Business Law Midterm
Which of the following is/are excluded from the CISG: a) A Malay company buys cosmetics goods from a Belgian company through an auction b) A Malay company buys textile machines from a Belgian company on D terms. c) A Malay carrier company buys a ship from a Belgian company. d) A, B, and C e) A and C.
A and C.
There are many different types of bills of lading. The one that the book advises that most buyers insist the seller provide is: a) A straight bill of lading. b) An on-board bill of lading. c) A received-for-shipment bill of lading. d) A clean, on-board bill of lading.
A clean, on-board bill of lading.
The difference between a common law country and a civil law country is: a) Civil law is handled by the government while common law is handled by the people. b) A common law country relies heavily on precedent established by previous court cases while a civil law country uses a comprehensive code of law. c) A common law country bases its laws on statutes while a civil law country uses court cases. d) A common law country has similar laws throughout its regions while a civil law country is divided into areas.
A common law country relies heavily on precedent established by previous court cases while a civil law country uses a comprehensive code of law.
Which of the following is true about bill of lading? a) Evidence of Contract of Carriage b) Receipt of Goods c) Document of Title to the goods d) A, B, and C e) None of the above.
A, B, and C
In the event that a buyer receives a shipment of seriously defective goods, under the CISG: A) the buyer may accept the goods and reduce the amount paid to the seller accordingly. B) the buyer must notify the seller of the defects within a reasonable time. C) the seller may cure the defect up until the time for performance has expired. D) the seller may request additional time to perform even though he will be late in so doing. E) All of the above
All of the above
Which of the following is not a common risk in international business? a. Exposure to Foreign Laws and Courts b. Political Risk c. Currency Risk d. Distance and Logistics e. All of the above are common risk in international business
All of the above are common risk in international business
65. Which of the following is NOT true about sales contracts a) Negotiate terms b) Allocate risks in moving goods and money c) State obligation and responsibilities d) Fix price e) All of the above are true
All of the above are true
In the event that a buyer receives a shipment of seriously defective goods, under the CISG: a) The buyer may accept the goods and reduce the amount paid to the seller accordingly. b) The buyer must notify the seller of the defects within a reasonable time. c) The seller may cure the defect up until the time for performance has expired. d) The seller may request additional time to perform even though he will be late in so doing. e) All of the above.
All of the above.
Which of the following are exemptions of the Ocean carriers' liability? a) Insufficiency of packing. b) Errors in the navigation or management of the ship. c) Acts of God. d) All of the above.
All of the above.
You can get personal assistance from the following in international business: I. Local Counsel II. Freight Forwarder and Other Facilitators III. Customs Broker IV. The International Banker V. International Agents and Distributors VI. Official Support from Government Agencies VII. The International Attorney A. I, II, and V B. I, II, and VI C. I, II, and VII D. I, II, and III E. All of the listed
All of the listed
When one party clearly sees that the other contracting party will either not perform a substantial part of the contract, this is a: a) Breach of contract. b) Anticipatory Breach. c) Impossibility of performance. d) Force Majeure.
Anticipatory Breach.
Doing business internationally requires an understanding of all of the following except: a) International law. b) National law. c) Different international organizations. d) Availability of legal counsel in each country
Availability of legal counsel in each country
Doing business internationally requires an understanding of all of the following except: A) International law. B) National law. C) Different international organizations. D) Availability of legal counsel in each country
Availability of legal counsel in each country
International Sales Law: I. Is not uniform because of vast political, cultural, and historical differences. II. Is embodied in the Convention on the International Sale of Goods. Which of the following is correct? a) Both I and II. b) Neither I nor II. c) I only. d) II only.
Both I and II.
Louis Enzo from France contracts to deliver perfumes to John Brown in the U.S. on a FOB incoterm. However, the ship carrying the perfumes sinks due to extreme storm. Under the Destination Designation The Risk Of Loss Is With: a) Seller b) Buyer c) Carrier d) Freight Forwarder e) The loss is distributed equally among all of the above
Buyer
Louis Enzo from France contracts to deliver perfumes to John Brown in the U.S. on an EXW incoterm. However, the ship carrying the perfumes sinks due to extreme storm. Under the destination designation the risk of loss is with: f) Seller g) Buyer h) Carrier i) Freight Forwarder j) The loss is distributed equally among all of the above
Buyer
An importer in Malaysia requests a price quotation from a chemical company in Midland, MI. The chemical company wishes to place the goods in the hands of a multimodal terminal operator in Midland for shipment through the port of Detroit. He will pay the freight charges through to the Malaysian seaport, but he wishes the risk of loss to the goods to pass to the Malaysian importer as soon as he places the goods in the hands of the multimodal terminal operator in Detroit. The exporter should quote his prices for the goods: a) CIF Malayy. b) FOB Chicago. c) CPT Chicago. d) Ex Factory. e) None of the above.
