1、single choice 1. legal rules governing international trade mainly take the type of_________________. a. international trade conventions b. international trade customs c. domestic laws d. all of the above 2. there are altogether ____terms defined by the incoterms 2020. a. 6 b. 9 c. 11 d. 13 3. there are mainly_____ sets of international trade customs of trade terms. a. two b. three c. four d. five 4. incoterms 2010 and 2020 requires the seller to handle the import customs clearance under___________. a. exw b. fca c. ddp d. fob 5. under____ it is especially important for the seller to provide shipment notice (shipping advice) to the buyer. a. fob b. cif c. fas d. cfr 6. under cif， if the goods get loose from the hook and fall into the sea during the loading stage, _____ should be hold liable for the loss. a. the buyer b. the seller c. the carrier d. both the seller and buyer 7. fob and cfr share one thing that ______________. a. risk is transferred when the goods are on board the ship at the port of shipment b. they can be used in any mode of transport. c. the seller will be responsible for the unloading at the port of destination d. none of the above 8. the term cif should be followed by ___. , a. named port of shipment b. named place of destination c. named ship's rail d. named port of destination 9. under fca the risk of goods will be transferred from the seller to the buyer_________________. a. when the goods are placed at the disposal of the buyer. b. when the goods are delivered to a named port . c. when the goods are delivered to the nominated carrier. d. when the goods are ready for export in the factory of the manufacturer. 10. among all the trade terms _____ imposes the minimum obligation and cost to the seller. a. cif b. fob c. ddp d. exw 11. among all the trade terms _____imposes the minimum obligation and cost to the buyer. a. exw b. cif c. cpt d. ddp 12. for commodities which are easier to absorb moisture such as silk, wool and cotton, it is general to use _____________to indicate the weight. a. gross weight b. net weight c. conditioned weight d. theoretical weight
2、true or false statement 1. _____domestic laws ,international conventions and international customs are major types of international trade legal rules and are binding upon international trade by nature. 2．____in practice traders sometimes make addition to trade terms—the so called derived clause or variation—to indicate loading under cif and unloading under fob. 3．_____trade terms under incoterms applies to both service trade and product trade. 4.____trade terms can indicate some of the obligations of the buyer and the seller of a trade, but not all of them. 5．____under cif the seller should effect insurance against the risks at sea, although the risks at sea will be transferred to the buyer at the port of shipment. 6．____the parties of a sc may choose the law which is binding upon their sc, and all problems unstated in the sc may refer to the law they choose. 7．____ incoterms is one of the most important international trade conventions. 8. ____more or less clause of quantity is the best way to stipulate quantity clause when the business amount is small. 9. ______ “usd3.50 per piece cifc2% shanghai” is a correctly expressed net price. 10. ______according to international trade practice, it is the buyer who should provide the shipping marks unless otherwise stipulated in the contract. 11. ______under incoterms 2020, all the costs borne by the .seller are listed in article a9, and all that borne by the buyer are listed in article b9. such a change will make trade more convenient. 12. ______one of great change of incoterms 2020 to incoterms 2010 is that it is required that traders must arrange for carriage with their own means of transport in fca, dap, dpu and ddp
3、fill in the blanks (based on incoterms 2020) division of risk(point to transfer risk) place of delivery nature of delivery(symbolic delivery/ physical delivery) mode of transport (any/water) exw fca fas fob cfr cif cpt cip dap dpu ddp
4、fill in the blanks with the party—seller or buyer—responsible for the listed obligations and related fees (based on incoterms 2020) export customs declaration international transport international transport insurance import customs declaration exw fca fas fob cfr cif cpt cip dap dpu ddp
5、calculation: a chengdu company offered a batch of goods to a us importer at a total price of usd20000 cif new york it is known that: a. premium= cif x 120% x5% b. the total freight from shanghai to new york is usd2500. c. the domestic purchase price and various expenses for these goods are summed up to cny80000 (i.e. the fob cost of the goods is rmb 80000). d. the exchange rate at the date of payment is: usd1 = cny 6.8. (1) please calculate export profit margin. (2) please calculate the export cost for foreign exchange (3) if we revise “usd20000 cif new york” into a price with commission and the commission rate is 2%，how much is the revised price?
