đề ôn Tiếng Anh chuyên ngành 2 FTU

ĐỀ 1
1.
Which is the most appropriate method of payment for
the exporter in the following case?
A new small customer in a Pacific island republic much given to
political disturbances. The order is for $10,000 worth of
assorted textiles.
D. Confirmed letter of credit.
3.
Transfer of risk from the seller to the buyer (Incoterm
2000): FCA
B. When the goods are handed to the first carrier
5.
The risk of rough handling is covered under the cargo
clause:
A.
A
7.
Where is often the place of expiry of the credit?
C. At the counters of the confirming bank.
9.
What does “3/3 Marine Bill of Lading” mean?
A. It means the exporter must produce three originals and
three copies of the marine bill of lading.
11.
The exporter’s interests are best served by.....
D. A combination of all of the above
13.
Inspection by the ........ is called “open package
inspection”
D. Importer

15.
If the price is quoted FAS Osaka., who pays for the
freight?
D. The buyer.
17.
The bill of lading issued by the carrier for road
transport is called ……
D. Road consignment note
19.
Which of these does not count as a defect?
B. Misuse
21.
Which corrective method is least favourable for the
seller?
C. Return the goods and refund the price
23.
If the bank sees from a marine bill of lading that
transport will take place on deck, what will the bank do?
A. The bank will reject the shipping document if the letter
of credit does not allow this.
25.
When a contract is cancelled, a payment problem
arises; the party in breach has a .............. case of payment
B. Weak
27.
Termination for default occurs when the contract
names certain ............ which allow on side to terminate
B. Defaults
29.
Termination for convenience occurs when one party

simple decides to drop the contract and ......
A.
No reason is required
31.
........ Bill of lading – found something wrong with the
consignment
C. Claused
33.
A.

Returned shipment to the exporter’s country means:
The deal is a total loss for the exporter

35.
If the exporter knew the buyer;s intended purpose,
and if the buyer relied on the exporter’s knowledge and
expertise, the buyer can reject goods that are not suitable for
their intended purpose. This is called.........
D. Implied warranty of fitness for intended purpose
37.
What are the set of assumptions with which a price
quotation is based?
D. Delivery, payment and warranty terms

39.
Of the 3 options available for settling disputes,
litigation before the court is internationally least attractive as it
is...........
A.
Expensive and legalistic

2.
The greatest fear for the exporter is…
C. Being unable to get paid for the goods sold.

4.
Elderly people are ………………….. to deal with a
contract.
B. Able
6.
A contract requiring an exporter in Mozambique to deliver
the contract goods in Beira, Mozambique, for the shipment by
sea to Dar es Salaam, Tanzania.
A. FAS Beira
8.
The lump-sum compensation is set too high......
C. Penalty
10.
Transfer of risk from the seller to the buyer (Incoterm
2000): DEQ
A. When the goods are ex-quay
12.
Which of the following is the objective aimed at by the
exporter to minimize the risk of the goods being rejected or of
heavy defects liability claims?
C. Negotiating detailed specifications
14.
In a contract, consideration may consist of
....................
D. Right, interest, profit, detriment and loss

16. ……. Bill of Lading – goods were taken on board in good
condition.
A. clean
18.
All risks covered is under ................ clause.
A.
A
20.
The names of ………….. are normally the full,
registered name of the company.
D. the parties
22.
Every contract is governed by ................
C. Applicable law
24.
Which countries require that all goods imported to
their countries are inspected by the SGS immediately before
shipment?
C. Indonesia
26.
In international contracts, parties try to exclude
assignment of rights without....................
B. Written consent of parties
28.

Thảo chụp thiếu

30.
A.

Title of the goods passes..........
With risks

32.
Which of the following statements if TRUE?
C. The amount of the credit should be expressed both in
figures and in words
34.
Within the four alternatives of the at-sight letter of
credit, which one is the least satisfactory for the exporter?
D. Settelment by negotiation
36.
A bill of lading with the note is...........
B. Claused BL

38.
What would be the effect on the price of the goods
traded if the buyer wants the goods sooners?
D. The price of the goods will go up as extra costs involved
due to extra working shift from the manufacturer
40.
Which is the most appropriate method of payment for
the exporter in the following case?
A contract for supply of cloth worth $5,000 per month to the
government of Oceanea – a prosperous country. Duration of
the contract is 2 years, but renewable. Contract represents
25% of turnover.
C. If possible, a bank guarantee. Otherwise, export credit
insurance.

41.
Which of the following discrepancies is NOT the
problem with Insurance?
A.
Documents are not presented within the required
time..
43.
A contract is a written agreement and it follows the
‘meeting of minds” and .........
C. Offer and acceptance
45.
What are 2 principles which serve to make the letter of
credit watertight
B. Autonomy and strict compliance
47.
The fact that manufacturer often tempted to be overoptimistic and to agree to impossible specifications is
________ in business.
B. risky
49.
In most guarantees, the bank agrees to pay “on first
demand” which means….
D. Without demur or objection
ĐỀ 2
1. Which is the most appropriate method of payment for the
exporter in the following case?
A new small customer in a Pacific island republic much given to
political disturbances. The order is for $10,000 worth of
assorted textiles.
D. Confirmed letter of credit.

3. Why letters of credit are formally called ‘documentary
credits’?C. Because in a letter of credit situation,
documents are exchanged for money.
If either party is prevented from, or delayed in, performing any
duty under this Contract by an event beyond his reasonable
control, then this event shall be deemed force majeure….
The workforce at the factory go on strike.
C. No
If the price is quoted FCA, who pays for the freight?
C.
The buyer.
Termination for convenience occurs when one party simply
decides to drop the contract and ------------------a.
No reason is required
Why do most exporters offer a discount for early payment, for
example a 1% discount if payment is made within 10 days of
the date of invoice?
C.
Because the exporter can substantially improves
his cash flow.
In negotiating a letter of credit, the step in which the list of all
required documentation is incorporated into the contract is
………………….
B.
Incorporation.

In contracts, “partial invalidity provision” means the invalidity of
one part of the contract…………...
b.
does not invalidate the rest

In settlement by acceptance, what will the bank do after
receiving the documents and draft drawn on the buyer from the
seller?
D.
The bank agrees to pay the bill when it matures.
In a contract, consideration may consist of ……………...
d.
right, interest, profit, detriment, and loss
Negotiation of specifications between the exporter and the
importer can be ________________.
b.
a
difficult
process
In settlement by sight payment ……………….
C.
The seller presents the necessary documents to
the paying bank.
Which of the following concepts is best used to avoid confusion
when we mean an assurance that the exporter will make good
defects in his goods? c. Defects liability
Delivery of the goods under most export contracts takes place
in the country of ……………………..
B. the exporter

42.
Cancellation on .......... grounds makes no legal sense
C. Trivial
44.
In negotiating a LC, the step in which the buyer

applies for the letter of credit specifying the agreed
documentations is
D. None of the above
46.
The buyer can reject goods that are not of saleable
quality.This is called __________________
C. Implied warranty of merchantability
48.
Who usually has to pay for curing defects?
B.The seller
50.
............. occurs when contract allows one party to end
it under given circumstances
A.
Termination
2. “The Buyer shall notify the Seller of defects without undue
delay”. This is an example of:
B. Notification period

4. When the Bill of lading marked “freight prepaid”. Who pays
for the freight?
B.
B. The Seller
The main concern of the parties to contract should be --------------b.
Dispute avoidance

Why can a manufacturer sometimes accept a loss on an export
deal?.
D.
Any of the above.

In a contract, a formal definition is the best way of clarifying
what exactly the two sides have ……….
c.
agreed
If the price is quoted FOB Singapore, then the seller is not
obliged to pay insurance and freight. Right or wrong?
C.
Partly right, as the seller is obliged to pay only the
freight and insurance necessary to put the goods on board
of the designated vessel by the buyer.
Discount Records bought phonograph records from an
exporter. Payment was by letter of credit issued by Barclays
Bank. The exporter delivered a mix of cassettes, eight – track
cartridges and other non - contractual goods. Discount Records
tried to get an injunction to stop Barclays from paying under the
letter of credit. What you think the court would do in that case?
D.
The exporter will be paid – although later action in
the courts may oblige him to make good any damage he
has caused the buyer.
The bill of lading issued by the carrier for road transport is
called …
D.
Road consignment note.
In negotiating a letter of credit, the step in which the exporter
checks the credit to see that required documentation is as
agreed is ………………….
C.
Verification.
Which of the following examples is a patent defect?

a.
Crushed or stained garments
An offer dies if it has a/ an …………………..
d. Revocation
. A contract requiring an exporter in Ethiopia to send the
contract goods by air for delivery in Windhoek, Namibia.
B. CIP Windhoek
When parties agree to end a contract, -------------------- occurs.
c.
Rescission
“A machine that consumes more fuel than specifications” is an
example of
a.
Latent defect


Defects that come to light after buyer’s acceptance are called
_______________.
b. latent defects
If shipment is made on CIF or CIP terms, the letter of
credit will call for ……………….
D.
Either A or C.
Defects may be which of the following?
c.
Both
. All risks covered is under ……… clause
A. A

The decision of arbitratiors is ------------------b.

Business- oriented
Which of the following discrepancies is NOT the problem with
the Letter of Credit?
C.
There is no endorsement if endorsement is
necessary.
Which of the following discrepancies is NOT the problem with
inconsistencies among the documents?
B.
Documents are not presented within the required
time.
If the force majeure event continues for too long, both parties
have the right to
B. terminate the contract
Under most laws, a buyer can make certain assumptions about
goods. These assumptions are called (by lawyers):
c.
Implied warranties
Continental law has well developed private law, especially
contract and ………………………...
a. Commercial law
In drafting an arbitration clause, the following questions must
be resolved:
d.
All of the above
ĐỀ 3
1.
“Door to door” service is offered. Which term should
be used?
A.

DDP
3.
If a contract is entire agreement, early letters and
documents…..
B. Become invalid
5.
A contract requiring an exporter in Mozambique to
deliver contract goods in Beira, Mozambique for the shipment
Dar es Salaam,
A.
FAS Beira
7.
Continental law is also called …..
A.
Civil law
9.
(Note: If either party is prevented from, or delayed in,
performing any duty under this contract by an event beyond his
reasonable control shall be deemed force majeure)
A ban issued on the export of jute products by newly elected
government.B. Questionable
11.
If the price is quoted FOB Singapore, then the Seller
is not obliged to pay insurance and freight. Right or Wrong? C.
Partly right, as the Seller is obliged to pay only the
insurance and freight necessary to put the goods on board
of the designated vessel by the buyer.
13.
Defects such as wrong items, broken or missing parts,
scratches and so on are called …..

A.
Patent defects
15.
The fact that the manufacturer often tempted to over –
optimistic to agree to impossible specification is ……… in
business B. Risky
17.
Why letters of credit are often called “documentary
credits”?
C. B/c in the L/C situation, documents are exchanged for
money.
19.
The advantages of arbitration are:
A.
Private and foreseeable cost.

The clause covers General Average
C. A,B,C
Which of these is the cheapest option for the exporter?
a.
Repair
If a dispute arises, the recital allows the court to discover the
real meaning of …………
a.
the contract
If alternative means of transport or partial shipments are
allowed perhaps by different modes of transport, the letter of
credit should have the words ……………. between the names
of transport documents.
C.

and/or.
Another name for Tender Guarantee is …………….
D.
Bid bond.
The best solution for the exporter to make late payment
impossible is…..
D.
a confirmed, irrevocable, at sight letter of credit.
Transfer of risk from the seller to the buyer (Incoterm 2000):
CIF
C.
When the goods across the ship’s rail
A contract is not enforceable if …………...
c.
it has an illegal purpose
Who issues ocean bill of lading?
C.
Shipping company
A commercial invoice must be made out to …………….
D.
The applicant for the letter of credit, normally to
the buyer, unless otherwise stated in the credit.
A disclaimer of Warranty often accompanies delivery of:
a. Software

2.
Failure to meet specifications is a:
C. Defect in design
4.
The Bill of Lading issued by carrier for sea transport is

called …..
B. Marine bill of lading
6.
The bank helping the export to check the correctness
of the document and set the procedure in motion is …..
B. The advising bank
8.
The lump-sum compensation is set too low:
B. Quasi indemnity
10.
Inspection by buyer is called:
C. Open package inspection

12.
To cure defective goods, the best option for the
exporter is:
D. Dependent on the types of goods

14.
If the exporter knows the buyer the intended purpose,
and if the buyer relies on the exporter’s knowledge and
expertise, the buyer can reject goods that are not suitable for
their intended purpose. This is called….
D. Implied warranty of fitness for intended purpose
16.
A contract is a written agreement and it follows “the
meeting of minds” and ……..
C. Offer and acceptance
18.
Is it possible for the beneficiary (exporter) sometimes,

though not often, to make a draft on the bank to collect the
money?
D. Yes, it is
20.
In terms of payment in international trade, ……
D. Risk and cost rise and fall together


21.
Delivery of the goods under most export contracts
take place in the country of:
B. The exporter
23.
Who issues export credit insuarance?
C. An insurance company
25.
Unless the LC states otherwise, insurance coverage
on a CIF or CIP shipment must be for…….. of the CIF (or CIP)
value of the goods. D. 110%

22.
Partial invalidity clause can help to avoid problems
with contract that …..
A.
Might infringe government regulations
24.
Which of these does not required prior inspection by
SGS?
C. The UK
26.