CPT Chicago.
Code law is also known as __ a. business law b. common law c. religious law d. civil law e. universal law
Civil law
Which of the following is NOT an international contracts content? a) Consumer rights in the importer country b) Modalities of invoicing c) Duration of termination of the contract d) Cases of termination of the contract e) Warranties and liabilities
Consumer rights in the importer country
In an effort to satisfy an important customer in Portugal, the seller is willing to pay all ocean freight charges and bear all risks of the journey to the port of Lisbon. The buyer, however, has agreed to pay all unloading charges. The exporter should quote his prices: a) DAT Lisbon. b) FAS Lisbon. c) CIF Lisbon. d) DEQ Lisbon. e) None of the above.
DAT Lisbon.
According to Incoterms, the trade term that represents the maximum responsibility of the seller is: a) Carriage and Insurance Paid To b) Ex Works. c) Delivered at Frontier. d) Delivered Duty Paid. e) None of the above.
Delivered Duty Paid.
According to Incoterms, the trade term that represents the maximum responsibility of the seller is: a) Carriage and Insurance Paid To. b) Ex Works. c) Delivered at Frontier. d) Delivered Duty Paid. e) None of the above.
Delivered Duty Paid.
Which of the following forms of international business requires the most amount of equity and therefore, creates the greatest risk? a) Exporting b) Joint venture c) Contractual agreement d) Distributorship e) Direct foreign investment
Direct foreign investment
Which of the following forms of international business requires the most amount of equity and therefore, creates the greatest risk? A) Exporting B) Joint venture C) Contractual agreement D) Distributorship E) Direct foreign investment
Direct foreign investment
Because importers and exporters assume different risks, the most preferred way to conduct business and minimize these risks for the buyer and the seller is: a) Cash in advance. b) Open account. c) Documentary sale. d) Credit cards e) All of the above.
Documentary sale.
The type of risk that includes controls on exports, imports, controls on the movement of currency, restrictions on licensing and investment, and controls over physical property located in a country is: A) Currency risk. B) Legal risk. C) Economic risk. D) Political risk.
Economic risk.
According to Incoterms, the trade term that represents the maximum responsibility of the buyer is: a) Ex Works. b) Carriage and Insurance Paid To c) Delivered Duty Paid. d) Delivered at Frontier. e) Cost, Insurance, Freight
Ex Works.
If the seller wishes to make his goods available to the buyer at his place of business with the buyer arranging all transportation and bearing all risks from the time the goods leave the seller's door, the seller should quote his prices : a) Ex factory. b) Ex carriage. c) CIF seller's factory. d) FAS seller's dock. e) None of the above.
Ex factory.
Which of the following is NOT related to the advance payments in international trade? a) Exporter receives payment for trade deals before the shipment of good from his country b) Exporter bears the risk of buyer's non-performance c) Exporter receives payment for trade deals before the actual transfer of ownership d) Most desirable and acceptable option for the exporter e) Importer bears the risk of non-delivery
Exporter bears the risk of buyer's non-performance
Which of the following is NOT related to the advance payments in international trade? a) Exporter receives payment for trade deals before the shipment of good from his country b) Exporter bears the risk of buyer's non-performance c) Exporter receives payment for trade deals before the actual transfer of ownership d) Most desirable and acceptable option for the exporter e) Importer bears the risk of non-delivery
Exporter bears the risk of buyer's non-performance
If your client, a manufacturer in her home country for several years, wants to "go international" how can she do so? Explain the various forms of transnational business transactions she can engage in.
Exporting- Treat buyers over sales the same as in the states. She can export her products to a sales representative or to a distributor Licensing- Give companies in other countries the opportunity to make her products in their country. Allow them to use your trademark. Foreign Direct Investment- Establish your own subsidiary company in the country. She can also partake in a joint venture with a foreign investor.