lecture 5
exercise 2
1、single choice 1. under the service of tramps, it is the shipping practice that freight should be________________. a. published by the carrier beforehand b. published by the shipper beforehand c. decided by the shipping conference of carriers d. negotiated by the two parties of the charter party 2. under the shipping mode of liners, measurement ton is used ________________. a. to indicate the weight of the shipment b. to calculate the freight of valuable goods packed in boxes or cases c. for the transportation of goods like plastic furniture, cotton boll or rare earth d. as one of the basis for the calculation of liner’s freight 3.warehouse to warehouse clause is a famous insurance rule used to indicate _____________. a. commencement and termination of insurance cover b. losses and charges to be compensated by the insurer c. the way to calculate insurance compensation d. commencement and termination of carriage liability of the carrier 4.in marine cargo insurance, general average is _____________. a . a total loss b. the loss of ship and cargo directly caused by marine risks c. to be borne proportionately by all parties with a financial interest in the voyage d. a loss of cargo owners 5.in order to avoid the risk of theft to the cargo during the ocean transportation, the insured may purchase_____________. a. fpa b. wpa c. tpnd (theft, pilferage and non-delivery tpnd) d. fpa plus tpnd 6. according to w/w clause, if the shipment fails to reach the aforesaid warehouse, the liability of the insurer will be _____________. from the moment of unloading of the insured goods. a . 15 days b.30 days c. 60 days d. 45 days 7. markup rate of the total cif value in an insurance policy is used to cover an anticipated profit of the buyer. such a rate, if not otherwise stipulated, is taken as _____________ in international trade.. a . 2% b. 5% c. 10% d. 20% 8. __________service has no fixed schedule and is operated on any route according to requirement of shippers. a. charter b. nvocc c. conference liner d. non-conference liner 9.__________is an extra charge requested by liners when there is an depreciation of currency of the freight a. arb b. baf c. faf d. caf 10.among the following bills of lading, _______ is the most reasonable one. a. received for shipment bill of lading b. unclean bill of lading c. straight bill of lading d. order bill of lading 11.a bill of lading is_a _______when the issuing date indicated on the b/l is earlier than the date when goods are actually loaded on board the ship. a. stale b/l b. advanced b/l c. ante-dated b/l d. straight b/l 12. which of the following items should not be included when calculating basic freight of liner? __________ a. basic ports’ calling cost b. package charges c. trimming charges d. unloading charges 13.which of the following is not the feature of ocean transportation? __________ a. low freight costs b. large capacity c. punctuality d. vulnerable to bad weather 14.the term of charter party under which the shipper is not responsible for loading, unloading, stowing or trimming is __________. a. liner term b.fo c. fi d. fio
2、true or false statements 1. ( ) in the practice of multi-modal transportation, there are several carriers and thus the shipper need to conclude several carriage contracts . 2. ( ) a shipment moves from chengdu to beijing by rail, from beijing to new york by air, from new york to boston by truck, such kind of transport is called international multimodal transport. 3. ( ) all the transportation documents, including bill of lading, airway bill, railway bill, mtd,etc., share the same feature that they are title of the goods and could be transferred. 4. ( ) liner transport can be used to transport goods of small quantity trade. 5. ( ) for voyage charter, freight is calculated according to the distance of transport. the longer the transportation distance, the higher the freight. 6. ( ) clean b/l is the one issued by the seller to the buyer to certify that the goods delivered are in apparent good condition. 7. ( ) in marine insurance, natural calamities include heavy weather, earthquake, tsunami, flood, lightning, collision, sink, etc. 8. ( ) perils of the sea like war or strike covered in an insurance policy belong to general extraneous risk. 9. ( ) when a shipment is so badly damaged that the cost of repair would be greater than the market value of the shipment at the destination, the loss can be classified as actual total loss. 10. ( ) in marine cargo insurance, general average is to be borne by the carrier, who may, upon presentation of evidence of the loss, recover the loss from the insurance underwriter. 11. ( ) as its name indicates, the coverage of all risks can cover all the losses of cargo. 12. ( ) under fpa, the insurer will not provide indemnity to losses caused by storms or earthquakes. 13. ( )in the area of transport insurance, only the duration of marine transport insurance follows the w/w clause. 14. ( ) according to the rules of ocean marine cargo clause of the people’s insurance company of china, it’s not necessary to cover fpa plus wpa or ar..
