Trắc nghiệm tiếng anh

8/9/2019 Trc nghim ting anh

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S 11. In settlement by deferred payment, the letter of credit is paid after delivery. Right or

wrong?A. Completely right

B. Definitely wrong

C. It depends

D. The letter of credit is not payable until a number of day

.!hich of these co"nts as a defect?A. Wrong design

B. #air wear and tear

C. $is"se

D. $issing items

%. &Note: If either party is prevented from, or delayed in, performing any duty under thiscontract by an event beyond his reasonable control, then this event shall be deemed

force majeure'(hortage of s"pplies &bac)gro"nd, the e*porter cannot get the raw +"te he need fromthe s"pplier beca"se of a shipping delay'

A. YesB. "estionable

. !o

-.he ma+ority of shipping doc"ments presented to ban)s "nder doc"mentary credittransaction are accepted on first presentation, Right or wrong

A. Completely right

". Definitely #rong

C. /either right nor wrong

D. It depends

0. A warranty is aimed atA. 2btaining loans


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". Assurance of product performance

C. Credit p"rchase

D. 3rofit ma)ing

4.he Anglo5American contract is666A. /ot the entire agreement

". Traditionally the entire agreement

C. (ometimes the entire agreement

D. Rarely the entire agreement

7.In negotiating a letter of credit, the step in which the list of all re8"ired doc"mentation

is incorporated into the contract is66A. (pecification

". $ncorporation

C. Compliance

D. 9erification

:. In a contract "nder a Continental law, a recital66A. Is essential

B. Is important

C. Is not "sef"l

D. $s useful

;.$inim"m Coverage is the so5called Cargo Cla"se6..A. A

B. B

.

1iability 3eriod?A. hree

". %our


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C. wo

D. #ive

11. he main difference between Continent and Anglo American contract law is the

degree of6..A. odification

B. #ormation

C. A"tomation

D. Interpretation

1. !hat happens if the iss"ing ban) finds a problem with the doc"ments and ref"ses tosend f"nds to the advising ban) to cover payment?

A. he advising ban) has to s"ffer that loss d"e to their carelessness in chec)ing theshipping doc"ments

". The ad&ising ban' gets its money bac' from the e(porter

C. he payments form the advising ban) to the e*porter are always made with reco"rse. hee*porter has to pay bac) the advising ban) in s"ch a case

D. It is the responsibility of the iss"ing ban) of paying bac) the advising ban) in s"c) incase

1%. !hat can protect both the e*porter and the importer in an e*port contract?A. A #ell)designed set of specifications

B. An itemi@ed set of specification

C. A plain set of specification

D. /one of these

1-. !hich of the following is the ob+ective aimed at by the e*porter to minimi@e the ris)

of the goods being re+ected of heavy defects liability claims?A. !inning b"yers goodwill

B. eeping his promise

. !egotiating detailed specifications

D. $a)ing profit


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10. ransfer of ris) form the seller to the b"yer &Incoterm


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0. !hich of the following discrepancies is /2 the problem with the >etter of Credit?A. he credit has e*pired

B. Doc"ment re8"ired by the credit are missing

C. he credit amo"nt is e*ceeded

D. $nsurance co&er is e(pressed in a currency other than that of the credit

4.he two terminologies which mean the same thing are6.A. "arantee and !arranty

B. Bond and ("rety

. Warranty and Defects +iability

D. "arantee and Ins"rance

7. /ormally, ris)s are transferred at the point of66A. Deli&ery

B. 3ayment

C. Arrival

:. !ar ris) is not incl"ded in66..A. A cla"se

". " lause

C. A,B,C cla"se

;. /egotiation of specification between the e*porter and the importer can be 666A. An effortless process

". A difficult process

C. Done by an intermediary

D. A simple process

%


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. "ecause the e(porter can substantially impro&e his cash flo#D. Beca"se the e*porter +"st want to get payment for delivery

%1. he method of payment which is dangero"s for the e*porter isA. Cash on delivery

". Accepting a personal chec'C. 3repaymentD. *port credit ins"rance

%. A( for Ango5American ,the decision of +"dge is always A. 3redictableB. #orceable. ,npredictableD. stimated

%%. If both parties perform their d"ties correctly, a contract is discharged by

A. Defa"ltB. ("spension. -erformanceD. Breach

%-. Dawson bo"ght vanilla beans from Indonesia. Dawson instr"cted an American ban)to open a letter of credit. 2ne of re8"ired shipping doc"ments was a certificate of8"ality iss"ed F by e*pertsG. he ban) paid the e*porter. he beans, when theyarrived, were r"bbish. he certificate of 8"ality was signed, however, by only oneFe*pertG. Co"ld the ban) collect from Dawson the money it had paid to the e*porter?

A. Definitely ,it co"ldB. 3robably, it co"ld. !o it could notD. /o 8"estion, it co"ld

%0.If the price is 8"oted #2B (ingapore, who pays for the ins"rance and freight?A. he e*porter". The buyerC. he forwarding agentD. he confirm

%4. he bill of lading iss"ed by the carrier for combined transport is calledA. Combined bill of ladingB. Combined billC. Combined transportation bill of ladingD. ombined transport bill of lading

%7.In a contract the word F whereasG means


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A. Fonly thatGB. FwhileGC. FwhenGD. /because0 or /consider that0

%:. Ass"ming shipment is by rail, what if a letter of credit demands the original bill oflading ?A. It is possible demandB. he original of the bill of lading for shipment by rail does not come into the possession of

the b"yer.. Such a letter of credit is certain to cause delay in paymentD. he ban) insists on strict compliance

-


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D. the H/ Convention on Contract for acceptance-0. =ow many originals and copies is the air waybill iss"ed according to the standard of

the International Air ransport Association5AA?A. hree originals and % copies

B. % originals and 4 copies. 3*riginals and 4 copiesD. it depends on the re8"irements in the letter of credit

-4. he parties to a contract are not always re8"ired to .....A. Ignore". ApplyC. Ref"seD. Decline

-7. A ban is iss"ed on the e*port of +"te prod"cts by newly elected government that has

on been preparing legislation on this s"b+ect for 0 years.A. YesB. "estionableC. /o

0


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7. In negotiating a letter of credit, the step in which the e*porter chec)s the credit to seethat re8"ired doc"mentation is as agreed is 6

A. Agreement

B. Incorporation

. 7erificationD. Compliance

:. FA machine that cons"mes more f"el than specificationG is an e*ample ofA. +atent defect

B. 3atent defect

C. Inherent defect

D. Apparent defect

;. !hen the bill of lading mar)ed Ffreight prepaidG. !ho pays for the freight?

A. he b"yer". The seller

C. he agent

D. It depends on the agreement

1


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C. =igh f"el cons"mption

D. Inade8"ately tightened n"ts and bolts

1-. If shipment is made on CI# or C3I terms, the letter of credit will call forA. An ins"rance policy

B. A letter of ins"ranceC. A certificate of ins"rance

D. ither A or

10.In settlement by sight paymentA. he seller presents the necessary doc"ments to the iss"ing ban)

B. he seller presents the necessary doc"ments to the advising ban)

. The seller presents the necessary documents to the paying ban'

D. he seller presents the necessary doc"ments to the reconfirming ban)

14.!hich of the following discrepancies is not the problem with inconsistencies amongdoc"ments?

A. he description of the goods on the invoice and the description of the goods in the creditare different

". Documents are not presented #ithin the re8uired time

C. !eights differ between doc"ments

D. $ar)s and n"mbers differ among doc"ments

17. Fhe b"yer shall notify the seller of defects witho"t "nd"e delayG. his is an e*ampleofA. Defects liability period

". !otification period

C. Rectification period

D. >egal action period

1:.ermination for convenience occ"rs when one party simply decides to drop thecontract and

A. !o reason is re8uired

B. Reasons are re8"ired

C. Cons"ltation is re8"ired

D. Conversation is re8"ired


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1;.!hich is the most appropriate method of payment for the e*porter in the followingcase? A new small c"stomer in a 3acific island rep"blic m"ch given to politicaldist"rbances. he order is for 1


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D. Case law

0. In settlement by acceptance, what will the ban) do after receiving the doc"ments anddraft drawn from on the b"yer from the seller?

A. he ban) will pay the seller immediately

B. he ban) will pay the seller as long as the doc"ments s"bmitted comply with all the termsof letter of credit.

C. he ban) chec)s the doc"ments

D. The ban' agrees to pay the bill #hen it matures

4. In contract, Fpartial invalidity provisionG means the invalidity of one part of thecontract6

A. $ay invalidate the rest

". Does not in&alidate the rest

C. Affects the restD. nforces the rest

7.!ho iss"es bill of lading?A. Captain

B. *porter

. Shipping company

D. Agent

:.!hy can a man"fact"rer sometimes accept a loss on an e*port deal?

A. =e wants to win a reg"lar c"stomerB. =is factory may be short of wor)

C. =e can get some e*port incentives from the government

D. Any of abo&e

;.A disclaimer of warranty often accompanies delivery ofA. Soft#are

B. =ardware

C. #ootwear

D. Chinaware

%


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%1.All ris)s covered is "nder 6 cla"seA. A

B. B

C. C

%.A contract re8"iring an e*porter in thiopia to send the contract goods by air fordelivery in !indhoe), /amibia

A. CI# !indhoe)

". $- Windhoe'

C. D !indhoe)

%%.A contract is not enforceable ifA. It is signed within power

B. It has a legal p"rpose

. $t has illegal purposeD. It has no p"rpose

%-.ransfer of ris) from the seller to the b"yer &Incoterm


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%7.An offer dies if it has aJanA. Acceptance

B. Agreement

C. Adoption

D. 6e&ocation%:.!hich of the following discrepancies is not the problem with the letter of credit?

A. he shipment was short

B. he shipment was late

. There is no endorsement if endorsement is necessary

D. he credit has e*pired.

%;.!hich of the following concepts is best "sed to avoid conf"sion when we mean anass"rance that the e*porter will ma)e good defects in his goods?

