International Business Law Chapter 5, Chapter 9 International Environment of Business Management, chapter 6 international business environment, BLAW 497 Exam 2 MC
What is the per-package liability limitation under COGSA?
$500 per package or customary freight unit
Biddell Brothers v. E. Clemens Horst Co.
((CIF CONTRACTS)) E. Clemens enters a contract to sell hops to Biddell Brothers. Buyer wanted to inspect the goods before paying the seller. Seller refused to ship, saying that payment was due at the arrival of the bill of lading. Buyer sues the seller for not shipping the goods. DECISION: Under a CIF sales contract, the buyer has no right to examine the goods and its obligated to pay upon the presentation of the proper documents
Consignee
A specific person, named in the bill.
North American Free Trade Agreement (NAFTA)
A trading bloc consisting of the United States, Canada, and Mexico.
Transport of Document
A transport document is a kind of document used to convey information about cargo that is being transported. Kinds of transport documents include: Air Waybill, a transport document used for air freight. Bill of Lading, a transport document for sea freight.
Documentary Sale
A type of contract for the sale of goods in which possession and ownership of the goods are transferred from seller to buyer through negotiation and delivery of a negotiable document of title issued by an ocean carrier.
Open Account
An account when the seller grants an extended credit period for the buyer to pay, typically 30 days.
On-Board Bill of Lading
An on-board bill of lading, signed by the ship's master or other agent of the carrier, states that the goods have actually been loaded aboard a certain vessel. In most documentary sales, the b buyer would want to specify that payment is conditioned upon receipt of a negotiable, clean onboard bill of lading.
D Terms
Arrival DAT, DAP, DDP Seller takes full responsibility for getting goods to the buyer's location
What does COGSA apply to?
Bills of lading for sea carriage between U.S. and foreign ports.
What are D terms?
Destination or arrival contracts where the seller delivers goods to the buyer's location and bears the risk of loss or damage during transit.
Certificates of Weight
Document issued commonly by customs authorities of the exporting country, certifying the correct gross weight of the goods being shipped.
What is GATT?
General Agreement on Tariffs and Trade.
trading bloc
Group of two or more countries that agree to remove all restrictions on the sale of goods and services among them, while imposing barriers to trade and investment from countries that are not part of the bloc.
Collecting Bank
In documentary credit, the bank (usually the buyer's bank) that collects cash payment or a time draft from a buyer, in exchange for bill of lading and/or other documents which enable the buyer to take delivery of the shipment.
Straight Bill of Lading
In nondocumentary sales, a nonnegotiable or straight bill of lading will suffice. A straight bill of lading should not be confused with a sea waybill which is used in some countries and is a nonnegotiable receipt for goods received by the carrier containing the contract of carriage and identifying the party to whom the goods may be released.
Paramount Title
In the law of real property, ownership that is superior to the ownership with which it is compared, in the sense that the former is the source or the origin of the latter. The term paramount title is, however, frequently used to signify a title that is merely better or stronger than another or will prevail over it.
What is the full name of the convention that established the Hague Rules?
International Convention for the Unification of Certain Rules of Law relating to Bills of Lading.
World Trade Organization (WTO)
International organization that creates and enforces rules governing trade among countries.
What are the major principles of WTO trade law?
Multilateral trade negotiations, transparency and predictability of trade opportunities, reciprocal tariff reductions and bound commitments, nondiscrimination and unconditional most-favored-nation trade, national treatment, elimination of quotas and other nontariff barriers, consultations and dispute resolution.
Multimodal Transport
Multimodal transport (also known as combined transport) is the transportation of goods under a single contract, but performed with at least two different means of transport; the carrier is liable (in a legal sense) for the entire carriage, even though it is performed by several different modes of transport.
Holder by Due Negotiation (Good-Faith Purchaser)
One who purchases a negotiable document (1) for value (and not in settlement of a past debt), (2) in good faith and without any notice of any adverse claim against it, and (3) in the ordinary course of business or financing.
E Terms
Place the lowest amount of responsibility on the seller. Most often used when the buyer will pick up the goods by truck or rail.
What are the carrier's responsibilities for stowing cargo?
Properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried throughout the voyage.
Certificates of Insepction
Required usually for import of industrial equipment, meat products, and perishable merchandise, it certifies that the item meets the required specifications and was in good condition and correct quantity when it left the port of departure. Also called inspection certificate or inspection report.
What is delivery risk?
Risk faced by the seller to ship the goods.
What is transaction risk?
Risks faced by the buyer and seller in an international sales transaction.
Combined Transport Document
See Multimodal Transport Document
Combined Transport Operators
See Multimodal Transport Operators
F terms
Seller delivers goods to buyer at specified destination without risk for buyer.
Negotiable Instrument
Serve as substitute for money. Checks and promissory notes are examples.
Electronic Data Interchange (EDI)
Shipping data that is transmitted over the Internet using one of several standards.
What are E terms?
Terms that place the lowest responsibility on the seller.
Olympic Airways v. Husain
The Court interpreted "accident" under the Warsaw Convention broadly to cover passenger's death
Air Waybills
The air waybill is the most important document issued by a carrier either directly or through its authorized agent. It is a non-negotiable transport document. It covers transport of cargo from airport to airport. By accepting a shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is issued.
What are the Rolls of Oleron?
The oldest maritime code.
Bailor
The owner of personal property.
Destination Contract
Under the UCC the risk of loss in a destination contract passes to the buyer when the goods are tendered to the buyer at the point of destination.
Negotiable Document
Used to move goods and to transfer their ownership and possession.
Multimodal
When transport of goods is executed using more than one mode of transportation.
A(n) ________ is a relationship separating ownership and possession of personal property. a. Bailment b. Negotiation c. Commercial invoice d. Air waybill
a. Bailment
The Carriage of Goods by Sea Act (COGSA) does not apply to bills of lading: a. Issued for shipments between San Francisco and Los Angeles. b. Issued for shipments between Miami and Sydney. c. If they contain a "Himalaya clause." d. That are "straight."
a. Issued for shipments between San Francisco and Los Angeles.
ABC Company in New York is financially distressed. It needs the revenue generated by a huge volume sale of its products to a big German company. The good are given to a carrier in New York who issues a bill of lading to ABC who then negotiates the bill of lading with the German buyer for an agreed price. A US creditor of the seller attempts to put a lien on the goods to satisfy its debt. Who has a greater claim to the goods-the creditor or the buyer in Germany? a. The German buyer only if it mee
a. The German buyer only if it meets the standard of being a "good faith purchaser" of the bill of lading.
Country A wants to impose a quota on imports of cars from foreign manufacturers in specific countries but wishes to ensure that one country and its manufacturers do not come to dominate the market on imports by using for itself too much of the entire quota allowed for that group. You should suggest that Country A implement a(n): a. Absolute quota. b. Allocated quota. c. Auctioned quota. d. Global quota
b. Allocated quota.
A _________ is a document issued by a carrier to the shipper upon receiving possession of goods for transport. a. Document of title. b. Bill of lading. c. Negotiable instrument. d. Paramount title document.
b. Bill of lading.
The price charged to transport cargo is called: a. Wharfage. b. Freight. c. Particular average. d. General average.
b. Freight.
Charles is a farmer who grows tobacco. He delivers 1,000 pounds of tobacco leaves to a warehouse in Memphis (Bob's Warehouse) and it issues to him a warehouse receipt for all products. Charles sells the tobacco and as part of the transaction delivers the warehouse receipt to buyer. This is an example of: a. Constructive delivery b. Negotiation c. Documentary collection d. A bill of lading
b. Negotiation
COGSA exempts carriers from liability from: a. Piracy, i.e., theft of cargo by pirates on the high seas. b. Perils of the sea. c. Negligence by owners of the vessel. d. Damages caused by unseaworthiness of the vessel during voyage.
b. Perils of the sea.
All of the different "Rounds" of multilateral trade negotiations had the same goal of: a. Eliminating indirect non-tariff barriers. b. Trade liberalization. c. Tariff bindings. d. Ensuring equality of growth in national economies.
b. Trade liberalization.
