terms in their sales contract must

be stated in the letter of credit36. A grace period is sometimes used to ….

A. avoid penaltyB. facilitate early deliveryC. avoid liquidated damages

37. Continental law copes with…A, personal problemsB. international tradeC. national issuesD. individual conflicts

38. What does it mean by “ irrevocable” letter of credit ?A. it means the letter of credit can be cancelled at any time by the buyer or issuing

bankB. it means the letter of credit cannot be cancelled at any time by the buyer or

the issuing bankC. it means the lette of credit can be cancelled if the beneficiary agrees to do soD. it meand the letter of credit can only be cancelled if the buyer agrees to do so

39. A ban is issued on the export of jute products by newly elected governmentA. yesB. questionableC. no

40. If the price is quoted FOB Singapore, who pays for the insurance and freight ?A. the exporterB. the buyer

C. the forwarding agentD. the confirming bank

41. The disadvantages of…policy is that it is set up for particular time and automatically expiresA. tailor-madeB. floatingC. open cover

42. Inspection by the buyer is called:A. independent inspectionB. inspection of goods prior to shipmentC. open package inspectionD. customs inspection

43. “ Nuts and bolts are inadequately tightened” represents:A. defective materialsB. defective designC. defective workmanshipD. misuse

44. A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter:A. CFR LusakaB. CPT LusakaC. CFR Nairobi

45. Most contracts contain an assurance that the exporter will………..any defects in his productsA. make goodB. take awayC. alter

D. modify46. The delivery depends on..

A. date of executionB. effective dateC. preconditions

47. What do export insurance premiums depend on ?A. type of goods exportedB. creditworthiness of the buyerC. the political stability of the buyer’s countryD. all of above

48. Among a number of international bodies offering arbitration services, the…in Paris is the most prestigiousA. UCPB. ADRC. ICCD. FAO

49. The names of…are normally the full, registered name of the CompanyA. the exporterB. the buyerC. either the exporter or the buyerD. the parties

50. The parties to a contract are not always required to…. The Vienna Sales ConventionA. ignoreB. applyC. refuseD. decline

ĐỀ 21

1. Anglo- American law is also called:A. Civil lawB. Legal codeC. Common lawD. Law code

2. The first step in negotiating a letter of credit is:A. IncorporationB. SpecificationC. AgreementD. Verification

3. A mistake about the goods in a contract means there no……..A. Meeting of acceptanceB. Meeting of mindsC. Meeting of conceptsD. Meeting of agreement

4. Is it possible for the beneficiary (exporter) sometimes, though not often, to make a draft on the bank to collect the money?D. No. it isn’tE. It is impossible by all meanF. The draft must be drawn on the buyer to the order payment not the bankE. Yes, it is

5. A contract that is ultra vires is…….A. Well enforceableB. UnenforceableC. ValidD. Effective

6. Most contracts contain an assurance that the exporter will …….. any defects in his productsA. Make goodB. Take awayC. AlterD. Modify

7. A warranty is aimed at:A. Obtaining loansB. Assurance of product performance

C. Credit purchaseD. Profit making

8. It’s always good for the exporter to promote his skills and the excellence of his products……A. In the contracts documentsB. In the payment clauseC. In the recitalD. In the delivery clause

9. To avoid the dangers of the slow payment, exporters try to protect themselves with a clause like this:” payment shall be deemed to have been made only when…..”A. The buyer instructs the bank to payB. The buyer pays the money into his bankC. The buyer’s bank transfers fundsD. Funds reach the seller’s bank account and at his full disposal

10. The essence of Continental law isA. CodificationB. VerificationC. AuthenticationD. Ratification

11. Allowing the buyer to repair the equipment at the exporter’s cost ……..A. Is always the best choice to the exporterB. Is always the worst choice to the exporterC. Is often safe for exporterD. Is often unsafe for exporter

12. A contract comes into force when an offer is made by one side and …… by otherA. AcceptedB. DeclinedC. WrittenD. Drawn

13. Termination may be for…..A. DisruptionB. AuthenticationC. ConvenienceD. Adoption

14. In settlement by deferred payment, the letter of credit is paid after delivery. Right or wrong?A. Completely right

B. Definitely wrongC. It dependsD. The letter of credit is not payable until a number of days

15. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading?

A. It is possible demandB. The original of the bill of lading for shipment by rail does not come into the possession of the buyer.C. Such a letter of credit is certain to cause delay in payment

D. The bank insists on strict compliance16. (Note: If either party is prevented from, or delayed in, performing any duty under this

contract by an event beyond his reasonable control, then this event shall be deemed force majeure)A lockout (Background: The workers have been striking for one day a week. The

management locks the workers out of factory until they agree to end the strike)A. YesB. QuestionableC. No

17. Who usually pays for curing defects?A. The importerB. The exporterC. Both partiesD. A third party

18. Elderly people are …to deal with contractE. UnableF. AbleG. ImpossibleH. Unaffordable

19. If the buyer comes from a country which has a poor reputation for enforcing awards, the best method of payment under the contract is a/an……..A. Revolving L/CB. At sight, confirmed L/CC. Deferred, irrevocable L/CD. Transferable L/C

20. Which of the following is essential to successful business?E. QualityF. Customer satisfaction

G. Correct marking and packagingH. On-time delivery

21. Different legal systems regulate that rejection of delivered goods must be total ………can be partial.A. OrB. AndC. And/orD. Nor

22. If both parties perform their duties exactly according to the contract, the contract is……….E. Discharged by performanceF. Discharged for performanceG. Discharged to performanceH. Discharged with performance

23. (Note: If either party is prevented from, or delayed in, performing any duty under this contract by an event beyond his reasonable control, then this event shall be deemed force majeure)A fire burns down the factoryA. YesB. QuestionableC. No

24. The grace period is sometimes used to …..A. Avoid penaltyB. Facilitate early deliveryC. Avoid liquidated damages

25. To make sure that the officer signing the contract has authority to sign the contract, parties should check………………E. The duplicate of the signatureF. The authenticity of the signatureG. The coverage of the signatureH. The transferability of the signature

26. A term or terms in a contract could raise the contract priceE. A shorter warranty periodF. Customer order goods in one colorG. No additional packaging or safety warnings are required beyond normal standardsH. A longer warranty period

27. The disadvantage of……policy is that it is set up for particular time and automatically expires.D. tailor – madeE. floatingF. open cover

28. ………….. is opened-endedA. Tailor-madeB. FloatingC. Open cover

29. The bank helping the exporter to check the correctness of the documents and set the payment procedure in motion isA. The issuing bankB. The advising bankC. The confirming bankD. Any third bank

30. Delivery of the goods under the most export contracts take place in a country of :A. The importerB. The exporterC. The agent

31. The stand-by letter of credit originated in the US is used there because …E. It is very popular for US exporters to ask for payment from their buyers or

customers.F. It is much more convenient to ask for one in the US instead of the ordinary letters

of credit.G. The banking law in some states forbids banks to issue payment guarantee H. English banks prefer to issue demand guarantees and ordinary letters of credit.

32. The method of payment which is dangerous for the exporter is: A. Cash on deliveryB. Accepting a personal checkC. PrepaymentD. Export credit insurance

33. Another name for tender guarantee is E. Revocation guaranteeF. Bid guaranteeG. Bond guaranteeH. Bid bond

34. …….bill of lading- goods were taken on board in good conditions

A. CleanB. DirtyC. Claused

35. (Note: If either party is prevented from, or delayed in, performing any duty under this contract by an event beyond his reasonable control, then this event shall be deemed force majeure)A volcanic eruption buries the factory in ashA. YesB. QuestionableC. No

36. The entire agreement clause means that all documents that predicts the contract A. Are still validB. Become importantC. Become invalidD. Can be used as evidence

37. A guarantee is:A. A UnilateralB. B. TripartiteC. C. BilateralD. D. Multilateral

38. When the bill of lading marked “freight collected”. Who pays for freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement

39. The greatest fear for the exporter is :A. Being unable to meet the delivery deadlineB. Being unable to meet the specification of the goodsC. Being unable to get paid for the goods soldD. Having no guarantee for payment

40. If shipment is made on CIF or CPI terms, the letter of credit will call forE. An insurance policyF. A letter of insurance G. A certificate of insurance H. Either A or C

41. The final quality hurdle is the ……….. during which the exporter is liable to cure defects that come to light in the goods.

A. Guarantee periodB. Defect liability periodC. Correction methodsD. Quality assurance requirements

42. Earthquake, volcanic eruption and lighting are not covered under the cargo clause ….A. AB. BC. CD. B and C

43. The legal action period varies greatly from law to law. Which of these defines this period that is equal to and concurrent with the defects liability period?A. The UCCB. The BGBC. Continental lawD. English law

44. The lump-sum compensation is set about right A. A. liquidated damages.B. B. quasi indemnity C. C. penalty

45. The point of delivery is much the same for all ….. terms and ……terms – when the exporter hands the goods over to the carrier.A. C and FB. D and FC. C and D

46. Export credit insurance is very attractive; however, it has certain limitations like …….A. High premium paid by the exporterB. Long time waiting for compensation from the insurance companyC. Long time since the buyer fails to pay up to the time the insurance company

compensates the exporter and the inability of covering 100% of the original invoice price.

D. Refusal from the insurance company to quote premiums due to risky business or the buyer’s non- creditworthiness.47. Which type of payment is the most advantageous for the exporter?

