اردو

Home / Practice / ACCA / Corporate and Business Law / LW B The UN Convention on Contracts for the International Sale of Goods and Incoterms

LW B The UN Convention on Contracts for the International Sale of Goods and Incoterms

Written by Saad Rahman (ACCA)

9 ACCA Corporate and Business Law questions with answers and explanations.

Printable worksheet with answer key

All questions with answers
  1. The CISG applies to which type of contract?

    • 1 A contract for services
    • 2 A sale of land
    • 3 A sale of goods to a consumer for personal use
    • 4 A sale of goods between parties in different states that have adopted the Convention
    Show answer

    Correct answer: A sale of goods between parties in different states that have adopted the Convention

    The Convention covers international sales of goods between businesses, and excludes consumer sales.

    Report a mistake

  2. Under the CISG, an offer is sufficiently definite if it:

    • 1 Is in writing
    • 2 Is signed by two witnesses
    • 3 States only the price
    • 4 Describes the goods and fixes, or provides for, the quantity and price
    Show answer

    Correct answer: Describes the goods and fixes, or provides for, the quantity and price

    These are the minimum details for a definite offer.

    Report a mistake

  3. A buyer receives an offer and says nothing. Under the CISG:

    • 1 Silence on its own is not acceptance
    • 2 Silence is acceptance if the price is fair
    • 3 The contract is formed immediately
    • 4 Silence is acceptance after 7 days
    Show answer

    Correct answer: Silence on its own is not acceptance

    Acceptance requires an indication of assent.

    Report a mistake

  4. When does an acceptance take effect under the CISG?

    • 1 When payment is made
    • 2 When it is posted
    • 3 When the indication of assent reaches the offeror
    • 4 When the goods are shipped
    Show answer

    Correct answer: When the indication of assent reaches the offeror

    The contract is concluded at that moment.

    Report a mistake

  5. Goods delivered under a CISG contract are 20 percent below the quality agreed. By what latest time must the buyer give notice of the lack of conformity, whatever the circumstances?

    • 1 Five years
    • 2 One year
    • 3 30 days
    • 4 Two years from the date the goods were handed over
    Show answer

    Correct answer: Two years from the date the goods were handed over

    The buyer must give notice within a reasonable time and in any event within two years, or loses the right to rely on the lack of conformity.

    Report a mistake

  6. Which remedy is available to a buyer only if the seller's breach is fundamental?

    • 1 Reducing the price
    • 2 Requiring performance
    • 3 Declaring the contract avoided
    • 4 Claiming damages
    Show answer

    Correct answer: Declaring the contract avoided

    Avoidance is a last resort available for fundamental breach.

    Report a mistake

  7. Where a contract involves carriage of goods, risk generally passes to the buyer when the goods are:

    • 1 Delivered to the buyer's warehouse
    • 2 Ordered by the buyer
    • 3 Handed to the first carrier
    • 4 Paid for
    Show answer

    Correct answer: Handed to the first carrier

    This is the general rule under the CISG when carriage is involved.

    Report a mistake

  8. What do Incoterms deal with?

    • 1 The law that governs the contract
    • 2 Who arranges and pays for transport and insurance, and where risk passes
    • 3 The price of the goods
    • 4 The ownership of the goods
    Show answer

    Correct answer: Who arranges and pays for transport and insurance, and where risk passes

    They do not deal with title or price.

    Report a mistake

  9. Which of these is an Incoterm that applies only to sea and inland waterway transport?

    • 1 DAP
    • 2 EXW
    • 3 FOB
    • 4 FCA
    Show answer

    Correct answer: FOB

    FOB, FAS, CFR and CIF are for sea and inland waterway transport.

    Report a mistake

More Corporate and Business Law topics