The COGSA per-package liability limitation for carriers is ________ per package or customary freight unit. a. 1,131 SDRs (similar to the lost baggage limitation under the Montreal Convention) b. $2,500 (or proved value of the loss, whichever is less) c. $500 d. $10,000
c. $500
The Montreal Convention provides that an international carrier must pay an amount computed on the value of: a. United States dollars. b. Chinese yuan. c. Special drawing rights. d. Euros.
c. Special drawing rights.
John is a US citizen who lives in Seattle with his spouse. He is in Mexico on a business trip. While there after a week, he buys an airline ticket at the counter in the Mexico City airport to fly from Mexico City to Lima, Peru. While in flight, the plane crashes in the jungles of Colombia and he is killed. His spouse wishes to sue the Air France carrier he was flying on in a civil lawsuit for causing John's wrongful death. In which countries that signed MC can she NOT sue? a. France b. United St
d. Colombia
Refer to the Aegon Bricks question. In this case, the buyer in Germany will seek the opposite i.e., the delivery terns that most reduce its own risks and costs while shifting them to ABI. This means the buyer will seek to negotiate a delivery term called: a. FCA b. DAT c. DAP d. DDP
d. DDP
John works on a dredge that removes dirt and silt from bottom of Shiloh River. This is basically a "crane" sitting on a platform that is barely moveable. He is injured by another vessel striking the dredge while he was operating it. Can his lawsuit be heard by a court with admiralty jurisdiction? a. No, if his negligence contributed to his injury. b. No, if dredge was within 50 feet of land his injury is not a "maritime tort." c. No, rivers are not "navigable water" such as an ocean or sea. d. Y
d. Yes, if the river is "navigable water." Dredge is a "vessel."
licensing
-give another company allowance in another country to produce and spread their product - takes existing product and allowing others to produce -pay royalties on
What is a bailee?
A hirer to whom goods are delivered for repairs.
Bailment
A relationship involving the separation of ownership and possession of personal property.
Freight Forwarder
Federally licensed individuals who act as agents for sellers.
International Monetary Fund (IMF)
International institution that helps countries that are facing serious financial difficulties in paying for their imports or repaying loans.
Based on its economic growth in the past decade or so and global impact, the most significant admission into the WTO of a new member was in 2001 with the admission of ____________. a. China. b. Brazil. c. Russia. d. Germany.
a. China.
The Uruguay Round from 1986 to 1994 ushered in significant changes to international trade regulation. These changes included all of the following except: a. Replacing the original GATT organization with the World Trade Organization. b. Elimination of all non-tariff trade barriers. c. Instituting a binding dispute settlement procedure. d. Expanding the scope of existing trade agreement.
b. Elimination of all non-tariff trade barriers.
A shipper places 1,000 toys loose into a container and states "1,000 toys in container" on bill of lading. The container is severely damaged and 100 of the toys are destroyed inside the container. What is the carrier's liability? a. $500,000 b. $50,000 c. $500 d. None of these are correct.
c. $500
In 1944, the allied nations met at the Breton Woods Conference and out of concern with the "post-war" economies of the nations of the world created: a. United Nations and World Trade Organization. b. General Agreement on Trade and tariffs and United Nations. c. World Bank and International Trade Organization. d. International Monetary Fund and World Bank.
d. International Monetary Fund and World Bank.
Both the UCC and the CISG allow a seller to cure a ____ within a reasonable time. a. Fundamental breach of any kind. b. Breach of mailbox rule. c. Breach of parol evidence rule. d. Nonconforming shipment
d. Nonconforming shipment
important roles of the world trade organization (1995):
-negotiating trade -implementing/ monitoring agreements -settling disputes -helping developing countries build capacity to trade
CIF Contracts
C.I.F., or "cost, insurance and freight", is a term of the contract of sale of goods being shipped where the seller pays the cost of the insurance and transport of the goods to the destination; legal delivery occurs when the goods cross the ship's rail in the port of shipment.
Documentary Draft
Documentary draft means a draft to be presented for acceptance or payment if specified documents, certificated securities or instructions for uncertificated securities, or other certificates, statements, or the like are to be received by the drawee or other payor before acceptance or payment of the draft.
