B. Law Final

48. Which of the following is a term in a bill of lading that purports to extend to third parties the carrier's liability limits established by the Hague and Hague-Visby Rules? A. Himalaya Clause B. force majeure clause C. voyage charterparty D. ultra vires rule

A. Himalaya Clause

45. Which of the following best describes a straight bill of lading? A. It is a bill of lading issued to a named consignee that is not negotiable. B. It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship. C. It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill. D. It is a bill of lading that is negotiable.

A. It is a bill of lading issued to a named consignee that is not negotiable.

46. Which of the following best describes an order bill of lading? A. It is a bill of lading that is negotiable. B. It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship. C. It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill. D. It is a bill of lading issued to a named consignee that is not negotiable.

A. It is a bill of lading that is negotiable.

59. ________ is a remedy that allows a seller to ascertain requirements himself when the buyer fails to supply them as required by the contract or within a reasonable time after the seller requests them. A. Missing specifications B. Special performance C. Nachfrist notice D. Suspension of performance

A. Missing specifications

43. A contract comes into existence when an offeree communicates his/her ________ to the offeror. A. acceptance B. counteroffer C. revocation D. firm offer

A. acceptance

47. The remedy of sending out a notification by a party that he or she is canceling a contract and returning everything already received would constitute a(n) ________. A. avoidance B. counteroffer C. revocation D. replevin

A. avoidance

26. A ________ is an instrument issued by a warehouseman or carrier to a shipper that serves as a receipt for goods shipped, as evidence of the contract of carriage, and as a document of title for the goods. A. bill of lading B. deed C. letter of credit D. certificate of deposit

A. bill of lading

35. Which of the following documents provided by a seller represents freight? A. bill of lading B. letter of credit C. invoice D. insurance policy

A. bill of lading

42. A(n) ________ is an instrument issued by an ocean carrier to a shipper that serves as a receipt for goods shipped, as evidence of the contract of carriage, and as a document of title for the goods. A. bill of lading B. air waybill C. letter of credit D. bill of exchange

A. bill of lading

38. A ________ is a ship that carries goods for all persons who choose to employ it so long as there is room. A. common carrier B. free carrier C. freight forwarder D. tramp vessel

A. common carrier

33. The trade term "________" is used when the seller fulfills his obligations to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. A. free alongside B. free on board C. free carrier D. common carrier

A. free alongside

31. The trade term "________" is used when the seller fulfills his obligations to deliver the goods passed over the ship's rail at the named port of shipment. A. free on board B. freight forwarder C. common carrier D. dead freight

A. free on board

47. An order bill of lading differs from a straight bill of lading in that, an order bill of lading ________. A. gives the transferee greater rights B. is non-negotiable C. is issued to a named consignee D. is issued by a shipper to an ocean carrier

A. gives the transferee greater rights

36. The ________ is a rule that contracts should be interpreted according to the understanding that a reasonable person would have had at the time the agreement was made. A. objective intent approach B. parol evidence rule C. plain meaning rule D. stabilization clause

A. objective intent approach

54. A ________ is a contract to hire an entire ship for a particular duration. A. time charterparty B. voyage charterparty C. maritime lien D. codicil

A. time charterparty

35. Which of the following terms refers to a bill of exchange on which the drawer and the payee are the same person? A. trade acceptance B. deed C. codicil D. certificate of deposit

A. trade acceptance

51. Which of the following terms refers to a contract in which the owner agrees to provide the ship at a named port at a specified time and to carry the goods to the contract destination? A. voyage charterparty B. no arrival, no sale contract C. maritime lien D. claused bill of lading

A. voyage charterparty

54. In the case of a destination contract, the risk of loss passes to the buyer ________. A. when the goods are handed over or placed at his disposal at that place B. as soon as he/she accepts the contract in writing C. when the goods are handed over to the first carrier for shipment D. at the time the contract is concluded

A. when the goods are handed over or placed at his disposal at that place

31. Which of the following is true of a bill of exchange? A. It is not considered a negotiable instrument. B. It is also referred to as a draft. C. It is a two-party instrument. D. It contains a conditional order from the drawer that directs the drawee to pay a definite sum of money to a payee on demand or at a specified future date.

B. It is also referred to as a draft.

36. Which of the following is true of checks? A. It is a two-party instrument. B. It is always payable on demand. C. It requires that the drawer is holding the drawee's money. D. It necessitates that the seller has to be both the drawer and the payee.