E. Credit by sight paymentF. Credit by deferred paymentG. Credit by acceptanceH. Credit by negotiation

48. Transfer of risks from the seller to the buyer ( Incoterm 2000) : CPTA. When the goods are at seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

49. The period during which the buyer can begin a legal action is legally called:A. NotificationB. RectificationC. Legal action periodD. Detect liability period

50. A payment guarantee simply commits the bank to pay if the buyer defaults. The payment guarantee is usually for… of the contract price E. 100%F. Less than 100%G. 10%H. Between 5% and 10%

ĐỀ 22

1. The legal action period varies greatly from law to law. Which of these defines this period that is equal to and concurrent with the defects liability period?A. The UCCB. The BGBC. Continental lawD. English law

2. Bill of lading is the most important because it is a…..A. Document of titleB. Document of negotiationC. Document of freight

3. Which of the following is the objective aimed at by the exporter to minimize the risk of the goods being rejected or of heavy defects liability claims?A.Winning buyer’s goodwillB. Keeping this promiseC. Negotiating detailed specificationsD. Making profit

4. In a contract under a Continental law, a recital….A. is essentialB. is not usefulC. is not essentialD. is important

5. Exporters prefer:A. the return of the defective item to the replacement of itB. the replacement of the defective item to the return of itC. the return of the goods and refund of the priceD. non of these

6. The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specifications is…in businessA. lucrativeB. riskyC. advantageousD. common

7.In settlement by acceptance, the kind of bill of exchange being sent together with other documents to the accepting bank is…A. Sight draft

B. Short-term draftC. Time draftD. Long-term draft

8. What are common discrepancies reported by banks in practice?A. They are problems with the letter of creditB. They are problems with the Bill of ladingC. They are problems with insurance and/or the inconsistencies among the documentsD. Any of the above

9. There is no connection between the letter of credit and the sales contract. Right or wrong?A. Completely rightB. Completely wrongC. It dependsD. The exporter and the buyer may agree that all the term in their sales contract must be stated in the letter of credit

10. The parties to a contract are not always required to…the Vienna Sales ConventionA. IgnoreB. ApplyC. RefusesD. Decline

11. What does”3/3 Marine Bill of Lading” mean?A. It means the exporter must produce three originals and three copies of the marine bill of ladingB. It means the exporter must produce three original out of the whole three which have been issued by the shipping companyC. It means the number of originals and that of copies of the marine bill of lading required are always the sameD. It means the marine bill of lading must be issued in three originals and three copies

12. The rules of international common law decide the law that applies for the contract if the contract does not specify the….A. Common lawB. Civil lawC. Case lawD. Applicable law

13. Within most Anglo-American jurisdictions, a contractA. can be one-sidedB. can be two-sided

C. can be either one-sided or two-sidedD. must be two-sided

14. What if a letter of credit calls for “a complete set of original air waybills”?A. The exporter has to present the full set of original air waybills if he wants to get payment from the bankB. The exporter cannot provide the complete setC. This is obviously a mistake.D. Only the second original of the air waybill goes to the consignee. The bank, however, will follow the wording of the letter of credit exactly and refuse an “incomplete set” waybills

15. Which of the following discrepancies is NOT the problem with InsuranceA. Documents are not presented within the required timeB. The sum insured is below the figure requiredC. The insurance risks are not those specified in the creditD. A certificate of insurance is produced while the credit calls for a policy

16. The buyer can reject goods that are not of saleable quality. This is called…A. Implied warranty of the suitabilityB. Implied warranty of conformityC. Implied warranty of merchantabilityD. Implied warranty of fitness for intended purpose

17. Contract documents must be given…….in case of contradictionsA. an order of seniorityB. anorder of precedenceC. order of rulesD. either a or b

18. As for Anglo-American law, the decision of the judge is always….A. PredictableB. ForeseeableC. UnpredictableD. Estimated

19. To make sure that the officer signing the contract has authority to sign the contract, parties should check…..A. The duplicate of the signatureB. The authenticity of the signatureC. The coverage of the signatureD. The transferability of the signature

20. The cheapest mode of transport is…

A. by seaB. by airC. by road

21. The lump-sum compensation is set too high A. liquidate damagesB. quasi indemnityC. penalty

22. The cost of L/C amendments are normally for….A. the buyer’s accountB. the exporter’s accountC. the issuing bank’s accountD. the one who asks for such amendments

23. According to the UCC, how long is the legal action period?A. Two yearsB. Three yearsC. Four yearsD. One years

24. Which of the following is NOT true?A. A letter of credit is a binding agreement by the buyer to pay a certain sum of money when the exporter presents the necessary documentsB. A letter of credit is like a bill of exchange given for the price of goodsC. A letter of credit ranks as cash and must be honoredD. No set off or counterclaim is allowed to detract from a letter of credit

25. What is a letter of credit requires “an appropriate wildlife certificate”?A. It is a vague requirementB. The bank and the exporter may have different views on what is “appropriate”C. It should be more specific like what the certificate must show and who should issue itD. All of the above

26. Open cover is not a policy: the….will write a policy if requiredA. InsurerB. ImporterC. Exporter

27…..refer(s) to the questions of implied warrantiesA. Most contractsB. Most lawsC. The UCC

D. The Vienna Sales Convention28. A contract requiring the exporter to send the contract goods by road from Kenya to

Zambia with freight paid by the exporter.A. CFR LusakaB. CPT LusakaC. CFR Nairobi

29. A grace period is sometimes used to….A. avoid penaltyB. facilitate early deliveryC. avoid liquidated damages

30. Which of these does not count as a defect?A. Defective designB. MisuseC. Defective materialsD. Defective workmanship

31. Partial invalidity clause can help to avoid problems with contracts that…A. might infringe government regulationsB. violate the trade lawsC. discourage tradeD. both b and c

32. If shipment is made on CIF or CIP terms, the letter of credit will call for….A. An insurance policyB. A letter of insuranceC. A certificate of insuranceD. Either A or C

33. Is there any requirement that the air waybill shows the date of the flight?A. No, there isn’tB. Yes, there isC. Never is there such a requirementD. No, it is an incorrect requirement because a correctly completed waybill cannot show this information

34. The contract should regulate what happens if Incoterm 2000 and the term of the contract conflict: normally the ….prevailsA. IncotermB. ContractC. Incoterm and contract

35. In CIF and CIP contracts,… must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier

36. The disadvantages…of policy is that it is set up for paticular time and automatically expiresA. tailor-madeB. floatingC. open cover

37. Defects may be which of the following?A. Defects in materialsB. Defects in workmanshipC. BothD. None of these

38. The bank helping the exporter to check the correctness of the documents and set the payment procedure in motions is….A. The issuing bankB. The advising bankC. The confirming bankD. Any third bank

39. What are the set of assumptions with which a price quotation is based?A. Mode of payment, timing, place of paymentB. Delay in payment and results of delayC. Choices of method of paymentD. Delivery, payment and warranty terms

40. ….Bill of lading-goods were taken on board in good condition.A. cleanB. dirtyC. claused

41. Anglo-American law isA. Law codeB. Case lawC. Civil lawD. Legal code

42. The decision of arbitrators isA. Law-oriented

B. Business-orientedC. Action-orientedD. Reaction-oriented

43. “Export credit insurance is a kind of special privilege that an exporter may get from his government’s export incentives and suport”. Right or wrong?A. Completely rightB. Absolutely wrongC. Neither right or wrongD. It is not a charity. It is beneficial for both exporter and insurance company

44. If the box “With brief advice by teletransmission” is crossed, it means….A. The exporter wants to be informed of the inssuance of the letter of credit by telexB. The exporter wants to begin preparations for deliveryC. The buyer’s responsibility of informing the exporter that a letter of credit has been issued in his favorD. The exporter wants to know about the inssuance of the letter of credit more quickly

45. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may….A. reject the wholeB. accept the wholeC. accept any commercial unit and reject the restD. All the above

46……..is two-sided proceduresA. TerminationB. CancellationC. RescissionD. Suspension

47. Transfer of risk from the seller to the buyer ( Incoterm 2000 ): CPTA. When the goods are At the seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

48. In a contract, the word “whereas” means….A. “only that”B. “while”C. “when”

D. “because” or “considering that”49. “ Full set on board ocean bills of lading to order shipper, bank endorsed”. In this

clause shipper means….A. ExporterB. ImporterC. BankD. A or B or C. It depends on the situation

50.Discount Records bought phonograph records from an exporter. Payment was by letter of credit issued by Barclays Bank. The exporter delivered a mix of cassettes eight- track cartridges and other non-contractual goods. Discount Records tried to get an injunction to stop Barclays from paying under the letter of credit. What you think the court would do in that case?A. The court refusedB. The court acceptedC. The court would not involveD. The exporter will be paid-although later action in the courts may oblige him to make good any damage he has caused the buyer.

ĐỀ 231. Title to the goods passes…

A. With risksB. Without risksC. With documents

2. Partial invalidity clause can help to avoid problems with contracts that …A. Might infringe government regulationsB. Violate the trade lawsC. Discourage tradeD. Both B and C

3. Which of the following discrepancies is NOT the problem with inconsistencies among the document?A. The description of the goods on the invoice and the description of the goods in the

credit are differentB. Documents are not presented with the required timeC. Weights differ between two documentsD. Marks and number differ among documents

4. Drunken people have no … to sign a contractA. Contractual capacityB. Contractual conceptC. Contractual governmentD. Contractual branch

5. Cancellation on … grounds makes no legal senseA. Great B. Genuine C. Trivial D. Acceptable

6. The … has no power to enforce his solution or to bind the parties, his task is to suggest a fair solution onlyA. Judge B. ConciliatorC. MagistrateD. Lawyer

7. In settlement by acceptance, what will the bank do after receiving the documents and draft on the buyer from the seller?A. The bank will pay the seller immediately

B. The bank will pay the seller as long as the documents submitted comply with all the terms of the letter of credit

C. The bank checks the documentsD. The bank agrees to pay the bill when it matures

8. “Full set on board ocean bills of lading to order shipper, bank endorsed”. In this clause shipper means…A. ExporterB. ImporterC. BankD. A or B or C. it depends on the situation

9. A bill of lading with the note is …A. Clean bill of lading B. Clause bill of ladingC. Clear bill of lading

10. The exporter should have no liability for the goods when they are …A. Beyond his controlB. In his controlC. Under his control

11. Export credit insurance which gives the exporter an acceptance level of security in terms of payment shall be paid by …A. The buyerB. The exporterC. A bank D. An insurance company

12. If a contract is the entire agreement, earlier letters and documents …A. Can be used as evidenceB. Become invalidC. PrevailD. Remain important

13. Shortage of supplies (Background: the exporter cannot get the raw jute he needs from the supplier because of a shipping delay)A. YesB. QuestionableC. No

14. If a dispute arises, the recital allows the court to discover the real meaning of …A. The contractB. The term

C. The incotermsD. The appendix

15. The method of payment which is completely safe for the seller in small purchases is …A. Open accountB. Cash on deliveryC. Cash against invoiceD. Cash with order

16. The applicable law governs questions concerning the validity, … , performance of contracts.A. InterpretationB. PaymentC. CorrectionD. Acceptance

17. The force majeure clause suggested by the International Chamber of Commerce, for example, states the payment of interest on overdue sums payable to the seller is … by …A. Excused/force majeureB. Not excused/force majeureC. Excused/Acts of GodD. Excused/contingencies

18. Why can a manufacturer sometimes accept a loss on an export dealA. He wants to win a regular customerB. His factory may be short of workC. Ha can get some export incentives from the governmentD. Any of the above

19. Defects such as wrong items, broken or missing parts, scratches, and so on are called …A. Patent defectsB. Latten defectsC. Inherent defectsD. Concealed defects

20. Transfer risk from the seller to the buyer (Incoterms 2000): DDPA. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board21.