Multimodal Transport Operators
Firms that arrange for cargo to be sent via several different carriers in one journey - truck, rail, barge, and/or ship.
Who was Jean Baptiste Colbert?
French politician and lawmaker.
Who participates in multilateral trade negotiations?
GATT member countries.
India—Quantitative Restrictions on Imports of Agricultural, Textile, & Industrial Products
India's quantitative restrictions and the licensing scheme violated Article XI because they were discriminatory and not "rules based," and were no longer justified to preserve its balance-of-payments. The panel's decision was upheld by the WTO Appellate Body in its report of August 1999 and later adopted by the Dispute Settlement Body.
World Bank
International institution that provides low-cost, long-term loans to less-developed countries to develop basic industries and facilities.
Recieved-For-Shipment Bill of Lading
Issued by a carrier only upon having received goods for transport. It has limited use in cases of a delay between the delivery of the goods to the carrier and their being loaded aboard ship.
Prima U.S. Inc. v. Panalpina, Inc.
Judgment reversed for Panalpina. Panalpina was a freight forwarder hired by Westinghouse to arrange for transportation and other services. It was not a carrier and was not liable for the cargo during shipment. Freight forwarders must use due diligence and reasonable care in performing their functions. Panalpina was reasonable in its selection of its stevedore to load the ship.
Japan Taxes on Alcoholic Beverages- 1996 WTO
Shochu is a "like product" and "directly competitive and substitutable" with other imported spirits, so Japan was discriminating. WTO rules that this violates WTO agreements, Japan must change tax schemes.
European Communities—Regime for the Importation, Sale & Distribution of Bananas
The Appellate Body held that the United States could call for the convening of a WTO panel to question EC import barriers even though its exports were not directly affected.
What is a paramount title?
The claim of ownership of one party is better than another's claim to property.
El Al Israel Airlines, Ltd. v. Tseng
The decision of the Court of Appeals was reversed. Under the Warsaw Convention, a passenger may not bring an action for personal injury damages under state law when his or her claim does not satisfy the conditions for liability under the convention.
J. Gerber & Co. v. S.S. Sabine Howaldt
The decision of the trial court is reversed. The defendant carrier met its burden of proof that the vessel was seaworthy when it left port and that the damage to the cargo resulted solely from a peril of the sea.
European Economic Community—Import Regime for Bananas
The panel held that the EEC had deprived the complaining Latin American countries of the benefits to which they were entitled under the schedule of concessions.
Bailee
The person possession is being entrusted to.
Shaver Transportation Co. v. the Travelers Indemnity Co.
The plaintiffs' loss due to contamination was not covered under any of the clauses of the insurance policy.
Documentary Collection
The process by which banking institutions serve as intermediaries between seller and buyer to handle the exchange of the bill of lading for payment.
Shipment Contract
The risk of loss or damage to the goods passes to the buyer when the goods are given to the first carrier - be it truck, airline, or ocean carrier. Shipment contracts are more common in international trade because sellers usually prefer not to be responsible for the goods at sea.
Delivery Risk
The risk to the buyer that the seller will fail to ship the goods as called for in the contract.
Payment Risk (Credit Risk)
The risk to the seller that the buyer will fail to pay as promised.
Transaction Risk
The risks facing the buyer and seller when they move money and goods in an international sales transaction.
Negotiation
The transfer of a document of title by its owner to another in a manner that passes title of the document, title to the goods, and the right to claim the goods from the issuer of the document.
What do CIF contracts assign?
They assign risk, loss, or liabilities to either the buyer or the seller.
Trade Terms
Trade terms, or shipping terms, are usually expressed in the form of abbreviated symbols, such as FOB or CIF. They are a shorthand method that permits the parties to express their agreement quickly, with little confusion, and with few language problems.
Credit risk of seller is completely eliminated by the seller: a. Demanding payment prior to shipment. b. Allowing buyer to purchase goods on an approved open account. c. Demanding use of negotiable instruments by buyer at all times. d. Eliminating delivery risk.
a. Demanding payment prior to shipment.