B. It is always payable on demand.

40. A drawee of a bill who, by signing the bill on its face, agrees to pay the bill when it is due is referred to as a(n) ________. A. accommodation party B. acceptor C. holder in due course D. holder

B. acceptor

60. Which of the following is a remedy available to both buyers and sellers? A. missing specifications B. avoidance of an installment contract C. specific performance D. reduction in price

B. avoidance of an installment contract

28. In a draft transaction, if the drawee is a bank, then the draft is referred to as a ________. A. promissory note B. check C. trade acceptance D. certificate of deposit

B. check

52. Which of the following terms refers to a charge imposed on a charterer when a chartered ship has less than a full load? A. demurrage B. dead freight C. maritime lien D. straight bill of lading

B. dead freight

29. The trade term " ________" is used when the seller fulfills his obligations to deliver by handing over the goods, cleared for export, to a carrier named by the buyer. A. ex works B. free carrier C. charterparty D. demurrage

B. free carrier

37. A ________ is a firm that makes or assists in the making of shipping arrangements. A. common carrier B. freight forwarder C. charterparty D. free carrier

B. freight forwarder

39. A(n) ________ is a person who has physical possession of a bill or note that was drawn, issued, or endorsed to him or her, or to his or her order, or to the bearer, or in blank A. accommodation endorser B. holder C. assignor D. acceptor

B. holder

40. A(n) ________ is a seagoing common carrier operating over established routes with a stated rate schedule. A. conference line B. independent line C. common carrier D. free carrier

B. independent line

31. Which of the following features is covered in the CISG? A. rights of the parties involved in the sale of stocks and shares B. the remedies available to the buyer C. the competency of the third parties D. the rights of third parties

B. the remedies available to the buyer

37. The subjective intent approach differs from the objective intent approach in that the subjective intent approach _______. A. tries to interpret the conduct of the parties involved B. tries to interpret the intent of the parties involved C. is considered an inferior form of interpretation D. is only used when objective intent cannot be interpreted

B. tries to interpret the intent of the parties involved

40. Which of the following makes an offer effective? A. when the offeror makes the proposal B. when it reaches the offeree C. when it mentions a fixed price for the goods D. when it is addressed to the public

B. when it reaches the offeree

45. Which of the following is true under the CISG if the offeree dispatches a rejection and an acceptance to the offeror? A. both the acceptance and the rejection would be considered void B. whichever reaches the offeror first would take precedence over the other C. rejection would take precedence over an acceptance D. an acceptance would take precedence over a rejection

B. whichever reaches the offeror first would take precedence over the other

50. The ________ do(es) not apply to charterparties unless a bill of lading issued by the shipowner comes into the hands of a third party. A. maritime lien B. Himalaya Clause C. Hague and Hague-Visby Rules D. no arrival, no sale contract

C. Hague and Hague-Visby Rules

51. Which of the following is true of the CISG's risk allocation between parties of a contract? A. If a seller fails to take delivery, then the buyer has to assume the risk for any damage to the goods after that time. B. The CISG defines some trade terms, which can be used by the parties to allocate risk among themselves. C. It allows parties to use Incoterms for risk allocation. D. The CISG's risk allocation is affected by breach of contact.

C. It allows parties to use Incoterms for risk allocation.

44. Which of the following best describes a claused bill of lading? A. It is a bill of lading that is negotiable. B. It is a bill of lading issued to a named consignee that is not negotiable. C. It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill. D. It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship.

C. It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill.

39. A(n) ________ is an association of seagoing carriers that have joined together to offer common freight rates. A. independent line B. freight forwarder C. conference line D. free carrier

C. conference line

62. Total loss of cargo is governed by a ________ in a maritime insurance policy. A. loss payable clause B. Himalaya Clause C. constructive loss clause D. loss payee clause

C. constructive loss clause

53. Which of the following terms refers to a charge made by a shipowner when a charterer keeps a ship idle for more than the agreed-upon number of lay days? A. claused bill of lading B. dead freight C. demurrage D. clean bill of lading

C. demurrage

41. With regard to the promise of irrevocability, the CISG differs from the UCC in that the CISG ________. A. requires the promise of irrevocability to be signed by both parties B. requires the promise of irrevocability to be limited by time C. does not require for the promise of irrevocability to be in writing D. makes it mandatory only for the offeree, and not for the offeror, to obey the promise of irrevocability

C. does not require for the promise of irrevocability to be in writing

36. The trade term "________" is used when the seller fulfills his obligations to deliver by making the goods available at his premises. A. freight forwarder B. free alongside C. ex works D. dead freight

C. ex works

64. A party can claim the excuse of ________ if he or she can prove that the failure to perform on his or her part was due to an event or effect that could not be reasonably anticipated or controlled. A. dirty hands B. Nachfrist notice C. force majeure D. nolo contendere

C. force majeure

30. Which of the following trade terms means that the seller has an obligation to deliver the goods to a named place for transfer to a carrier? A. ex works B. dead freight C. free D. demurrage

C. free

64. Which of the following terms refers to a contribution by those jointly involved in a maritime venture to make good the loss by one of them for his voluntary sacrifice of a part of the ship or cargo to save the residue of the property and the lives on board, or for the extraordinary expenses necessarily incurred for the benefit and safety of all? A. dead freight B. maritime lien C. general average D. particular average