A. !arrantyB. "aranty

. Defects liability

D. !arrantee

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C. Disp"te cost

D. Disp"te means

-%.A commercial invoice m"st be made o"t to6A. he e*porter

B. he shipperC. Any party endorsing the bill of lading

D. The application for the letter of credit normally to the buyer unless other#isestated in the credit.

--.Another name for tender g"arantee isA. Revocation g"arantee

B. Bid g"arantee

C. Bond g"arantee

D. "id bond

-0.he best sol"tion for the e*porter to ma)e late payment impossible isA. A typical contract cla"se in which there are reg"lations on the amo"nt of interest the

seller shall be entitled to receive in case of late payment.

B. An agreement with the b"yer to strengthen the payment provisions with a paymentg"arantee

C. An agreement with an ins"rance company in case the b"yer fails to pay on time

D. A confirmed irre&ocable at sight letter of credit.

-4.Defects may be which of the following?A. Defects in materials

B. Defects in wor)manship

. "oth

D. /one of these

-7. If a disp"te arises, the recital allows the co"rt to discover the real meaning of 6A. The contract

B. he term

C. he incoterm

D. he appendi*

-:.he doc)wor)ers in 3ort 9erbena go on stri)eA. Yes

B. "estionnaire


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31. A contract is a written agreement and it follows the Fmeeting of mindsG and6.A. 2ffer and declineB. 2ffer and ref"sal

. *ffer and acceptanceD. 2ffer and renewal. A ban is iss"ed on the e*port of +"te prod"cts by newly elected governmentA. KesB. "estionableC. /o%. Continental lawyers 66. Complicated grammar of the whereas5 cla"seA. *ften a&oidB. 2ften "se

C. 2ften ta)e advantage ofD. (ometimes "se-. he cla"se covers eneral AverageA. AB. B. A"0. he contract sho"ld reg"late what happen if Incoterms awf"l case:. Hnless the letter of credit states otherwise, ins"rance coverage on a CI# or CI3

shipment m"st be for66 of the CI# or CI3 val"e of the goods


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1-. he point of delivery is m"ch the same for all66.. terms and 66.. terms5 whenthe e*porter hand over the goods to the carrier

A. = %B. D L #

C. C L D10.A term or terms in a contract co"ld raise the contract priceA. A shorter warranty periodB. C"stomer order goods in one colorC. /o additional pac)aging or safety warnings are re8"ired beyond normal standardsD. A longer #arranty period14.!ho iss"e e*port credit ins"rance?A. he b"yerB. he e*porter

. An insurance companyD. Any e*port company17.he defects liability cla"se sho"ld statesA. he date of acceptanceB. *porters d"ty if a defect comes to light. "oth A = "D. 2nly A1:. If shipment is made on CI# or CI3 terms, the letter of credit will call for6.A. An ins"rance policy

B. A letter of ins"ranceC. A certificate of ins"ranceD. ither A or 1;. he l"mp5s"m compensation is set too lowA. li8"idated damages". 8uasi indemnityC. penalty


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C. /o.he e*porterMs interests are best served byA. An irrevocable letter of credit.B. A confirmed letter of credit

C. An at5sight letter of creditD. A combination of all of the abo&e.%.6666..are the e*planations.A. Definition cla"sesB. !hereas5recital cla"sesC. 3reamble cla"sesD. Anne* cla"ses-. MDoor to door serviceN is offered. !hich term sho"ld be "sed?A. DD-

B. CI#C. CI30.Delivery of the goods "nder most e*port contracts ta)es place in the co"ntry ofA. the importer". the e(porterC. the agent4.Continental >aw does not re8"ire long and contracts.A. >ooseB. >a*

C. BriefD. Detailed7.he fact that man"fact"rer often tempted to be over5optimistic and to agree to

impossible specifications is66.. in b"siness.A. l"crative". ris'yC. advantageo"sD. common:.he answers to bac)gro"nd 8"estions are written

A. through the #hereas)recitalB. thro"gh the anne*C. thro"gh provisionsD. thro"gh conditions;. According to the HCC, if the goods fail in any respect to conform to the contract, the

b"yer may


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A. re+ect the wholeB. accept the wholeC. accept any commercial "nit and re+ect the restD. All the abo&e

%engthy and openC. Binding and rigidD. ime cons"ming%1.. !hereas5cla"sesA. are provisionsB. are promisesC. are conditions

D. are not pro&isions promises or conditions%.In terms of payment in international trade.A. Ris) rises and cost rises as wellB. Ris) falls and cost falls as a conse8"enceC. Ris) and cost have no relationship with each otherD. 6is' and cost rise and fall together

%%.Defects s"ch as wrong items, bro)en or missing parts, scratches, and so on are calledA. patent defectsB. latent defects

C. inherent defectsD. concealed defects

%-.he bill of lading iss"ed by the carrier for sea transport is calledA. (eaway bill". >arine bill of ladingC. (ea way bill

%0.!hich of the following discrepancies is /2 the problem with the >etter of Credit?A. he shipment was shortB. he shipment was late.

C. There is no endorsement if endorsement is necessary.D. he credit has e*pired.

%4.#ail"re to meet specifications is aA. Defect in wor)manshipB. Defect in materialC. Defect in design


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D. Defect in 8"antity%7.he bill of lading iss"ed by the carrier for road transport is called

A. Road bill of ladingB. Road bill

C. Roadway billD. 6oad consignment note%:.$owing the b"yer to repair the e8"ipment at the e*porterMs cost 66.

A. is always the best choice for the e*porterB. is always the worst choice for the e*porterC. is often safe for the e*porterD. is often unsafe for the e(porter

%;.Ass"ming shipment is by rail, what if a letter of credit demands the original bill oflading?

A. It is a possible demand.B. he original of the bill of lading for shipment by rail does not come into thepossession of the b"yer.

C. ("ch a letter of credit is certain to ca"se delay in paymentD. he ban) insists on strict compliance.

?;.3artial invalidity cla"se can help to avoid problems with contacts that66.. might infringe go&ernment regulations#. violate the trade laws. disco"rage trade

=. both b and c-1.!hich of these does not re8"ire prior inspection by ((?

A. he 3hilippinesB. Indonesia

C. he Hnited ingdomD. All A, B and C-.In a contract, the wordN whereasN means

A. only thatNB. OwhileM

C. whenMD. because@ or @considering that@-%.*port credit ins"rance is very attractiveP however, it has certain limitations li)e....

A. high premi"ms paid by the e*porter.B. long time waiting for compensation from the ins"rance company


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. long time since the buyer fails to pay up to the time the insurance companycompensates the e(porter and the inability of co&ering 1;;< of the originalin&oice price.

D. Ref"sal from the ins"rance company to 8"ote premi"ms d"e to ris)y b"siness or the

b"yers non5creditworthiness--.!hy do most e*porters offer a disco"nt for early payment, for e*ample a 1E disco"ntif payment is made within 1< days of the date of invoice?

A. Beca"se the disco"nt is so attractive to the b"yerB. Beca"se the b"yer can save on the invoice price. "ecause the e(porter can substantially impro&es his cash flo#D. Beca"se the e*porter +"st wants to get payment on delivery-0. If the b"yer come from a co"ntry which has poor rep"tation for enforcing awards, thebest methods of payment "nder the contract is aJ an6..

A. Revolving >JC". At sight confirmed +:C. Deferred, irrevocable >JCD. ransferable >JC

-4. !ho iss"es ban) g"arantee?A. he b"yerB. he e*porterC. Any third partyD. A ban'

-7. Inspection by the b"yer is calledA. Independent inspectionB. Inspection of goods prior to the shipment. *pen pac'age inspectionD. C"stoms inspection

-:. !hich of the following discrepancy is /2 the problem with ins"rance?. Document are not presented #ith the re8uired time#. he s"m ins"red below the fig"re re8"ired. the ins"rance ris)s are not those specified in the credit

=. A certificate of ins"rance is prod"ced while the credit calls for a policy-;. A contract re8"iring an e*porter in $o@ambi8"e to deliver the contract goods Beira$o@ambi8"e for the shipment by sea to Da es(allama@ania

A. %AS "eiraB. CI# BeiraC. #2B Da es (alaam


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?B

1. here are 6 parties to a warranty and 6 in a g"arantee

A. %J

B. %J%

. 5:3

D. J

. A contract re8"iring the e*porter to send the contract goods by road from enya toQambia with freight paid by the e*porter

A. C#R >"sa)a

". -T +usa'a

C. C#R /airobi

%. 2nce the ban) has indicated the discrepancies, what can the e*porter do?