3、calculation 1 in an import and export business of cased goods, the price quoted by an exporter was "usd38 per case fob huangpu". however, the importer wanted the price be calculated on cfr liverpool basis. if : the size of each case was 1250px x 1000px x 750px, gross weight per case was 40kg, freight basis of liner was w/m and basic freight rate for liverpool was usd100 per freight ton, and the carrier also requested 20% bunker adjustment factor (baf) and 10% currency adjustment factor (caf), please calculate the cfr price.
4、calculation 2 the information of a shipment of insured cargo is as follows, (1) quantity : 20000cases (2) price : usd4600 per case fob shanghai (3) the intern. marine freight is usd 200 per case (4) the coverage is ar war risks and the total premium rate is 0.9% please calculate the total premium.
lecture 7
exercise 3
1、i single choice 1. is a document made out by the seller as a response to an inquiry from the potential buyer. a. consular invoice b. pro forma invoice c. customs invoice d. packing list 2. is a document indicating the results of the goods in terms of quality, quantity or any other element that has been specified. a. inspection certificate b. inspection application c. certificate of origin d. inspection certificate of quality 3. the seller can use to exchange the on-board bill of lading after shipment. a. mate’s receipt b. booking note c. insurance policy d. inspection certificate 4. which of the following instruments is widely used in international settlement? a. cash b. draft c. promissory note d. check 5. is a document made out by the seller as a supplementary document to the commercial invoice to make up the deficiency of an invoice especially by giving all the necessary particulars of the package goods. a. consular invoice b. pro forma invoice c. customs invoice d. packing list 6. remittance is a kind of commercial credit, indicating that ________. a. the banks providing remittance service is liable for the debt to the payee. b. it is usually safer than payment mode of bank credit c. banks will provide loan to the traders d. it is risky because it is the credit of the remitter that decides the happening of payment. 7. a company draws a draft on bank b marked “at 90 days sight”, this draft is a _______. if bank b makes an acceptance on this draft, this draft is a _______. a. sight draft / banker’s draft b. clean draft / banker’s acceptance draft c. usance draft / banker’s acceptance draft d. documentary draft / banker’s draft 8. one feature of the draft under d/d is it is _______________ a. issued by the remitter and paid by the remitting bank b. issued by and paid to the beneficiary c. issued by the remitting bank and paid to the beneficiary d. issued by the remitting bank and paid to the paying bank 9. in the collection business, the relationship between ________is not principal and agent.. principal and remitting bank remitting bank and collecting bank collecting bank and drawee principal and the agent when needed 10. under collection, the seller should take some measures in order to reduce the risk except . selling the easily remarketable goods choosing the buyer whose country is politically, economically stable taking great care in preparing the collection order so that it gives complete and clear instructions trying to conclude the business under cfr term 11. undertakes the primary responsibility for payment under the letter of credit. the issuing bank the advising bank the negotiating bank applicant 12. the following sentences about l/c except are correct. the issuing bank is liable for payment under l/c. banks just deal with documents only under l/c. l/c is a kind of bank credit. the issuing bank often provides financial service to the beneficiary according to its credit standing in its l/c business. 