21. In a contract under a Continental law, a recital …A. Is essential B. Is importantC. Is not useful D. Is useful

22. A liquidated damages clause protects …A. The exporter rather than the importerB. The importer rather than the exporterC. Both sidesD. Neither the exporter nor the importer

23. If the price is quoted FOB Singapore, who pays for the insurance and freight?A. The exporterB. The buyerC. The forwarding agentD. The confirming bank

24. Earthquake, volcanic eruption and lighting are covered under the cargo clause …A. AB. BC. CD. A and B

25. A well-designed set of specifications protects:A. The exporterB. The importerC. Both partiesD. Neither of these

26.27. What if a letter of credit requires “an appropriate wildlife certificate”?

A. It is a vague requirementB. The bank and the exporter may have different views on what is “appropriate”C. It should be more specific like what the certificate must show and who should

issue itD. All of these above

28. In principle the buyer can reject delivered goods if they do not conform to the contract. This is called …A. Implied warranty of suitabilityB. Implied warranty of conformityC. Implied warranty of merchantability

D. Implied warranty of fitness for intended purpose29. The place of payment is very important because late payment is subject to payment of

interest and the cost of any delay along the payment route properly belongs to …A. The buyerB. The exporterC. The bank of the exporterD. The bank of the buyer

30. Which of these is the cheapest option for the exporter?A. RepairB. Replace (part or whole item)C. Reduce the priceD. Return the goods

31. If the buyer can make certain assumptions about goods-even if the exporter gives no express warranty, these assumptions are called…A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties

32. It is … to identify latent defect than patent defect.A. EasierB. More complicatedC. More effectiveD. Better

33. Independent inspection reports on …A. The weight of the goodsB. The size of the goodsC. Both A and BD. None of these

34. Two parties sign a contractA. The contract is bindingB. The contract is effectiveC. The contract is binding and effective

35. Which of the following is NOT the method of issuing letter of the credit?A. By emailB. By airmail C. By mailD. By teletransmission

36. The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specifications is … in businessA. LucrativeB. RiskyC. AdvantageousD. Common

37. In CIF and CIP contracts, … must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier

38. The decision of arbitrators is …A. Law-orientedB. Business-orientedC. Action-orientedD. Reaction-oriented

39. The Vienna Sales Conventions is also called: …A. The Uniform Law of International SaleB. The Uniform Law on the Contracts for the International Sale of GoodsC. The United Nations Convention on Contracts for the International Sale of

GoodsD. The United Nations Convention on Contracts for acceptance

40. If a country ratifies the Vienna Convention, in the event of conflict, the Vienna Sales Convention can … the National law.A. Prevail overB. Conform to C. FollowD. Adapt

41. Who issues a bank guarantee?A. The buyerB. The exporterC. Any third partyD. A bank

42. What would be the effect on the price of the goods traded of the buyer wants the goods sooner?A. The price of the goods will go upB. The price of the goods will go down

C. There is no change in priceD. The price of the goods will go up as extra costs involved due to extra working

shift from the manufacturer43. If alternative means of transport of partial shipments are allowed perhaps by different

modes of transport, the letter of credit should have the words … between the names of transport documents.A. And B. OrC. And/orD. Either B or C

44. Which of the following discrepancies is NOT the problem with the Bill of Lading?A. The bill of lading is “unclean”B. The bill of lading shows shipment between ports other than those specified in the

creditC. The discrepancies of the goods on the invoice and the description of the goods

in the credit are differentD. There is no endorsement if the endorsement is necessary

45. Who signs “shipped on board” notation?A. Captain B. ExporterC. Shipping companyD. Agent

46. What happens first when a bank refuses to pay under a letter of credit?A. The bank will cite a “discrepancy”, some aspect of the documentation that is

not line with the term of the creditB. A check –list of commonly cited discrepancies will be used by banksC. The exporter will have to re-submit their shipping documentD. The exporter must contract the buyer asking the buyer to instruct the issuing banj

to extend the date of the credit47. The defects liability period is also called:

A. Warranty periodB. Guarantee periodC. Correction action periodD. Legal action period

48. Anglo-American law is …A. Law codeB. Case law

C. Civil lawD. Legal code

49. Shortage of supplies (background: the exporter cannot get the raw jute he needs from the supplier because the Central Bank will not give him foreign exchange to pay the supplier)A. YesB. QuestionableC. No

50. A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by …A. The buyerB. The exporterC. A bankD. A third party

Đề 241. The point at which money is deemed to be paid most referred by buyer

is……………….A. When the buyer pays the money into his bankB. When the buyer’s bank transfers fundsC. When the buyer instructs the bank to payD. When the funds reach the seller’s bank account

2. If the price is quoted FOB Singapore, who pays for the insurance and freight?E. The exporterF. The buyerG. The forwarding agentH. The confirm

3. Defects that come to light after buyer’s acceptance are called…E. Patent defectsF. Latent defectsG. Coherent defectsH. Apparent defects

4. Replacing a defective product helps to keep the ……… of customer.A. GoodwillB. Good imageC. Good businessD. Wellbeing

5. If the force majeure event continues for too long, both parties have the right toD. Continue the contractE. Terminate the contractF. Make late delivery

6. Parties to contract for the sale of goods are free to choose.A. Applicable lawB. International lawC. Corporate lawD. Business law

7. Which of the following is not the method of issuing the letter of credit?E. By emailF. By airmailG. By mailH. By teletransmission

8. When an offer is made, it is not applicable when it has…..?

A. SuspensionB. RenovationC. RevocationD. Adaptation

9. In drafting an arbitration clause, the following question must be resolved:E. How many arbitrators sit in the court?F. What is the language of the court?G. Where is the place of the court?H. All the above

10. Which corrective method is least favorable for the sellere. Replace the wrong itemsf. Reduce the price g. Return the goods and refund the priceh. Repair the goods

11. … happens when one party end the contract because of breach by the otherA. CancellationB. SuspensionC. ImpossibilityD. Termination

12. Defects such as wrong items, broken or missing parts, scratches, and so on are called E. patent defects F. latent defects G. inherent defects H. concealed defects

13. In a guarantee, a guarantor is often:E. The buyerF. The sellerG. The bankH. The manufacturer

14. If alternative means of transport of partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words … between the names of transport documentation.E. AndF. OrG. And/orH. Either B or C

15. The costs of L/C amendments are normally for………

E. the buyer’s accountF. the exporter’s accountG. the issuing bank’s accountH. the one who asks for such amendments

16. 'Door to door service" is offered. Which term should be used? D. DDPE. CIFF. CIP

17. If a contract is an entire agreement, earlier letters and documents……..E. Can be used as evidenceF. Become invalidG. PrevailH. Remain important

18. Anglo-American law is also called…..A. Civil lawB. Legal codeC. Common LawD. Law code

19. Which of these allow(s) rejection if only defective or non-conforming goods?A. English lawB. German law and the Vienna Sales ConventionC. The UCCD. Vietnamese law

20. The bank notifying the exporter that the letter of credit has been opened is called A. The issuing bank.B. The advising bank. C. The confirming bank. D. The opening bank.

21. When the bill of lading marked “freight collected”. Who pays for freight?E. The buyerF. The sellerG. The agentH. It depends on the agreement

22. …original(s) Bill of lading constitute(s) a full setd. 1e. 2f. 3

23. The exporter must know the legal identity of the buyer ………… that may arise.A. Resolve payment problemsB. Settle disputesC. Solve problemsD. All of these

24. In settlement by acceptance, what will the bank do after receiving the documents and draft drawn from on the buyer from the seller?E. The bank will pay the seller immediatelyF. The bank will pay the seller as long as the documents submitted comply with all the terms of letter of credit.G. The bank checks the documentsH. The bank agrees to pay the bill when it matures

25. Returned shipment to the exporter’s country means:E. The deal is a total loss for the exporterF. The exporter takes back the whole shipmentG. The exporter makes a small profitH. The deal is a total loss for the importer

26. Transfer of risk from the seller to the buyer ( Incoterm 2000) : DDU E. When the goods are at the buyer’s premisesF. When the goods are handed to the first carrierG. When the goods across the ship’s railH. When the goods are on board

27. In some legal system, the buyer has the right … duty to inspect delivered goodsA. andB. OrC. and/orD. but

28. The workforce at the factory goes on strike ( force majeure)D. Yes E. Questionable F. No

29. Which of the following discrepancies is NOT the problem with the Letter of Credit?I. The credit has expired J. Document required by the credit are missingK. The credit amount is exceededL. Insurance cover is expressed in a currency other than that of the credit

30. Who usually pays for curing defects?

A. The buyerB. The sellerC. Both the buyer and the sellerD. The manufacturer

31. In most guarantees, the bank agrees to pay “on first demand” which means…A. Serious and objective conditions must be met by the beneficiary before claiming payment of the guaranteeB. With demur or objectionC. Without cavil and demurD. Without demur or objection

32. A fire burns down the factory ( force majeure)D. YesE. QuestionableF. No

33. A ban is issued on the export of jute products by newly elected governmentD. YesE. QuestionableF. No

34. Which of the following is NOT true?E. A letter of credit is a binding agreement by the buyer to pay a certain sum of money when the exporter presents the necessary documentsF. A letter of credit is like a bill of exchange given for the price of goodsG. A letter of credit ranks as cash and must be honoredH. No set off or counterclaim is allowed to detract from a letter of credit

35. Another name for Tender Guarantee is …E. Revocation guaranteeF. Bid guaranteeG. Bond guaranteeH. Bid bond

36. The parties to a contract are not always required to... the Vienna Sales ConventionE. IgnoreF. ApplyG. RefuseH. Decline

37. What are common discrepancies reported by banks in practice?E. They are problems with the letter of creditF. They are problems with the Bill of lading

G. They are problems with insurance and/or the inconsistencies among the documentsH. Any of the above

38. Why letters of credit are formally called “documentary credits”?E. Because a letter of credit is a binding agreement by a bank to pay a certain sum of money when the exporter presents the necessary documents to the bank.F. Because a letter of credit is issued by an issuing bank at the request of the buyerG. Because in a letter of credit situation, documents are exchanged for moneyH. Because the documents in a letter of credit are proofs of trust.