A. he e*porter can provide the missing paperwor) or correct errors

B. he e*porter can as) the b"yer to instr"ct the ban) to change the items of the letter ofcredit

C. he e*porter can as) the ban) to process the letter of credit with the discrepancies b"tto pay only when &and if' the iss"ing ban) permits payment

D. Any of the abo&e

-. A contract re8"iring an e*porter in thiopia to send the contract goods by air for deliveryin !indhoe), /amibia

A. CI# !indhoe)

". $- Windhoe'

C. D !indhoe)

0. A contract re8"iring an e*porter in $o@ambi8"e to deliver the contract goods in Beria,$o@ambi8"e, for the shipment by sea to Dar es (alaam, an@ania

A. %AS "eira

B. CI# Beira


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10. (mall p"rchase in private life are often in the form of 6

A. Cash on delivery

B. Cash against invoice

C. Cash with order

D. Any of the abo&e

14. ransfer of ris) from the seller to the b"yer &Incoterms egal law

D. >awf"l case


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A. Defecti&e design

B. Defective materials

C. Defective wor)manship

D. $is"se by the seller

0. !hich of the following discrepancies is /2 the problem with inconsistencies amongthe doc"ment?

A. he description of the goods on the invoice and the description of the goods in thecredit are different

". Documents are not presented #ithin the re8uired time

C. !eights differ between two doc"ments

D. $ar)s and n"mbers differ among doc"ments

4. he ban) notifying the e*porter that the letter of credit has been opened is called 6

A. he iss"ing ban)

". The ad&ising ban'

C. he confirming ban)

D. he opening ban)

7. 6 is open5ended

A. ailor5made

B. #loating

. *pen co&er

:. 6 happens when one party ends the contract beca"se of breach by the order

A. ancellation

B. ("spension

C. Impossibility

D. ermination

;. !ho iss"es ocean bill of lading


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A. Captain

B. *porter

. Shipping company

D. Agent

%


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D. *plicit warranty

%-. !hat if a letter of credit calls for Fa complete set of original air waybillsG?

A. he e*porter has to present the f"ll set of original air waybills if he want to get

payment from the ban)B. he e*porter cannot provide the complete set

C. his is obvio"sly a mista)e

D. 2nly the second original of the air waybill goes to the consignee. he ban), however,will follow the wording of the letter of credit e*actly and ref"se an Fincomplete setGwaybills

%0. !hich of the following discrepancies is /2 the problem with the >etter of Credit?

A. he credit has e*pired

B. Doc"ments re8"ired by the credit are missing

C. he credit amo"nt is e*ceeded

D. $nsurance co&er is e(pressed in a currency other than that of the credit

%4. Among a n"mber of international bodies offering arbitration services, the 6 in 3aris isthe most prestigio"s

A. HC3B. ADR

. $

D. #A2

%7. ransfer of ris) from the seller to the b"yer &Incoterms


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B. By air

C. By road

--. Continental law has well developed private law, especially contract and 6

A. ommercial la#

B. Corporate law

C. Comm"nity law

D. Case law

-0. A li8"idated damages cla"se protects 6

A. he e*porter rather than the importer

B. he importer rather than the e*porter

. "oth sides

D. /either the e*porter nor the importer

-4. !ho iss"es e*port credit ins"rance?

A. he b"yer

B. he e*porter

. An insurance company

D. An e*port company

-7. It is common to p"t the definition cla"se 6 of the contract

A. At the beginning

". !ear the beginning

C. At the end

D. /ear the end

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

A. Completely right


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B. Definitely wrong

C. It depends

D. The letter of credit is not payable until a number of days

-;. Frepair by the b"yerG provision is often 6

A. !elcome by the seller

B. Beneficial to the seller

. A&oided by the seller

D. Imposed by the seller

0


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C

1.Directions Choose the answer that s"its the 8"estion most

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

or wrong ?

. Completely right

#. Definitely wrong

. It depends

E. The letter of credit is not payable until a number of day.Directions - answer choices are given below each sentence. Choose the best

answer then then mar) the letter A, B, C, D on the screen

!hich of these co"nts as a defect?

. !rong design

#. #air wear and tear

. $is"se

E. >issing items

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

sit"ation. hen mar) the letter A,B,C on the screen.

&/ote If either party is prevented from, or delayed in, performing any d"ty "nder

this contract by an event beyond his reasonable control, then this event shall bedeemed force ma+e"re.'

(hortage of s"pplies& bac)gro"nd, the e*porter cannot get the raw +"te he need

from the s"pplier beca"se of a shipping delay'


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D. Kes

. "estionable

%. !o

-.Directions Choose the answer that s"its the 8"estion most

he ma+ority of shipping doc"ments presented to ban)s "nder doc"mentary credit

transaction are accepted on first presentation, Right or wrong

. ompletely right

#. Definitely wrong

. /either right nor wrong

=. It depends

0.Directions - answer choices are given below each sentence. Choose the best

answer then then mar) the letter A, B, C, D on the screen

A warranty is aimed at

. 2btaining loans%. Assurance of product performance

. Credit p"rchase

=. 3rofit ma)ing

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

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

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

he Anglo5American contract is666

. /ot the entire agreement

%. Traditionally the entire agreement


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. (ometimes the entire agreement

=. Rarely the entire agreement

G. In negotiating a letter of credit, the step in which the list of all re8"ired

doc"mentation is incorporated into the contract is66

. (pecification

%. $ncorporation

. Compliance

=. 9erification

:.In a contract "nder a Continental law, a recital66. Is essential

#. Is important

. Is not "sef"l

E. $s useful

;.$inim"m Coverage is the so5called Cargo Cla"se6..

D. A

. B

%.

1iability 3eriod?

. hree

%. %our. wo

=. #ive


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

the degree of6..

. odification

#. #ormation

. A"tomation

=. Interpretation

1. !hat happens if the iss"ing ban) finds a problem with the doc"ments and

ref"ses to send f"nds to the advising ban) to cover payment ?

. he advising ban) has to s"ffer that loss d"e to their carelessness in

chec)ing the shipping doc"ments

%. The ad&ising ban' gets its money bac' from the e(porter

. he payments form the advising ban) to the e*porter are always made withreco"rse. he e*porter has to pay bac) the advising ban) in s"ch a case

=. It is the responsibility of the iss"ing ban) of paying bac) the advising ban)in s"c) in case

1%.!hat can protect both the e*porter and the importer in an e*port contract?

. A well5designed set of specifications

#. An itemi@ed set of specification

2. A plain set of specification

=. /one of these

1-.!hich of the following is the ob+ective aimed at by the e*porter to minimi@e

the ris) of the goods being re+ected of heavy defects liability claims?

. !inning b"yers goodwill


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#. eeping his promise

2. !egotiating detailed specifications

=. $a)ing profit

10.ransfer of ris) form the seller to the b"yer & incoterm


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. #loating

%. *pen co&er

1;.he mechanism of a confirmed letter of credit wor)s as follows

. B"yer instr"cts iss"ing ban) to iss"e a letter of credit in favor of the seller

#. B"yer instr"cts iss"ing ban) to instr"ct an advising ban) to pay "nder aletter of credit in favor of the seller

2. "uyer instructs issuing ban' to instruct a confirming ban' to pay undera letter of credit in fa&or of the seller

=. B"yer instr"cts iss"ing ban) to instr"ct any third ban) to "nder letter of

credit in favor of the seller

5;. In CI# and CI3 contracts, the e*porter normally assigns the ins"rance

agreement to66

D. The buyer

. he carrier

#. he iss"ing ban)

51. In principle the b"yer can re+ect delivered goods if they do not conform to the

contract. his is called6..

. Implied warranty of s"itability

%. $mplied #arranty of conformity

. Implied warranty of merchantability

=. Implied warranty of fitness for intended p"rpose. A contract is not enforceable if6.

. It is signed within power

#. It has a legal p"rpose


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2. $t has an illegal purpose

=. It has no p"rpose

%. he Disclaimer of warranty means

. he seller is liable for the goods

%. The buyer is denied of some of his normal nights

. he seller will ma)e good any defect

=. Contract prices wo"ld be far higher

-. In negotiating a letter of credit, the step in which the e*porter rigoro"sly.

Chec)s doc"mentation and s"bmits it to the ban) is66.. Agreement

#. 9erification

. (pecification

E. ompliance

0. !hich of the following discrepancies is /2 the problem with the >etter of

Credit?

. he credit has e*pired

#. Doc"ment re8"ired by the credit are missing

. he credit amo"nt is e*ceeded

E. $nsurance co&er is e(pressed in a currency other than that of the credit

4.he two terminologies which mean the same thing are6.. 2uarantee and Warranty

#. Bond and ("rety

. !arranty and Defects >iability


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=. "arantee and Ins"rance

7./ormally, Ris)s are transferred at the point of66

D. Deli&ery

. 3ayment

#. Arrival

:.!ar ris) is not incl"ded in66..

D. A cla"se

. " lause

#. A,B,C cla"se

;./egotiation of specification between the e*porter and the importer can be

666

. An effortless process

%. A difficult process

. Done by an intermediary

=. A simple process

3;. !hy do the e*porters offer a disco"nt for early payment , for e*ample a 1E

disco"nt of payment is made winthin 1< days of the date of invoice ?

A. Beca"se the disco"nt is so attractive to the b"yers

B. Beca"se the b"yer can save on the invoice price

C. "ecause the e(porter can sustantially impro&e his cash flo#

D. Beca"se the e*porter +"st want to get payment for delivery

31. he method of payment which is dangero"s for the e*porter is


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A. Cash on delivery

B. Accepting a personal chec'

C. 3repayment

D. *port credit ins"rance

%. A( for Ango5American ,the decision of +"dge is always

A. 3redictable

B. #orseeable

C. ,npredictable

D. stimated

33. If both parties perform their d"ties correctly, a contract is discharged by

A. Defa"lt

B. ("spension

C. -erformance

D. Breach

3?. Dawson bo"ght vanilla beans from Indonesia. Dawson instr"cted an American

ban) to open a letter of credit. 2ne of re8"ired shipping doc"ments was acertificate of 8"ality iss"ed F by e*pertsG. he ban) paid the e*porter. he beans,

when they arrived,were r"bbish. he certificate of 8"ality was signed,however,by

only one Fe*pertG. Co"ld the ban) collect from Dawson the money it had paid to

the e*porter?