ABC Inc. is a Texas company that wants to sell its products to a buyer in Guatemala for the first time. It has never been in an international transaction before and is worried about payment. Its best and most likely strategy is to: a. Demand that the buyer pay before shipment for all product or else it will not do business with them. b. Let buyer to have an open account with it but on short payment terms, e.g., 20 days. c. Implement a documentary collection process whereby a bank acts as an inte
c. Implement a documentary collection process whereby a bank acts as an intermediary.
Jill is a passenger on an international flight covered by the Montreal Convention (MC). Her luggage is stolen. She is shocked because her Wimbledon tennis trophy was in the bag and is now gone. She is upset, becomes angry and is in tears, and later sues (in appropriate court) the air carrier for losing her luggage and causing her emotional distress in amount of $500,000. What is the result in court? a. Approximately $501,500 USD awarded by a court. b. She will receive from MC the maximum amount
d. Maximum amount under MC allowed, e.g., approximately $1,600 USD.
tariffs
taxes placed on imported goods
what are the 7 types of global trade?
1) Importing/ Exporting 2) Licensing 3)Franchising 4) Contract Manufacturing 5) Joint Ventures 6) Strategic Alliance 7) Foreign Direct Investment
Certificates of Analysis
A Certificate of Analysis is a document issued by Quality Assurance that confirms that a regulated product meets its product specification. They commonly contain the actual results obtained from testing performed as part of quality control of an individual batch of a product.
Certificate of origin
A Certificate of Origin (CO) is an important international trade document attesting that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. COs also constitue a declaration by the exporter.
Marine Insurance
Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination. ... When goods are transported by mail or courier, shipping insurance is used instead. Contents.
You are in charge of tariff policy for your country. You are asked to place an import restraint on products from a politically-allied nation. The restraint must be subtle and most difficult to detect and be "safe" from attack in the press. Your best suggestion is to implement: a. A global tariff with all nations treated equally. b. Use of indirect non-tariff barriers by administrative regulations which are facially neutral but which impact imports by ally negatively as applied. c. Use of an ad v
b. Use of indirect non-tariff barriers by administrative regulations which are facially neutral but which impact imports by ally negatively as applied.
When were the Hague Rules established?
1924.
What is another term for payment risk?
Credit risk.
A contract between buyer and seller calling for seller to deliver the goods to buyer's specified location (e.g., buyer's factory) is called a: a. Bill of lading agreement. b. Destination contract. c. Shipment contract. d. Freight forwarder contract.
b. Destination contract.
Basse and Selve v. Bank of Australasia
bank has no duty to inspect when paperwork is in order and "regular"
Admiralty jurisdiction applies to the operation and management of vessels while engaged in navigation on: a. Oceans and seas only. b. Rivers only. c. Ocean and large lakes only. d. "Navigable waters" used or capable of being used for commercial activity.
d. "Navigable waters" used or capable of being used for commercial activity.
C Terms
seller is responsible for certain costs after the goods have been delivered to the carrier
A balance-of-payment deficit arises: a. Frequently when country does not have MFN status. b. When nation's outflow of foreign exchange exceeds it receipts in its own currency. c. If its level of exports becomes less than 150% of that same figure in 1947 when GATT began. d. When a US Company's total dollar value of its imports exceeds the dollar value of its exports.
b. When nation's outflow of foreign exchange exceeds it receipts in its own currency.
Bill of Lading
A document of title that an ocean carrier issues to a shipper upon receiving goods for transport.
What is the purpose of multilateral trade negotiations?
To reduce tariffs and nontariff barriers to trade.
Examples of negotiable instruments include: a. Check and promissory note. b. Check and documentary draft. c. Certificate of inspection and certificate of analysis. d. Documentary draft and promissory note.
a. Check and promissory note.
Computation of maximum carrier liability is often difficult in damage claims because of the lack of clarity defining the term: a. Average. b. Container. c. Pallets. d. Package.
d. Package.
Cedar Petrochemicals, Inc. v. Dongbu Hannong Chemical Co.
The court held that Incoterms are incorporated into the body of the CISG, and there was no incompatibility between the CISG and the Incoterm "F.O.B." The parties' contract failed to displace any provision of the CISG, and consequently, the application of Incoterms as well. For the foregoing reasons, Dongus motion for summary judgment dismissing Plaintiff's complaint is denied in its entirety.