There is a uniform commercial body of law adopted by the United Nations governing all private international law questions. True/False
False
The name of the clause put into international sales contracts to limit the liability of the parties in the event of an intervening and disruptive force beyond a party's control makes performance more difficult than expected is: a) Good excuse clause. b) Out of control clause. c) Force Majeure clause. d) Excuse moi clause.
Force Majeure clause.
The name of the clause put into international sales contracts to limit the liability of the parties in the event of an intervening and disruptive force beyond a party's control makes performance more difficult than expected is: a) Good excuse clause. b) Out of control clause. c) Force Majeure clause. d) Excuse moi clause.
Force Majeure clause.
DownPillow, Inc., a U.S. company, and Eiderhoff, a German Company, negotiate a contract with forum and choice of law clauses for the U.S. A dispute arises, the case is heard in the U.S., and a judgment is given to DownPillow. DownPillow wants to enforce this judgment in Germany. According to the above scenario, which of the following statements is true? a) Germany will allow one-half of the judgment to be enforced in Germany. b) Germany will not allow this judgment to be enforced in Germany because it does not recognize U.S. judgments. c) Germany will allow the entire judgment to be enforced if Eiderhoff received notice, it does not violate German law, and the U.S. reciprocates with German judgments. d) None of the above.
Germany will allow the entire judgment to be enforced if Eiderhoff received notice, it does not violate German law, and the U.S. reciprocates with German judgments.
DownPillow, Inc., a U.S. company, and Eiderhoff, a German Company, negotiate a contract with forum and choice of law clauses for the U.S. A dispute arises, the case is heard in the U.S., and a judgment is given to DownPillow. DownPillow wants to enforce this judgment in Germany. According to the above scenario, which of the following statements is true? a) Germany will allow one-half of the judgment to be enforced in Germany. b) Germany will not allow this judgment to be enforced in Germany because it does not recognize U.S. judgments. c) Germany will allow the entire judgment to be enforced if Eiderhoff received notice, it does not violate German law, and the U.S. reciprocates with German judgments. d) None of the above.
Germany will allow the entire judgment to be enforced if Eiderhoff received notice, it does not violate German law, and the U.S. reciprocates with German judgments.
With the principle of future circumstances are neither predictable nor controllable but lie entirely in the hands of the Almighty, risk or uncertainty about future, the sale of anything uncertain or unknown is forbidden in this system which sometimes makes the international transactions difficult to deal with. A. civil law B. common law C. codelaw D. commercial law E. Islamic law
Islamic law
Louis Enzo from France contracts to sell perfumes to John Brown in the U.S. GoGoo Freight Forwarding, Inc. arranged the shipment with ABC International Carriers, Inc (the ship owner). The ship carrying the perfumes sinks due to extreme storm. If the contract is on CFR Incoterms® 2010. The risk of loss is with: a) Louis Enzo b) ABC International Carriers, Inc. c) GoGoo Freight Forwarding, Inc. d) John Brown e) The loss is distributed equally among ABC and GoGoo
John Brown
Louis Enzo from France contracts to sell perfumes to John Brown in the U.S. GoGoo Freight Forwarding, Inc. arranged the shipment with ABC International Carriers, Inc (the ship owner). The ship carrying the perfumes sinks due to extreme storm. If the contract is on CIF Incoterms® 2010. The risk of loss is with: a) Louis Enzo b) ABC International Carriers, Inc. c) GoGoo Freight Forwarding, Inc. d) The loss is distributed equally among all of the above e) John Brown
John Brown
Louis Enzo from France contracts to sell perfumes to John Brown in the U.S. GoGoo Freight Forwarding, Inc. arranged the shipment with ABC International Carriers, Inc (the ship owner). The ship carrying the perfumes sinks due to extreme storm. If the contract is on FOB Incoterms® 2010. The risk of loss is with: a) Louis Enzo b) ABC International Carriers, Inc. c) GoGoo Freight Forwarding, Inc. d) John Brown e) The loss is distributed equally among all of the above
John Brown
Louis Enzo from France contracts to sell perfumes to John Brown in the U.S. GoGoo Freight Forwarding, Inc. arranged the shipment with ABC International Carriers, Inc (the ship owner). The ship carrying the perfumes sinks due to extreme storm. If the contract is on EXW Incoterms® 2010, the risk of loss is with: a) Louis Enzo b) ABC International Carriers, Inc. c) GoGoo Freight Forwarding, Inc. d) John Brown e) The loss is distributed equally among Louis Enzo and John Brown
John Brown
Louis Enzo from France contracts to sell perfumes to John Brown in the U.S. GoGoo Freight Forwarding, Inc. arranged the shipment with ABC International Carriers, Inc (the ship owner). The ship carrying the perfumes sinks due to extreme storm. If the contract is on DDP Incoterms® 2010, the risk of loss is with: a) John Brown b) ABC International Carriers, Inc. c) Louis Enzo d) GoGoo Freight Forwarding, Inc. e) The loss is distributed equally among ABC and GoGoo
Louis Enzo
The title of the goods sold in a documentary sale is transferred through: a) Negotiation of the document only. b) Delivery of the goods only. c) Negotiation of the document and delivery of the goods.