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A. Definitely ,it co"ld

B. 3robably,it co"ld

C.!oit could not

D./o 8"estion,it co"ld

3.If the price is 8"oted #2B (ingapore,who pays for the ins"rance and freight?

A.he e*porter

B.The buyer

C.he forwarding agent

D.he confirm

3F. he bill of lading iss"ed by the carrier for combined transport is called

A. Combined bill of lading

B. Combined bill

C. Combined transportation bill of lading

D. ombined transport bill of lading

3G.In a contract the word F whereasG means

A. Fonly thatG

B. FwhileG

C. FwhenG


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D. /because0 or /consider that0

3H. Ass"ming shipment is by rail, what if a letter of credit demands the original bill

of lading ?

A. It is possible demand

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

possession of the b"yer.

C.("ch a letter of credit is certain to ca"se delay in payment

D. he ban) insists on strict compliance

34. H/AB> 2 (

?;. !hich is the most appropriate method of payment for the e*porter in the

following case ? (ale of a bale &roll' of cloth costing


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C.he e*porter has to arrange the ins"rance cover to the goods

D.he e*porter pays for ins"rance till the port of discharge

?5. he period d"ring which the b"yer can begin a legal action is legally called

A./otification

B. Rectification

.+egal action period

D.Detect liability period

?3. he delivery depends on

A. Date of e*c"tion

B. ffective date

C.3reconditions

--. the 9ienna (ales Convention is also called

A. the "niform >aw of International (ale

B. the Hniform >aw on the #ormation of Contract for the international (ale of

oods

. the ,! on&ention on ontract for the $nternational Sale of 2oods

D.the H/ Convention on Contract for acceptance

-0. =ow many originals and copies is the air waybill iss"ed according to the

standard of the International Air ransport Association5AA?


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A. hree originals and % copies

B. % originals and 4 copies

. 3*riginals and 4 copies

D. it depends on the re8"irements in the letter of credit

-4. the parties to a contract are not always re8"ired to .....

A. Ignore

B. Apply

C.Ref"se

D.Decline

-7. A ban is iss"ed on the e*port of +"te prod"cts by newly elected government that

has on been preparing legislation on this s"b+ect for 0 years.

A.Yes

B. "estionable

C./o

0


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F

1. If both parties perform their d"ties e*actly according to the contract, the contract is6.A. Discharged by performance

B. Discharged for performanceC. Discharged to performanceD. Discharges with performance

. Ass"ming shipment is by rail, what if a letter of credit demands the original bill oflading?A. It is a possible demandB. he original of the bill of lading for shipment by rail does not come into thepossession of the b"yer.C. ("ch a letter of credit is certain to ca"se delay in payment.

D. he ban) insists on strict compliance%. If a co"ntry ratifies the 9ienna (ales Convention, in the event of conflicts, the 9ienna

(ales Convention can66 666.. the national law.A. -re&ail o&erB. Conform toC. #ollowD. Adapt

-. !hich type of payment is the most advantageo"s for the e*porter?A. redit by sight payment

B. Credit by deferred paymentC. Credit by acceptanceD. Credit by negotiation

0. Dawson bo"ght vanilla beans from Indonesia. Dawson instr"cted an American ban)to open a letter of credit. 2ne of the re8"ired shipping doc"ments was a certificate of8"ality iss"ed Fby e*pertsG. he ban) paid the e*porter. he beans, when they arrived,were r"bbish. he certificate of 8"ality was signed, however, by only one Fe*pertG.Co"ld the ban) collect from Dawson the money it had paid to the e*porter?A. Definitely, it co"ld

B. 3robably, it co"ld. !o it couldn9tD. /o 8"estion, it co"ld

4. he decision of arbitrators is666666.A. >aw5 oriented". "usiness) oriented


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C. Action5 orientedD. Reaction5 oriented

7. Among a n"mber of international bodies offering arbitration services,the66666.. in 3aris is the most prestigio"s.

A. H3CB. ADR. $D. #A2

:. It is common to p"t the definition cla"se666666.. of the contract.A. at the beginning". near the beginningC. at the endD. near the end

;. !hich the following is the least desirable option for the e*porter?A. Allow the b"yer to repair at the e*porters costB. Red"ce the price. 6eturn the goods and refund the priceD. Replace the defective items

1


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1%. In settlement by sight payment6666666666..A. he seller presents the necessary doc"ments to the iss"ing ban)B. he seller presents the necessary doc"ments to the advising ban). The seller presents the necessary documents to the paying ban'

D. he seller presents the necessary doc"ments to the reconfirming ban)1-.!hen are doc"ments considered to be stale?A. !hen they reach the iss"ing ban) too lateB. !hen they are s"bmitted to the opening ban) after the merchandise has alreadyarrivedC. !hen they reach the advising ban) at the e*piration of the letter of creditD. !hen they are ref"sed by the iss"ing ban)

10.he word FcashG in international trade means66666A. Coins and notes

B. old. hec's or ban' transfersD. 3repayment

14.#ail"re to meet specifications is aA. Defect in wor)manshipB. Defect in material. Defect in designD. Defect in 8"antity

17.Inspection by carrier on dispatch is often carried o"t

A. $n seller9s countryB. In b"yers co"ntryC. At seaD. At c"stoms area

1:.he doc) wor)ers in 3ort 9erbena go on stri)e.A. YesB. "enstionalbleC. /o

1;.Continental law is based on a666666666666.

A. Case lawB. Common law. +egal codeD. >egal system


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A. AgreementB. 9erificationC. (pecificationD. ompliance

1.he stand5by letter of credit originated in the H.(. is "sed therebeca"se666666.A. it is very pop"lar for H.(. e*porters to as) for payment from their b"yers ofc"stomersB. it is m"ch more convenient to as) for one in the H.(. instead of the ordinary lettersof creditC. the ban)ing law in some states forbids ban)s to iss"e payment g"aranteeD. nglish ban)s prefer to iss"e demand g"arantees and ordinary letters of credit

.Companies666. to "se the short form of the names in contracts.

A. are forcedB. are not forcedC. are allo#edD. are not allowed

%. a well5designed set of specifications protects b"yer against6666666prod"ct.A. advancedB. dented. inferiorD. s"perior

-.he ris) of ro"gh handling is not covered "nder the cargo cla"se666666..A. AB. BC. CD. " and

0.2nce the ban) has indicated the discrepancies, what can the e*porter do?A. he e*porter can provide the missing paperwor) or correct errorsB. he e*porter can as) the b"yer to instr"ct the ban) to change the terms of letter ofcredit

C. he e*porter can as) the ban) to process the letter of credit with the discrepanciesb"t to pay pnly when &and if' the iss"ing ban) permits paymentD. Any of the abo&e

4.!hich of the following statement is wrong?A. he ban) m"st chec) if the doc"ments specified in the letter of credit are in perfectorder


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". Sometimes the ban' may 8uestion the necessity or &alue of the documentsC. he ban) is not interested in the 8"estion of why the b"yer wanted a partic"lardoc"ment presented in a partic"lar formD. here are no r"les as to what doc"ments a letter of credit may or may not re8"ire

7. If both parties perform their d"ties correctly, a contract is discharged by66666A. Defa"ltB. ("spension. -erformanceD. Breach

:.he point at which money is deemed to be paid most referred by b"yeris666666.A. !hen the b"yer pays the money into his ban)B. !hen the b"yers ban) transfers f"nds

. When the buyer instructs the ban' to payD. !hen the f"nds reach the sellers ban) acco"nt;.(hortage of s"pplies &Bac)gro"nd he e*porter cannot get the raw +"te he needs from

the s"pplier beca"se of a shipping delay'A. KesB. "estionable. !o

%


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H1. A Contract is not enforceable if6.

A. It is signed within power

B. It has a legal p"rpose. $t has an illegal purposeD. It has no p"rpose

. he advising ban) never pays the e*porter directly. Right or wrong?A. RightB. !rongC. It depend on type of creditD. /either right or wrong

%. A mista)e abo"t the goods in a contract means there is no 6.A. $eeting of acceptance". >eeting of mindsC. $eeting of conceptsD. $eeting of agreement

Correct answer B-. he things that the e*porter sho"ld )eep in mind in negotiating payment are 6

A. -ayment mode timing place delay and results of delayB. =ow payment will be made and the date of paymentC. !here the money m"st be before payment is considered to complete and what delay in

payment is e*c"sableD. Res"lts of non5 e*c"sable delay in payment and time of payment

0. !hen the e*porter fills in the letter of credit application form, if the bo* Fre8"estedGfor the F Confirmation of credit to the beneficiaryG is tic)ed, what does this mean?