Which of the following discrepancies is not the
problem with insurance?
A. Documents are not presented within the required time

27.
If shipment is made on CIF or CIP terms, the L/c will
call for….?
D. either A or C

28.
A term or terms in a contract could raise the contract
price
D. A longer warranty period

29.
The exporter ‘s interest are best served by….
D. a combination of all of the above
31.
If the buyer comes from a country which has a poor
reputation for enforcing awards, the best method of payment
under the contract is a/an…
B. at sight, confirmed L/c
33.
The point of delivery is much the same for all….terms
and….terms- when the exporter hands the goods over to the
carrier
A. C and. F
35.
whereas- clause ….
D. are not provisions, promises and conditions

30.
Continental law doesn’t require long and…. Contract
D. detailed
32.
Allowing the Buyer to repair the equipment at the
exporter’s cost…
D. is often unsafe for exporter

37.
…are the explanations
B. Whereas- recital clauses
39.
Assuming shipment is by rail, what if an L/C depends
on the original B/L
C. Such an L/C is certain to cause delay in payment
41.
The answer to background questions are written...
A. through the whereas- recital
43.
Export credit insurance is very attractive, however, it
has certain limitation like...
C. long time since the buyer fails to pay up to the time the
insurance company compensates the exporter and the
inability of covering 100% of the original invoice price
45.
Continental lawyers... complicated grammar f the
where clause
A. often avoid
47.

Who issues a bank guarantee?
D. a bank
49.
The contract should regulate what happen if Incoterm
2000 and the term of the contract conflict: normally the...
prevails
B. contract
ĐỀ 4
1.
A contract requiring an exporter in Ethiopia to send
the contract goods by air for delivery in Windhoek, Namibia.
B. CIP Windhoek
3.
A unilateral offer can be defined as:
B. An offer made of a promise in return for an act.

5.
The point at which money is deemed to be paid most
preferred by buyer is …
C. When the buyer instructs the bank to pay.
7.
Transfer of ris k from the seller to the buyer
(Incoterm 2000): DDP
A.
When the goods are at the buyer’s premises.
9.
In settlement by deferred payment, the letter of credit
is paid after delivery. Right or wrong?
D. The letter of credit is not payable until a number of
days.

11.
In a contract, consideration may consist of …
D. Right, interest, profit, detriment, and loss

34.
The defects liability clause should state:
C. both a and b

36.
The B/L issued by the carrier for road transport is
called
D. Road consignment road
38.
There is no connection between the L/C and the sales
contract. Right or wrong?
A. Completely right
40.
Which of the following discrepancies is NOT the
problem with the L/C
C. There is no endorsement
42.
In the contract, the word “whereas” means:
D. “because” or “considering that”
44.
Why do the exporters offer a discount for early
payment, for example a 1% discount if payment is made within
10 days of the date of invoice
C. Because the exporter can substantially improves his
cash flow
46.

According to the UCC, if the goods fail in any respect
to conform the contract, the buyer may...
D. All the above
48.
The clause covers General Average
C. A,B, C
50.
The workforce at the factory go on strike
B. questionable

2.
… happens when one party ends the contract
because of breach by the other.
A. Cancellation
4.
The point of delivery is much the same for all … terms
and … terms – when the exporter hands the goods over to the
carrier.
A.
C and F
6.
A contract requiring an exporter in Mozambique to
deliver the contract goods in Beira, Mozambique, for the
shipment by sea to Dar es Salaam, Tanzania.
A. Fas Beira
8.
The defects liability clause should state:
C. Both A and B
10.
Among a number of international bodies offering

arbitration services, the … in Paris is the most prestigious.
C. ICC
12.
The mechanism of a confirmed letter of credit works
as follows
C. Buyer instructs an issuing bank to instruct a confirming
bank to pay under a letter of credit in favor of the seller.


13.
Transfer of risk from the seller to the buyer (Incoterm
2000): DES
A.
When the goods are ex-ship
15.
There are … parties to a warranty and … in a
guarantee.
C. Two/three
17.
“A voltmeter that is specified as accurate within 1
millivolt is accurate within only 5 millivolt” is an example of:
A.
Defective design

19.
Who issues export credit insurance?
C. An insurance company
21.
Which type of bill of lading is negotiable?
C. To order

23.
Which of the following discrepancies is not
the problem with inconsistencies among the documents?
B. Documents are not presented within the required time.
25.
The two terminologies which mean the same thing as
…
C. Warranty and defects liability

27.
Dawson bought vanilla beans from Indonesia. Dawson
instructed an American bank to open a letter of credit. One of
the required shipping documents was a certificate of quality
issued “by experts”. The bank paid the exporter. The beans,
when they arrived, were rubbish. The certificate of quality was
signed, however, by only one “expert”. Could the bank collect
from Dawson the money it paid to the exporter?
C. No, it couldn’t
29.
What is a letter of credit calls for ‘a complete set of
original air waybills’?
D. Only the second original of the air waybill goes to the
consignee. The bank, however, will follow the wording of
the letter of credit exactly and refuse an ‘incomplete set’
waybills.
31.
In a contract under a Continental law, a recital …
C. Is not essential
33.
Which of the following discrepancies is not the

problem with the letter of credit?
D. Insurance cover is expressed in a currency other than
that of the credit.
35.
If the buyer can make certain assumptions
about goods – even if the exporter gives no express warranty,
these assumptions are called …
D. Implied warranties
37.
For the exporter, the option to repair a
defective item abroad …
B. Can be costly
39.
When the goods arrive, if they are …, the importer can
reject them but if they … specifications, he is obliged to accept
them.
A.
Defective/conform to
41.
Who issues ocean bill of lading?
C. Shipping company

43.
Of the three options available for settling disputes,
litigation before the court is internationally least attractive as it
is …
A.
Expensive and legalistic
45.
An endlessly renewed liability for defects is

called:
A.
Eternal warranty
47.
Small purchases in private life are often in the form of
D. Any of the above
49.
Continental law has well developed private
law, especially contract and ..
A.
Commercial law

14.
The majority of shipping document presented to banks
under documentary credit transactions are accepted on first
presentation. Right or wrong?
B. Definitely wrong..
16.
… is open-ended.
C. Open cover
18.
A price an payment clause taken from an export
contract is as follows: “the price payable for the Contract Goods
as specified in Annex A is $500,000”. What is missing?
C. The clause lacks all the necessary five steps in
negotiating payment like payment mode, time, place, delay
and results of delay
20.
In contracts, “partial invalidity provision” means the
invalidity of one part of the contract …

B. Does not invalidate the rest
22.
The cheapest mode of transport is …
A.
By sea
24.
Which country requires that all goods imported into
the country are inspected by the SGS immediately before
shipment? C. Indonesia
26.
Which of the following method of payment is not
possible?
D. Part of the contract price is paid by letter of credit but
there is not a clear figure stated in the amount of the
credit.
28.
Once the bank has indicated the
discrepancies, what can the exporter do?
D. Any of the above.

30.
A liquidated damages clause protects …
C. Both sides

32.
It is common to put the definition clause … of the
contract.
B. Near the beginning
34.
Continental Law is also called …

A.
Civil Law

36.
When an offer is made, it is not applicable when it has
…?
C. Revocation
38.
The bank notifying the exporter that the letter of credit
has been opened is called …
B. The advising bank
40.
Transfer of risk from the seller to the buyer (Incoterm
2000): CIP
B. When the goods are handed to the first carrier
42.
A contract requiring the exporter to send the contract
goods by road from Kenya to Zambia with freight paid by the
exporter
B. CPT Lusaka
44.
The clause covers General Average
C. A, B, C

46.
Shortage of supplies (Background: the exporter
cannot get the raw jute he needs from the supplier because of
a shipping delay)
A.
Yes

48.
An offer dies if is has a/an …
D. Revocation
50.
“repair by the buyer” provision is often …
C. Avoided by the seller.


ĐỀ 5
1.
In how many originals and copies is the air waybill
issued according to the standard of the International Air
Transport Association - IATA?
C. Three originals and nine copies
3.
Dawson bought vanilla beans from Indonesia. Dawson
instructed an American bank to open a letter of credit. One of
the required shipping documents was a certificate of quality
issued “by experts”. The bank paid the exporter. The beans,
when they arrived, were rubbish. The certificate of quality was
signed, however, by only one “expert”. Could the bank collect
from Dawson the money it had paid to the exporter?
C. No, it couldn’t
5.
In CIF and CIP contracts, the exporter normally
assigns the insurance agreement to …
A.
The buyer
7.
Shortage of supplies ( background: the exporter

cannot get the raw jute he needs from the supplier because of
a shipping delay)
A.
Yes
9.
The period during which the buyer can begin a legal
action is legally called
C. Legal action period
11.
Minimum coverage is the so-called Cargo clause …
C. C
13.
The bill of lading issued by the carrier for combined
transport is called …
D. Combined transport bill of lading
15.
A warranty is aimed at
B. Assurance of product performance
17.
In a contract under a Continental law, a recital …
D. Is useful
19.
The names of … are normally the full, registered
name of the company
D. The parties
21.
Anglo – American law is also called …
A.
Common law
23.

If both parties perform their duties correctly, a
contract is discharged by …
C. Performance
25.
In a contract under a Continental law, a recital …
C. Is not essential

27.
The method of payment which is dangerous for the
exporter is …
B. Accepting a personal check
29.
Why do most exporters offer a discount for early
payment, for example a 1% discount if payment is made within
10 days of the date of invoice?
C. Because the exporter can substantially improves his
cash flow
31.
What happens if the issuing bank finds a problem with
the documents and refuses to send funds to the advising bank
to cover payment?
C. The payments from the advising bank to the exporter
are always made which recourse. The exporter has to pay
back the advising bank in such a case
33.
How many timing problems are involved in Defects
Liability Period?
B. Four
35.
The mechanism of a confirmed letter of credit works

as follows:
C. Buyer instructs an issuing bank to instruct a confirming
bank to pay under a LC in favor of the seller
37.
Which of the following discrepancies is not
the problem with the LC
D. Insurance cover is expressed in a currency other than
that of the credit

2.
The Disclaimer of warranty means:
B. The buyer is denied of some of his normal rights
4.
War risk is not included in …
C. A, B, C clause

6.
A.

Normally Risks are transferred at the point of ...
Delivery

8.
Transfer of risk from the seller to the buyer (incoterm
2000) : CIP
B. When the goods are handed to the first carrier
10.
The bank that the buyer asks to open a letter of credit
is called …
A.

The issuing bank
12.
The two terminologies which mean the same thing are
C. Warranty and Defects Liability
14.
Which of the following is the objective aimed at by the
exporter to minimize risk of the goods being rejected or of
heavy defects liability claims?
C. Negotiating detailed specifications
16.
Inspection of the goods by the buyer in the
manufacturer’s factory is referred to as:
B. Pre-delivery inspection
18.
A ban is issued on the export of jute products by
newly elected government that has been preparing legislation
on this subject for five years.
Khaothi la Yes, theo sach la Questionable
20.
Bill of lading is the most important document because
it is a …
A.
Document of title
22.
The delivery depends on …
B. Effective date
24.
The parties to a contract are not always required to …
the Vienna sales convention
B. Apply

26.
Which is the most appropriate method of payment for
the exporter in the following case?
Sale of a bale (roll) of cloth costing $200 to a nearby tailor’s
shop with whom you have done business for 20 years.
B. Open account with no security
28.
In negotiating a letter of credit, the step in which the
exporter rigorously checks documentation and submits it to the
bank is …
D. Compliance
30.
If shipment is under Incoterms other than CIF or CIP,
…
D. The exporter pays for insurance till the port of
discharge
32.
Negotiation of specifications between the exporter and
the importer can be …
B. A difficult process

34.
The main difference between Continental and AngloAmerican contract law is the degree of …
A.
Codification
36.
Assuming shipment is by rail, what if a LC demands
the original bill of lading?
C. Such a LC is certain to cause delay in payment
38.