Negotiation of the document only.
Suppose that your company was sent goods unsolicited with a note, "If I don't hear from you, I assume you will keep them and pay for them", failure to respond to the sender is an acceptance, because: a) You did not send a rejection within three days upon receipt of the goods b) No acceptance c) You kept silent d) You did not return the goods within three days upon receipt
No acceptance
Golden Biz, a U.S. company, sends a purchase order to Diamond SD, in London. In Golden Biz's purchase order form, a standard clause on the purchase order states that "All disputes are to be heard in the courts of New York." Diamond SD confirms using its standard form, clauses "Any dispute must be heard before the London Court of Justice". Under the CISG: A. The contract exists on Golden Biz's terms because Diamond SD's terms do not become a part of the contract. B. The contract exists on Diamond SD's terms because Golden Biz did not promptly object to the new terms. C. The contract exists on Diamond SD's terms because the modification is immaterial. D. No contract exists because Diamond SD's terms were a counteroffer that was not accepted by Golden Biz. E. The contract exists on Diamond SD's terms because it is the seller
No contract exists because Diamond SD's terms were a counteroffer that was not accepted by Golden Biz.
Golden Biz, a U.S. company, sends a purchase order to Diamond SD, in London. A standard clause on the purchase order states that "All disputes are to be heard in the courts of New York." Diamond SD confirms using its standard form, which states that "Any dispute must be heard before the London Court of Justice". Under the CISG: a) The case will be heard before the London Court of Justice, because England (the seller's country) is not a CISG ratifying country. b) No contract exists because Diamond SD's terms were a counteroffer that was not accepted by Golden Biz. c) The contract exists on Diamond SD's terms because Golden Biz did not promptly object to the new terms. d) The contract exists on Diamond SD's terms because the modification is immaterial. e) The contract exists on Diamond SD's terms because it is the seller
No contract exists because Diamond SD's terms were a counteroffer that was not accepted by Golden Biz.
Ocean carriers are liable for damages resulting from which of the following? a) Providing a seaworthy ship at the beginning of the voyage. b) Mismanagement of the ship that causes a shipwreck. c) Errors in navigation that cause a mid-ocean collision. d) A and B. e) A, B, and C.
Providing a seaworthy ship at the beginning of the voyage.
All of the following are remedies available under CISG except: a) Money Damages. b) Reformation. c) Avoidance of the Contract. d) Specific Performance.
Reformation.
Louis Enzo from France contracts to deliver perfumes to John Brown in the U.S. on a CIF incoterm. However, the ship carrying the perfumes sinks due to extreme storm. Under the destination designation the risk of loss is with: a) Seller b) Buyer c) Carrier d) Freight Forwarder e) The loss is distributed equally among all of the above
Seller
Louis Enzo from France contracts to deliver perfumes to John Brown in the U.S. on a DDP incoterm. However, the ship carrying the perfumes sinks due to extreme storm. Under the destination designation the risk of loss is with: f) Seller g) Buyer h) Carrier i) Freight Forwarder j) The loss is distributed equally among all of the above
Seller
All of the following may be raised as reasons for nonperformance of sales contract except: a) Impossibility. b) War. c) Natural disasters. d) Subjective Constraints.
