LW C Transport and payment in international trade

Which of these is a function of a bill of lading?

• 1 A guarantee of the quality of the goods
• 2 A statement of the seller's profit
• 3 A bank's promise to pay
• 4 A receipt for the goods

A negotiable bill of lading is a document of title. This means that:

• 1 The goods cannot be sold
• 2 The seller can cancel the contract
• 3 The holder can claim the goods and transfer the right to them by transferring the document
• 4 The goods belong to the carrier

What is a letter of credit?

• 1 A promise by a seller to deliver goods
• 2 A loan from the buyer to the seller
• 3 A guarantee of the quality of the goods
• 4 A bank's undertaking to pay the seller against compliant documents

Which statement about letters of comfort is correct?

• 1 They are generally not intended to be legally binding guarantees
• 2 They are issued by customs
• 3 They replace letters of credit
• 4 They are always legally binding

In a bill of exchange, who is the drawer?

• 1 The bank
• 2 The person who receives the payment
• 3 The person who is ordered to pay
• 4 The person who writes the order to pay

Which UNCITRAL instrument sets rules for international credit transfers?

• 1 The Model Law on International Credit Transfers
• 2 The Model Law on International Commercial Arbitration
• 3 The Incoterms
• 4 The Sale of Goods Convention

Why is a letter of credit useful to a seller?

• 1 It makes the contract unenforceable
• 2 It removes the need to ship goods
• 3 It makes the buyer pay twice
• 4 The bank pays when compliant documents are presented, which reduces the risk of non-payment