… is open-ended
C. Open cover


39.
A.

Which of these counts as a defect?
Wrong design

41.
In negotiating a LC, the step in which the list of all
required documentation is incorporated into the contract is …
B. Incorporation
43.
A contract is not enforceable if …
C. It has an illegal purpose
45.
If the price is quoted FOB Singapore, who pays the
insurance and freight?
B. The buyer
47.
As for Anglo-American law, the decision of the judge
is always …
C. Unpredictable
49.
The Vienna sales convention is also called …
C. The uniform nations convention on the Contracts for the
international sale of goods
ĐỀ 6

1, Is there any requirement that the air waybill shows the date
of the flight?
B, yes, there is
3, in negotiating a letter of credit, the step in which the exporter
rigorously checks documentation and submits it to the bank
is….
D, Compliance
5, Companies …….to use the short form of the names in
contracts.
C, are allowed
7, The stand-by letter of credit originated in the U.S is used
from there because
C, the banking law in some states forbids banks to issue
payment guarantee
9, contract comes into force when an offer is made by one side
and……by the other
A, accepted
11, Transfer of risk from the seller to the buyer (Incoterm 200):
DES
A, When the goods are ex-ship
13, Which type of payment is the most advantageous for the
exporter?
A, Credit by sight payment
15, In settlement by sight payment…………
C, The seller presents the necessary documents to the paying
bank
17, what is transferable credit
B, It is the kind of credit which allows the first beneficiary to
request the confirming bank to pay a third party
19, in international trade, if payment is made on delivery, the

method of payment to be chosen will be……
D, At sight letter of credit
21, the risk of rough handling is not covered under the cargo
clause……
D, B and C
23, which of the following examples is a patent defect?
A, crushes or stained garments
25, a disclaimer of warranty often accompanies delivery of
A, software
27, which of the following discrepancies is NOT a problem with
the LC
C, there is no endorsement if endorsement is necessary
29, …..is open- ended
C, open cover
31, if the box “with brief advice by teletransmission” is crossed,
it means…..
A, the exporter wans to be informed of the issuance of the LC
by telex
33, Inspection by carrier on dispatch is often carried out:
A, in seller’s country

40.
What can protect both the exporter and the importer in
an export contract?
A.
A well-designed set of specifications
42.
In settlement by deferred payment, the LC is paid after
delivery. Right or wrong?
D. The LC is not payable until a number of days

44.
In principle the buyer can reject delivered goods if
they do not conform to the contract. This is called …
B. Implied warranty of conformity
46.
The majority of shipping documents presented to
banks under documentary credit transactions are accepted on
first presentation. Right or wrong?
B. Definitely wrong
48.
The Anglo-American contract is …
B. Traditionally the entire agreement
50.
In a contract, the word “whereas” means …
D. “because” or “considering that”

2, Disclaimer of warranty often accompanies:
D, Contacts for software
4, which off the following statement is wrong?
B, Sometimes, the bank may question the necessity or value of
the documents.
6, It is common to put the definition clause…….of the contract
B, near the beginning
8, The court of arbitration applies whatever………the parties
stipulate in the contract
C, national law
10, among a number of international bodies offering arbitration
services, the……..in Paris is the most prestigious.
C, ICC
12, If a country ratifies the Vienna Sales Convention, in the

event of conflicts, the Vienna Sale Covention can …… the
national law
A, Prevail over
14, The point at which money is deemed to be paid most
preferred by buyer is……..
C, When the buyer instructs the bank to pay
16, Failure to meet specification is a
C, Defect in design
18, A marine Bill of lading becomes negotiable document and
no restriction on ownership when it is….
A, to order, bank endorsed
20, decision of arbitrator is…….
B, Business-oriented
22, Negotiation of specifications between the exporter and the
importer can be….
B, A difficult process
24, the word ‘cash’ in international trade means…..
C, check or bank transfers
26, Once the bank has indicated the discrepancies, what can
the exporter do?
D, any of these above
28, “Minimum coverage” is the so-called Cargo Clause…….
C, C
30, Continental law is bases on a
C, legal code
32, shortage of supplies(background: The exporter cannot get
the raw jute he needs from the supplier because of a shipping
delay)
A, Yes
34,Druken people have no……to sign a contract

A, contractual capacity


35, Dawson bought vanilla beans from Indonesia. Dawson
instructed an American bank to open an LC. One of the
required shipping documents was a certificate of quality issued
“by expert”. The bank paid the exporter. The certificate of
quality was signed. However, by only one “expert”. Could the
bank collect from Dawson the money it had paid to the
exporter?
C, no, it couldn’t
37, if the price is quoted CIF San Francisco, who pays for the
insurance and freight?
A, the exporter
39, in negotiating a LC, the step in which the exporter checks
the credit ti see that required documentation is as agreed is
C, Verification
41, the defect liability period is also called
A, warranty period
43, which of the following is the least des irable option for the
exporter
C, return the good and return the price
45, to make sure that the officer signing the contract has
authority to sign the contract, partiesshoud check
B, the authenticity of the signature
47, a well-designed set of specifications protects buyer
against…..products
C, inferior
49, who issues bill of lading
C, shipping company

ĐỀ 7
1.
An offer dies if it has a/an
D. revocation
3.
The Vienna Sales Conservation is also called:
C. The United Nations Convention on Contracts for the
International Sale of Goods
5.
Which is the most appropriate method of payment
for the exporter in the following case? Sale of a bale (roll)
of cloth costing $200 to a nearby tailor’s shop with whom
you have done business for 20 years.
B. Open account with no security
7.
A contract requiring an exporter in
Ethiopia to send the contract goods by air for delivery in
Windhoek, Nambia
B. CIP Windhoek
9.
The lump-sum compensation is set too low _____
B. quasi indemnity
11.
Agreements, under Anglo-American Law, are of
____
A. 2 types
13.
Which of the following discrepancies is NOT the
problem with the LC?
D. Insurance cover is expressed in a currency other than

that of the credit
15.
The background of the contract is provided in the
form of _____
D. a whereas- recital
17.
The advantages of arbitration are _____
A. Private and foreseeable costs
19.
If the price is quoted EXW, who pays for the
freight?
B. The buyer
21.
Disclaimer of warranty often accompanies:
D. Contracts for software
23.
The force majeure clause suggested by
the International Chamber of Commerce, for example,
states that payment of interest on overdue sums payable
to the seller is ____ by ____
B. not excuses/ force majeure

36, if both party perform their duties exactly according to the
contract, the contract is…….
A, discharged by performance

38, assuming shipment is by rail, what if a LC demands the
original Bill of lading
C, Such a letter of credit is certain to cause delay payment
40, the dock workers in Port Verbena go on strike

A, yes
42, “a machine that consumes more fuel than specifications” is
an example of
A, latent defect
44, a contract requiring an exporter in Ethiopia to send the
contract goods by air for delivery in Windhoek, Namibia
B, CIP Windhoek
46, when are document considered to be stale?
B, when they are submitted to the opening bank after the
merchandise has already arrived
48,in a contract, ‘whereas’ mean
D, because or considering that
50, if the force majeure event continues for too long, both
parties have the right to……
B, terminate the contract

2.
Which of the following discrepancies is NOT the
problem with the L/C?
C. There is no endorsement if endorsement is necessary
4.
Negotiation of specification between the exporter
and the importer can be
B. a difficult process
6.
Which of the following statement is wrong?
A. The bank must check if the documents specified in the letter
of credit are in perfect order.
B. Sometimes the bank may question the necessity or
value of the documents.

8.
Continental law is widely used for ____
B. National issues

10.
The guarantor is usually a ____
C. Both
12.
Unless the LC states otherwise, insurance
coverage on a CIF or CIP shipment must be for ____ of the
CIF (or CIP) value of the goods.
D. 110%
14.
What does “3/3 Marine Bill of Lading” mean?
A. It means the exporter must produce three originals and
three copies of the marine bill of lading.
16.
Continental Law copies with_____
C. National issues
18.
It’s always good for the exporter to promote his
skills and the excellence of his products _____
C. in the recital
20.
Which corrective method is least favorable for the
seller?
C. return the goods and refund the price
22.
The bill of lading issued by the carrier for
combined transport is called ____

D. Combined transport bill of lading
24.
What happens if the issuing bank finds a problem
with the documents and refuse to send funds to the
advising bank to cover payment?
C. The payments from the advising bank to the exporter
are always made with recourse. The exporter has to pay
back the advising bank in such a case.


25.
General average has the conditions ____
D. A and C
27.
Within the four alternatives of the at-sight LC,
which one is the least satisfactory for the exporter?
D. Settlement by negotiation
29.
Transfer of risk from the seller to the buyer
(Incoterm 200): EXW
A. When the goods are at the seller’s premises
31.
With defective heavy equipment, it is usually the
case that:
C. just a defective part is replaced
33.
The buyer can reject goods that are not of
saleable quality. This is called ____
C. Implied warranty of merchantability
35.

“Repair by the buyer” provision is often ____
C. avoided by the seller
37.
Transfer of risk from the seller to the buyer
(Incoterm 2000): FCA
B. when the goods are handed to the first carrier
39.
Returned shipment to the exporter’s country
means:
A. the deal is a total loss for the exporter
41.
All risks covered is under ____
clause
A. A

26.
Unless otherwise agreed, the insurance is
“minimum cover” – cargo clause_____
C. C
28.
How many originals and copies is the air waybill
issued according to the standard of the International Air
Transport Association – IATA?
C. Three originals and nine copies
30.
The names of ____ are normally the full, registered
the name of the company.
D. the parties
32.
How many types of implied warranties are there?

B. three
34.
Small purchases in private in life are open in the
form of ____
D. Any of the above
36.
An offer is not always, in international practice,
the first move in forming a _____
A. contract
38.
Who issues export credit insurance?
C. an insurance company
40.
In a contract under a Continental law, a recital
____
D. is useful
42.
The best solution for the exporter to
make late payment impossible is ____.
D. a confirmed, irrevocable, at sight letter of credit

43.
What are the common discrepancies
reported by banks in practice?
D. Any of the above

44.
defect?
B. Misuse

Which of these does not count for a

45.
In settlement by deferred payment, if the
seller needs money immediately, what can he do?
B. He can exchange the letter of credit for cash with any
agreeable bank.
47.
If both parties perform their
duties correctly, a contract is discharged by ____
C. Performance
49.
The risk of rough handling is not
covered under the cargo clause____
D. B and C

46.
C. A, B, C

The clause covers General Average:

ĐỀ 8
1. The bill of lading issued by the carrier for road transport is
called ……….
D. road consignment note
3. In settlement by sight payment …………
C. the seller present the necessary documents to the paying
bank
5. The cost of L/C amendments are normally for …………
D. The one who ask for such amendment

7. Where is often the place of expiry of the credit
C. At the counters of the confirming bank
9. The essence of Continental Law is ………
C. codification
11. In settlement by deffered payment, if the seller needed
more money immediately, what can he do
B he can exchange the letter of credit for cash with any
agreeable bank
13. The place of payment is very important because late
payment is subject to payment of interest and the cost of any
delay along the payment route properly belong to …………
A. The buyer
15. Under Anglo – American Law, a contract must give….
A. both right sides and duties
17. “ A machine that consumes more fuel than specifications” is
an example of ……
A. latent defect

48.
Earthquake,
volcanic
eruption and
lighting are not covered under the cargo clause_____
C. C
50.
Which of the following discrepancies is
NOT the problem with the Bill of Lading?
C. The description of the goods on the invoice and the
description of the goods in the credit are different..
2. Elderly people are …. To deal with a contract

B. Able
4. Is there any “refconfirming bank”
B. Yes. There is one in case banks are reluctant to confirm
letter of credit, especially those ffrom obscure banks
6. The disadvantage of …… policy is that it is set up for
particular time and automatically expires.
B. floating
8. …………….. is open – ended
C. open cover
10. Which of these requires prior inspection by SGS
A. Indonesia
12. What would be the effect on the price of goods traded if the
buyer wants the goods sooner
D. The price of the goods will go up as extra costs involved due
to the extra working shift from the manufacturer
14. Transfer of risk from the seller to the buyer (Incoterm 2000):
DDU
A. When the goods are at the buyer ‘s premises
16. A contract requiring an exporter to sent the contract goods
by air for delivery in Windhoek, Namibia
B> CIP Windhoek
18. Anglo – Amrican Law develop[ed through……..
C.Court decisions


19. TO make sure that the officer signing the contract has
authority to sign the contract, patientsshoiul check…..
B.Theauthencity of the signature
21. “the radio lacks the wires connecting the loudspeaker to the
amplifier” is an example of

C. defective workmanship
23. The best solutinon for the xporter to make the the late
payment immpostible is …..
D. A confirm is irrrevocable, at sight latter credits
25. All risks cover is unger ………. Clause
A. A
27. In term of payment in international trade, ……….
D. Risk and cost rise and fall together
29. A well – designed set of specifications protect:
C. both parties
31. Inspection by the buyer is called
C. open package inspection
33. A bill of lading with the note is ………….
B. clause bill of lading

35. Another name for warranty is
B. defect liability
37. A mistake about the goods in a contract means there is no
……….
B. meeting of minds
39. Wsr risk is not included in
C. A,B,C clause
41. ………… Bill of lading – found sth wrong with the
consignment
C. Claused
43. The decision of arbitrators is
B. business – oriented
45. When the exporter fills in the letter of credit application
form, if the box “requested” for the “confirmation of credit to the
beneficiary” is ticked what does it mean?