13. which of the following payment methods is most unfavorable to the importer? a. t/t open account b. d/a c. t/t in advance d. d/p at sight 14. ucp 600 and urg 522 are famous ____________ in the area of payment of international trade. international trade customs international trade conventions domestic law of france regulation of payment published by swift 15. in the event of non-acceptance and/or non-payment in the process of collection, the principal may nominate a representative to take care of the goods at the place of destination. such kind of person is named as ______ under urg 522. general agent case-of-need collecting bank carrier 16. under _____________ banks handling international payment business is not responsible for the delivering of shipping documents t/t d/d m/t all above
2、ii. true or false statements 1. ( ) in the l/c, the qualification and credit of the issuing bank largely affect the exporter in obtaining payment on schedule. 2. ( ) dishonour happens only when a draft is presented for payment but is not paid. 3. ( ) once the seller’s time draft is accepted, the seller must hold it until maturity and cannot discount the draft. 4. ( ) comparing with d/a, d/p is more favorable for the seller, because only after the buyer make the proceeds under the collection, he can get the documents to take delivery of the goods. 5. ( )both a draft and a promissory note are unconditional orders in writing which are signed by the drawer on the drawee, requiring the drawee to pay a sum of money to the payee. 6. ( ) without the words of “bill of exchange” or “draft”, the draft is not a valid one. 7. ( ) a bill shows: pay to abc co. providing the goods in compliance with contract no. 123 the sum of one thousand us dollars. it is acceptable. 8. ( ) a certificate of origin can be used to certify the origin of the goods or the place of manufacturing. 9. ( ) a banker’s acceptance bill of exchange is a bill drawn by a bank on another bank. 10. ( ) t/t is the most convenient in any circumstances among all types of remittance. 11. ( ) banks just deal with documents only in both collection and l/c 12. ( ) the commercial invoice serves as a record of the essential details of a transaction. 13. ( ) in collection, remitting bank works in accordance with the collection order of his principal, but collecting bank works in accordance with the instruction of drawee. 14. ( ) in l/c, the issuing bank undertakes the primary liability of payment to the applicant. 15. ( ) the issuing bank opens a l/c at the request of the applicant, so a l/c is a written promise by the issuing bank to the applicant. 16. ( ) commercial draft is used in l/c, so l/c is based on commercial credit.
3、iii. reading comprehension: letter of credit read the following letter of credit (see attachment) and try to answer the following questions. （1）fill in the following blanks to state who are the basic parties of this lc. applicant: _______________________________________________________________ beneficiary: ____________________________________________________________ issuing bank:______________________________________________________________ advising bank:__________________________________________________________ （2）what kind of draft is required? （3）read 46a of the l/c and fill in the following blanks to list the basic information of the documents required by the issuing bank. name of document copies(份数)required content requirement (for example) commercial invoice (for example) 4 (for example) signed showing h.s.code stating goods shipped are in line with sc fd-fsh -sc0930 dated september 30,2010
4、iv. fill in draft fill in the following bill of exchange (see attachment) in line with the l/c in partiii of this exercise.