Eligibility for GSP Status
(1) the item must qualify for a GSP tariff preference in the U.S. tariff schedules; (2) it must be imported directly from an eligible country; (3) the country must be eligible for GSP treatment for that particular item; and (4) the item must be the "growth, product, or manufacture" of the eligible country (as strictly defined in U.S. law).
Multimodal Transport Document
A single contract between the shipper and the operator, who, in turn, contracts with each of the carriers involved.
What is COGSA?
Carriage of Goods by Sea Act
Commercial Invoice
When used in foreign trade, a commercial invoice is a customs document. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.
John owns a small tractor. He "loans it out" to Fred who will use it for plowing his farm on basis he will return it to John when done. John and Fred are in order: a. Bailor and bailee. b. Bailee and bailor. c. Both are a bailor. d. Both are a bailee.
a. Bailor and bailee.
Colombia taxes sales of tobacco products sold in that country. The tax is different for differently-classified products. Cigarettes are generally taxed on their sale at 15% while "menthol cigarettes" are taxed at 25%. Most cigarettes classified as "menthol" are made by foreign companies who pay the same tariff rate upon import into the country of cigarettes of any kind, i.e., there is no higher tariff for "menthol cigarettes." The foreign "menthol cigarette" makers claim this sales tax is discri
a. Colombia can claim nondiscrimination since tariff rates are equal on all products.
Tom travels by air from Miami to New York, and then has a three-hour layover before he boards a flight to London. He is injured when aircraft encounters bad turbulence, lands in Charlotte, and the erratic landing there injures his leg. Is his injury covered by absolute liability provisions of Montreal Convention? a. Yes, if he is deemed to be in one undivided carriage (i.e., all segments booked on one ticket) that is part of a single operation. b. Yes, since New York-London segment makes this au
a. Yes, if he is deemed to be in one undivided carriage (i.e., all segments booked on one ticket) that is part of a single operation.
Aegon Bricks Inc. (ABI) in New Orleans is negotiating a contract to sell a German company in Berlin approximately 1,000,000,000 bricks. ABI wants to place the "most seller-friendly" delivery terms under INCO and reduce its delivery risks and financial risks to greatest extent possible. This means it will try to negotiate delivery terms of: a. FCA Free carrier b. EXW c. CIF d. FAS
b. EXW
John is new to the international commercial sales world and knows he needs help in dealing with delivery/shipment issues involving contracts with buyers. His best resource may be to rely upon and use: a. Multimodal transport documents b. Freight forwarders c. Electronic data interchange d. Air waybills only
b. Freight forwarders
In a _____, the seller passes the risk of loss or damage to the buyer when the goods are given to the first carrier. a. Bailment agreement. b. Shipment contract. c. Destination contract. d. "D Term agreement."
b. Shipment contract.
Country A imposes an import tax on fungible goods such as oil, wheat, or timber that enter specially from country B. This is likely called a: a. Global tariff. b. Specific or flat tariff. c. Percentage of value (ad valorem tariff). d. Unitary tariff.
b. Specific or flat tariff.
One of the principles of the WTO is that whereby members must eliminate quoatas and other non-tariff barriers and convert them into tariffs. This is called: a. Consultation. b. Tariffication. c. Nullification. d. Transparency.
b. Tariffication.
The US wishes to publish its tariff rate on a product. There is some need for flexibility in the US rate determination predicted, so you advise that the easiest strategy is to publish a specific "ceiling" rate and use discretion to reduce rate as appropriate. This "ceiling tariff rate" is called: a. A harmonized rate. b. The bound rate. c. A tariff binding. d. A concession rate.
b. The bound rate.
A California seller has a sales contract to deliver a ton of cement to a Utah buyer. If the Utah buyer is most worried about damage to the goods it is buying and wants to best protect its interests, it will ask for: a. The carrier to provide a straight bill of lading. b. The carrier to provide a clean bill of lading. c. The carrier to provide a received-for-shipment bill of lading. d. The seller to provide a clean bill of lading.
b. The carrier to provide a clean bill of lading.