B. It means the exporter wants the bank in his country make
the payment itself and recover the funds from the buyer ‘s bank
47. As the consequence of a defect can be expensive, the
question of who pays for the consequential loss or damage is
often ……….
B. controlversial
ĐỀ 9
1.
Which type of bill of lading is negotiable?
to order

3.
A contract requiring an exporter in Ethiopia to send
the contract goods by air for delivery in Windhoek, Namibia.
CIP Windhoek
5.
The lump-sum compensation is set about right
liquidated damages
7.
If the box "With brief advice by teletransmission” is
crossed, it means
The exporter wants to be informed of the issuance of the
letter of credit by telex.
9.
In settlement by sight payment
The seller presents the necessary documents to the
paying Dank.
11.
A commercial invoice must be made out to _____.
The applicant for the letter of credit, normally to the buyer,

unless otherwise stated in the credit
13.
What are the set of assumptions with which a price
quotation is based?
Delivery, payment and warranty terms.

20. A contract Is not enforceable if ……………
C. it has an illegal purchase
22.The bill of lading issued by the carrier for combined
transport a s called…..
D combine transport bill of lading
24. The bill of lading issued by the carrier for rail transport is
called ………..
C. Railway consignment note
26. The advising bank never pays the exporter directly. Right or
wrong ?
C. It depends on the type of credit
28. Which type of payment is the most advantageous for the
exporter
A. credit by sight payment
30. To avoid confusion, may contract drafters use “ …………..”
instead of “ warranty”
D. defect liability
32. It is possible for the beneficiary (exporter) sometimes,
though not often, to make a draft on the band to collect the
money
D. Yes, it is
34. In settlement by acceptance, what will the bank do after
receiving the documents and drafts drawn on the buyer from
the seller

D. the banks agree to pay the bill when it mature
36. to cure the defective goods, the best option for the exporter
is
D. dependent on the types of goods
38. The exporter should have no liability for the goods when
they are ………….
A. beyond the control
40. The arbitrator’s award are
B. final and enforceable
42. Which of this following is not needed for a legally binding
contract be in force
A. written contract
44. Termination for default occurs when the contract names
certain ………… which allow one side to terminate
B. defaults
46. The thing that the exporter should keep in mind in
negotiating payment are …….
A. Payment mode , timing, place, delay, and results of delay
48. It is common to put the definition clause ……….of the
contract
B. near the beginning

2.
In a confirmed letter of credit, what happens if the bank
pays the exporter and the issuing bank finds something wrong
with the documents?
The confirming bank has paid the money to the exporter and has
no way of recovering it. The confirming bank must pay the
exporter without recourse
4.

Which of the following is NOT the method of issuing
the letter of credit?
By email
6.
An offer dies if it has a/ an
Revocation
8.
The two terminologies which mean the same thing
are....
Warranty and Defects Liability
10.
There are…. parties to a warranty and…. in a
guarantee.
two/three
12.
Inspection of the goods by the buyer in the
manufacturer’s factory is referred to as:
Pre-delivery inspection
14.
A marine bill of lading can be negotiable document
with which
The buyer can use it to resell the goods during shipment.


15.
The background of the contract is provided in the form
of
a whereas-recital
17.
guarantee is:Tripartite

19.
If the buyer can make certain assumptions about
goods - even if the exporter gives no express warranty, these
assumptions are called….
implied warranties
21.
With a well-designed set of specifications, the seller
can protect its… and avoid costs.
Reputation
23.
After making the shipment of the goods to the buyer,
the exporter presents the shipping documents to…
The advising bank.
25.
Continental law prevails in
Europe

27.
Failure to meet specifications is a:
Defect in design
29.
The bill of lading issued by the carrier for road
transport is called Road consignment note
31.
Companies
………to use
the
short
form

of
the
names in contracts.
are allowed
33.
To avoid confusion, many contract drafters use "___”
instead of "warranty”.defect liability
35.
A letter of credit can be either "revocable” or
"irrevocable”. Few exporters will accept a revocable letter of
credit, so the plain expression "letter of credit1' generally means
the irrevocable kind The word "irrevocable”, therefore, should
not always appear in the text of the credit and of the contract.
Right or wrong?
Wrong, because it should always appear in the text of the
credit and of the contract according to the ICC's rules
37.
The lump-sum compensation is set too high penalty

39.
Why is the Certificate of Origin required?Because the
goods imported are under a preferential tariff or other
agreement
41.
___can create no - contract situations
Duress, fraud, and mistake all
43.
Quality assurance and customer satisfaction are the
same issues for customers
Both A and B

45.
Which of the following discrepancies is NOT the
problem with the Letter of Credit?
Insurance cover is expressed in a currency other than that
of the credit
47.
(Note: If either party is preventedfrom, or delayed in,
performing anv duty under this Contract bv an event beyond his
reasonable control, then this event shall be deemedforce
majeure.) Shortage of supplies (Background: The exporter
cannot get the raw jute he needs from the supplier because the
Central Bank will not give him foreign exchange to pay the
supplier). NO
49.
The Anglo-American contract is
traditionally the
entire agreement
ĐỀ 10
Câu 1: The delivery depends on…
B. Effective date
Cau 3: In a contract under a Continental Law, a recital…
D. Is useful

Cau 5: If the price is quoted CIP Marseille, who pays for the
insurance and freight?
B. The exporter

16.
Who signs "shipped on board’' notation?
Captain

The
…………..has
no
power to
enforce his solution or to bind the parties, his task is
to suggest a fair solution only.
Conciliator
20.
How do you know Bill of lading is "Marine Bill of
lading”?There is a……
on board notation
18.

22.
The place of delivery is doubly important to the
exporter because the date of…. normally depends on time and
place of delivery.
Payment
24.
If a dispute arises, the recital allows the court to
discover the real meaning of
the contract
26.
A contract requiring the exporter to send the contract
goods by road from Kenya to Zambia with freight paid by the
exporter.
CPT Lusaka
28.
The answers to the questions of implied warranties
are supplied by:Most laws

30.
When the Bill of lading marked "freight prepaid”. Who
pays for the freight?The Seller
32.
The things that the exporter should keep in mind in
negotiating payment are . Payment mode, timing, place,
delay and results of delay
34.
There is no connection between the letter of credit and
the sales contract. Right or wrong ?Completely right.
36.
The expiry date of the letter of credit is
B The last date for presentation of documents to the bank

38.
The place of payment IS very important because late
payment IS subject to payment of interest and the cost of any
delay along the payment route properly belongs toThe buyer
40.
Of the three options available for settling disputes,
litigation before the court is internationally least attractive as it
is
Expensive and legalistic
42.
To cure the defective goods, the best option for the
exporter is: dependent on the type of goods
44.
"Minimum Coverage" is the so-called Cargo Clause
C
46.

Parties to contract for the sale of goods are free to
choose
Applicable law
48.
A contract comes into force when an offer is made by
one side and
by
the
other. Accepted

50.

Anglo-American law is also called Common law

Cau 2: Normally, Risks are transferred at the point of…
A.
Delivery
Cau 4: The period during which the buyer can begin a legal
action is legally called:
C. Legal action period
Cau 6: How to make a bill of lading negotiable?
D. Fill the words “to order” in the Consignee box


Cau 7: Which of the following discrepancies is NOT the
problem with the Bill of Lading?
C. The description of the goods on the invoice and the
description of the goods in the credit are different
Cau 9: Inspection of the goods by the buyer in the
manufacturer’s factory is referred to as:

B. Pre-deliver inspection
Cau 11: Transfer of risk from the seller to the buyer (Incoterm
2000): DDU
A.
When the goods are At the buyer’s premises
Cau 13: In settlement by sight payment
C. The seller presents the necessary documents to the paying
bank
Cau 15: Cancellation on… grounds makes no legal sense
C. Trivial
Cau 17: Inspection by carrier on dispatch is often
carried out:
A.
In seller’s country
Cau 19: Anglo – American law develops through…
C. Court decisions

Cau 21: In principle the buyer can reject delivered goods if they
do not conform to the contract. This is called…
B. Implied warranty of conformity
Cau 23: In a perfomance guarantee, if the seller works badly or
not at all, the guarantor will pay the buyer, within stated
limits,…
D. Between 5% and 10% of the contract price
Cau 25: Which of the following is essential to successful
business?
B. Customer satisfaction
Cau 27: The workforce at the factory go on strike
A.
Yes

Cau 29: Under Anglo – American law, a contract must give…
A.
Both sides rights and duties

Cau 31: Export credit insurance gives the exporter an
acceptable level of security in terms of payment shall be paid
by:
B. The exporter
Cau 33: Which corrective method is least favourable for the
seller?
C. Return the goods and refund the price
Cau 35: Defects include
B. Materials
Cau 37: The background of the contract is provided in the form
of ….D. A whereas-recital
Cau 39: The entire agreement provision means ……. must be
established within the contract itself.
A.
The background of the contract
Cau 41: The question of warranty is disposive. This means:
B. The exporter can usually exclude all warranties
Cau 43: Where is often the place of expiry of the credit?
C. At the counters of the confrimbank
Cau 45: A ban is issued on the export of jute products by newly
elected government that has been preparing legislation on this
subject for five years.
Khaothi la Yes, theo sach la Questionable
Cau 47: The force majeure clause suggested by the
International Cham ber of Commerce, for example, states that
payment of interest on over due sums payable to the seller is

…… by …….
B. Not excused/force majeure
Cau 49: What if a letter of credit requires “an appropriate
wildlife certificate”?
D. All of the above

Cau 8: Unless the letter of credit states otherwise, insurance
coverage on a CIF or CIP shipment must be for … of the CIF
(or CIP) value of the goods.
D. 110%
Cau 10: Termination may be for
C. Convenicence
Cau 12: If the buyer comes from a country which has poor
reputation for enforcing awards, the best method of payment
under the contract is a/an…
B. At sight, confirmed L/C
Cau 14: In contracts,… is not normally allowed
A.
Delegation of duties
Cau 16: An offer dies if it has a/an…
D. Revocation
Cau 18: Why can a manufacturer sometimes accept a loss on
an export deal?
D. Any of the above.
Cau 20: In negotiating a letter of credit, the step in which the
exporter checks the credit to see that required documentation
is as agreed is…
C. Vertification
Cau 22: Companies… to use the short form of the names in
contracts.

C. Are allowed
Cau 24: The adivising bank never pays the exporter directly.
Right or wrong?
C. It depends on the type of credit
Cau 26: If the price is quoted CIF San Francisco, who pays for
the insurance and freight?
A.
The exporter
Cau 28: Elderly people are… to deal with a contract
B. Able
Cau 30: To avoid the dangers of slow payment, exporters try to
protect themselves with a clasuses like this: “Payment shall be
deemed to have been made only when….”
D. Funds reach the seller’s bank account and at his full
disposal
Cau 32: What are the set of assumptions with which a price
quotation is based?
D. Delivery, payment and warranty term s
Cau 34: The risk of rough handling is not covered under the
cargo clause….
D. B and C
Cau 36: the clause covers General Average
C. A, B, C
Cau 38: To cure the defective goods, the best option for the
exporter is:
D. Dependent on the type of goods
Cau 40: Transfer of risk from the seller to the buyer (Incoterms
2009): DEQ
A.
When the goods are ex-quay

Cau 42: The bill of lading issued by the carrier for rail transport
is called…..
C. Railway consignment note
Cau 44: The Incoterms….. contains 13 terms
D. 1990 and 2000
Cau 46: The majority of shipping documents presentd to banks
under documentayr credit transactions are accpeted on first
presentation. Right or wrong?
B. Definitely wrong
Cau 48: What is a transferable credit
B. It is the kind of credit which allows the first beneficiary to
reques the confirming bank to pay a third party.