39. Inspection by the ………. Is called “ open package inspection”A. Custom officersB. CarrierC. ExporterD. Importer

40. Termination may be for…e. Disruptionf. Authenticationg. Convenienceh. Adoption

41. In international trade, if payment is made on delivery, the method of payment to be chosen will be……………………………….A. Bank guaranteeB. Open accountC. Export credit insuranceD. At sight letter of credit

42. In contract, “partial invalidity provision” means the invalidity of one part of the contract…E. May invalidate the restF. Does not invalidate the restG. Affects the restH. Enforces the rest

43. Beside the commercial invoice, the transport document and the insurance document, what does “Other document” include?E. A certificate of originF. A certificate of inspectionG. A health inspectionH. Any of the above

44. When the bill of lading marked “freight prepaid”. Who pays for the freight?

E. The buyerF. The sellerG. The agentH. It depends on the agreement

45. The best solution for the exporter to make late payment impossible is E. A typical contract clause in which there are regulations on the amount of interest the seller shall be entitled to receive in case of late payment.F. An agreement with the buyer to strengthen the payment provisions with a payment guaranteeG. An agreement with an insurance company in case the buyer fails to pay on timeH. A confirmed, irrevocable, at sight letter of credit.

46. Which is the most appropriate method of payment for the exporter in the following case? Sale of a bale (roll) of cloth costing 200 USD to a nearly tailor’s shop with whom you have done business for 20 years.E. Confirmed letter of credit.F. Open account with no securityG. Open account with bank guarantee

H. Open account with export credit insurance47. The lump-sum compensation is set about right A. liquidated damages.B. quasi indemnity C. penalty

48. In terms of payment in international trade. E. Risk rises and cost rises as well F. Risk falls and cost falls as a consequence G. Risk and cost have no relationship with each other H. Risk and cost rise and fall together

49. Contract documents must be given…….in case of contradictionsE. an order of seniorityF. an order of precedenceG. order of rulesH. either A or B

50. The essence of Continental law is…E. VerificationF. AuthenticationG. CodificationH. Acceptance

ĐỀ 25

1. The Vienna Sales Convention is also called:A. The Uniform Law of International SaleB. The Uniform Law on the Formation of Contracts for the international Sale of

GoodsC. The United Nations Convention on Contracts for the International Sale of

Goods D. The United Nations Convention on Contracts for acceptance

2. A well-designed set of specifications protects:A. The exporterB. The importerC. Both partiesD. Neither of these

3. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may.....A. Reject the wholeB. Accept the wholeC. Accept any commercial unit and reject the restD. All the above

4. What kind of inspection is particularly important for sophisticated items or capital goods?A. Customs inspectionB. Carrier’s inspectionC. Pre-delivery inspectionD. SGS’s inspection

5. When the bill of lading marked “freight prepaid”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement

6. It is.......to identify latent defect than patent defectA. EasierB. More complicatedC. More effectiveD. Better

7. When the goods arrive, if they are........, the importer can reject them but if they....specifications, he is obliged to accept themA. Defective/conform toB. Perfect/conform toC. Defective/differ fromD. Perfect/differ from

8. Different legal system regulate that rejection of delivered goods must be total........can be partial A. OrB. AndC. And/orD. Nor

9. Which of the following is NOT considered to be special requirement in a sale/purchase contract?A. Containers are required to be fumigated before shipmentB. Upgraded packaging materialsC. Goods must be packed according to export standardsD. Health inspection for foodstuffs

10. In settlement by sight payment......A. The seller presents the necessary documents to the issuing bankB. The seller presents the necessary documents to the advising bankC. The seller presents the necessary documents to the paying bankD. The seller presents the necessary documents to the reconfirming bank

11. Shortage of supplies (Background: The exporter cannot get the raw jute he needs from the supplier because the Central Bank will not give him foreign exchange to pay the supplier) A. YesB. QuestionableC. No

12. Who issues a bank guaranteeA. The buyerB. The exporterC. Any third partyD. A bank

13. Which type of payment is the most advantageous for the exporter?A. Credit by sight paymentB. Credit by deferred payment

C. Credit by acceptanceD. Credit by negotiation

14. Feeble-minded people are legally unable to … contractA. SignB. DeclineC. RefuseD. Resign

15. The answer to the question of implied warranties are supplied by:A. The contract provisionB. The UCCC. Most lawsD. The contract

16. Unless the letter of credit states otherwise, insurance coverage on a CIF or CIP shipment must be for… of the CIF (or CIP) value of the goodsA. 100%B. 90%C. 50%

D. 110%17. Once the bank has indicated the discrepancies, what can the exporter do?

A.The exporter canprovide the missing paperwork or correct errorsB.The exporter can ask the buyer to instruct the bank to change the terms off the letter

of creditC.The exporter can ask the bank to process the LC with the discrepancies but to pay

only when (and if) the issuing bank permits paymentD.Any of the above

18. … happens when one party end the contract because of breach by the otherA. CancellationB. SuspensionC. ImpossibilityD. Termination

19. A contract is not enforceable if…A. it is signed within powerB. It has a legal purposeC. It has an illegal purposeD. It has no purpose

20. In some legal system, the buyer has the right … duty to inspect delivered goods

A. andB. OrC. and/orD. but

21. Termination may be for…A. DisruptionB. AuthenticationC. ConvenienceD. Adoption

22. Transfer of risk from the seller to the buyer (Incoterm 2000) FASA. When the goods are ex-quayB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the good are on board

23. The disadvantage of … policy is that it is set up for particular time and automatically expiresA. tailor-madeB. floatingC. Open cover

24. A contract requiring the exporter to send the contract goods by road from Kenia to Zambia with freight paid by the exporterA. CFR LusakaB. CPT LusakaC. CFR Nairobi

25. Transfer of risk from the seller to the buyer (Incoterm 2000) DESA. When the goodsare ex-shipB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

26. Which of the following is not true?A. a LC is binding agreement by the buyer to pay a certain sum of money when

the exporter presents the necessary documentsB. A letter of credit is like a bill of exchange given for the price of goodsC. A letter of credit ranks as cash and must be honoredD. No set off or counterclaim is allowed to detract from a letter of credit

27. In contract negotiation, “an invitation to provide terms and conditions” may mean:…A. Another name for acceptance

B. Another name for an offerC. An invitation to the other party to make an offerD. An invitation to the other party to accept an offer

28. In a contract under a Continental law, a recital…A. is essentialB. Is not usefulC. is not essentialD. is important

29. The greatest fear for the exporter is…A. Being unable to meet the delivery deadlineB. Being unable to meet the specifications of the goodsC. Being unable to get paid for the goods soldD. Having no guarantee for payment

30. When there are words like “about” or “approximately” in the LC’s amount, how much can the actual payment be?A. The actual payment therefore can be 10% more or 10% less than the stated

amountB. The actual payment therefore can be 15% more or 15% less than the stated amountC. The actual payment therefore can be 5% more or 5% less than the stated amountD. The actual payment therefore can be between 5% and 10% of the stated amount

31. Which of the following is not the reason why the exporter prefer a longer expiry period of credit?A. He wants to save bank chargesB. He wants enough time after deliver to present the documentsC. He wants to have enough time to correct any discrepancies that might be

discovered by the bankD. he wants to spare some time for any unexpected things preventing his presentation of documents on time

32. Agreements, under Anglo-American law, are of…A. two typesB. Three typesC. Four typesD. Five types

33. In principle the buyer can reject delivers goods if they do not confirm to the contract. This is called…A. Implied warranty of suitabilityB. Implied warranty of conformity

C. Implied warranty of marchantabilityD. Implied warranty of fitness for intended purpose

34. Earthquake, volcanic eruption and lighting are not coverd under the cargo clause…A. AB. BC. CD. B and C

35. In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association-IATA?A. Three originals and three copiesB. Three originals and six copiesC. Three originals and nine copiesD. It depends on the requirements in the LC

36. The bank helping the exporter to chack the correctness of the documents and set the payment procedure in motion is…A. The issuing bankB. The advising bankC. The confirming bankD. Any third party

37. Which type of bill of lading is negotiable?A. surrenderB. straightC. to order

38. The two terminologies which mean the same thing are…A. Guarantee and WarrantyB. Bond and SuretyC. Warranty and defects liabilityD. Guarantee and Insurance

39. …. Bill of lading-goods were taken on board in good conditionA. CleanB. DirtyC. Claused

40. The names of…. Are normally the full, registered name of the companyA, the exporterB. the buyerC. either the exporter or the importerD. the parties

41. In a contract, a formal definition is the best way od clarifying what exactly the two sides have….A. ExcudedB. negotiatedC. AgreedD. solved

42. In most guarantee, the bank agree to pay “on first demand” which means…A. Serious and objective conditions must be met by the beneficiary before claiming

payment of the guaranteeB. With demur or objectionC. Without cavil and demurD. Without demur or objection

43. The contract should regulate what happen if Incoterm 2000 and the terms of the contract conflict normally the …. PrevailsA. IncotermB. ContractC. Incoterm and contract

44. The entire agreement clause means that all documents that predate the contract…..A. are still validB. become importantC. become invalidD. can be used as evidence

45. After making the shipment of the good to the buyer, the exporter presents the shipping documents to….A. the issuing bankB. the advising bankC. the confirming bankD. the opening bank

46. If the box “With brief advice by teletransmission” is crossed, it means….A. The exporter want to be informed of the issuance of the LC by telexB. The exporter wants to begin preparations for deliveryC. The buyer’s responsibility of informing the exporter that a letter of credit has been

issued in his favorD. The exporter wants to know about the issuance of the LC more quickly

47. In contract, …. Is not normally allowedA. Delegation of dutiesB. Assignment of rights

C. Performance of obligationsD. Fulfillment of duties

48. Inspection by the buyer is calledA. Independent inspectionB. Inspection of good prior to shipmentC. Open package inspectionD. Customs inspection