John flies from New York City to Athens directly. When he arrives, he discovers his luggage has been lost and is not found after a search. He places a claim with the air carrier seeking a recovery that will compensate him for his loss of bag and contents, including the replacement value of a diamond ring worth $10,000 he was taking to Greece as a gift for his fiancée. The air carrier under the Montreal Convention will pay him an amount equal to approximately: a. $153,000. b. $10,000. c. $1,600.
c. $1,600.
Your government asks for advice. It wishes to place a financial barrier on the entry of lace-up shoes being exported into the country by foreign manufacturers. It is intended to be a simple-to-enforce financial barrier. You suggest the easiest and simplest type tariff called a: a. A flat tariff based on the country of origin. b. An ad valorem tariff based on the country or origin. c. A global, flat tariff. d. A combined quota-tariff.
c. A global, flat tariff.
India imposes special licensing requirement for many imported goods. The application for a special license must be made by an "Actual user." If a wholesaler or distributor applies for a license, the license is "capped" to a total monetary amount measured in SDRs, e.g., value of resales by licensor may not exceed a negotiated SDRs amount. A license terminates after resales exceed that amount but can be renewed by another, separate application. The US complains to WTO that these licensing restrict
c. US will claim prior India case controls. Allowing complete discretion for India to set monetary limits on licenses it grants to distributors is a superficial change and is overly-restrictive. It accomplishes the same unreasonable barriers to trade protections as did prior case struck down by the Settlement Panel.
A widget is imported into the US from South Africa. Once in the US, it is transported via rail from the entry port to Chicago. It has imposed on it then a special "Foreign Product Transportation Fee" that is not placed on transported products of domestic manufacturers. This is deemed inconsistent and invalid under: a. Tariff discrimination laws. b. WTO Dispute Settlement Body. c. International Trade Organization (ITA). d. "National treatment" principle of GATT.
d. "National treatment" principle of GATT.
As of January 2017, the maximum carrier liability from passenger death or bodily injury is in US dollars approximately: a. $1,000,000 b. $1,000,110 c. $2,500,231 d. $153,000
d. $153,000
A cargo vessel is owned by A. While on the ocean, the vessel springs a bad leak. The captain throws cargo overboard that belongs to B and C to make the vessel lighter. D also has cargo on the vessel which remains in the vessel and is not damaged or removed. Who will file a claim for general average against whom? a. A will have a claim against B, C and D. b. D has a general average claim against A. c. A has a general average claim against D. d. B and C have each a general average claim against D
d. B and C have each a general average claim against D
Prior to formally requesting binding dispute resolution with the WTO Dispute Resolution Body, the party complaining about a tariff violation must: a. Ask for informal resolution with the International Trade Organization (ITO). b. Mediate their dispute with a third party neutral, not affiliated with WTO. c. Give written notice to the United Nations of such dispute. d. Conduct trade consultations with the offending party at the WTO.
d. Conduct trade consultations with the offending party at the WTO.
A basic right of WTO membership is that a country must treat goods and services from all WTO members: a. With no tariff on any goods imposed on any other member nations, except with WTO advance consent. b. In accordance with transparent tariff rates i.e. available to public. c. In accordance with the Generalized System of Preferences. d. Equally and without discrimination
d. Equally and without discrimination
quota
restriction on the overall quantity of certain goods that can be imported into the country
F Terms
seller's responsibility to get goods to buyer-specified carrier
Clean Bill of Lading
A bill of lading issued by a carrier declaring that the goods have been received in an appropriate condition, without the presence of defects. The product carrier will issue a clean bill after thoroughly inspecting the packages for any damage, missing quantities or deviations in quality.
Banque de Depots v. Ferroligas case
A court-ordered seizure of goods in transit cannot stand when the title to the goods is represented by a bill of lading and the bill of lading itself was not seized by the court order.
Document of Title
A document that evidences the ownership of goods it represents.
What is a bailor?
A person or party that warrants goods to a bailee.