A. It means the e*porter wants the ban) in his co"ntry merely handle the paperwor)B. It means the e*porter wants the ban) in his co"ntry ma)e the payment itself and recover

the f"nd from b"yers ban)C. It means that the e*porter is do"ble g"aranteed in term of payment by a third ban) beside

the iss"ing ban) and the advising ban).D. It means the confirmation from the iss"ing ban) in term of payment in case the b"yer

defa"lts4. o c"re the defective goods, the best option for the e*porter is

A. a)ing bac) the defective goods and giving bac) the moneyB. Red"cing priceC. Replacing the goods


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D. Dependent on type of goods7. !hat wo"ld be the effect on the price of the goods traded if the b"yer wants the goods

sooner?A. he price of goods will go "p

B. he price of goods will go downC. here is no change in priceD. The price of goods #ill go up as e(tra costs in&ol&ed due to e(tra #or'ing shifting

from the manufacturer:. ransfer of ris) from the seller to the b"yer & Incoterm


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1-.!hich of following is not needed for a legally binding contract to be in force?A. !ritten contractB. 2ffer and acceptanceC. Consideration

D. Conversation10.lderly people are 6to deal with contractA. Hnable". AbleC. ImpossibleD. Hnaffordable

14. Fhe radio lac)s the wires to connecting the lo"dspea)er to the amplifierG is ane*ample of

A. Defective design

B. Defective materials. Defecti&e #or'manshipD. $is"se by the b"yer

Correct answer C17.he essence of Continental law is6

A. 9erificationB. A"thentication. odificationD. Acceptance

1:.he arbitrators awards are6A. Cons"ltative and e*aminatorialB. #inal and enforceableC. Referable and reverableD. All of above

1;.6is open5endedA. ailor5madeB. #loating. *pen co&er


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A. At the beginning". !ear the beginningC. At the endD. /ear the end

.Hnder the Angola5 American law, a contract m"st give6.A. "oth sides rights and dutiesB. ach side rightsC. ach side d"tiesD. /ot d"ties b"t rights

%.he e*porter sho"ld have no liability for the goods when they are6.A. "eyond his controlB. In his controlC. Hnder his control

-.A well5designed set of specifications protectsA. he e*porterB. he importer. "oth partiesD. /either of these

0. It is possible for beneficiary &e*porter' sometimes, tho"gh not often, to ma)e a drafton the ban) to collect money?

A. /o, it isntB. It is impossible by all means

C. he draft m"st be drawn on the b"yer to order payment, not the ban)D. Yes it is

4.!hich type of payment is the most advantageo"s for the e*porter?A. redit by sight payment

B. Credit by deferred payment

C. Credit by acceptance

D. Credit by negotiation

7.Another name for warranty is66..A. "arantee

". Defect liability

C. >egal responsibility

D. !arrantee


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:.Is there any Oreconfirming ban)?A. /o, there isnt

". Yes there is one in case ban's are reluctant to confirm letters of credit especiallythose from obscure ban's.

C. /ever is there

D. It depends.

;.he best sol"tion for the e*porter to ma)e late payment impossible is6.A. A typical contract cla"se in which there are reg"lations on the amo"nt of interest the

seller shall be entitled to receive in case of late payment

B. An agreement with the b"yer to strengthen the payment provisions with a paymentg"arantee

C. An agreement with an ins"rance company in case the b"yer fails to pay on time

D. A confirmed irre&ocable at sight letter of credit

%


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B. 3atent defect

C. Inherent defect

D. Apparent defect

%-. In settlement by acceptance, what will the ban) do after receiving the doc"ments anddraft drawn on the b"yer from the seller?

A. he ban) will pay the seller immediately

B. he ban) will pay the seller as long as the doc"ments s"bmitted comply with all theterms of the letter of credit

C. he ban) chec)s the doc"ments

D. The ban' agrees to pay the bill #hen it matures.

%0.o avoid conf"sion, many contract drafters "se F66..G instead of FwarrantyGA. "aranteeB. !arranteeC. >egal responsibilityD. Defect liability

%4.!hich of these re8"ires prior inspection by ((?A. $ndonesia

B. $alaysia

C. hailand

D. 9ietnam

%7.he bill of lading iss"ed by the carrier for rail transport is called66A. Railway bill

B. Railwaybill

C. Railway consignment note

D. Railway bill of lading

%:.he place of payment is very important beca"se late payment is s"b+ect to payment ofinterest and the cost of any delay along the payment ro"te properly belongs to6.

A. he b"yer

B. he e*porter


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C. he ban) of the e*porter

D. he ban) of the b"yer

%;.A decision of arbitrators is66666.

A. >aw 5 oriented". "usiness ) oriented

C. Action oriented

D. Reaction oriented

-


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--. F$inim"m CoverageG is so5called Cargo Cla"seA. A

B. B

. -0.o ma)e s"re that the officer signing the contract has a"thority to sign the contract,

parties sho"ld chec)666666A. he d"plicate of the signat"re

". The authenticity of the signature

C. he coverage of the signat"re

D. he transferability of the signat"re

-4.As the conse8"ences of a defect can be e*pensive, the 8"estion of who pays for theconse8"ential loss or damage is often666

A. agreeable

". contro&ersial

C. non negotiable

D. amicable

-7. In settlement by deferred payment, if the seller needs money immediately, what can

he do?A. here is no way he can get money immediately

". Ee can e(change the letter of credit for cash #ith any agreeable ban'.

C. he seller can reali@e some part of the letter of credits val"e, not its f"ll val"e

D. 3ayment is still safe b"t it is delayed

-:.!ar ris) is not incl"ded in666A. A cla"se

B. B cla"se

. A" clause

-;.Inspection by the b"yer is calledA. Independent inspection

B. Inspection of goods prior to shipment


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. *pen pac'age inspection

D. C"stoms inspection


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4

1. here is no connection between the letter of credit and the sales contract. Right or

wrong?A. Completely right

B. Completely wrong

C. It depends

D. *porter and the b"yer may agree that all the terms in their sales contract m"st bestated in the letter of credit.

. "ality ass"rance and c"stomer satisfaction are the same iss"es for c"stomers .

A. in domestic mar)et

B. in overseas mar)ets

. "oth A and "

D. neither A nor B

%. A marine bill of lading can be negotiable doc"ment with which6.

A. The buyer can use itto resell the goods during shipment

B. he e*porter can "se itto resell the goods d"ring shipment

C. he iss"ing ban) can "se itto resell the goods to another c"stomer.

D. he b"yer can "se itto negotiate a price with the negotiating ban)

-. !hich of the following is /2 the method of iss"ing the letter of credit?

A. By email

B. By airmail


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C. By mail

D. By teletransmission.

0. Anglo5American law is also called6..

A. Civil law

B. >egal code

. ommon +a#

D. >aw code

4. =ow do yo" )now Bill of lading is N$arine Bill of ladingG?here is a6..

A. on board notation

B. consignee

C. shipper

7. Continental law prevails in 66..

A. he H(A

". urope

C. he 9ienna convention system

D. All co"ntries in the world:. !hen the Bill of lading mar)ed Nfreight prepaidG. !ho pays for the freight?

A he B"yer". The Seller

C. he agentD. It depends on the agreement.

;. An offer dies if it has aJan .A. AcceptanceB. AgreementC. Adoption


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D. 6e&ocation.1etter of Credit?

A. he credit has e*pired.B. Doc"ments re8"ired by the credit are missing.

C. he credit amo"nt is e*ceeded.D. $nsurance co&er is e(pressed in a currency otherthan that of the credit.11. 3arties to contract for the sale of goods are free to choose.

A. Applicable la#B. International lawC. Corporate lawD. B"siness law

1. here are panics to a warranty and in a g"arantee.A threeJtwo

B. threeJthree. t#o:threeD. twoJtwo

1%. o c"re the defective goods, the best option for the e*porter isA. ta)ing bac) the defective goods and giving bac) the moneyB. red"cing the priceC. replacing the goodsD. dependent on the type of goods

1-. he Anglo5American contract is......

A. not the entire agreement". traditionally the entire agreementC. sometimes the entire agreementD. rarely the entire agreement

10. he answers to the 8"estions of implied warranties are s"pplied byA he contract provisionsB. he HCC. >ost la#sD. he contract

14. 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 "se the short form of the names in contracts.


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A. are forcedB. are not forced. are allo#edD. are not allowed

1:. he two terminologies which mean the same thing are....A "arantee and !arrantyB. Bond and ("rety. Warranty and Defects +iabilityD. "arantee and Ins"rance

1;. A g"arantee isA Hnilateral". TripartiteC. Bilateral

D. $"ltilateral


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B. he e*porterC. he ban) of the e*porterD. he ban) of the b"yer

0. he bac)gro"nd of the contractis provided in the form .

A. a cla"seB. a deUnitionC. the anne*D. a #hereas)recital

4. he l"mp5s"m compensation is set too high .A. li8"idated damagesB. 8uasi indemnityC. penalty

7. here has no power to enforce his sol"tion or to bind the parties, his tas) is to s"ggest

affair sol"tion only.A W"dge". onciliatorC. $agistrateD. >awyer

:. !ho signs Nshipped on boardN notation?A aptainB. *porterC. (hipping company

D. Agent;. he e*piry date of the letter of credit is.....

A. he date the e*porter will be paid for goods soldB. he last date for presentation of doc"ments to the ban)C. he date the letter of credit no longer effectiveD. he last date the shipment sho"ld be made by the e*porter.

%


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D. Duressfraud and mista'e all%. !hy is the CertiUcate of 2rigin re8"ired?

A. "ecause the goods imported are under a preferential tariff or otheragreement.

B. Beca"se the e*porter has to prove that his e*ported goods are legal.C. Beca"se the e*porter has to show his proof of paying ta* to the c"stoms in theb"yerMs co"ntry.

D. Beca"se it is one of the )ey re8"irements "nder the letter of creditMs terms.%%. After ma)ing the shipment of goods to the b"yer, the e*porter presents the shipping

doc"ments to...A. he iss"ing ban)". The ad&ising ban'C. he confirming ban)

D. he opening ban)%-. A contract re8"iring an e*porter in thiopia to send the contract goods by air fordelivery in !indhoe), /amibiaVA. CI# !indhoe)". $- Windhoe'C. D !indhoe)

%0. A commercial invoice m"st be made o"t toA. he e*porter.B. he shipper.