49. Beside the commercial invoice, the transport document and insurance document, what do “Other documents” include?A. A certificate of OriginB. A certificate of InspectionC. A health InspectionD. Any of the above

50. The point at which money is deemed to be paid most preferred by the seller isA. When the buyer pays the money into his bankB. When the buyer’s bank transfer fundsC. When the buyer instruct the bank to payD. When the funds reach the seller’s bank account

ĐỀ 26

1. The official mailing addresses of the parties are given in...A. The noticesB. The appendicesC. The exhibitsD. The adoption

2. If shipment is under Incoterms other than CIF or CIP,......A. The buyer has to arrange the insurance cover by himselfB. The buyer may still ask the exporter to arrange some aspects of the insurance

for him C. The exporter has to arrange the insurance cover for the goodsD. The exporter pays for insurance till the port of discharge

3. Who signs “shipped on board” notation?A. CaptainB. Exporter C. Shipping companyD. Agent

4. The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specification is......in businessA. LucrativeB. RiskyC. AdvantageousD. Common

5. A contract comes into force when an offer is made by one side and.....by the otherA. AcceptedB. DeclinedC. WrittenD. Drawn

6. A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid by....A. The buyerB. The exporterC. A bankD. A third party

7. A bill of lading with the note is A. Clean bill of ladingB. Claused bill of lading

C. Clear bill of lading8. Where is often the place of expiry of the credit?

A. At the counters of the issuing bankB. At the counters of the advising bankC. At the counters of the confirming bankD. At the counters of the negotiating bank

9. For the exporter, the option to repair a defective item abroad......A. Is negligentB. Can be costlyC. Is always the best choiceD. Is always the worst choice

10. Anglo-American law is also called:A. Common lawB. Civil lawC. Law codeD. Legal code

11. If both parties perform their duties exactly according to the contract, the contract is.........A. Discharged by performanceB. Discharged for performanceC. Discharged to performanceD. Discharged with performance

12. What happens first when a bank refuses to pay under a letter of credit?A. The bank will cite a “discrepancy”, some aspect of the documentation that

is not in line with with the terms of creditB. A check – list of commonly cited discrepancies will be used by banksC. The exporter will have to re-submit their shipping documentsD. The exporter must contact the buyer asking the buyer to instruct the issuing

bank to extend the date of credit13. What do export insurance premiums depend on?

A. Type of goods exported B. Creditworthiness of the buyerC. The political stability of the buyer’s countryD. All of the above

14. Continental law is also called...A. Civil lawB. Common law

C. Legal systemD. Lawful case

15. What is transferable credit?A. It is the kind of credit which allows the exporter to transfer his right as the

credit’s beneficiary to any third partyB. It is the kind of credit which allows the first beneficiary to request the

confirming bank to pay a third partyC. It is the kind of negotiable document with which the exporter can endorse for

any third partyD. It is the kind of credit with which the buyer will not necessarily know who is

the actual supplier of the goods 16. The Incoterm....contains 11 terms

A. 1990B. 2000C. 2010

17. When a contract is canceled, a payment problem arises, the party in breach has a.....case of paymentA. StrongB. WeakC. SolidD. Big

18. Delivery of the goods under most export contracts takes place in the country of ........A. The importerB. The exporterC. The agent

19. Which of the following is NOT a method of issuing the letter of creditA. By emailB. By airmailC. By mailD. By teletransmission

20. When the bill of lading marked “freight prepaid”. Who pays for the freight?A. The buyerB. The sellerC. The agentD. It depends on the agreement

21. Exporters prefer:

A. The return of the defective item to the replacement of itB. The replacement of the defective item to the return of itC. The return of the goods and refund of the priceD. None of these

22. .........refer(s) to the questions of implied warrantiesA. Most contractsB. Most lawsC. The UCCD. The Vienna Sales Convention

23. Another name for Tender Guarantee is.......A. Revocation guaranteeB. Bid guaranteeC. Bond guaranteeD. Bid bond

24. Who issues ocean bill of lading?A. CaptainB. ExporterC. Shipping companyD. Agent

25. Dawson bought vanilla beans from Indonesia. Dawson instructed an American bank to open a letter of credit. One of the required shipping documents was a certificate of quality issued “by experts”. The bank paid the exporter. The beans, when they arrived, were rubbish. The certificate of quality was signed, however, by only on “expert”. Could the bank collect from Dawson the money it had paid to the exporter?E. Definitely it couldF. Probably it couldG. No it couldn’t H. No question it could

26. If the buyer can make certain assumptions about goods – even if the exporter gives no express warranty, these assumptions are called.......A. Explicit warrantiesB. Exotic warrantiesC. Unspoken warrantiesD. Implied warranties

27. When the bill of lading marked “ freight collected”. Who pays for the freight?A. The buyer

B. The sellerC. The agentD. In depends on the agreement

28. The risk of rough handling is not covered under the cargo clause.......A. AB. BC. CD. B and C

29. Who issues the bank guarantee?A. The buyerB. The exporterC. The third partyD. A bank

30. An FOB sales contract agrees that the exporter can deposit the goods in a warehouse if the ship arrives late and that this counts as delivery. If the letter of credit requires a bill of lading and makes no mention of a warehouse receipt,A. the exporter will still be paid against a warehouse receiptB. the bank simply cannot pay against a warehouse receiptC. the buyer refuses to pay the exporter against a warehouse receiptD. the buyer still has to pay the exporter against the warehouse receipt because his designated vessel has arrived late at the point of loading

31. Drunken people have no......to sign a contractA. Contractual capacityB. Contractual conceptC. Contractual governmentD. Contractual branch

32. If the buyer comes from a country which has a poor reputation for enforcing awards, the best method of payment under the contract is a/an......A. Revolving L/CB. At sight confirmed L/CC. Deferred irrevocable L/CD. Transferable L/C

33. In how many originals and copies is the air waybill issued according to the standard of the International Air Transport Association – IATA?A. 3 originals and 3 copiesB. 3 originals and 6 copiesC. 3 originals and 9 copies

D. It depends on the requirements in the letter of credit34. Transfer of risk from the seller to the buyer (Incoterm 2000). DDU

A. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s rail D. When the goods are on board

35. Which of the following discrepancies is NOT the problem with Insurance?A. documents are not presented within the required timeB. the sum insured is below the figure required C. the insurance risks are not those specified in the creditD. a certificate of insurance is product while the credit calls for a policy

36. Inspection by......reveals discrepancies in quality A. Custom officersB. The carrierC. The exporterD. The importer

37. A grace period is sometimes used to.......A. Avoid penaltyB. Facilitate early deliveryC. Avoid liquidated damages

38. In international contracts, parties try to exclude assignment of rights without......A. Memorandum of understandingB. Written consent of partiesC. A letter of referenceD. A personal letter

39. There is no connection between the letter of credit and the sales contract. Right or wrong?A. Completely rightB. Completely wrongC. It depends D. The exporter and the buyer may agree that all the terms in their sales contract

must be stated in the letter of credit 40. The dock workers in Port Verbena go on strike

A. YesB. Questionable C. No

41. Within the four alternatives of the at sight letter of credit, which one is the least satisfactory for the exporter?A. Settlement by sight paymentB. Settlement by deferred paymentC. Settlement by acceptanceD. Settlement by negotiation

42. .....is open-endedA. Tailor-madeB. FloatingC. Open cover

43. Which of the following statement is wrong?A. The bank must check is the documents specified in the letter of credit are in

perfect orderB. Sometimes, the bank may question the necessity or value of the documentsC. The bank is not interested in the question of why the buyer wanted a particular

document presented in a particular formD. There are no rules as to what documents a letter of credit may or may not

require44. All of the following are objectives that the exporter tries to minimize the risk of

the goods being rejected or of heavy defects liability claims EXCEPT A. The quality specifiedB. The confidence in the buyerC. On-time delivery

45. “A radio lacks the wires connecting the loudspeaker to the amplifier” is an example ofA. Defective designB. Defective materialsC. Defective workmanshipD. Misuse by the buyer

46. Of the three options available for settling disputes, litigation before the court is internationally least attractive as it is......A. Expensive and legalisticB. Business-like and flexibleC. Time-saving and privateD. Fast and acceptable

47. A disclaimer of warranty often accompanies delivery of A. Software

B. HardwareC. FootwearD. Chinaware

48. In some legal systems, the buyer has the right.......duty to inspect delivered goodsA. AndB. OrC. And/orD. But

49. Feeble-minded people lack.....to enter contractsA. MoneyB. TimeC. Contractual capacity D. Intelligence

50. In contracts, .....is not normally allowedA. Delegation of dutiesB. Assignment of rightsC. Performance of obligationsD. Fulfillment of duties

ĐỀ 27

1. The things that the exporter should keep in mind in negotiating payment are....E. Payment method, timing, place, delay and results of delayF. How payment will be made and the date of paymentG. Where the money must be before payments is considered complete and what delay

in payment is excusableH. Results of non-excusable delay in payment and time of payment

2. Under Anglo-American law, exporters have rights to...A. Withdraw an offerB. Withdraw common lawC. Withdraw case lawD. Withdraw legal law

3. In international contracts, parties try to exclude assignment of rights without...A. A memorandum of understandingB. Written consent of partiesC. A letter of referenceD. A personal letter

4. Failure to meet specifications is a:E. Defect in workmanshipF. Defect in materialG. Defect in designH. Defect in quantity

5. In most guarantees, the bank agrees to pay "on first demand" which means....A. Serious and objective conditions must be met by the beneficiary before claiming

payment of the guaranteeB. With demur or objectionC. Without cavil and demurD. Without demur or objection

6. A contract is ultra vires is....A. well enforceableB. unenforceableC. validD. effective

7. A commercial invoice must be made out to A. The exporter.

B. The shipper.

C. Any party endorsing the bill of lading.

D. The applicant for the letter of credit, normally to the buyer, unless otherwise

stated in the credit.

8. The best solution for the exporter to make late payment impossible is....E. A typical contract clause in which there are regulations on the amount of interest

the seller shall be entitiled to receive in case of late paymentF. An agreement with the buyer to strenthen the payment probisions with a payment

guaranteeG. An agreement with an insurance company in case the buyer fails to pay on timeH. A confirmed, irrevocable, at sight letter or credit.