lecture 10
exercise 4
1、single choice (28 marks) 1. force majeure clause is a clause that ____________. protects the right of the seller protects the right of the buyer enables the seller to avoid his contractual obligations relieves the liability of the buyer or seller if his breach of contract is caused by an force majeure event 2. the best way to stipulate the place and time of inspection is _____________. inspection at the factory inspection at the port of shipment inspection at the port of destination inspection at the port of shipment and re-inspection at the port of destination 3. cisg is a famous international trade convention concerning _______. a. trade terms b. sales contract c. modes of international trade d. methods of international trade dispute settlement 4. a message as "... have the intention to purchase 1000 gross ' black girl' toothpaste, please quote us the best price and the earliest shipment time" is called________. a. an offer b. an inquiry c. a counter-offer d. an acceptance 5. according to cisg, a contract can be established when________. a. an acceptance reaches the offeree b. the seller and buyer sign on a written contract c. the contract is approved by authorities d. an offer reaches the offeree 6. an offer will be terminated when________. a. it is rejected b. it is counter-offered c. it is legally revoked d. all of the above 7. a foreign buyer cabled that "offer dated 10 aug accepted, if 5% commission included". this is________. a. an acceptance b. a counter-offer c. an inquiry d. an offer 8. abc made an offer to xyz. under which condition can the two parties establish a deal? ________. a. within the validity period, xyz accepted the offer completely. b. based on previous experience, xyz indicated acceptance without receiving the offer. c. xyz accepted the offer within validity period, but suggested earlier shipment. d. efg which is recognized by xyz accepted the offer within validity period. 9. among the following statements concerning force majeure,_________________ is correct. a. when a force majeure event takes place, the party concerned has no choice but to terminate the contract. b. force majeure clause relieves the liability of the buyer or seller if his breach of contract is caused by a force majeure event. c. any natural calamities resulting in the breach of the contract can be taken as force majeure. d. force majeure clause must be included in every sc. 10. as far as the comparison of arbitration and litigation is concerned, _______________________is not true. a. arbitration is less expensive than litigation b. arbitration is faster in settling dispute than litigation c. both can reach a binding award d. both the arbitration institute and the court can enforce their award 11. before going for arbitration, both parties involved in a dispute needs to make an arbitration agreement in written form, in which they agree to refer the subject in dispute to an arbitral tribunal. such an action indicates the ____________ nature of arbitration. a. flexible b. simplified c. compulsory d. voluntary 12. the award of arbitration is final and binding on both parties. such a nature shows the ____________ nature of arbitration. a. flexible b. simplified c. compulsory d. voluntary 13. the 1958 united nations convention on the recognition and enforcement of foreign arbitral awards is _____________. a. participated by almost all the famous arbitration institutes in the world. b. binding on all nations in the world. c. composed especially to provide a standard arbitral procedure for arbitration institutes of its member countries. d. helpful for the enforcement of arbitral awards made by arbitration institutes of its member countries. 14. after a dispute, in case that the parties concerned are unable to reach an agreement, they can ask a third party to help settle the dispute. this action is called ____________. a. negotiation b. mediation c. arbitration d. litigation
2、true or false statements (12 marks) 1. ______ offer and counter-offer are the two essential stages in the communication of price. 2. ______ in a price communication, it is always the buyer who makes an inquiry and the seller makes an offer. 3. ______ a buyer cabled an acceptance to an offer, but requiring to change payment from d/p at sight to d/a. the seller kept silence. a contract could be established at this moment. 4. ______ reasons resulting in disputes in international trade can be classified into three categories: breach of contract by the seller, breach of contract by the buyer and breach of contract by both the seller and the buyer. 5. ______ when a force majeure event takes place, the party concerned has no choice but to terminate the contract. 6. ______ if an effective offer is accepted conditionally, a contract can be achieved immediately. 7. ______ force majeure clause is a clause that protects the right of the buyer. 8. ______ the best way for the importer to stipulate the place and time of inspection is inspection at the port of destination. 9. ______ cisg stipulates that an offer will be effective when it reaches the offeree. 10. ______ there are two separate deals in processing with supplied materials, but only one deals in processing with imported materials. 11. ______ in case of disputes, if litigation is not adequate to work out the settlement, arbitration is the next best alternative. 12. ______according to cisg, silence or inactivity can not amount to acceptance.
3、reading comprehension: sales contract requirement: read the following sales contract and answer the questions listed below it. (see the attachment) questions (you can answer on the attachment): 1. a sales contract is divided into 3 parts: preamble, body and end(witness clause).the following items are selected from the above contract, please mark the name of the part it belong to. 2. what trade term is used in this contract? according to this trade term, what are the major liabilities of the seller and the buyer respectively? (note: for “major liability”, you should list at least 3 items for the buyer and the seller respectively) 3. if there is dispute arising from the execution of or in connection with this contract, what type of dispute settlement method should be used to settle the dispute? why?