Cau 50: For the exporter, the option to repair a defective item
abroad……
B. Can be costly


Đề 11
1. If both parties perform their duties exactly according to the
contract, the contract is…
A.
Discharged by performance
3. The advising bank never pays the exporter directly. Right or
wrong?
C. It depends on the type of credit.
5. When parties agree to end a contract, … occurs.
C. Rescission
7. Exporters prefer:
B. the replacement of the defective item to the return of it

9. A contract that is ultra vires is…
B. unenforceable
11. Under Anglo-American law, a contract must give…
A.
both sides rights and duties
13. The arbitrators’ awards are…
B. Final and enforceable

15. The stand-by letter of credit originated in the U.S. is used
there because…
C. the banking law in some states forbids banks to issue
payment guarantee
17. The essence of Continental law is…
C. Codification
19. In CIF and CIP contracts, … must pay for insurance from
the point of delivery to the named point of arrival.
A.
The exporter
21. Who usually pays for curing defects?
B. The exporter
23. Under the public law, a company can only sign a contract…
D. that is within its power
25. The Incoterm … contains 11 terms.
C. 2010

27. A payment guarantee simply commits the bank to pay if the
buyer defaults. The payment guarantee is usually for … of the
contract price.
A.
100%

29. A liquidated damages clause protects …
C. both sides

31. What is a transferable credit?
B. It is the kind of credit which allows the first beneficiary
to request the confirming bank to pay a third party.
33. Which is the most appropriate method of payment for the
exporter in the following case?
A contract for supply of cloth worth $5,000 per month to the
government of Oceanea – a prosperous country. Duration of
the contract is 2 years, but renewable. Contract represents
25% of turnover.
C. If possible, a bank guarantee. Otherwise, export credit
insurance.
35. Another name for Tender Guarantee is…
D. Bid bond.
37. “A machine that consumes more fuel than specifications” is
an example of
A.
Latent defect
39. Export credit insurance which gives the exporter an
acceptable level of security in terms of payment shall be paid
by… B. The exporter

2. Continental law is widely used for…
B. national issues
4. The defects liability clause should state:
C. both A and B
6. Which of the following is essential to successful business?
B. Customer satisfaction

8. If shipment is under Incoterms other than CIF or CIP,…
D. The exporter pays for insurance till the port of
discharge.
10. The answers to background questions are written…
A.
through the whereas-recital
12. The … has no power to enforce his solution or to bind the
parties, his task is to suggest a fair solution only.
B. Conciliator
14. A letter of credit can be either “revocable” or “irrevocable”.
Few exporters will accept a revocable letter of credit, so the
plain expression “letter of credit” generally means the
irrevocable kind. The word “irrevocable”, therefore, should not
always appear in the text of the credit and of the contract. Right
or wrong?
B. Wrong, because it should always appear in the text of
the credit and of the contract according to the ICC’s rules.
16. The delivery depends on…
B. effective date

18. CIF and CIP contracts are especially confusing since they
name the point of…
B. destination
20. Two parties sign a contract
A.
The contract is binding
22. “Full set on board ocean bills of lading to order shipper,
blank endorsed”. In this clause shipper means…
D. A or B or C. It depends on the situation.
24. If the price is quoted FOB Singapore, who pays for the

insurance and freight?
B. The buyer
26. Is it possible for the beneficiary (exporter) sometimes,
though not often, to make a draft on the bank to collect the
money?
D. Yes, it is.
28. There are … parties to a warranty and … in a guarantee.
C. two/three

30. Export credit insurance is a kind of special privilege that an
exporter may get from his government’s export incentives and
support’. Right or wrong?
D. It is not a charity. It is beneficial for both exporter and
insurance company
32. If the price is quoted CFR Hai Phong, who pays for the
freight?
B. The exporter
34. If the price is quoted CIF San Francisco, who pays for the
insurance and freight?
A.
The exporter

36. In settlement by deferred payment, the letter of credit is
paid after delivery. Right or wrong?
D. The letter of credit is not payable until a number of days
38. If the force majeure event continues for too long, both
parties have the right to…
B. terminate the contract
40. The lump-sum compensation is set too high…
C. penalty

41. Returned shipment to the exporter’s country means:
A.
the deal is a total loss for the exporter

43. Transfer of risk from the seller to the buyer (Incoterm 2000):
FAS
A.
When the goods are ex-quay
45. What are the set of assumptions with which a price
quotation is based?
D. Delivery, payment and warranty terms
47. An offer dies if it has a/an…
D. Revocation
49. The greatest fear for the exporter is….
C. Being unable to get paid for the goods sold.
ĐỀ 12
1.
The Anglo – American contract is .....
B. Traditionally the entire agreement
3.
In settlement by acceptance, what will the bank do
after receiving the documents and draft drawn on the buyer
from the seller?
D. The bank agrees to pay the bill when it matures.
5.
Defects include:
B. Materials
7.

Independent inspection reports on …
C. Both
9.
Who issues export credit insuarance?
C. An insurance company

11.
Which of the following is NOT the method of issuing
the letter of credit?
a.
By email
13.
The mechanism of a confirmed letter of credit works
as follows :
C. Buyer instructs an issuing bank to instruct a confirming
bank to pay under a LC in favor of the seller
15.
The lump – sum compensation is set too low …
B. Quasi indemnity

17.
A guarantee is :
B. Tripartite
19.
The guarantor is usually a ….
C. Both
21.
The point of delivery is much the same for all …..
terms and ….. terms – when the exporter hands the goods over
to the carrier. A. C and F

23.
In international trade, if payment is made on delivery,
the method of payment to be choosen will be …..
D. At sight letter of credit
25.
Note : If either party is prevented from, or delayed in,
performing any duty under this Contract by an event beyond his
reasonable control, then this event shall be deemed force
majeure)
A lockout (background : The workers have been striking for
one day a week. The management locks the workers out of
factory until they agree to end the strike)
C. No
27.
How to make a bill of lading negotiable?
D. Fill the word “ to order” in the Consignee box.

42. Which is the most appropriate method of payment for the
exporter in the following case?
A contract for supply of cloth worth $5,000 per month to the
government of Oceanea – a prosperous country. Duration of
the contract is 2 years, but renewable. Contract represents
0.5% of turnover.
D. Export credit insurance is advisable. Selling on open
account with no security at all is also possible.
44. Which of the following discrepancies is NOT the problem
with Insurance?
A.
Documents are not presented within the required
time

46. In a contract under a Continental law, a recital…
D. is useful
48. The “exporter’s wording” and the “buyer’s wording” in the
defects liability provision represent:
A.
a major contract issue
50. Under most laws, a buyer can make certain assumptions
about goods. These assumptions are called (by lawyers):
C. Implied warranties
2.
As for Anglo – American law, the decision of the judge
is always …..
C. Unpredictable
4.
Which of these does not count as a defect?
B. Misuse

6.
The advantages of arbitration are:
B. Private and foreseeable costs
8.
War risk is not included in
C. A B C clause
10.
Under most laws, a buyer can make certain
assumptions about goods. These assumptions are called (by
lawyers)
C. Implied warranties
12.
The defects liability clause should state:

C. Both
14.
In negociating a LC, the step in which the exporter
checks the credit to see that required documentation is as
agreed is ….
C. Verification
16.
A price and payment clause taken from an export
contract is as follows : “The price payable for the Contract
Goods as specified in Annex A is $500,000”. What is missing?
C. The clause lacks all the necessary five steps in
negociating payment like payment mode, time, place, delay
and results of delay
18.
Aglo – American law is…
B. Case law
20.
Termination for convenience occurs when one party
simply decides to drop the contract and ….
A. No reason is required
22.
Inspection of the goods by the buyer in the
manufacturer’s factory is reffered to as :
B. Pre- delivery inspection
24.
“Minimum Coverage” is the so-called Cargo Clause
….
C. C
26.
Elderly people are …. to deal with a contract

B. Able

28.
In negotiating a letter of credit, the step in which the
buyer applies for the letter of credit specifying the agreed
documentation is ….
D. None


29.
If either party is prevented from, or delayed in,
performing any duty under this Contract by an event beyond his
reasonable control, then this event shall be deemed force
majeure).
Shortage of supplies (Background: the exporter cannot get the
raw jute he needs from the supplier because of a shipping
delay) A.. Yes

33. A bank guarantee which gives the exporter an acceptable
level of security in terms of payment shall be paid by …….
A. The buyer
Câu 35 : A contract requiring an exporter in Ethiopia to send
the contract goods by air for delivery in Windhoek, Nambia
B. CIP Windhoek
Câu 37 : Where is often the place of expiry of the credit ?
C. At the counters of the confirming bank
Câu 39 : A contract requiring the exporter to send the contract
goods by road from Kenya to Zambia with freight paid by
exporter B. CPT Lusaka
Câu 41: It is possible for the beneficiary (exporter) sometimes,

though not often, to make a draft to the bank to collect the
money ? D. Yes, it is
Câu 43: If a country ratifies the Vienna Sales Convention, in the
event of conflicts, the Vienna Sales Convention can
…………….. the national law.
A. Prevail over
Câu 45: The bill of lading issued by the carrier for air transport
is called ……
A Air waybill
Câu 47: It is common to put the definition clause ………. Of
the contract. B. Near the beginning
Câu 49: In a guarantee, guarantor is often :
C. The bank

ĐỀ 13
1. In settlement by deferred payment, if the seller needs money
immediately, what can he do?
B. He can exchange the letter or credit for card with any
agreeable bank

30.
The disadvantage of ………. Policy is that it is set up
forr particular time and automatically expires.
FLOATING

32. The main difference between continental and Anglo American contract law is the degree of ….
A.
Codification
Câu 34 : When the bill of lading marked “freight prepaid”.Who
pays for the freight?

B. The seller
Câu 36 : Inspection by carrier on dispatch is often caried out:
A. In seller’s country
Câu 38: Anglo-American law is also called …..
C. Common law
Câu 40 : Feeble-minded people are legally unable to ….
Contracts
A. Sign
Câu 42: The first step in negotiating a letter of credit is ….
C. Agreement
Câu 44: If the force majeure event continues for too long, both
parties have the right to ……..
B. Terminate the contract
Câu 46 : Two parties sign a contract
A. The contract is binding
Câu 48 : In a contract under Continental law, a recital ….
D. Is useful
Câu 50: To avoid the dangers of slow payment, exporters try to
protect themselves with a clause like this: “Payment shall be
deemed to have been made only when …”
D. Funds reach the seller’s bank account and at his full
disposal
2. The disadvantage of ……… policy is that it is set up for
particular time and automatically expires
FLOATING

3. Inspection by the buyer is called
C. Open package inspection

4. As for Anglo - American law, the dicision of the judge is

always ………
C. Unpredictable

5. The court of arbitration applies whatever …….. the parties
stipulate in the contract
C. National law
7. In CIF and CPF contract, …..must pay for insurance from the
point of delivery to the named point of arrival
A.
The exporter
9. Every contract is governed by …………..
C. Applicable law

6. When parties agree to end a contract, ……. occurs
C. Rescission

11. Allowing the buyer to repair the equipment at the exporter’s
cost …………..
D. Is offen unsafe for the exporter

12. What does prompt payment of the letter of the credits
depend on?
A. It depends on the presentation of the correct
documentation of the exporter
14. Which type of payment is the most advantageous for the
exporter?
A. Credit by sight payment
16. The essence of Continental law is ………………
C. Codification

13. The entire agreement provision means ……. must be
established within the contract itself
A. The background of the contract
15. Why can a manufacturer sometimes accept a loss on an
export deal?
D. Any of the above
17. In which situation should exporters use export credit
insurance?
B. Transactions represent a high proportion of their
turnover

8. The hereinafter called wording can prevent legal problem
Caused by : ………….
B. Mistyping names
10. Which of the following is the least desirable option for the
exporter?
C. Return the goods and refund the price

18. In negotiating a letter of credit, the step in which the
exporter rigorously checks documentation and submits is to the
bank is …….
D. Compliance


19. A contract is not enforceable if ……………
C. It has an illegal purpose
21. If the price is quoted FAS Osaka, who pays for the freight?
D. The buyer
23. The things that the exporter should keep in mind in
negotiating payment are …………..

A. Payment mode, timing, place, delay and results of delay
25. The …………………… has not power to enforce his
solution or to blind the parties, his task is to suggest a fair
solution only
B. Conciliator
27. What can protect both the exporter and the importer in an
export contract?
A.
A well-designed set of specifications
29. Normally, Risks are transferred at the point of …………..
A. Delivery

31. The advising bank never pays the exporter directly. Right or
wrong ?
C. It depends on the type of credit
33. Who signs “ shipped in board” notation?
A. Captain

35. “ Export credits insurance is a kind of special privilege the
an exporter may get from government’s export and support.
Right or wrong?
D.It is not charity. It is beneficial for both exporter and
insurance company
37. Defects include:
D. Misuse

39. “Nuts and bolts are inadequately tightened” represents :
C. Defective workmanship

20. Defects such as wrong items, broken or missing parts,

scratches, and so on are called…….
A. Patent defects
22. In a contract, consideration may consist of………………….
D. Right, interest, profit, detriment and loss
24. A marine bill of lading can be negotiable document with
which …………..
A.The buyer can use it to resell the goods during shipment
26. Continental Law copes with …………….
C. National issues

28. Which of these does not count as a defect?
B. Misuse
30. A contract requiring an exporter in Mozambique to deliver
the contract goods in Beira, Mozambique, for the shipment by
sea to Dar es Salaam, Tanzania
A. FAS Beira
32. There are ……. parties to a warranty and ……………in a
guarantee
C. Two/three
34. Dawson bought vanilla beans from Indonesia. Dawson
instructed an America bank to open a letter of credit. One of the
required shipping documents was a certificate of quality
issuaed“ by experts”. The bank paid the exporter. The beans,
when they arrived, were rubbish. The certificate of quality was
signed, however, by only on “ expert”. Could the bank collect
from Dawson the it has paid to the exporter?
C. No, it could’t
36. Which of the following is NOT the reason why the exporter
prefer
a

longer
expiry
period
of
the
credit?
A. He wants to save bank charges

38. If the price is quoted FOB Singapore, then the seller is not
obliged to pay insurance and freight. Right or wrong?
C. Partly right, as the seller is obliged to pay only the
freight and insurance necessary to put the goods on board
of the designated vassel by the buyer
40. Within most Anglo-American jurisdictions, a contract……….
D. Must be two-sided

41. Transfer of risk from the seller to the buyer (Incomter 2000):
DDU
A. When the goods are At the buyer’s premiss

42. The lump-sum compensation is set too high…………..
C. Penalty

43. If the price is quoted FCA, who pays for the freight?
C. The buyer

44. Beside the commercial invoice, the transport document and
insurance document, what do ‘Other documents’ include?
D. Any of the above
46. What is a transferable credit?