9. Which of these is the cheapest option for the exporterA. RepairB. ReplaceC. Reduce the priceD. Return the goods

10. Which of the following is NOT the method of issuing the letter of credit?A. By emailB. By airmailC. By mailD. By teletransmission

11. Assuming shipment is by rail, what if a letter of credit demands the original bill of lading?A. It is a possible demandB. The original of the bill of lading for shipment by rail does not come into the

possession of the buyerC. Such a letter of credit is certain to cause delay in paymentD. The bank insists on strict compliance

12. A ban is issued on the exporter of jute products by newly elected governmentA. YesB. QuestionableC. No

13. Transfer of risk from the seller to the buyer ( Incoterm 2000): CPTA. When the goods are At the seller's premisesB. When the goods are handed to the first carrierC. When the goods across the ship's railD. When the goods are on board

14. The cheapest mode of transport is....A. by seaB. by airC. by road

15. The bank notifying the exporter that the letter of credit has been opened is called...

A. The issuing bank

B. The advising bank

C. The confirming bank

D. The opening bank

16. Payment guarantee means...A. bondB. surelyC. warrantyD. A triangle relationship amongst guarantor, principal and beneficiary

17. Two parties sign a contractA. The contract is bindingB. The contract is effectiveC. The contract is binding and effective

18. The defect liability clause should stateA. the date of acceptanceB. exporter's duty if a defect comes to lightC. both A and BD. Only "A"

19. If the price is quoted CIF San Francisco, who pays for the insurance and freightA. The exporterB. The buyerC. The forwarding agentD. The confirming bank

20. Within the four alternatives of the at-sight Letter of credit, which one is the least satisfactory for the exporter?A. Settlement by sight paymentB. Settlement by deferred paymentC. Settlement by acceptanceD. Settlement by negotiation

21. Termination for convenience occurs when one party simply decides to drop the contract and....A. No reason is requiredB. Reasons are requiredC. Consultation is requiredD. Conversation is required

22. If the price is quoted CPT Vancouver, who pays for the freightA. The exporterB. The forwarding agentC. The buyerD. The confirming bank

23. It is common to put the definition clause.... of the contractA. at the beginningB. near the beginningC. at the endD. near the end

24. A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek, NamibiaA. CIF WindhoekB. CIP WindhoekC. DEQ Windhoek

25. The exporter's interest are best served by.....A. An irrevocable letter of creditB. A confirmed letter of creditC. An at-sight letter of creditD. A combination of all of the above

26. In contracts,........ is not normally allowedA. Delegation of dutiesB. Assignement of rightsC. Performance of obligationsD. Fulfillment of duties

27. Elderly people are... to deal with a contractE. UnableF. AbleG. ImpossibleH. Unaffordable

28. Export credit insurance which gives the exporter an acceptable level of payment shall be paid by....A. The buyerB. The exporterC. A bankD. An insurance company

29. Transfer of risk from the seller to the buyer ( Incoterm 2000): FOBA. When the goods are At the seller's premisesB. When the goods are handed to the first carrierC. When the goods across the ship's railD. When the goods are on board

30. How to make a bill of lading negotiableA. Stamp the word "Negotiable" across the surface the bill of ladingB. In the Consignee box, do not write anything, just leave it blankC. Make the bill of lading blank endorsedD. Fill the words " to order" in the Consignee box

31. The risk of rough handling is not covered under the cargo clause....A. AB. BC. CD. B and C

32. ..... happens when one party ends the contract because of breach by the otherA. CancellationB. SuspensionC. ImpossibilityD. Termination

33. Which is the most appropriate method of payment for the exporter in the following case? A new small customer in a Pacific island republic much given to political distuebances. The order is for $10,000 worth of assorted textilesA. Open account with no securityB. Open account with bank guaranteeC. Open account with export credit insuranceD. Confirmed letter of credit

34. Feeble-minded people lack.... to enter contractsA. moneyB. timeC. contractual capacity

D. intelligence35. The decision of arbitrators is....

A. Law-orientedB. Business-orientedC. Action-orientedD. Reaction - oriented

36. the place of delivery is doubly important to the exporter because the date of....normally depends on time and place of deliveryA. InsuranceB. PaymentC. Invoice

37. If the price is quoted CFR HaiPhong, who pays for the freight?A. The buyerB. The exporterC. The carrierD. The forwarding agent

38. The word "cash" in international trade means.....A. Coins and notesB. GoldC. Checks or bank transfersD. Prepayment

39. A warranty protects....A. the exporterB. the importerC. neither the exporter nor the importerD. both the exporter and the importer

40. The defects liability period is also calledA. Warranty periodB. Guarantee periodC. Correction action periodD. Legal action period

41. The bill of lading issued by the carrier for road transport is called....A. Road bill of ladingB. Road billC. Roadway billD. Road consignment note

42. Exporter prefer:

A. the return of the defective item to the replacement of itB. the replacement of the defective item to the return of itC. the return of the goods and return of the priceD. none of these

43. Open package inspection is synonymous with:A. Buyer's inspectionB. Independent inspectionC. Customs inspectionD. Pre-delivery inspection

44. In a contract under a Continental law, a recital....A. is essentialB. is importantC. is not usefulD. is useful

45. The two terminologies which mean the same thing are.....A. Guarantee and WarrantyB. Bond and SuretyC. Warranty and Defects LiabilityD. Guarantee and Insurance

46. If the price is quoted FCA, who pays for the freightA. The exporterB. The carrierC. The buyerD. The forwarding agent

47. A warranty is aimed at:A. Obtaining loansB. Assurance of product performanceC. Credit purchaseD. Profit making

48. According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may....A. reject the wholeB. accept the wholeC. accept any commercial unit and reject the restD. All the above

49. A promise by the exporter to cure defects in his product is calledA. A product guarantee

B. A product warrantyC. A product insuranceD. A product certification

50. Feeble-minded people are legally unable to..... contractsA. SignB. DeclineC. RefuseD. Resign

ĐỀ 281. As the consequences of a defect can be expensive, the question of who pays the

consequential loss or damage is often…A. AgreeableB. ControversialC. Non-negotiableD. Amicable

2. In negotiating a letter of credit, the step in which the exporter rigorously check the documentation and submit it to the bank is…A. AgreementB. VerificationC. SpecificationD. Compliance

3. Among a number of international bodies offering arbitration service, the … in Paris is the most prestigious.A. UCPB. ADRC. ICCD. FAO

4. In contracts, … is not normally allowed.A. Delegation of dutiesB. Assignment of rightsC. Performance of obligationD. Fulfillment of duties

5. If shipment is made on CIF or CIP terms, the letter of credit will call for…A. An insurance policyB. A letter of insuranceC. A certificate of insuranceD. Either A or C

6. A warranty protects …A. The exporterB. The importerC. Neither the exporter nor the importerD. Both the exporter and the importer

7. A well-designed set of specifications protects buyers against … productA. Advanced

B. DentedC. InferiorD. Superior

8. Why can a manufacturer sometimes accept a loss on an export deal?A. He wants to win a regular customerB. His factory may be short of workC. He can get some export incentives from the governmentD. Any of the above

9. Who issues ocean bill of lading?A. CaptainB. ExporterC. Shipping companyD. Agent

10. Transfer of risk from the seller to the buyer (Incoterm 2000): DDUA. When the goods are at the buyer’s premisesB. When the goods are handed to the first carrierC. When the goods are across the ship’s railD. When the goods are on board

11. … discharge a contract when one party faces an excessive burden in complying with the contractA. Suspension and non-performanceB. Frustration and impossibilityC. Disruption and preventionD. Suspension and acceptance

12. … is open-endedA. Tailor-madeB. FloatingC. Open cover

13. In contract negotiation, “an invitation to provide terms and condition” may mean…A. Another name for acceptanceB. Another name for an offerC. An invitation for the other party to make an offerD. An invitation to the other to accept an offer

14. A payment guarantee simply commits the bank if the buyer defaults. The payment guarantee is usually for … of the contract price.A. 100%B. Less than 100%

C. 10%D. Between 5% and 10 %

15. Inspection by … reveals discrepancies in qualityA. Customs officersB. The carrierC. The exporterD. The importer

16. An unilateral offer can be defined as…A. An offer made of a promise in return for a promiseB. An offer made of a promise in return for an actC. An offer made of an act in return for an actD. An offer made of an act in return for a promise

17. In negotiation a letter or credit, the step in which the list of all required documentations is incorporated in the contract is…A. SpecificationB. IncorporationC. ComplianceD. Verification

18. Transfer of risk from the seller to the buyer (incoterm 2000): CFRA. When the goods are at the seller’s premisesB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

19. Which of the following discrepancies is NOT the problem with the letter of credit?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired

20. “door to door” service is offered. Which term should be used?A. DDPB. CIPC. CIF

21. War risk is not included in …A. A clauseB. B clauseC. A,B,C clause

22. Under the public law, the company can only sign a contract …

A. Even when they lack powerB. That is beyond its powerC. Both a and bD. That is within its power

23. … can create no – contract situationA. Only duressB. Only fraudC. Only mistakeD. Duress, fraud and mistake all

24. The guarantor is usually a…A. BankB. Insurance companyC. Both a and bD. Neither a nor b

25. In the box “with brief advice by teletransmission” is crossed, it means …A. The exporter wants to be informed of the issuance of the LC by telexB. The exporter wants to begin preparation for deliveryC. The buyer’s responsibility of informing the exporter that the LC has been issued at

his favorD. The exporter wants to know about the issuance of the LC more quickly

26. Which of the following is NOT a discrepancy found with the commercial invoice?A. The description of the good on the invoice does not conform to the description in

the LCB. The amount shown on the invoice is more than the amount permitted by the LCC. The invoice is required to be certified or notarized by the LC does not state exactly

the kind of certification made by whomD. The documents required to be signed are not signed

27. In international practice, problem of assignment of rights and delegation of duties can be reduced by using …A. Prior written consent of the other partyB. Prior conversation of the other partyC. Prior consultation of the other partyD. Prior talk to the other party

28. The first step in negotiating a LC is…A. IncorporationB. SpecificationC. Agreement

D. Verification29. A grace period is sometimes used to …

A. Avoid penaltyB. Facilitate early deliveryC. Avoid liquidated damages

30. Inspection of the goods by the buyer in the manufacturer’s factory is referred to as …A. Inspection by inspection serviceB. Pre-delivery inspectionC. Post-delivery inspectionD. Customs inspection