Subjective Constraints
Both the U.S. and France have ratified the Convention on Contracts for the International Sale of Goods (CISG). A buyer in France and a seller in the U.S. enter into a contract for the sale of widgets. If a dispute arises: a) The CISG will apply since all the requirements have been met. b) The CISG will not apply since the requirement of "legal selection" has not been met. c) The Uniform Commercial Code (UCC) will apply since the seller is a U.S. company. d) Neither the UCC nor CISG will apply.
The CISG will apply since all the requirements have been met.
In Basse and Selve v. Bank of Autralasia, the seller submitted a phony sample of ore to an inspection company to obtain a Certificate of Analysis showing high- grade ore. On the basis of the certificate, the seller paid for the documents and took delivery of the ore. The ore turned out to be worthless. The court ruled that: a) The bank had an obligation to inspect the ore before paying for the documents on behalf of the buyer. b) The buyer had a cause of action against the chemist for fraud. c) The bank had acted properly in paying the seller even though the ore did not conform to the contract because the certificate was regular on its face. d) The bank had acted properly in paying the seller because the bill of lading was negotiable.
The bank had acted properly in paying the seller even though the ore did not conform to the contract because the certificate was regular on its face.
Assume that Goodfurn Co. of USA sells armchairs to Goedmeub, a Dutch company and forwards documents and a draft for acceptance. If the armchairs turn out to be musty and worthless, which of the following statement(s) is (are) true? a) The buyer does not have to pay because the goods are damaged. b) The U.S. bank must reimburse whoever bought the instrument and can bring a lawsuit for payment against Goodfurn. c) The buyer must still honor and pay the acceptance upon documents' presentation. d) A and B. e) None of the above.
The buyer must still honor and pay the acceptance upon documents' presentation.
Assume that Goodfurn Co. of USA sells armchairs to Goedmeub, a Dutch company and forwards documents and a draft for acceptance. If the armchairs turn out to be musty and worthless, which of the following statement(s) is (are) true? a) The buyer does not have to pay because the goods are damaged. b) The U.S. bank must reimburse whoever bought the instrument and can bring a lawsuit for payment against Goodfurn. c) The buyer must still honor and pay the acceptance upon documents' presentation. d) A and B. e) None of the above.
The buyer must still honor and pay the acceptance upon documents' presentation.
Which of the following documents are always required in a documentary collection for the sale of goods? a) The draft, invoice, and bill of lading b) The invoice, bill of lading, and delivery order c) The certificate of origin, insurance policy, and invoice d) The draft, insurance policy, and invoice
The draft, invoice, and bill of lading
Which of the following documents are always required in a documentary collection for the sale of goods? a) The draft, invoice, and bill of lading b) The invoice, bill of lading, and delivery order c) The certificate of origin, insurance policy, and invoice d) The draft, insurance policy, and invoice e) The draft, invoice, and carrier bill
The draft, invoice, and bill of lading
Under the Foreign Sovereign Immunities Act, a federal court would not have jurisdiction over a foreign nation unless: A) The foreign nation's acts were diplomatic in nature. B) Authority has been granted for the court to hear the case by the president of the United States. C) The foreign government's actions constitute a commercial activity. D) The foreign government committed an act of state.
The foreign government's actions constitute a commercial activity.
According to Incoterms, the risk of loss or damage to goods under a CIF contract passes from seller to buyer when: a) The goods cross the ship's rail at the port of shipment. b) The goods are unloaded at the port of destination. c) Title to the goods passes to the seller. d) The goods leave the seller's place of business. e) The goods arrive to the buyer's place of business
The goods cross the ship's rail at the port of shipment.
Seller receives a letter of credit from a foreign buyer covering "1,000 standard-sized bed pillows." Seller's export manager completes an invoice for "1,000 bed pillows, size 20 by 26 inches" (this is the internationally accepted standard size for pillows. Which of the following is false? A) If the issuing bank accepts or pays against documents, it will be liable to the account party. B) The issuing bank must accept or pay against documents because 20 by 26 is standard and the goods conform to the contract. C) The issuing bank may refuse to accept or to pay the draft upon presentation of the invoice. D) If the buyer waives the defect in the invoice, the bank must accept or pay the draft.
The issuing bank must accept or pay against documents because 20 by 26 is standard and the goods conform to the contract.