C. Any party endorsing the bill of lading.D. The applicant for the letter of credit normally to the buyer unless other#ise

stated in the credit.%4. he l"mp5s"m compensation is set abo"t right

A. li8"idated damages.B. 8uasi indemnityC. penalty

%7. #ail"re to meet specifications is aA. Defect in wor)manship

B. Defect in material. Defect in designD. Defect in 8"antity

%:. !hat are the set of ass"mptions with which a price 8"otation is based?A. $ode of payment, timing, place of payment.B. Delay in payment and res"lts of delay.


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C. Choices of method of paymentD. Deli&ery payment and #arranty terms.

%;. 2f the three options available for settling disp"tes, litigation before the co"rt isinternationally least attractive as it is

A. (pensi&e and legalisticB. B"siness5 li)e and fle*ibleC. ime5saving and privateD. #ast and acceptable

-


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A. he e*porter has a problemB. he confirming ban) has a problem.C. It is the iss"ing ban) which has an absol"te obligation to pay the e*porter

according to the terms of the credit

D. The confirming ban' has paid the money to the e(porter and has no #ay ofreco&ering it. The confirming ban' must pay the e(porter #ithout recourse.-4. If a disp"te arises, the recital allows the co"rt to discover the real meaning of

A. the contractB. the termC. the incotermD. the appendi*

-7. A letter of credit can be either NrevocableN or NirrevocableN. #ew e*porters will accepta revocable letter of credit, so the plain e*pression Nletter of creditN generally means

the irrevocable )ind. he word NirrevocableN, therefore, sho"ld not always appear inthe te*t of the credit and of the contract. Right or wrong?A. !rong.". Wrong because it should al#ays appear in the te(t of the credit and of the

contract according to the $@s rules.C. Right.D. Right, beca"se in the absence of a clear indication, letter of credit are deemed to be

irrevocable.

-:. (Note: If either party is prevented from, or delayed in, performing any duty under thisContract by an event beyond his reasonable control, then this event shall be deemedforce majeure.)

(hortage of s"pplies &Bac)gro"nd he e*porter cannot get the raw +"te he needs fromthe s"pplier beca"se the Central Ban) will not give him foreign e*change to pay thes"pplier'

A. YesB. "estionable

C. /o-;. Inspection of the goods by the b"yer in the man"fact"rerMs factory is referred to asA. Inspection by inspection service". -re)deli&ery inspectionC. 3ost5delivery inspectionD. C"stoms inspections


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0


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1;1. he incoterm 6 contains 1% terms.

a. 1;;aw, a recital6

a. Is essential

b. Is important

c. Is not "sef"l

d. $s useful

17.he delivery depends on6

a. Date of e*ec"tion

b. ffecti&e date

c. 3reconditions

1:./ormally, Ris)s are transferred at the point of6

a. Deli&ery

b. 3ayment

c. Arrival

1;.lderly people are 6 to deal with a contract

a. Hnable

b. Ablec. Impossible

d. Hnaffordable


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a. Is negligent

b. an be costly

c. Is always the best choice

d. Is always the worst choice.

7.he ma+ority of shipping doc"ments presented to ban)s "nder doc"mentary credittransactions are accepted on first presentation. Right or wrong?

a. Completely right

b. Definitely #rong

c. /either right nor wrong

d. It depends

:.Hnless the >C states otherwise, ins"rance coverage on a CI# or CI3 shipment m"st befor 6 of the CI# &or CI3' val"e of the goods.

a. 1


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%1.he advising never pays the e*porter directly, right or wrong?

a. Right

b. !rong

c. In depends on the type of credit

d. !either right nor #rong.

%.=ow to ma)e a bill of lading negotiable

a. (tamp the word F/egotiableG across the s"rface of the bill of lading.

b. In the Consignee bo*, do not write anything, +"st leave it blan)

c. $a)e the bill of lading blan) endorsed

d. %ill the #ords /to order0 in the onsignee bo(.

%%.In principle the b"yer can re+ect delivered goods if they do not conform the contract.his is called6

a. Implied warranty of s"itability

b. $mplied #arranty of conformity

c. Implied warranty of merchantability

d. Implied warranty of fitness for intended p"rpose

%-. If the price is 8"oted CI3 $arsellie, who pays for ins"rance and freight?

a. he b"yer

b. The e(porter

c. he iss"ing ban)

d. he forwarding agent

%0.Cancellation on 6 gro"nds ma)es no legal sense

a. reat

b. en"ine

c. Tri&ial

d. Acceptable


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%4.An offer dies if it has aJan6

a. Acceptance

b. Agreement

c. Adoption

d. 6e&ocation

%7.he period d"ring which the b"yer can begin a legal action is legally called

a. /otification period

b. Rectification period

c. +egal action period

d. Defect liability period

%:.!hat if a >C re8"ires Fan appropriate wildlife certificateG?

a. Its a vag"e arg"ment

b. he ban) and the e*porter may have different on what is FdifferentG

c. It sho"ld be more specific li)e what the certificate m"st show and who sho"ld iss"e it

d. All of the abo&e

%;.he ris) of ro"gh handling is not covered "nder the cargo cla"se 6a. A

b. B

c. C

d. " and

-


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b. B

c. A"

-7.he avoid the dangers of slow payment, the e*porters try to protect themselves with a

cla"se li)e this F 3ayment shall be deemed to have been made only when6G?a. he b"yer instr"cts the ban) to pay

b. he b"yer pays the money to his ban)

c. he b"yers ban) transfers f"nds

d. %unds reach the seller9s ban' account and at his full disposal

-:.*port credit ins"rance which gives the e*porter an acceptable level of sec"rity interms of payment shall be paid by6

a. he b"yer

b. The e(porter

c. A ban)

d. An ins"rance company

-;.In contracts, 6 is not normally allowed

a. Delegation of duties

b. Assignment of rights

c. 3erformance of obligations

d. #"lfillment of d"ties

0


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111. In a contract "nder a Continental law, a recital 6

A. Is essential

B. Is important

C. Is not "sef"l

D. $s useful

. he stand5by letter of credit originated in the H( is "sed there beca"se 6

A. It is very pop"lar for H( e*porters to as) for payment from their b"yers or c"stomers.

B. It is m"ch more convenient to as) for one in the H( instead of the ordinary letters ofcredit.

C. he ban)ing law in some states forbids ban)s to iss"e payment g"arantee

D. nglish ban)s prefer to iss"e demand g"arantees and ordinary letters of credit.

%. If the price is 8"oted #2B (ingapore, who pays for the ins"rance and freight?

A. he e*porter

". The buyerC. he forwarding agent

D. he confirming ban)

-. *port credit ins"rance which gives the e*porter an acceptable level of sec"rity interms of payment shall be paid by 6

A. he b"yer

". The e(porterC. A ban)

D. An ins"rance company

0. A letter of credit can be either FrevocableG or FirrevocableG. #ew e*porters will accepta revocable letter of credit, so the plain e*pression Fletter of creditG generally means


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the irrevocable )ind. he word FirrevocableG, therefore, sho"ld not always appear inthe te*t of the credit and of the contract. Right or wrong?

A. !rong

". Wrong because it should al#ays appear in the conte(t of the credit and of thecontract according to the $9s rules

C. Right

D. Right, beca"se in the absence of a clear indication, letter of credit are deemed to beirrevocable.

4. he greatest fear for the e*porter is6

A. Being "nable to meet the delivery deadline

B. Being "nable to meet the specifications of the goods

. "eing unable to get paid for the goods sold

D. =aving no g"arantee for payment

7. If the force ma+e"re event contin"es for too long, both parties have the right to 6

A. Contin"e the contract

". Terminate the contract

C. $a)e late delivery

:. he Incoterms 6 contains 11 terms

A. 1;;awyer

1:.he l"mp5s"m compensation is set too high 6

A. >i8"idated damages

B. "asi indemnity

. -enalty


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1;. It is possible for the beneficiary &e*porter' sometimes, tho"gh not often, to ma)e adraft on the ban) to collect the money?

A. /o, it isnt

B. It is impossible by all means

C. he draft m"st be drawn on the b"yer to order payment, not the ban)

D. Yes it is


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". $t is the 'ind of credit #hich allo#s the first beneficiary to re8uest the confirmingban' to pay a third party

C. It is the )ind of negotiable doc"ment with which the e*porter can endorse for any thirdparty

D. It is )ind of credit with which the b"yer will not necessarily )now who is the act"als"pplier of the goods

-.If the price is 8"oted CI# (an #rancisco, who pays for the ins"rance and freight?

A. The e(porter

B. he b"yer

C. he forwarding agent

D. he confirming ban)

0.CI# and CI3 contracts are especially conf"sing since they name the point of 6

A. Depart"re

". Destination

C. mbar)ation

4.Continental law is widely "sed for 6

A. International iss"es

". !ational issues

C. Both national and international iss"es

D. /either international nor national iss"es

7.*porter prefers

A. he ret"rn of the defective item to the replacement of it

". The replacement of the defecti&e item to the return of it

C. he ret"rn of the goods and ref"nd of the price

D. /one of these


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:.Hnder Anglo5American law, a contract m"st give 6

A. "oth side rights and duties

B. ach side rights

C. ach side d"ties

D. /ot d"ties b"t rights

;. If both parties perform their d"ties e*actly according to the contract, the contract is 6

A. Discharged by performance

B. Discharged for performance

C. Discharged to performance

D. Discharged with performance

%


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2ceanea a prospero"s co"ntry. D"ration of the contract is years, b"t renewable.Contract represents


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B. /egotiable warranties

. $mplied #arranties

D. Implied g"arantee

%7.A contract that is "ltra vires is ..