31. The point at which money is deemed to be paid most preferred by buyer is …A. When the buyer pays the money into his bankB. When the buyer’s bank transfers fundC. When the buyer instructs the bank to payD. When the funds reach the seller’s bank account

32. Most contracts contain an assurance that the exporter will … any defects in his productA. Make goodB. Take awayC. AlterD. Modify

33. All the following are objectives that the exporter tries to achieve to minimize the risk of the goods being rejected or heavy defects liability claims EXCEPTA. The quality specifiedB. The confidence in the buyerC. On-time delivery

34. The mechanism of a confirmed LC works as followA. Buyer instructs issuing bank to issue a LC in favor of the sellerB. Buyer instructs issuing bank to instruct an advising bank to pay under a LC in

favor of the sellerC. Buyer instructs issuing bank to instruct a confirming bank to pay under a LC

in favor of the sellerD. Buyer instructs issuing bank to instruct a third bank to pay under a LC in favor of

the seller35. In a guarantee, a guarantor if often

A. The buyerB. The seller

C. The bankD. The manufacturer

36. The entire agreement clause means that all documents that predicts the contract E. Are still validF. Become importantG. Become invalidH. Can be used as evidence

37. The name of parties to contract are often on … of the contractA. The 1st pageB. The 2nd pageC. The last pageD. All pages

38. Why do few exporters ask for bank guarantees as security for payment?A. Because they are not expensive to set upB. Because they run into trouble so oftenC. Because they are conditional guaranteesD. Because LC is much preferred

39. “minimum coverage” is the so-called Cargo Clause …A. AB. BC. C

40. If both parties perform their duties exactly according to the contract, the contract is …A. Discharged by performanceB. Discharged for performanceC. Discharged to performanceD. Discharged with performance

41. If a contract is the entire agreement, earlier letter and documents …A. Can be used as evidenceB. Become invalidC. PrevailD. Remain important

42. If the price is quoted CIP Vancouver, who pays for the freight?A. The exporterB. The forwarding agentC. The buyerD. The confirming bank

43. In settlement by deferred payment, if the seller needs money immediately the what can he do?A. There is no way he can get the money immediatelyB. He can exchange the LC for cash with any agreeable bankC. The seller can realize some parts of the LC’s value, not its full valueD. Payment is still safe but it is delayed

44. In CIF and CIP contracts, the exporter normally assigns the insurance agreement to …A. The buyerB. The carrierC. The issuing bank

45. What is a transferable credit?A. It is the kind of credit which allows the exporter to transfer his right as the credit ‘s

beneficiary to any third partyB. It is the kind of credit which allows the 1st beneficiary to request the

confirming bank to pay a third partyC. It is the kind of negotiable document with which the exporter can endorse by any

third partyD. It is the kind of credit with which the buyer will not necessarily know who is the

actual supplier of the goods46. The lump-sum compensation is set too high …

A. Liquidated damagesB. Quasi indemnityC. Penalty

47. … refer(s) to the questions of implied warranties.A. Most contractsB. Most lawsC. The UCCD. The Vienna State Convention

48. Which of the following method of payment is not possible?A. 100& of the contract price by LCB. 20% repayment and 80% by LCC. 90% by LC and 10% retaining until the warrantee period is overD. Part of the contract price is paid by LC but there is not a clear figure stated

in the amount of the credit49. Transfer of risk from the seller to the buyer (Incoterm 2000): FAS

A. When the goods are ex-quayB. When the goods are handed to the 1st carrier

C. When the goods across the ship’s railD. When the goods are on board

50. In CIP and CIF contracts, ... must pay for insurance from the point of delivery to the named point of arrivalA. The exporterB. The importerC. The carrier

ĐỀ 291. Agreement, under Anglo-American law, are of_________

A. 2 typesB. 3C. 4D. 5

2. Another name for warranty is ________A. GuaranteeB. Defect liabilityC. Legal responsibilityD. Warrantee

3. “Door to door service” is offered. Which term should be used?A. DDPB. CIPC. CIF

4. The things that the exporter should keep in mind in negotiating payment areA. Payment mode, timing, place, delay and results of delayB. How payment will be made and the date of paymentC. Where the money must be before payment is considered complete and what delay in

payment is excusableD. Results of non-excusable delay in payment and time of payment

5. Of the 3 options available for setting disputes, litigation before the court is internationally least attractive as it is___A. Expensive and legalisticB. Biz-like and flexibleC. Time-saving and privateD. Fast and acceptable

6. The clause covers General AverageA. AB. BC. A, B, C

7. Transfer of risk from the seller to the buyer (Incoterm 2000): FASA. When the goods are ex-quayB. When the goods are handed to the first carrierC. When the goods across the ship’s railD. When the goods are on board

8. Most contracts contain an assurance that the exporter will___ any defects in his productsA. Make goodB. Take awayC. AlterD. Modify

9. Which of these does not count as a defect?A. Defective design

B. MisuseC. Defective materialsD. Defective workmanship

10. The background of the contract is provided in the form of ____A. A clauseB. A definitionC. The annexD. A whereas-recital

11. A bank guarantee which gives the exporter an acceptable level of security in terms of payment shall be paid byA. The buyerB. The exporterC. A bank D. A 3rd party

12. Which of the following is the least desirable option for the exporter?A. Allow the buyer to repair at the exporter’s costB. Reduce the priceC. Return the goods and refund the priceD. Replace the defective items

13. “The buyer shall notify the Seller of defects without undue delay”. This is the example ofA. Defects liability periodB. Notification periodC. Rectification periodD. Legal action period

14. The contract should regulate what happens if Incoterm 2000 and the terms of the contract conflict: Normally the ____ prevailesA. IncotermB. ContractC. Incoterm and contract

15. A marine bill of lading can be negotiable document with which___A. The buyer can use it to resell the goods during shipmentB. The exporter can use it to resell the goods during shipmentC. The issuing bank can use it to resell the goods to another customerD. The buyer can use it to negotiate a price with the negotiating bank

16. As soon as the exporter receives advice that the LC has been opened, what should he do?A. He should check that it complies with the agreement he negotiated with the

buyerB. HE should check if there is any documents that he does not understandC. He should check if there is any requirement that he does not agree toD. He should check if there is any necessary amendment to the terms of the LC

17. With a well-designed set of specification, the seller can protect its____ and avoid costsA. ReputationB. Production

C. ResolutionD. Profitability

18. Unless otherwise agreed, the insurance is “minimum cover”- cargo clause_____A. AB. BC. C

19. Why LCs are formally called “documentary credits”?A. Because a LC is a binding agreement by a bank to pay a certain sum of money when

the exporter presents the necessary documents to the bankB. Because the LC is issued by an issuing bank at the request of the buyerC. Because in a LC situation, documents are exchanged for moneyD. Because the documents in a LC are proofs of trust

20. The answer to background question are written ______A. Through the whereas-recital (giốngcâu 10)

21. A disclaimer of warranty often accompanies delivery ofA. A softwareB. HardwareC. FootwearD. Chinaware

22. Continental Law copes with_____A. Personal problemsB. International tradeC. National issuesD. Individual conflicts

23. In which situation should exporters use export credit insurance?A. Long-term customersB. Transactions represent a high proportion of their turnoverC. Buyers are willing to spend money on a payment guaranteeD. In a seller’s market

24. What would be the effect on the price of the goods traded if the buyer wants the goods sooner?A. The price of the goods will go upB. The price of the goods will go downC. There is no chance in priceD. The price of the goods will go up extra costs involved due to extra working shift

from the manufacturer25. “The seller shall make good the defect or damage as soon as practicable and at his own

cost”A. Legal action periodB. Notification periodC. Rectification periodD. Defect liability period

26. Whereas-clauses____

A. Are provisionsB. Are promisesC. Are conditionsD. Are not provisions, promises or conditions

27. The bank notifying the exporter that the LC has been opened is called____A. The issuing bankB. The advising bankC. The confirming bankD. The opening bank

28. Which of the following is not the reason why the exporter prefers a longer expiry period of credit?A. He wants to save bank chargesB. He wants enough time after delivery to present the documentsC. He wants to have enough time to correct any discrepancies that might be discovered

by the bankD. He wants to spare some time for any unexpected things preventing his presentation of

documents on time29. A contract requiring the exporter to send the contract goods by road from Kenya to

Zambia with freight paid by the exporterA. CFA LusakaB. CPT LusakaC. CFR Nairobi

30. The exporter should have no liability for the goods when they are_____A. Beyond his controlB. In his controlC. Under his control

31. Which of the following examples is a patent defect?A. Crushed or stained garmentsB. The flooring shows signs of deteriorationC. High fuel consumptionD. Inadequately tightened nuts and bolts

32. Bill of lading is the most important document because it is a _____A. Document of titleB. Document of negotiationC. Document of freight

33. Which of the following is not considered to be special requirement in a sale/purchase contract?A. Containers are required to be fumigated before shipmentB. Upgraded packing materialsC. Goods must be packed according to export standardsD. Health inspection for foodstuffs

34. If a dispute arises, the recital allows the court to discover the real meaning of ____A. The contract

B. The termC. The incotermD. The appendix

35. Why can a manufacturer sometimes accept a loss on an export deal?A. He wants to win a regular customerB. His factory may be short of workC. He can get some export incentives from the GovD. All of the above

36. “ A machine that consumes more fuel than specification” is an example ofA. Latent defectB. Patent defectC. Inherent defectD. Apparent defect

37. Continental law is based on a ______A. Case lawB. Common lawC. Legal codeD. Legal system

38. Transfer of risk from the seller to the buyer: CIFA. When the goods are at the seller’s premisesB. When the goods are handed to the 1st carrierC. When the goods across the ship’s railD. When the goods are on board

39. Which of the following discrepancies is not the prob with the LC?A. The shipment was shortB. The shipment was lateC. There is no endorsement if endorsement is necessaryD. The credit has expired

40. In a contract under a continental law, a recital _____A. Is essentialB. Is not usefulC. Is not essentialD. Is important