C. general average

34. Which of the following documents provided by a seller represents cost? A. bill of lading B. air waybill C. invoice D. insurance policy

C. invoice

37. A promissory note differs from a bill of exchange in that a promissory note ________. A. cannot have a fixed date for payment B. is not a written order to pay C. is a two-party instrument D. is always paid on demand

C. is a two-party instrument

29. Which of the following types of transactions would be included in the purview of the CISG? A. sale of land at a foreclosure B. sale by an auction C. sale of patent rights D. sale of negotiable instrument

C. sale of patent rights

34. The bill of exchange that is payable at the time it is presented or at a stated time after presentment is known as a(n) ________. A. deed B. allonge C. sight bill D. time bill

C. sight bill

58. If a seller delivers early, ________. A. the buyer must accept the goods and pay the money immediately B. the right of the buyer to recover damages is lost C. the buyer is under no obligation to take delivery D. the buyer will become entitled to a reduction in price

C. the buyer is under no obligation to take delivery

30. In a draft transaction, if the drawee is a buyer of the drawer, then the draft is referred to as a ________. A. promissory note B. certificate of deposit C. trade acceptance D. check

C. trade acceptance

43. Which of the following best describes a clean bill of lading? A. It is a bill of lading that is negotiable. B. It is a bill of lading issued to a named consignee that is not negotiable. C. It is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill. D. It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship.

D. It is a bill of lading indicating that the goods have been properly loaded on board the carrier's ship.

57. Under the CISG, the fixing by the buyer of an additional reasonable period of time in which the seller may perform is known as ________. A. délai de grâce B. de minimis C. nolo contendere D. Nachfrist notice

D. Nachfrist notice

52. ________ are contracts that require the seller to deliver the goods to a carrier for further transfer and do not require the seller to deliver them to a particular place. A. Destination contracts B. Transshipment contracts C. In-transit contracts D. Shipment contracts

D. Shipment contracts

33. The CISG differs from the United States Uniform Commercial Code (UCC) in that the CISG ________. A. does not enforce unconscionable contracts B. requires that parties act in good faith C. defines goods as movable and tangible D. applies sales laws only to merchants

D. applies sales laws only to merchants

33. With regard to the form requirements for bills of exchange, the ULB is similar to the common law in that both require the instrument to ________. A. state the place where the instrument was drawn B. state the place where payable C. contain the term "Bill of Exchange" D. be in writing

D. be in writing

27. A(n) ________ is a written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date. A. codicil B. promissory note C. deed D. bill of exchange

D. bill of exchange

49. A ________ is a contract to hire an entire ship for a particular voyage or for a period of time. A. maritime lien B. claused bill of lading C. straight bill of lading D. charterparty

D. charterparty

32. With regard to the form requirements for bills of exchange, the ULB differs from the common law in that the ULB requires the instrument to be ________. A. in writing B. payable to order C. payable to bearer D. dated

D. dated

32. Which of the following terms refers to the point in the transaction where the risk of loss or damage to the goods is transferred from the seller to the buyer? A. demurrage B. ad litem C. contra legem D. delivery

D. delivery

65. According to the excuse of ________, a party may not rely on a failure of the other party to perform, to the extent that such failure was caused by the first party's act or omission. A. nachfrist notice B. force majeure C. anticipatory avoidance D. dirty hands

D. dirty hands

56. A ________ is a charge or claim against a vessel or its cargo. A. certiorari B. demurrage C. dead freight D. maritime lien

D. maritime lien

39. A(n) ________ is a proposal addressed to specific persons indicating an intention by the person making the proposal to be bound to the sale or purchase of particular goods for a price. A. agreement B. advertisement C. revocation D. offer

D. offer

63. Which of the following terms refers to a loss to a ship or its cargo that is not to be shared in by contributions from all those interested, but is to be borne by the owner of the injured thing? A. dead freight B. maritime lien C. general average D. particular average

D. particular average

42. A firm offer is an offer ________. A. in which a fixed price is not mentioned for the goods or the services being sold B. in which the offeree is an individual and the offeror is an organization C. which is governed by the laws of the WTO D. that the offeror promises to keep open for a fixed period of time

D. that the offeror promises to keep open for a fixed period of time

49. Which of the following describes the term "passage of risk"? A. the period given to the seller to rectify nonconforming goods B. a period during shipment when neither buyer nor seller bears the risk of loss C. the period during which the seller is responsible for losses to the goods D. the point in time when the buyer becomes responsible for losses to the goods

D. the point in time when the buyer becomes responsible for losses to the goods

41. A(n) ________ is a seagoing common carrier operating with a stated rate schedule but without established routes. A. common carrier B. conference line C. independent line D. tramp vessel

D. tramp vessel