Which of the following is NOT an international contracts content a) Features of the goods b) Incoterms c) Date of delivery d) Date and ways of payment e) The name of the ship that the goods will be passed on
The name of the ship that the goods will be passed on
Which of the following is NOT an international contracts content a) Features of the goods b) Incoterms c) Date of delivery d) Date and ways of payment e) The name of the ship that the goods will be passed on
The name of the ship that the goods will be passed on
Ocean carriers are not liable for more than $500 per package where the shipper has had: a) The opportunity to purchase marine insurance. b) The opportunity to indicate the nature and value of the goods on the bill of lading. c) The opportunity to declare the value of the goods on the export license. d) The opportunity to repackage the goods before shipment.
The opportunity to indicate the nature and value of the goods on the bill of lading.
DrillCo, a Texas Corporation, entered into a contract with BawahAir, a Malay corporation, to tow DrillCo's drilling rig from Louisiana to Italy. A storm arose and DrillCo told BawahAir to tow the rig into Tampa, Florida. DrillCo immediately filed a lawsuit in Florida against BawahAir for damages to the rig. The original contract called for "Any dispute must be heard before the London Court of Justice." The U.S. Supreme Court could hold that: a) Florida has jurisdiction since that is where the oil rig is now located. b) The case should be heard in Texas or Malayy because that is where the parties are located. c) The forum-selection clause is contrary to public policy and will not be enforced; either Florida, Texas, or Malayy would be the correct place to hear it. d) The parties must adhere to the forum-selection clause and have the case heard in London.
The parties must adhere to the forum-selection clause and have the case heard in London.
Suppose that an issuing bank pays on documents that are conforming to the requirements of the letter of credit, but the seller has shipped worthless goods to the buyer. Which of the following statements, if any, are true? a) As long as the documents strictly comply with the letter of credit requirements, the bank will not have to reimburse the buyer. b) If there is fraud in the transaction, the bank will have to reimburse the buyer and seek its remedies against the seller. c) The strict compliance principle insulates the bank from liability, since it assures the bank that the underlying contract between the buyer and seller is entirely independent from the letter of credit contract. d) A and C.
The strict compliance principle insulates the bank from liability, since it assures the bank that the underlying contract between the buyer and seller is entirely independent from the letter of credit contract.
International business may be classified into which of the following three categories: a) Trade, international licensing agreements, investment. b) Trade, import/export, foreign exchange. c) International licensing agreements, investments, law. d) International licensing agreements, trade, franchising.
Trade, international licensing agreements, investment.
Exporting is the shipment of goods or rendering of services to a foreign buyer located in a foreign country. True/False
True
If a party does not fulfill their obligations as set forth in a sales contract, it is known as non- performance True/False
True
International business law draws from both public and private law as related to business transactions. True/False
True
International business law draws from both public and private law as related to business transactions. True/False
True
One reason international business law still retains a "national" character is that national attitudes toward economics affect attitudes toward law and regulation. True/False
True
When an international seller and buyer negotiate a sales contract, they have the option to "opt out" of CISG. True/False
True
U.S. Wheat Sales Inc. has a contract with Zambia to supply 1,000,000 bushels of wheat. Before shipment, the U.S. government put an embargo on the sale of wheat to Zambia. U.S. Wheat cannot ship. In a legal action: A) U.S. Wheat would be liable for breach of contract and have to pay damages. B) U.S. Wheat will have to get wheat from other sources and specifically perform. C) U.S. Wheat will be excused from performance because of the doctrine of impossibility of performance. D) none of the above is correct.
U.S. Wheat will be excused from performance because of the doctrine of impossibility of performance.
U.S. Wheat Sales Inc. has a contract with Zambia to supply 1,000,000 bushels of wheat. Before shipment, the U.S. government put an embargo on the sale of wheat to Zambia. U.S. Wheat cannot ship. In a legal action: a) U.S. Wheat would be liable for breach of contract and have to pay damages. b) U.S. Wheat will have to get wheat from other sources and specifically perform. c) U.S. Wheat will be excused from performance because of the doctrine of impossibility of performance d) none of the above
U.S. Wheat will be excused from performance because of the doctrine of impossibility of performance
In a global trade transaction, Golden Biz ships goods under a clean bill of lading and submits all the necessary documents under a documentary letter of credit to the buyer Silver Work to its bank. While on traveling to Italy in the Mediterranean Sea, the ship sinks and all the goods are buried in the sea. Is Golden Biz entitle to receive payment despite the loss of the cargo? The contract was agreed on CIF Cagliari, Italy. a) No, Golden Biz absorbs the risk of loss b) Yes, the Carrier is liable for the loss c) No, since the contract was on CIF terms d) Yes, as long as all necessary documents are in order when submitted e) None of the above
Yes, as long as all necessary documents are in order when submitted
The seller in a letter of credit transaction is called the: a) account Party. b) beneficiary. c) importer. d) issuer. e) Importer
beneficiary.