A. !ell enforceable

". ,nenforceable

C. 9alid

D. ffective

%:.!hat are the set of ass"mptions with which a price 8"otation is based?

A. $ode of payment, timing, place of payment

B. Delay in payment and res"lts of delay

C. Choices of method of payment

D. Deli&ery payment and #arranty items

%;. In CI# and CI3 contract, 6 m"st pay for ins"rance from the point of delivery to thenamed point of arrival.

A. The e(porter

B. he importer

C. he carrier

-


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A. +atent defect

B. 3atent defect

C. Inherent defect

D. Apparent defect

-.he Fe*porters wordingG and the Fb"yers wordingG in the defects liability provisionrepresent

A. A maJor contract issue

B. A minor contract iss"e

C. /onsense

D. 3rofit and loss of each party

-%.!ho "s"ally pays for the defects?

A. he importer

". The e(porter

C. Both parties

D. A third parties

--.wo parties sign a contract

A. The contract is binding

B. he contract is effective

C. he contract is binding and effective

-0.>i8"idated damages cla"se protects 6

A. he e*porter rather than the importer

B. he importer rather than the e*porter

. "oth sides

D. /either e*porter nor the importer


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. 6escission

D. ("spension


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15

XY 1

1. he l"mp5s"m compensation is set too low6

A. >i8"idated damages". Iuasi indemnityC. 3enalty

. A contract re8"iring an e*porter in thiopia to send the contract goods by air fordelivery in !indhoe), /ambiaA. CI# !indhoe)". $- Windhoe'C. D !indhoe)

%. he machanism of a confirmed letter of credit in favor of the sellerA. B"yer instr"cts iss"ing ban) to iss"e a letter of credit in favor of the seller

B. B"yer instr"cts an iss"ing ban) to instr"ct an advising ban) to pay "nder aletter of credit in favor of the seller

. "uyer instructs an issuing ban' to instruct a confirming ban' to payunder a letter of credit in fa&or of the seller

D. B"yer instr"cts an iss"ing ban) to instr"ct any third party ban) to pay "nder aletter of credit in favor of the seller

-. Hnder most laws, a b"yer can ma)e certain ass"mption abo"t good. heseass"mption are called &by lawers'A. *press warrantiesB. /egotiable warranties

. $mplied #arrantiesD. Implied g"arantee0. Inspection by carrier on dispatch is often carried o"t

A. $n seller9s countryB. In b"yers co"ntryC. At seaD. At c"stoms area

4. he defect liability cla"se sho"ld stateA. the date of acceptanceB. e*porters d"ty if a defect comes to light

. both A and "D. only FAG7. &/ote If either party is prevented from, or delayed in, performing any d"ty "nder

this contract by an event beyond his reasonable control, this shall be deemed forcema+e"re'


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(hortage of s"pplies &Bac)gro"nd he e*porter cannot get the raw +"te he needs

from the s"pplier beca"se of a chipping delay'.

A. KesB. "estionable

. !o:. o avoid the dangers of slow payment, e*porter try to protect themselves with a

cla"se li)e this F3ayment shall be deemed to have been made only whenA. he b"yer instr"cts the ban) to payB. he b"yer pays the money into his ban)C. he b"yers ban) transfer f"ndsD. %unds reach the seller9s ban' account and at his full disposal

;. !here is often the place of e*piry of the creditA. At the co"nters of the iss"ing ban)B. At the co"nters of the advising ban)

. At the counters of the confirming ban'D. At the co"nters of the negotiating ban)1engthy and openC. Binding and rigidD. ime5cons"ming

11. !hich of these does not co"nt as defect?A. Defective design". >isuse

C. Defective materialsD. Defective wor)manship1.Independent inspection reports on6

A. he weight of the goodsB. he si@e of the goods. "oth A and "D. /one of these

1%. ermination for convenience occ"rs when one party simply decides to drop thecontract and6A. !o reason is re8uiredB. Reasons are re8"iredC. Cons"ltation is re8"iredD. Conversation is re8"ired

1-. In a contract "nder a Continental law, a recital6A. is essentialB. is importantC. is not "sef"lD. is useful


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10.Defects incl"deA. mista)e". >aterialsC. #air wear and tearD. $is"se

14. As for Anglo5American law, the decision os the +"dge is always6A. 3redictableB. #oreseeable. ,npredictableD. stimated

17. It is common to p"t the definition cla"se6 of the contract.A. at the beginning". near the beginningC. at the endD. near the end

1:. he main difference between continental and Anglo5American law is the degreeof6A. odificationB. #ormationC. A"tomationD. Interpretation

1;. he first step in negotiating a letter of credit is6A. incoporationB. (pecification. Agreement

D. 9erification


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%. In settlement by acceptance, what will the ban) do after receiving the doc"mentsand draft drawn on the b"yer from the seller?A. he ban) will pay the seller immediatelyB. he ban) will pay the seller as long as the doc"ments s"bmitted comply with

all the terms of the letter of credit

C. he ban) chec)s the doc"mentsD. The ban' agrees to pay the bill #hen it matures.

-. he bill of lading iss"ed by the carrier for air transport is called..A. Air #aybillB. Air bill of ladingC. Air way bill of ladingD. Airway bill

0.he g"arantor is "s"ally a6A. ban)B. ins"rance company

. both A and "D. /either A nor B4.!ho iss"es e*port credit ins"rance?

A. he b"yerB. he e*porter. An insurance companyD. Any e*port company

7. lderly people are6 to deal with a contractA. Hnable". Able

C. ImpossibleD. Hnaffordable:. he point of delivery is m"ch the same for all6 terms and .. . terms5 when the

e*porter hands the goods over to the carrierA. and %B. D and #C. C and D

;. A contract re8"iring the e*porter to send the contract goods by road from enya toQambia with freight paid by the e*porterA. C#A >"sa)a". -T +usa'aC. C#R n[iobi

%


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%1. In negotiating a letter of credit, the step in which the e*porter chec)s the credit tosee that re8"ired doc"mentation is as agreed isA. AgreementB. Incorporation. 7erification

D. Compliance%. &/ote If either party is prevented from, or delayed in, performing any d"ty "nder

this contract by an event beyond his reasonable control, this shall be deemed forcema+e"re'

A loc)o"t &Bac)gro"ndhe wor)ers have been stri)ing for one day a wee). he

management loc)s the wor)ers o"t of factory "ntil they agree to end the stri)e

A. KesB. "estionable

. !o%%. he disadvantage of 6 policy is that it is set "p for partic"lar time anda"tomatically e*piresA. tailor5made". floatingC. open cover

%-. In international trade, if payment is made on delivery, the method of payment to bechosen will beA. Ban) g"aranteeB. 2pen acco"ntC. *port credit ins"aranceD. At sight letter of credit

%0. A price and payment cla"se ta)en from an e*port contract is as follows F heprice payable for the contract goods as specified in Anne* A is 0


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A. he b"yer". The sellerC. he agentD. It depends on the agreement

-4. If the force ma+e"re event contin"es for too long, both parties have the right to6

A. contin"e the contract". terminate the contractC. ma)e late delivery

-7. #eeble5minded people are legally "nable to 6 contractA. SignB. DeclineC. Ref"seD. Resign

-:.!hich of the following is not the method of iss"ing the letter of credit?A. "y email

B. By airmailC. By mailD. By teletransmission

-;.!ar ris) is not incl"ded in6A. A cla"seB. B cla"se. A " clause

0


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13

1. he entire agreement position means6.. m"st be established within the contractitself

A. The bac'ground of the contract

B. Important letter and memoranda

C. Contract doc"ments

D. All of these

. All ris)s covered is "nder6. cla"se

A. A

B. B

C. C

%. he disadvantage of policy6.. is that its set "p for partic"lar time anda"tomatically e*pires.

A. ailor5made

". %loating

C. 2pen cover

-. If the price is 8"oted CIH $arseille, who pays for ins"rance and freight?

A. he b"yer

". The e(porter

C. he iss"ing ban)

D. he forwarding agent

0. here are 66.parties to a warranty and6.in a g"aranty

A. threeJtwo

B. hreeJthree


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1


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A. A #ell) designed set of specifications

B. An itemi@ed der of specifications

C. A plain set of specification

D. /one of these

istyping names

C. $isreading names

D. $isaccepting names

1.!hat is the transferable credit

A. Its a )ind of credit which allows the e*porter to transfer his right as the creditsbeneficiary to any third party.

". $t9s a 'ind of credit #hich allo#s the first beneficiary to re8uest theconfirming ban' to pay a third party

C. Its a )ind of negotiating doc"ment with which the e*porter can endorse for

any third party

D. Its a )ind of credit with which the b"yer will not necessarily )now who is theact"al s"pplier of the goods.

.he l"mp5s"m compensation is set too high6

A. >i8"idated damages

B. "asi indemnity

. -enalty

%. he advising ban) never pays the e*porter directly. Right or wrong?

A. Right

B. !rong


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. $t depends on type of credit

D. /either right or wrong

-.Allowing the b"yer to repair the e8"ipment at the e*porters cost

A. Is always the best choice for the e*porter

B. Is always the worst choice for the e*porter

C. Is often safe for the e*porter

D. $s often unsafe for the e(porter

0. !hen parties agree to end a contract6..occ"rs

A. ermination

B. #r"stration

. 6escission

D. ("spension

4.In CI# and CI3 contract,6.m"st pay for ins"rance from the point of delivery tothe named point of arrival

A. The e(porter

B. he importer

C. he carrier

7. F*porter credit ins"rance is a )ind of special privilege that an e*porter may getfrom his government Os e*port incentives and s"pport. Right or wrong?