Incoterms 2010
Trade terms published by the International Chamber of Commerce for use in both domestic and international trade contracts.
what is the world trade organization?
a forum for nations to negotiate the rules of international trade with the overall purpose of the organization being to facilitate a harmonious floor of global trade
The Montreal Convention is best described as an example of: a. A self-executing treaty. b. A non-self-executing treaty. c. An example of a custom over time becoming an international treaty. d. A bilateral self-executing treaty.
a. A self-executing treaty.
The fastest growing mode of ocean transport is called: a. Dry bulk ships. b. Reefer ships. c. Containerized ocean cargo. d. Tankers.
c. Containerized ocean cargo.
What is an on-board bill of lading?
A document signed by the carrier's agent or ship's captain stating that the product has been loaded in the vessel.
One of the main principles of the GATT system was a commitment by nations to: a. Create the World Trade Organization. b. Eliminate indirect non-tariff barriers to trade. c. Conduct of regular multilateral trade negotiations. d. Stabilize tariff rates at then current levels and achieve greater stability in foreign commerce.
c. Conduct of regular multilateral trade negotiations.
Functions of WTO
1) to facilitate cooperation between member-nations on trade issues, (2) to administer the WTO agreements, (3) to provide a forum for future trade negotiations, (4) to monitor national trade policies, (5) to assist developing countries in complying with WTO agreements by giving technical assistance, and (6) to provide a forum for the settlement of trade disputes between members.
What are specific exceptions to liability?
Errors in the navigation or in the management of the ship Fire, unless caused by the actual fault of the carrier (the ship owner) Perils, dangers, and accidents of the sea An act of God (an unpreventable loss from natural causes or disaster) An act of war An act of public enemies Legal seizure of the ship Quarantine restrictions An act or omission of the shipper or owner of the goods Labor strikes or lockouts Riots and civil commotions Saving life or property at sea An inherent defect, quality, or vice of the goods that causes wastage in bulk or weight or other damage or loss Insufficiency of packing (by shipper) Inadequate marking of goods or containers (by shipper) Latent defects in ship or equipment (that might render the ship unseaworthy) that were not discoverable by due diligence
A ____ represents ownership of the goods specified. a. Incoterm. b. Transfer deed. c. Shipment contract. d. Document of title.
d. Document of title.
Kumar Corp. Nopal Lines, Ltd. (1985)
The court held that where, under a CIF contract, the seller fails to obtain marine cargo insurance on behalf of the buyer, the risk of loss remains with the seller, who becomes a self-insurer of the property. As such, the seller has standing to sue the carrier for the cargo loss. Kumar -seller
Z.K. Marine, Inc. v. Archigetis
The court held that each yacht constituted one customary freight unit or "package," that the shipper had been given a fair opportunity to declare a higher value, and that the carrier's liability was limited to $500 per package. The purchasers of the bills of lading were bound by the terms of the bills of lading, including the limitation provision
Ample Bright Development, Ltd. v. Comis International
The disregard of the limitations contained within the bills of lading received from the shipper subjected the freight forwarder to liability in an amount equal to the value of the property wrongfully received by the ultimate purchaser. Ample Bright-Shipper Comis- freight fowarder
A bill of lading does not accomplish which role below? a. Acts as a receipt of goods and is issued by shipper. b. Becomes a contract of carriage between shipper and carriage. c. Acts as a document of title to specified goods. d. Acts as a receipt of goods and is issued by carrier
a. Acts as a receipt of goods and is issued by shipper.
You are engaged with several nations as a trade representative of your country to create a free trade area agreement. As an example to argue in favor of such arrangement, you would cite any of the below as a success story of such structure except: a. United States - Central America - Dominican Republic Free Trade Agreement. b. North American Free Trade Agreement. c. US - Korea Free Trade Agreement. d. Caribbean Basin Initiative.
d. Caribbean Basin Initiative.
Michelle leaves Miami on a flight bound for London. While proceeding up the east coast over Virginia, the plane makes an emergency landing and crashes too hard on the ground. Michelle is hurt. She brings a lawsuit under Virginia tort law seeking $250,000 for bodily injuries caused by pilot negligence, in addition to a recovery under the Montreal convention. The court will likely: a. Decide both the state tort law claim and Montreal convention claim. b. Refuse to hear either claim. c. Decide only
c. Decide only the Montreal Convention claim as the exclusive remedy.