_____ can be found in Germany, Japan, France, and non-Islamic and non-Marxist countries. It is an all-inclusive system of written rules of law and constitution is a guiding instrument to the legal system 1. business law 2. common law 3. religious law 4. civil law 5. universal law
civil law
The basis for _____ is tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. A. civil law B. common law C. code law D. commercial law E. Islamic law
common law
____ seeks "interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts." a. civil law b. common law c. code law d. commercial law e. islamic law
common law
The buyer in a letter of credit transaction is called the: a) account Party. b) beneficiary. c) exporter. d) issuer. e) Exporter
issuer.
Both the U.S. and France have ratified the Convention on Contracts for the International Sale of Goods (CISG). A buyer in France and a seller in the U.S. enter into a contract for the sale of widgets. If a dispute arises: A) the CISG will apply since all the requirements have been met. B) the CISG will not apply since the requirement of "legal selection" has not been met. C) the Uniform Commercial Code (UCC) will apply since the seller is a U.S. company. D) neither the UCC nor CISG will apply.
the CISG will apply since all the requirements have been met
. Both the U.S. and France have ratified the Convention on Contracts for the International Sale of Goods (CISG). A buyer in France and a seller in the U.S. enter into a contract for the sale of widgets. If a dispute arises: a) the CISG will apply since all the requirements have been met. b) the CISG will not apply since the requirement of "legal selection" has not been met c) the Uniform Commercial Code (UCC) will apply since the seller is a U.S. company. d) neither the UCC nor CISG will apply.
the CISG will apply since all the requirements have been met.
Buyers and sellers entered into a contract for the sale of nuts. The usual route used the Suez Canal. Prior to shipment, a war closed the canal. Because the freight charges would be so high by another route, the seller refused to ship. The buyer had to buy at a higher price elsewhere and sued the seller. At trial: A) the seller will win based on the doctrine of frustration of purpose. B) the buyer will win since this is just a risk of doing business. C) the seller will win because of force majeure. D) the buyer will lose because problems with shipment by sea are an excuse for nonperformance.
the buyer will win since this is just a risk of doing business.
Buyers and sellers entered into a contract for the sale of nuts. The usual route used the Suez Canal. Prior to shipment, a war closed the canal. Because the freight charges would be so high by another route, the seller refused to ship. The buyer had to buy at a higher price elsewhere and sued the seller. At trial: a) the seller will win based on the doctrine of frustration of purpose b) the buyer will win since this is just a risk of doing business. c) the seller will win because of force majeure. the buyer will lose because d) problems with shipment by sea are an excuse for
the buyer will win since this is just a risk of doing business.
Buyers and sellers entered into a contract for the sale of nuts. The usual route used the Suez Canal. Prior to shipment, a war closed the canal. Because the freight charges would be so high by another route, the seller refused to ship. The buyer had to buy at a higher price elsewhere and sued the seller. At trial: a) the seller will win based on the doctrine of frustration of purpose. b) the buyer will win since this is just a risk of doing business. c) the seller will win because of force majeure. d) the buyer will lose because problems with shipment by sea are an excuse for nonperformance.
the buyer will win since this is just a risk of doing business.
The following sales are excluded from the CISG: A) the sale of industrial equipment. B) the sale of consumer goods. C) the sale of ships and aircraft. D) all of the above.
the sale of ships and aircraft.
The following sales are excluded from the CISG: a) the sale of industrial equipment. b) the sale of consumer goods. c) the sale of ships and aircraft. d) all of the above.
the sale of ships and aircraft.
In the event that a buyer receives a shipment of seriously defective goods, under the CISG: a) the buyer may accept the goods and reduce the amount paid to the seller accordingly. b) the buyer must notify the seller of the defects within a reasonable time. c) the seller may cure the defect up until the time for performance has expired. d) the seller may request additional time to perform even though he will be late in so doing.
the seller may cure the defect up until the time for performance has expired.