41. Assuming shipment is by rail, what if a LC demands the original bill of lading?A. It is a possible demandB. The original of the BL for shipment by rail doesn’t come into possessions of the

buyerC. Such a LC is certain to cause delay in paymentD. The bank insists on strict compliance

42. _____________ is 2-sided proceduresA. TerminationB. CancellationC. Rescission

D. Suspension43. A volcanic eruption buries the factory in ash (force majeure)

A. YesB. QuestionableC. No

44. If the force majeure event continues for too long, both parties have the right toa. Continue the contractb. Terminate the contractc. Make late delivery

45. What if a LC calls for a complete set of original air waybills?A. The exporter has to present the full set of original air waybills if he wants to get

payment from the bankB. The exporter cannot provide the complete setC. This is obviously a mistakeD. Only the 2nd original of the air waybill goes to the consignee. The bank, however,

will follow the wording of the LC exactly and refuse an incomplete set waybills46. Export credit insurance is very attractive, however, has certain limitations like

A. High premiums paid by the ExB. Long time waiting for compensation from the insurance companyC. Long time since the buyer fails to pay up to the time the insurance company

compensates the Ex and the inability of covering 100% of the original invoice price

D. Refusal from the insurance company to quote premiums due to risky biz of the buyer’s non-creditworthiness

47. Anglo-American law brings the ____ in the individual caseA. JusticeB. UniformityC. ConsistencyD. Legacy

48. Another name for tender guarantee is _____A. Revocation guaranteeB. Bid guaranteeC. Bond guaranteeD. Bid bond

49. Full set on board ocean Bills of lading to order shipper, blank endorsed. In this clause shipper means____A. ExporterB. ImporterC. BankD. A, B, C. It depends on the situation

50. Full set on board ocean Bills of lading to order shipper, blank endorsed. In this clause shipper means____E. ExporterF. ImporterG. BankH. A, B, C. It depends on the situation

ĐỀ 30

1. Defects that come to light after buyer’s acceptance are called:A. Patent defectsB. Latent defectsC. Coherent defectsD. Apparent defects

2. A commercial invoice must be made out to:A. The exporterB. The shipperC. Any party endorsing the bill of ladingD. The applicant of the letter of credit, normally to the buyer, unless otherwise

stated in the credit3. Delivery of the goods under the most export contracts take place in a country of :

D. The importerE. The exporterF. The agent

4. If the price is quoted EXW, who pays for freight?A. The exporterB. The buyerC. The forwarding agentD. The advising bank

5. In settlement by acceptance, the kind of bill of exchange being sent together with other documents to the accepting bank is …A. Sight draftB. Short-term draftC. Time draftD. Long-term draft

6. A inspection by the buyer is called:A. Independent inspectionB. Inspection of goods prior to shipmentC. Open package inspectionD. Customs inspection

7. In settlement by deferred payment, if the seller needs money immediately, what can he do?A. There is no way he can get money immediatelyB. He can exchange the letter of credit for cash with any agreeable bank

C. The seller can realize some part of the letter of credit’s value, not full valueD. Payment is still safe but is delayed

8. A ban is issued on the export of jute products by newly elected government that has been preparing legislation on this subject of five years(Note: If either party is prevented from, or delayed in performing any duty under this Contract by an event beyond his reasonable control, then this event shall be deemed force majeure)A. YesB. QuestionableC. No

9. The force majeure clause suggested by the International Chamber of Commerce, for example, states that payment of interest on overdue sums payable to the seller is ….. by…..A. Excused/ force majeureB. Not excused/ force majeureC. Excused/ Acts of GodD. Excused/ contingencies

10. If the shipment is under Incoterm other than CIF or CIP,…A. The buyer has to arrange the Insurance cover by himself.B. The buyer may still ask the exporter to arrange some aspects of insurance for him.C. The exporter has to arrange the Insurance cover for the goodsD. The exporter pays for insurance till the port of discharge.

11. The bill of lading is issued by the carrier for combined transport is calledA. Combined bill of ladingB. Combined billC. Combined transportation bill of ladingD. Combined transport bill of lading

12. Which the following is NOT the reason why the exporter prefers a longer expiry period of credit?A. He wants to save bank chargesB. He wants enough time after delivery to present the documentC. He wants to have enough time to correct any discrepancies that might be

discovered by the bankD. He wants to spare some times for any unexpected things preventing his

presentation of documents on time.13. In drafting an arbitration clause, the following question must be resolved:

A. How many arbitrators sit in the court?

B. What is the language of court?C. Where is the place of court?D. All of above

14. Which type bill of lading is negotiable?A. SurrenderB. StraightC. To order

15. Export credit insurance is very attractive; however, it has certain limitations like …E. High premium paid by the exporterF. Long time waiting for compensation from the insurance companyG. Long time since the buyer fails to pay up to the time the insurance company

compensates the exporter and the inability of covering 100% of the original invoice price.

H. Refusal from the insurance company to quote premiums due to risky business or the buyer’s non- creditworthiness.16. In settlement by sight payment,…

A. The sellers present the necessary documents to the issuing bankB. The sellers present the necessary documents to the advising bankC. The sellers presents the necessary documents to the paying bankD. The sellers presents the necessary documents to the reconfirming bank

17. A machine that consumes more fuel than specification is example of:A. Latent defectB. Patent defectC. Coherent defectD. Apparent defect

18. In a disputes arise, the recital allows the court to discover the real meaning of…A. The contractB. The termC. The incotermD. The appendix

19. Transfer of risk from the seller to the buyer (Incoterm 2000) : CIPA. When the goods are at the seller’s premisesB. When the goods are handed to the first carrier C. When the goods across the ship’s railD. When the goods are on board

20. Is there any “reconfirming bank” ?A. No, there isn’t

B. Yes. There is one in case banks are reluctant to confirm letter of credit, especially those from obscure banks

C. Never is thereD. It depends

21. The Disclaimer of warranty means:A. The seller is liable for goodsB. The buyer is denied of some of his normal rightsC. The seller will make good any defectD. Contract price would be far higher

22. The incoterm …. Contains 11 itemsA. 1990B. 2000C. 2010

23. Where is the often place of expiry of the credit?A. At the courters of the issuing bankB. At the courters of the advising bankC. At the courters of the confirming bankD. At the courters of negotiating bank

24. Once the bank has indicated the discrepancies, what can the exporter do?A. The exporter can provide the missing paperwork or correct errorsB. The exporter can ask the buyer to instruct the bank to change the terms of the letter

of creditC. The exporter can ask the bank to process the letter of credit with the discrepancies

but to pay only when ( and if) the issuing bank permits paymentD. Any of the above

25. Beside the commercial invoice, he transport document and insurance document , what do “Other documents” include?A. A certificate of originB. A certificate of inspectionC. A health inspectionD. Any of the above

26. The answer for background questions are written:A. Through the whereas-recitalB. Through the annexC. Through provisionsD. Through conditions

27. Which of the following is essential to successful business?

A. QualityB. Customer satisfactionC. Correct making and packagingD. On-time delivery

28. When the bill of lading marked “freight collected”. Who pays for freight?I. The buyerJ. The sellerK. The agentL. It depends on the agreement

29. The “exporter’s wording” and the “Buyer’s wording” in the defect liability provision represent:A. A major contract issueB. A minor contract issueC. Nonsense D. Profit and loss of each party

30. The place of delivery is doubly important to the exporter because the date of…. Normally depends on time and place of delivery.A. InsuranceB. PaymentC. Invoice

31. Within the four alternatives of the at-sight letter of credit, which of one is the least satisfactory for the exporter?A. Settlement by sight paymentB. Settlement by deferred paymentC. Settlement by acceptanceD. Settlement by negotiation

32. Title of the goods passes ……A. With risksB. Without risksC. With documents

33. Elderly people are …….. to deal with a contract.A. UnableB. AbleC. ImpossibleD. Unaffordable

34. The word “cash” in international trade means….A. Coins and notes

B. GoldC. Checks and bank transfersD. Prepayment

35. Continental law is based on a ….A. Case lawB. Common lawC. Legal codeD. Legal system

36. The background of contract is provided in the form of …A. The clauseB. The definitionC. The annexD. A whereas-recital

37. The hereinafter called wording can prevent legal problem cause by :……A. Misspelling namesB. Mistyping namesC. Misreading namesD. Misaccepting names

38. A bank guarantee which gives the exporter an acceptable level of security in term of payment shall be paid by….A. The buyerB. The exporterC. A bankD. A third party

39. “The Buyer shall notify the Seller of defects without undue delay”. This is example of:A. Defect liability periodB. Notification periodC. Rectification periodD. Legal action period

40. …………...happens when one party ends the contract because of breach by the other.A. CancellationB. SuspensionC. ImpossibilityD. Termination

41. In principle, the buyer and reject delivered goods if they do not conform to the contract. This is called…….

A. Implied warranty of suitabilityB. Implied warranty of conformityC. Implied warranty of merchantabilityD. Implied warranty of fitness for intended purpose

42. The goods become deteriorated as a result of normal use. This process is called:A. Fair playB. Fair wear and tearC. Faults not present on deliveryD. Farewell

43. The greatest fear for the exporter is :E. Being unable to meet the delivery deadlineF. Being unable to meet the specification of the goodsG. Being unable to get paid for the goods soldH. Having no guarantee for payment

44. Transfer of risks from the seller to the buyer ( Incoterm 2000) : CPTE. When the goods are at seller’s premisesF. When the goods are handed to the first carrierG. When the goods across the ship’s railH. When the goods are on board

45. Which of the following concepts is best used to avoid confusion when we mean an assurance that the exporter will make the goods defects in his goods?A. WarrantyB. Guarantee C. Defects liabilityD. Warrantee

46. Why do most exporters offer a discount for early payment, for example 1% discount if payment is made within 10 days of the date of invoice?A. Because the discount is so attractive to the buyerB. Because the buyer can save on the invoice priceC. Because the exporter can substantially improve his cash flowD. Because the exporter just wants to get payment on delivery

47. The court of arbitration applies whatever ………….. the parties stipulate in the contractA. International lawB. Corporate law

C. National lawD. Business law

48. ………….. is two-sided proceduresA. TerminationB. CancellationC. RescissionD. Suspension

49. A contract that is ultra vires is…………A. Well enforceableB. UnenforceableC. Valid D. Effective

50. The name of parties to the contract are often on ………..of the contractA. The first pageB. The second pageC. The last pageD. All pages