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

45. In negotiating a letter of credit, the step in which the
exporter checks the credit to see the required documentation is
as agreed is …………….
C. Verification
47. Where is often the place of expiry of the credit?
C. At the counter of the confirming bank
49. Different legal systems regulate the rejection of delivered
goods must be total …………….can be partial
A. Or
ĐỀ 14
1. In how many originals and copies is the air waybill issued
according to the standard of the International Air Transport
Association – IATA?
C. Three originals and nine copies
3. With a well-designed set of specifications, the seller can
protect its............and avoid costs
A. reputation

48. All risks covered is under…………clause
A. A
50. If the price is quoted CIP Marseille, who pays for the
insuarance and freight?
B. The exporter

2. What kind of inspection is particularly important for
sophisticated items or capital goods?
C. Pre-delivery inspection

4. Which of the following discrepancies is NOT the problem
with the Bill of Lading?
C. The description of the goods on the invoice and the
description of the goods in the credit are different


5. What happens first when a bank refuses to pay under a letter
of credit
A. The bank will cite a ‘discrepancy’, some aspect of the
documentation that is not in line with the terms of the
credit.
7. The Disclaimer of warranty means:
B. the buyer is denied of some of his normal rights

6. Defects that come to light after buyer’s acceptance are
called……..
B. latent defects

9. A term or terms in a contract could raise the contract price
D. A longer warranty period
11. Which type of paym ent is the most advantageous for the
exporter?
A. Credit by sight payment

10. The first step in negotiating a letter of credit is………..
C. Agreement
12. What happens if the issuing bank finds a problem with the
documents and refuses to send funds to the advising bank to
cover payment?

C. The payments from the advising bank to the exporter
are always made with recourse. The exporter has to pay
back the advising bank in such a case
14. A unilateral offer can be defined as
B. An offer made of a promise in return for an act

13. In settlement by deferred payment, if the seller needs
money immediately, what can he do
B. He can exchange the letter of credit for cash with any
agreeable bank
15. If the price is quoted FAS Osaka, who pays for the freight?
D. The buyer
17. Many export contracts cannot come into force due to…..
A. certain preconditions are not met
19. A letter of credit can be either ‘revocable’ or ‘irrevocable’.
Few exporters will accept a revocable letter of credit, so the
plan expression ‘letter of credit’ generally means the
irrevocable kind. The word ‘irrevocalbe’, therefore, should not
always appear in the text of the credit and of the contract. Right
or wrong?
B. Wrong, because it should always appear in the text of
the credit and of the contract according to the ICC’s rules
21. Beside the commercial invoice, the transport document and
insurance document, what do ‘Other documents’ include?
D. Any of the above
23. If shipment is under Incoterms other than CIF or CIP,…..
D. The exporter pays for insurances till the port of dischare
25. Feeble-minded people are legally unable to…….contracts
A. Sign
27. The exporter’s right to ‘cure’ any defects in his delivery

in…….
B. advantageous to him
29. In negotiating a letter of credit, the step in which the
exporter rigorously checks documentation and submits it to the
bank is……
D. Compliance
31. If the buyer can make certain assumptions about goods –
even if the exporter gives no express warranty, these
assumptions are called……
D. implied warranties
33. The bill of lading issued by the carrier for combined
transport is called…..
D. Combined transport bill of lading
35. A payment guarantee simply commits the bank to pay if the
buyer defaults. The payment guarantee is usually for…….of the
contract price
A. 100%
37. The contract should regulate what happens if Incorterm
2000 and the terms of the contract conflict: normally
the……..prevails
B. Contract
39. The entire agreement clause means that all documents that
predate the contract…….
C. become invalid
41. Is there any requirement that the air waybill shows the date
of the flight?
B. Yes, there is
43. A contract is not enforceable if……….
C. if has an illegal purchase

8. When an offer is made, it is not applicable when it has…..?
C. Revocation

16. The place of delivery (CIP, CIF) should not be confused
with the……of the goods.
B. destination
18. If a contract is the entire agreement, earlier letters and
documents………
B. become invalid
20. In a performance guarantee, if the seller works badly or not
at all, the guarantor will pay the buyer, within stated
limits,………………
B. the costs of the principal’s failure to perform

22. Which country requires that all goods imported into the
country are inspected by the SGS immediately before
shipment?
C. Indonesia
24. Continental law is also called….
A. Civil law
26. Once the bank has indicated the discrepancies, what can
the exporter do?
D. Any of the above
28. The bank notifying the exporter that the letter of credit has
been opened is called……
B. The advising bank
30. The answers to the questions of implied warranties are
supplied by:
C. Most laws
32. Transfer of risk from the seller to the buyer (Incoterm 2000)

CFR
C. When the goods across the ship’s rail
34. Transfer of risk from the seller to the buyer (Incoterm 2000)
DDU
A. When the goods are at the seller’s premises
36. Partial invalidity clause can help to avoid problems with
contracts that……..
A. might infringe government regulations
38. The clause covers General Average
C. A, B, C

40. If a dispute arises, the recital allows the court to discover
the real meaning of……..
A. the contract
42. As soon as the exporter receives advice that the letter of
credit has been opened, what should he do?
A. He should check that it complies with the agreement he
negotiated with the buyer
44. ……Bill of lading – found something wrong with the
consignment
C. claused


45. Delivery of the goods under most contracts takes place in
the country of….
B. the exporter
47. In a contract, …………can be incorporated into contract
document clause
D. any of the above
49. The answer to background questions are written…..

A. through the whereas recital
ĐỀ 15
1.
Under the public law ,a company can only sign a
contract_______
D. That is within its power
3.
When the export fills in the letter of credit application
form ,if the box “ requested” for the “Confirmation of credit to
the beneficiary “ is ticked ,what does it mean ?
B. It means the exporter wants the bank in his country
make payment itself and recover the funds from the
buyer’s bank
5.
The force majeure clause suggested by the
International Chamber of Commerce ,for example ,states that
payment of interest on overdue sums payable to the seller is
_____ by_______
B. Not excused/ force majeure
7.
Whereas-clause________
D. Are not provisions, promises or conditions
9.
In a confirmed letter of credit ,what happens if the
bank pays exporter and the issuing bank finds something
wrong with the documents?
D. The confirming bank has paid the money to the exporter and
has no way of recovering it. The confirming bank must pay the
exporter without resource
11.

If the price is quoted FCA ,who pays for the freight?
A
The exporter
13.
The ________ has no power to enforce his solution or
to bind the parties, his task is to suggest a fair solution only
B. Conciliator
15.
To make sure that the officer signing the contract has
authority to sign the contract ,parties should check__________
B. The authenticity of signature
17.
In order to produce perfect products ,manufactures
need to have________
B. Quality assurance program
19.
Inspection of the goods by the buyer in the
manufacturer’s factory is referred to as :
B. Pre-delivery inspection
21.
The Incoterm________ contains 13 items
D. 1999 and 2000
23.
When there are words like “ about” or “ approximately”
in the letter of credit ‘s amount ,how much can the actual
payment be?
A
The actual payment therefore can be 10% more or
10% less than the stated amount
25.

Among a number of international bodies offering
arbitration services ,the ____ in Paris is the most prestigious
C. ICC
27.
If shipment is made on CIF or CIP terms ,the letter of
credit will call for ________
D. Either A or C

29.
What happens first when a bank refuses to pay under
a letter of credit?
A. The bank will cite a “discrepancy “,some aspect of the
documentation that is not in line with the terms of the
credit
31.
The workforce at the factory go on strike
B. Questionable

46. The main difference between Continental and Anglo –
American contract law is the degree of
A. Codification
48. ‘A radio lacks the wired connecting the loudspeaker to the
amplifier’ is an example of
C. Detective workmanship
50. Which of the following is left to the applicable law to
regulate?
C. The legal action period

2.
In international contract ,parties try to exclude

assignment of rights without__________
B. Written consent of parties
4.
_______ discharge a contract when one party faces
an excessive burden in complying with contract
B. Frustration and impossibility

6.
To avoid the dangers of slow payment ,exporters try
to protect themselves with a clause like this :” payment s hall
be deemed to have been made only when ______”
D. Funds reach the seller’s bank account and at his full
disposal
8.
The things that exporter should keep in mind in
negotiating payment are ________
Payment mode ,timing, place, delay and results of delay
10.
The risk of rough handling is not covered under the
cargo clause________
D. B & C

12.
In contracts “ partial invalidity provision” means the
invalidity of one part of the contract_________
B. Does not invalidate the rest
14.
A contract requiring the exporter to send the contract
the goods by road from Kenya to Zambia with freight paid by
the exporter

B. CPT Lusaka
16.
The answers to the questions of implied warranties
are supplied by
C. Most laws
18.
Which of the following examples is a latent defect?
B. Structural weaknesses
20.
The clause covers General Average
C. A, B,C
22.
Transfer of risk from the seller to the buyer (Incoterm
2000) :DAF
A
When the goods are at frontier
24.
An offer is not always ,in international practice ,the
first move in forming a________
A
Contract

26.
Who issues ocean bill of lading?
C. Shipping company
28.
Why do most exporters offer a discount for early
payment ,for example a 1% discount if payment is made
within 10 days of the date of invoice?
C. Because the exporter can substantially improves his

cash flow
30.
The costs of L/C amendments are normally
for__________
D. The one who asks for such amendments

32.
When the goods arrive ,if they are _________,the
importer can reject them but if they ______ specifications ,he is
obliged to accept them
A
Defective/conform to


33.
Some contracts set a cut-off date after which the
contract________
C. Cannot come into force
35.
“ Door to door service” is offer . which term should be
used ?
A
DDP
37.
Every contract is governed by _______
C. Applicable law
39.
Anglo-America law does not bring the __________to
all cases
B. Uniformity

41.
Quality assurance and customer satisfaction are the
same issues for customers_______
C. Both A and B

43.
An annual flooding of the River Verb ruins some of the
jute intended for use in making sack
C. No
45.
According to the UCC, if the goods fail in any respect
to conform to the contract ,the buyer may________
D. All the above
47.
An FOB sales contract agrees that the exporter can
deposit the goods in a warehouse if the ship arrives late and
that this counts as delivery . If the letter of credit requires a bill
of lading and makes no mention of a warehouse receipt,
B. The bank simply cannot pay against a warehouse
receipt
49.
Most contracts contain an assurance that the exporter
will _____ any defects in his products
A
Make good

34.
To avoid confusion ,many contract drafter
_____” instead of “ warranty”
D. Defect liability

36.
A volcanic eruption buries the factory in ash
A
Yes

use “

38.
_______original(s) Bill of lading constitute(s) a full set
C. 3
40.
Small purchases in private life are often in the form of
__________
D. Any of the above
42.
Which of the following method of payment is not
possible ?
D. Part of the contract price is paid by the letter of credit
but there is not a clear figure stated in the amount of the
credit
44.
The warrantor is always a_________
D. Neither A nor B
46.
Which type of payment is the most advantageous for
the exporter?
A
Credit by sight payment
48.
In settlement by acceptance ,what will the bank do

after receiving the documents and draft drawn on the buyer
from the seller?
D. The bank agrees to pay the bill when it matures

50.
As for Anglo-American law , the decision of the judge
is always ________
C. Unpredictable

ĐỀ 16
The guarantor usually is C. both A and B

2.
Bill of lading is the most important document
because it is aA document of title

3.
Returned shipment to the exporter’s country
means
A the deal is total loss for the exporter

4.
Bill of lading – goods were taken on board in good
conditionA. Clean

1.

5.
If the box “ With brief advice by teletransmission”
is crossed, it means

A The exporter wants to be informed of the issuance of letter of
credit by telex
7.
In international practice, problems of assignment
of rights and delegation of duties can be reduced by using
A prior written consent of the other party
9.
If both parties perform their duties exactly
according to the contract, the contract is
A discharged by performance
11.
payment guarantee means
D a triangle relationship
13.
door to door
A DDP
15.
which of these does not count as a defectB misuse
17.
The main difference between continental law and
anglo- American contract law is the degree of :
A codification
19.
An offer is not always, in international practice,
the first move in forming a:A contract
21.
The bank that the buyer asks to open a letter of
credit is called
A the issuing bank
23.