A. Completely right

B. Absol"tely wrong

C. /either right or wrong

D. $t9s not a charity. $t9s beneficial for both e(porter and insurance company

5H. F/"ts and bolts are inade8"ately tightenedG represent

A. Defective materials


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". Defective design

. Defecti&e #or'manship

D. $is"se

54. In negotiating a letter of credit, the step in which the e*porter chec)s the credit tosee that re8"ired doc"mentation is as agreed is6.

A. Agreement

". Incorporation

. 7erification

D. Compliance

%


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3G. !hich of the following is the least desirable option for the e*porter?

A. Allow the b"yer to repair e*porters cost

". Red"ce the price

. 6eturn the goods and refund the price

D. Replace the defective items

3H. Inspection for the b"yer is called

A. Independent inspection

". Inspection for goods prior to shipment

. *pen pac'age inspection

D. C"stoms inspection

34. A contract is not enforceable if

A. Its signed within power

B. It has a legal p"rpose

. $t has an illegal purpose

D. It has no p"rpose

?;. A marine bill of lading can be negotiable doc"ment with which?

A. The buyer can use it to resell the goods during shipment

". he e*porter can "se it to resell the goods d"ring shipment

C. he iss"e ban) can "se it to resell the goods to another c"stomers

D. he b"yer can "se it to negotiate a price with a negotiating ban)

?1. !hich type of payment is the most advantageo"s for the e*porter

A. redit by sight payment

". Credit by deferred payment

. Credit by acceptance


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Fe*pertG. Co"ld the ban) collect from Dawson the money it had paid to thee*porter?

A. Definitely, it co"ld

B. 3robably, it co"ld

. !o it couldn9t

D. /o 8"estion, it co"ld

-7. !hy can a man"fact"rer sometime accept a loss on an e*port deal

A. =e wants to win a reg"lar c"stomer

B. =is factory may by short of wor)

C. =e can get some e*port incentives from government

D. Any of the abo&e

?H. In which sit"ation sho"ld the e*porters "se e*port credit ins"rance

A. >ong5 term c"stomers

". Transactions represent a high proportion of their turno&er

. B"yer are willing to spend money on a payment g"arantee

D. In a sellers mar)et

?4./ormally, ris) are transferred at the point of

A. Deli&ery

". 3ayment

. Arrival

;. !hich of the following is not the reason why the e*porter prefers a longer e*piryperiod of the credit

A. Ee #ants to sa&e ban' charge

". =e wants eno"gh time after delivery to present the doc"ment


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. =e wants to have eno"gh time to collect and discrepancies that be discoveredby the ban)

D. =e wants to spare some time for any "ne*pected thing preventing hispresentation of doc"ments on times.


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1?1. If the b"yer can ma)e certain ass"mptions abo"t goods5 even if the e*porter give no

e*press warranty, these ass"mptions are called66.A. *plicit warranties

B. *otic warrantiesC. Hnspo)en warrantiesD. $mplied #arranties. he entire agreement cla"se means that all doc"ments are predate the contract666A. are still validB. become important. become in&alidD. can be "sed as evidence%. Delivery of the goods "nder most e*port contracts ta)es place in the co"ntry of

A. the importer". the e(porterC. the agent

-. As soon as the e*porter receives advice that the letter of credit has been opened, whatsho"ld he do?A. Ee should chec' that it complies #ith the agreement he negotiated #ith thebuyer.B. =e sho"ld chec) if there is any doc"ment that he does not "nderstand.

C. =e sho"ld chec) if there is any re8"irement that he does not agree to.

D. =e sho"ld chec) if there is any necessary amendment to the terms of the letter ofcredit.

0. !hat happens first when a ban) ref"ses to pay "nder a letter of credit?A. The ban' #ill cite a @discrepancyK some aspect of the documentation that isnot in line #ith the terms of the credit.B. A chec)] list of commonly cited discrepancies will be "sed by ban)s.C. he e*porter will have to re5s"bmit their shipping doc"ments.D. he e*porter m"st contact the b"yer as)ing the b"yer to instr"ct the iss"ing ban) toe*tend the date of the credit.

4. Beside the commercial invoice, the transport doc"ment and ins"rance doc"ment, whatdo M2ther doc"mentsM incl"de?A. A Certificate of 2rigin.B. A Certificate of Inspection.C. A health Inspection.D. Any of the abo&e.


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A. A shorter warranty period.B. C"stomer orders goods in one color.C. /o additional pac)aging or safety warnings are re8"ired beyond normal standards.D. A longer #arranty period.

10. If a contract is the entire agreement, earlier letters and doc"mentsA. can be "sed as evidence". become in&alidC. prevailD. remain important

14. In a contract, 666.can be incorporated into contract doc"ment cla"se.A. lettersB. general conditionsC. the Incoterms

D. any of the abo&e17. !hich of the following is left to the applicable law to reg"late?he notification periodB. he rectification period. The legal action periodD. he length of the defect liability period

1:. !hen offer is made, it is not applicable when it has6..?A. ("spensionB. Renovation

. 6e&ocationD. Adaptation

1;. Continental law is also called6..A. i&il la#B. Common lawC. >egal systemD. >awf"l case


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B. he HCC. >ost la#D. he contract

. !hat happen if the iss"ing ban) finds a problem with the doc"ments and ref"ses to

send f"nds to the advising ban) to cover payment?A. he advising ban) has to s"ffer that loss d"e to their carelessness in chec)ingshipping doc"mentsB. he advising ban) gets money bac) from e*porter. The payment from the ad&ising ban' to the e(porter are al#ays made #ithrecourse. The e(porterLD. It is the responsibility of the iss"ing ban) of paying bac) the advising ban) in s"cha case

%. he place of delivery &CI3, CI#' sho"ld not be conf"sed with the6 of the goods

A. Depart"re". DestinationC. ransshipment

-. 3artial invalidity cla"se can help to avoid problems with the contracts that6A. might infringe go&ernment regulationsB. violate the trade lawsC. disco"rage tradeD. both B and C

0. In negotiating a letter of credit, the step in which the e*porter rigoro"sly chec)s

doc"mentation and s"bmit it to the ban) is6A. agreementB. verificationC. specificationD. compliance

4. Fa radio lac)s the wires connecting to lo"dspea)er to the amplifierG is an e*ample ofA. defective designB. defective material. defecti&e #or'manship

D. mis"se by the b"yer7. ransfer of ris) from seller to the b"yer &incoterm


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:. #eeble5 minded people are legally "nable to6 contractsA. signB. declineC. ref"se

D. resign;. $any e*port contracts cannot come into force d"e to6A. certain preconditions are not metB. force ma+orC. late delivery

%ading?A. he bill of lading F"ncleanG


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B. the bill of landing shows shipment between ports orther than those specified in thecredit. the description of the goods on the in&oice and the description of the goods inthe credit are different

D. there is no endorsement if endorsement is necessary%4. ransfer of the ris) from the select to the b"yer &incoterm


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-. he contract sho"ld reg"late what happens if incoterm


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B. the e*porter can as) the b"yer to instr"ct the ban) to change the terms of the letterof creditC. the e*porter can as) the ban) to process the letter of credit with the discrepanciesb"t to pay only when &and if' the iss"ing ban) permits payment

D. any of the abo&e-;. If shipment is "nder incoterms other than CI# or CI3, 66.A. the b"yer has to arrange the ins"rance cover by himselfB. the b"yer may still as) the e*porter to arrange some aspects of the ins"rance forhimC. the e*porter has to arrange the ins"rance cover for the goodsD. the e(porter pays for insurance till the port of discharge

0


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1

1. he 9ienna (ales Convention is also called6a. he Hniform >aw of International saleb. he Hniform >aw on the #ormation of contract for the international sale of

goods.c. The ,nited !ations on&ention on ontracts for the $nternational sale of

goodsd. he Hnited /ations Convention on Contract for acceptance.

. In order to prod"ce perfect prod"cts, man"fact"rers need to have6a. 3rod"ct ins"ranceb. Iuality assurance programc. C"stomer satisfactiond. Defect liability period

%. o ma)e s"re the officer signing the contract has a"thority to sign the contract,parties sho"ld chec)6a. he d"plicate of signat"reb. The authenticity of signaturec. he coverage of signat"red. he transferability of the signat"re

-. !hen the goods arrive, if they are6., the importer can re+ect them, b"t if they6specification, he is obliged to accept them.a. Defecti&e: conform to

b. 3erfectJ conform toc. DefectiveJ differ fromd. 3erfectJ differ from

0. An ann"al flooding of the River 9erb r"ins some of the +"te intended for "se inma)ing sac)a. Kesb. "estionablec. /o

4. In settlement by acceptance, what will the ban) do after receiving the doc"ments

and draft drawn on the b"yer from the seller?a. he ban) will pay the seller immediatelyb. he ban) will pay the seller as long as the doc"ments s"bmitted comply with

all terms of the letter of credit.c. he ban) chec)s the doc"mentsd. The ban' agrees to pay the bill #hen it matures.


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7. !hich of the following of the method of payment is /2 possible?a. 1


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b. Iuestionablec. /o

10. !hich of the following e*amples is a latent defecta. $issing parts

b. Structural #ea'nessc. !rong itemsd. Bro)en items

14. (mall p"rchases in private life are often in the form of6a. Cash on deliveryb. Cash against invoicec. Cash w