Under most laws, buyer can make a certain
assumptions about goods. These assumptions are called
(by lawyers)
C Implied warranties
25.
After making the shipment of the goods to the
buyer, the exporter presents the shipping documents to
B. Advising bank
27.
many export contracts cannot come into force due
to A. certain preconditions are not met

6.
In a
confirmed letter of credit, what happens if
the bank pays the exporter and the issuing bank finds
something wrong with the documents
B. The confirming bank has a problem
8.
In contract negotiation, an invitation to provide
terms and condition may mean
C an invitation to other party to make an offer
10.
The court of arbitration applies whatever ….. the
parties stipulate in the contract C National law
12.
The disadvantage of …. policy is that it is set up
for particular time and automatically expires
B floating
14.

there are … parties to warranty and … in guaranty
c two/three
16.
Anglo- American law is also called
A common law
18.
…. refer(s) to the questions of implied warranty?
B Most laws
20.
In continental law ,a recital
C is not essential
22.
Which type of payment is the most advantageous
for the exporter
Credit by sight payment
24.
The lump-sum compensation is set about right
A liquidated damages
26.
How many timing problems are there in the
defects liability period?D 4
28.
A contract requiring the exporter to send the
contracted goods by road from Kenya to Zambia with
freight paid by the exporter B CPT Lusaka


29.
Transfer of risk from the seller to the buyer
(Incoterm 2000) FASA when the goods are ex-quay

31.
Which of these does not require prior inspection
by SGSC The united kingdom
33.
A promise by the exporter to cure defects in his
product is called B product warranty
35.
It is common to put the definition clause …………
of the contract.?B near the beginning
37.
Dawson bought vanilla beans from Indonesia.
Dawson instructed an American bank to open a letter of
credit. One of the required shipping documents was a
certificate of quality issued “by experts”. The bank paid
the exporter. The beans, when they arrived, were rubbish.
The certificate of quality was signed, however, by only one
“expert”. Could the bank collect from Dawson the money it
had paid to the exporter?
C No it couldn’t
39.
The bill of lading issued by the
B Marine bill of lading
41.
Which of the following examples is latent defect
B Structural weaknesses

43.
If the price is quoted CIF San Francisco, who pays
for the insurance and freight?A. The exporter.

45.
small purchases in private life are often in form of
D. Any of the above
47.
In international trade, if payment is made on
delivery, the method of payment to be chosen will be
…………
D. At sight letter of credit
ĐỀ 17
1.
In negotiationg a letter of credit, the step in which the
exporter rigorously checks documentation and submits it to the
bank is ...D. Compliance
3.
Disclaimer of warranty often accompanies:
D. contracts for software
5.
In how many originals and copies is the air waybill
issued according to the standard of the International Air
Transportation Association – IATA:
C. 3 originals and 9 copies
7.
If a dispute arises, the recital allows the court to
discover the real meaning of ...
A. the contract
9.

Defects include:D. workmanship

11.

The Vienna Sales Convention is also called: ...
C. The United Nations Convention on Contracts for the
International Sale of Goods
13.
Which of the following is NOT the method of issuing
the letter of credit?B. By email

30.
“Export credit insurance is a kind of special
privilege that an exporter may get from his government’s
export incentives and support”. Right or wrong? D. It is not
charity
32.
Transfer of risk from the seller to the buyer
(Incoterm 2000) CIPA. When the goods are handed to the first
carrier
34.
an FOB sales
B
36.
The advantages of arbitration are A private and
foreseeable costs

38.
The point at which money is deemed to be paid
most preferred by buyer is ………………
C. When the buyer instructs the bank to pay.

40.
the lump-sum is set too low

B quasi indemnity
42.
Which is the most appropriate method of payment
for the exporter in the following case?
Sale of a bale (roll) of cloth costing $200 to a nearby
tailor’s shop with whom you have done business for 20
years.
B. Open account with no security.
44.
What if a letter of credit requires “an appropriate
wildlife certificate”?
D. All of the above
46.
Which of the following discrepancies is NOT the
problem with Insurance?A. Documents are not presented
within the required time.
48.
Drunken people have no……
A Contractual capacity

2.
Transfer of risk from the seller to the buyer (Incoterm
2000): DEQ
A. When the good are ex-quay
4.
It is common to put the definition clause.... of the
contract
B. near the beginning
6.
Which of the following statement is true

C. The amount of credit should be expressed both in
figures and in words
8.
Which of the following is NOT considered to be special
requirement in a sale/purchase contract?
C. Goods must be packed according to the export
standards
10.
To make sure that the officer signing the contracts has
authority to sign the contract, parties should check ...
B. the authencity of the signature
12.
In CIF and CIP contracts, .... must pay for insurance
from the point of delivery to the named point of arrival
A. The exporter
14.
In settlement by sight payment ....
C. the seller presents the necessary documents to the
paying bank

15.
With a well-designed set of specifications, the seller
can protect its ... and avoid costs
A. reputation

16.
The lump-sum compensation is set about right ...
A. liquidated damages

17.

A grace period is sometimes used to ...
B. facilitate early delivery

18.
Of the three options available for settling disuptes,
litigation before the court is internationally least actractive as it
is ....
A. expensive and legalistic

19.
(Note: if either party is prevented from, or delayed in,
performing any duty under this Contract by an event beyond
his reasonable control, then this event shall be deemed force
majeure)
The workforce at the factory go on strike.C. no

20.
Which of the following method of payment is NOT
possible?D. Part of the contract price is paid by letter of
credit but there is not a clear figure stated in the amount of
the credit.


21.
What does prompt payment of the letter of credit
depend on?A. it depends on the presentation of correct
documentation of the exporter
23.
Once the bank has indicated the discrepancies, what
can the exporter do?

D. Any of the above
25.
A bank guarantee which gives the exporter an
acceptable level of security in terms of payment shall be paid
by ...
A. the buyer

27.
When the Bill of lading marked “freight collected”.
Who pays for the freight?
A. the buyer
29.
“door to door service” is offered. Which term should
be used??A. DDP
31.
Which of the following discrepancies is NOT the
problem with the Letter of credit?
C. there is no endorsement if endorsement is necessary
33.

Elderly peole are ... to deal with a contract B. able

35.
the best solution for the exporter to make late
payment impossible is ...
D. a confirmed, irrevocable, at sight letter of credit
37.
Earthquake, volcanic eruption and lighting are
covered under the cargo clause ....
D. A and B

39.
The essence of Continental law is .....
A. codification
41.
“a machine that consumes more fuel than
specifications” is an example of
A. latent defect
43.
Which of these counts as a defect?
A. wrong design
45.
a contract requiring the exporter to send the contract
goods by road from Kenya to Zambia with freight paid by the
exporter.
B. CPT Lusaka
47.
Discount Records bought phonograhp records from
an exporter. Payment was by letter of credit issued by Barclays
Bank. The exporter delivered a mix of cassettes, eight – track
cartridges and other non-contractual goods. Discount Records
tried to get an injunction to stop Barclays from paying under the
letter of credit. What you think the court would do in that case?
D. the exporter will be paid- although later action in the
courts may oblige him to make good any damage he has
caused the buyer

22.
A marine Bill of lading becomes negotiable document
and no restriction on ownership when it is...
A. to order, blank endorsed

24.
In order to produce perfect products, manufacturers
need to have ...
B. quality assuarance programs
26.
When the exporter fills in the Letter of Credit
application form, if the box “requested” for the “confirmation of
credit to beneficiary” is ticked, what does it means?
B. it means the exporter wants the bank in his country
make the payment itself and recover the funds from the
buyer’s bank
28.
Why letters of credit are formally called “documentary
credits”
A. because a letter of credit is a binding agreement by a
bank to pay a certain sum of money when the exporter
presents the necessary documents to the bank
30.
Which type of bill of lading is negotiable
C. to order
32.
in contract negotiation, “an invitation to provide terms
and condition” may mean: ....
C. an invitation to the other party to make an offer
34.
in contracts, .... is not normally allowed.A. delegation
of duties
36.
the parties to a contract are not always required to ...
the Vienna Sales Convention

B. apply
38.
if the price is quoted FAS Osaka, who pays for the
freight?
D. the buyer
40.
inspection by ... reveals discrepancies in quality
D. the importer
42.
the things that the exporter should keep in mind in
negotiating payment are ...
A. payment mode, timing, place, delay and results of delay
44.
defects may be which of the following
C. both
46.
Failure to meet specification is a
C. defect in design

48.
In a contract, the word “whereas” means ....
D. “because” or “considering that”

ĐỀ 18
1. Who usually has to pay for curing defects ?
B. the seller

2. General average has the condition. :
D. A and C.

3. the name of parties to contract are often on……of the
contractA. the first page

4. Which type of payment is the most advantegous for the
exporter ?C .Credit by sigh payment

5. Transfer of risk from the seller to the buyer ( incoterm 2000 )
: FOB
C. When the goods across the ship’s rail

6,The question of warranty is disposive. This means :
B The exporter can usually exclude all warranties.
.

7. If either party is prevented from, or delayed in , performing
any duty under this Contract by an event beyond his
reasonable, then this even shall be….A lock out…C. No
9. Continental Law copes with….
C. National issues
11. Transfer of risk from the seller to the buyer ( Incoterm 2000
) : CFR
C. When the goods across the ship’s rail
13. In negotiating a letter of credit, the step in which the buyer
applies for the letter of credit specifying the agreed
documentation is…
D. None of the above

8.Which of these does not require prior inspection by SGS
?C.The Uk
10. Continental law is widely used for…

B. national issues
12. The risk of rough handling is not covered under the cargo
clause….
D. B and C
14. …. Can create no – contract situations
A.
Duress, fraud, and mistake all


21. A term or terms in a contract could raise the contract price
D. A longer warranty period.

16. A L/C
can be either “REVOCABLE “ or
“irrevocalble”…..Right or wrong ?
B. Wrong, because it should always appear in the text of
the credit and pf the contract according to the ICC’s rules.
18. A volcanic eruption buries the factory in ash.
A. Yes
20. The….has no power to enforce his solution or to bind the
parties, his task is to suggest a fair solution only.
B. Conciliator
22. Many export contracts cannot come into force due to…A.
certain preconditions are not met

23 in settlement by sight payment….
C. the seller presents the necessary documents to the
paying bank

24. What does prompt payment of the LC depend on ?

A. It depends on the presentation of correct
documentation of the exporter

25. Within the four alternatives of the at – sight LC, which one
is the least satisfactory for the exporter ?
D. Settlement by negotiation

26. In contracts, “ partial invalidity provision
invalidity of one part of the contract…..
B. does not invalidate the rest

27. If a dispute arises, the recital allows the court to dicover the
real meaning of…
A. the contract
29. the word “cash “in international trade means…
C. Checks or bank transfer

28. The point at which money is deemed to be paid most
preferred by seller is….
D. When the funds reach the seller’s bank account.
30. A contract that is ultra vires is….
C. unenforceable

31. In contracts,……is not normally allowed.
A.
Delegation of duties

32. In negotiating a LC, the step in which the exporter checks
the credit to see that required documentation is as agreed
is….C. Verification

34. Which of the following examples is a latent defect ?
B. Structural weakness

15. Transfer of risk from the seller to the buyer ( Incoterm 2000
) : CIP
B. When the goods are handed to the first carrier
17. If the price is quoted CIF San Francisco, who pays for the
insurance and freight ?A.the exporter
19. Another name for Tender Gurantee is…..
D. Bid bonD

33. When the exporter fills in the LC application form, if the box
“requested “for the “confirmation of credit to the beneficiary “is
ticked, what does it mean ?
B. It means the exporter wants the bank in his country
make the payment itself and recover the funds from the
buyer’s bank.
35. Companies….to use the short form of the names in the
contract.C. are allowed
37. If the price is quoted FOB Singapore, who pays for the
insurance and the freight ?B. The buyer
39. Acording to the UCC, how long is the legal action period ?
C. Four years

41. What happens first when a bank refuses to pay under a LC
?
A. The bank will cite a “discrepancy”, some aspect of the
documentation that is not in line with the terms of the
credit.
43. “A voltmeter that is specified as accurate within 1

millivolt….A. Deffective design

45. A promise by the exporter to cure defects in his product is
called B. A product warranty
47. A contract requiring an exporter in Ethiopia to send the
contract goods by air for delivery in Windhoek, Namibia.B. CIP
Windhoek
49. Of the three options available for settling disputes, litigation
before the court is internationally attractive as it is……A.
Expensive and legalistic
ĐỀ 19
1. As the consequences of a defect can be expensive, the
question of who pay for the consequential loss or damage is …
C. non – negotiable
3. It’s always good for the exporter to promote his skills and the
exellence of his products ……….
C. in the retical
5. Who isssues ocean bill of lading
C. Shipping company

“means the

36. If the price is quoted FAS Osaka, who pays for the freight
?D. THE BUYER
38. In negotiating specifications, conflicts can arise….
D. all of the above
40. In settlement by deferred payment, if the seller needs
money immediately, what can he do ?
B. He can exchange the LC for cash with any agreeable
bank.

42. The first step in negotiating a LC is….
C. agreement

44. A contract requiring an exporter in Mozambique to deliver
the contract goods in Beira, Mozambique, for the shipment by
sea to Dar es Salam, Tanzania.
A. FAS Beira
46. “The seller shall make good the defect or damage as soon
as practicable and at his own cost “
C. Rectification period
48. The final quality hurdle is the…during which the exporter is
liable to cure defects that come to light in the goods.B. defect
liability period
50. The main difference between Continental and Anglo –
American contract law is the degree of…..
A.
Codification

2. Partial invalidity clause can help to void problem with
contacts that
A. might infringe government regulations
4. When parties agree to end a contract, …… occurs
A. Termination
6. The bill of lading issued by the carrier for air transport is
called
A. Air waybill


7. A marine Bill of lading becomes negotiable document and no
restriction on ownership when it is

A. to order, blank endorsed
9. Under the publis law, a company can only sign a contract
A. even when they lack power
11. The things that the exporter should keep in mind in
negotiating payment are ….
A. Payment mode, timing, place, delay and results of delay
13. As for Anglo – American law, the decision of the judge is
always …
C. Unpredictable
15. Beside the commercial invoice, the transport document and
insurance document, what do “the other document” include?
D. any of the above
17. With a well – designed set of specification, the seller can
protect its ………. And avoid cost
A. reputation
19. What can protect both of the exported and the Importer in
the export contract
A. A well – designed set of specifications
21. Many export contracts cannot come into force due to ….
A. certain preconditions are not met
23. The bank helping the exporter to check the correctness of
the documents and set the payment proceduere in motion is
………….
B. the advising bank
25. Why can a manufacturer sometimes accept a loss on an
export deal
D. any of the above

27. The buyer can reject goods that are not saleable quality.
This is called …………

C. Implied warranty of merchantability
29. How many types of the warranties are there
B. three
31. If either party is prevented from, or delayed in, performing
any duty under this Contract by an event beyond his
reasonable control, then this event shall be deemed force
majeure….
A ban is issued on the export of jute products by newly elected
government that has been preparing legislation on this subject
for five years
Khaothi la Yes, theo sach la Questionable
33. Which is the most appropriate method of payment for the
exporter in the following case?
A new small customer in Parcificis land republic much give to
politiacal disturbances. The order is for $10000 worht of
assorted textxiles
D. confirmed letter of credit
35. Which of this following discrepancies is NOT the problem
with the letter of credit
D. insurance cover is expressed in a currency other than
that of credit
37. A commercial invoice must be made out to………..
D. the applicant for the letter of credit normally to the
buyer, unless otherwise stated in the credit
39. Why do few exporters ask for bank guarantees as security
for payment
B. Because they run into trouble so ofen
41. The mechanism of a confirmed letter of credit word as
follows:
C. buyer instruct an issuing bank to instruct a confirming

bank to pay under a letter of credit in favor of the seller
43. “ A voltmeter that is specified as accurate within 1 milivolt is
accurate within only 5 millivolt” is an example of:
A. defective design

8. What do export insurance premiums depend on?
D. All of the above
10. In a contract, under a Continental law, a recital ……
C. is not essential
12. As soon as the exporter receives advice that the letter of
credit has been opened what should he do?
C. He should check if there is any requirement that he
does not agree to
14. A contract comes into force when an offer is made by one
side and …. By the other
A. accepted
16. Among a number of international bodies offering arbitration
services, the ………. In Paris is the most prestigious
C. ICC
18.The cheapest mode of transport is ……
A. by sea
20. Transfer of risk from the seller to the buyer (Incoterm 2000).
CIF
C. When the goods across the ship’s rail
22. Termination for default occurs when the contract names
certain ………. Which allow one side to terminate
B. Default
24. In how many originals and copies is the air way bill issued
according to the standard of the International Air Transport
Association – IATA

C. three original and nine copies
26. If either party is prevented from, or delayed in, performing
any duty under this Contract by an event beyond his
reasonable control, then this event shall be deemed force
majeure….
A ban is issued on the export of jute products by newly elected
government.
Khaothi la Questionable, theo sach la Yes
28. The “order of precedence” among the documents
explain……………
A. the authority of the documents
30. There are ……… parties to a warranty and ………….. in
guarantee
C. two / three
32. Which is the most apporiate method of payment for the
exporter in the following case ?
An contract supply of cloth worth 5000$ per month to the
government of Oceanea – a prosperous country. Duration of
this contract is 2 years but renewable. Contracts represents
0.5% of turnover
D. export credit insuarance is advisable. Selling on
account with no security at all is also possible
34. Defects such as wrong items, broken or missing
parts,scratches, and so on are called …………
A. patent defects

36. The applicable law governs questions concerning the
validity ……………… performance of contracts
Khaothi cham Payment, theo sach la Interpretation
38. “Full set on board ocean bills of lading to orders shipper,

blank endorsed”. In this clause, shipper means…………
D. A or B or C, it depends on situation
40. If the price is quoted CPT Vancouver, who pays for the
freight
A. the exporter
42. What is a transferable credit
B. It is the kind of credit which allows the first beneficiary
to request the confirming bank to pay a third party
44. What happens if the issuing bank find a problem with the
document and the refuses to send funds to the advising bank to
cover payment?
C. the payments from the advising bank to the exporter are
always made with recourse. The exporter has to pay bank
the advising bank to cover payment


45. In a confirmed letter of credit , what happens if the bank
pays the exporter and the issuing bank find something wrong
with the documents ?
D. The confirming bank has paid the money to the exporter and
has no way of recovering it. The confirming bank must pay the
exporter without resource
47. Which of following is essential to successful business
B. customer satisfaction
49. When the bill of lading marked “ freight prepaid” Who pays
for the freight
B. the seller
ĐỀ 20
1. As the consequences of a defect can be expensive, the
question of who pays for the consequential loss and damage is

often
b. controversial
3. What happens first when a bank refuses to pay under a letter
of credit?
a. the bank will cite a “ discrepancy”, some aspect of the
documentation that is not in line with the terms of credit
5. The cheapest mode of transport is….
a. by sea
7. A contract that is ultra vires is ……
b. unenforceable
9. In drafting an arbitration clause, the following questions must
be resolved:….
d. All of the above
11. When the exporter fills in the letter of credit application
form, if the box “requested” for the “Confirmation of credit to the
beneficiary” is ticked, what does it mean?
b. it means that the exporter wants the bank in his country
make the payment itself and recover the funds from the
buyer
13. If the price is quoted CFR Hai Phong, who pays for the
freight?
b. the exporter
15. The place of delivery (CIP, CIF) should not be confused
with the …… of the goods.
b. destination
18.
Who issues ocean bill of lading?
c. shipping company
20. In negotiating a letter of credit, the step in which the list of
all required documentation is incorporated into the contract

is......
b. incorporation
22. “Nuts and bolts are inadequately tightened” represents:
c. defective workmanship
24. If alternative means of transport or partial shipments are
allowed perhaps by different modes of transport, the letter of
credit should have the words ….. between the names of
transport documents.
c. and/ or
26. The names of …… are normally the full, registered name of
the company.
d. the parties
28. The bank that the buyer asks to open a letter of credit is
called…….
a. the issuing bank
30. The parties to contract are not always required to ……..the
Vienna Sales Convention.
b. apply
32.
Transfer of risk from the seller to the buyer ( Incoterm
2000): DES
a. when the goods are ex-ship
34.
The background of the contract is provided in the form
of ……..
d. a whereas - rectial
36.
A contract comes into force when an offer is made by
one side and …… by the other.
a. accepted

46. Which is the following examples in a latent defect
A. Missing parts
B. structural weakeness

48. Anglo – American law is ………..
B. Case law
50. The place of delivery is doubly important to the exporter
because the date of …………… normally depend on time and
place of delivery
B. payment

2.There is no connection between the letter of credit and the
sales contract. Right or wrong?
a. completely right
4. The disadvantage of … policy is that it is set up for particular
time and automatically expires
b. floating
6,The mechanism of a confirmed letter of credit works as
follows:
c. buyer instructs an issuing bank to instruct an
confirming bank to pay under a LC in favor of the seller.
8.The expiry date of the letter of credit is ……
b. the last date for presentation of documents to the bank.
10. Drunken people have no …… to sign a contract.
a. contractual capacity
12. In contract negotiation, “an invitation to provide terms and
condition” may mean:.…..
c. an invitation to the other parties to make an offer

14. Continental Law copes with: …….
c. national issue
16. Why do few exporters ask for bank guarantees as security
for payment?
b. because they run into trouble so often
19.
A grace period is sometimes used to …..
b. facilitate early delivery
21. What does it mean by “irrevocable” letter of credit?
b. It means the letter of credit cannot be cancelled at any
time by the buyer or issuing bank.
23. An offer dies if it has a/an ……
d. revocation
25. Which of these does not require prior inspection by SGS?
c. The United Kingdom

27 ……. refer(s) to the question of implied warranties
b. most laws
29.War risk is not included in …….
c. A, B, C clause
31. Most contracts contain an assurance that the exporter will
……. any defects in his products.
a. makes good
33.
…….. arethe explanations.
b. whereas – recital clause
35.
Among a number of international bodies offering
arbitration services, the ……. in Paris is the most prestigious.
c. ICC

37.
If the price is quoted FOB Singapore, who pays for the
insurance and freight?
b. the buyer


38. After making the shipment of the goods to the buyer, the
exporter presents the shipping documents to …….
b. the advising bank
40. How many timing problems are involved in Defects Liability
Period?
b. four
42. What do export insurance premiums depend on?
d. all of the above

44. A ban is issued on the export of jute products by newly
elected government
Khaothi la Questionable, theo sach la Yes
46. “A radio lacks the wires connecting the loudspeake r to the
amplifier” is an example of:
c. Defective workmanship
48. Inspection by the buyer is called:
c. open package inspection

39. In negotiating a letter of credit, the step in which the
exporter checks the credit to see that required documentation
is as agreed is ………
c. verification
41. Within the four alternatives of the at – sight Letter of credit,
which one is the least satisfactory for the exporter?

d. Settlement by negotiation
43. When there are words like “about” or “approximately” in the
letter of credit’s amount, how much can the actual payment be?
a. The actual payment therefor can be 10% more or 10%
less than the stated amount
45. Which of the following example is patent defect?
a. crushed or stained garments
47. A contract requiring the exporter to send the contract goods
by road from Kenya to Zambia with freight paid by the exporter.
b. CPT Lusaka
49. “The seller shall make good the defect or damage as soon
as practicable and at his own cost”. This is an example of
c. Rectification period

50. An FOB sales contract agrees that the exporter can deposit
the goods in a warehouse if the ship arrives late and that this
counts as delivery. If the letter of credit requires a bill of lading
and makes no mention of a warehouse receipt,
b. the bank simply cannot pay against a warehouse receipt
DE 21
1.
A contract comes into force when an offer is made by
one side and … by the other.
A.
Accepted
3.
A volcanic eruption buries the factory in ash.
Yes

2.

… Bill of Lading – goods were taken on board in
good condition
A.
clean
4.
A grace period is sometimes used to …
B. facilitate early delivery

5.
The bank helping the exporter to check the correctness
of the documents and set the payment procedure in motion is
B. The advising bank
7.
It’s always good for the exporter to promote his skills
and the excellence of his products …
C. in the recital
9.
The entire agreement clause means that all documents
that predate the contract
C. become invalid
11.
To avoid the dangers of slow payment, exporters try to
protect themselves with a clause like this: “Payment shall be
deemed to have been made only when …”
D, Funds reach the seller’s bank account and at his full
disposal
13.
The stand-by L/C originated in the U.S. is used there
because …
C. The banking law in some states forbids banks to issue

payment guarantee

6.
A term or terms in a contract could raise the contract
price.
D. A longer warranty period
8.
A warranty is aimed at
B. Assurance of product performance
.
10.
A guarantee is
B. Tripartite

15.
… is open-ended
C. open cover

16.
In settlement by deferred payment, the L/C is paid
after delivery. Right or wrong?
D. The L/C is not payable until a number of days.
18.
Elderly people are … to deal with a contract.
B. able

17.
Transfer of risk from the seller to the buyer (Incoterm
2000): CPT
B. When the goods are handed to the first carrier.

19.
Delivery of the goods under most export contracts
takes place in the country of …
B. the exporter
21.
Termination may be for …
C. Convenience
23.
Another name for Tender Guarantee is …
D. Bid bond
25.
The method of payment which is dangerous for the
exporter is …
B. Accepting a personal check
27.
A.

The essence of Continental law is …
Codification

12.
Most contracts contain an assurance that the
exporter will … any defects in his products.
A.
make good

14.
A lockout (Background: the workers have been
striking for one day a week. The management locks the
workers out of factory until they agree to end the strike)

C. NO

20.
The final quality hurdle is the … during which the
exporter is liable to cure defects that come to light in the
goods.
B. defect liability period
22.
A fire burns down the factory. (Note: If either party is
prevented from, or delayed in….)
A.
Yes
24.
Anglo-American law is also called …
C. Common law
26.
Is it possible for the beneficiary (exporter)
sometimes, though not often, to make a draft on the bank to
collect the money?
D. Yes, it is.
28.
The first step in negotiating a L/C is …
C. AgreemenT