which is the international convention that regulates the negotiation, conclusion and implementation of international sales contract?
compared with domestic trade, what are the risks that are special for international trade?
international rules, such as ucp, have the same binding effect as laws.
domestic laws could be ignored when we conducting business internationally.
there is no difference between domestic trade and international trade.
import is just an inverse process of export, and no special attention should be paid.
incoterms 2010 regulates the practice of payment by letter of credit.
when will an offer become effective?
which offer cannot be revoked?
any offer could be withdrawn if the withdrawal reaches the offeree before or at the same time as the offer.
when the offeree makes modification to the ( ), his reply may not be seen as a counteroffer.
which of the following statements is not true for an inquiry?
which of the following statements is not true for an effective offer?
if an effective offer is accepted unconditionally, a contract can be achieved.
offer and counteroffer are two essential steps in international trade negotiation.
a buyer cable 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.
an oral offer must be accepted immediately unless the circumstances indicate otherwise.
any offer can be withdrawn if the withdrawal reaches the offeree before an acceptance is dispatched.
any offer can be withdrawn, but not every offer can be revoked.
an offer is accepted only if there is no alteration.
a counteroffer terminates the offer and is a new offer.
a late acceptance must be invalid and have no binding on the offeror.
an acceptance can be revoked after it becomes effective.
as an exporter in china, the international sales contract can be signed either in written form or oral form.
company b sent us a buying offer, subject to our reply there before july 22. on july 24, we telexed our acceptance to the offer but received no reply. as the market price kept rising, we unexpectedly received a telex on august 24 from company b requesting us to make shipment before the end of august as specified in the offer, or they would reserve the right to the claim against us for compensation. question: was the contract between b and us established? why?
china's company a made an offer to american company b on october 2 for 500 dozen men's shirts, 100% cotton, at usd 84.50 per dozen cif new york, subject to b's reply reaching before october 15. a received a reply from b on october 10, “your price is on the high side. we can accept your offer at usd 80 per dozen.” a received another email from b on october 13, “we accept your offer of october 2. the relevant l/c has been established.” a didn't made any response or delivery for the price was increasing. later, b insisted a broke the contract and claimed for compensation. question: do you agree with b? why?
warsaw-oxford rules 1932 was developed by international law association to set rules for ______.
which instrument is the most widely used one in international settlement?
which is the most secure way for the importer to make payment?
which of the following statements is not true?
negotiable instruments should be
what are the required contents of a draft as per china's laws?
the most popularly used draft in international trade is to be drawn
a check is drawn by a bank.
when using a check, the bank can make a payment on demand or at a fixed or determinable future time.
a promissory note must be paid on demand.
a bill of exchange is a conditional order in writing.
"dishonor" means the refusal to the acceptance or payment of a duly presented draft.
the payer of a banker's draft is a bank while the payer of a commercial draft is a company.
a promissory note is a promise of payment by the drawer.
all drafts can be accepted either by a business entity or a bank.
when the drawer fills in all the requisite contents, a draft is drawn.
dishonor entitles the holder to the rights of recourse.
the bill of exchange used in d/a must be a ( ).
if the exporter finds out mistakes on a received l/c, he should contact the ( ) at the first place.
if there is no special provision, the draft under a letter of credit should draw on the ( ).
the draft used in collection is ( ).
a ( ) credit is normally used in processing trade.
once the importer refuses to pay by collection, the ( ) will be responsible for the cargo release, customs clearance, warehousing, and reselling in the importing country.
if a bank other than the issuing bank guarantees the payment under an l/c, this l/c is a/an ( ).
in l/c settlement, the obligation of the advising bank is ( )
( ) credits are often used by export brokers.
an l/c is an unconditional undertaking of the issuing bank to make payment in complying presentation.
bankers take no undertaking of payment in collection.
if a credit is subject to ucp 600 and doesn't indicate whether it is irrevocable or not, it is a revocable l/c.
in international trade, clean collection is more frequently used than documentary collection.
if the remittance is made by a banker's demand draft, this payment is based on bank credit.
if the exporter finds out mistakes on a received l/c, he should directly contact the issuing bank.
for a confirmed credit, the confirming bank holds the same liability as the issuing bank.
in d/a, the collecting bank will first accept the draft and then provide the documents to the importer.
under collection, though the seller collects payment through banks, it is not guaranteed that he will receive the money as collection is still based on commercial credit.
according to ucp600, a letter of credit which does not indicate whether it is transferable or not would be considered as transferable.
the drawer of a draft drawn under l/c is the ( ).
if the b/l is required to mark "freight collect", the trade term adopted might be ( ).
there are four principles about document conformity for international trade documentation under the letter of credit. which set of the two principles are concerned by banks? ( )
deadline for presentation under the letter of credit is not later than ( ) calendar days after the date of shipment and not later than the expiry date of the credit.
which one of the following statements about complying presentation is correct? ( )
which one of the following statements about important dates for presentation and examination is correct? ( )
how many parties are involved in a draft for the payment against a letter of credit? ( )
which one of the following description is a demonstrative order of a draft? ( )
a draft is drawn on the (1). he is also known as the (2). usually the (1) and the (2) could be the issuing bank. find the names of the two parties from the following combinations. ( )
which one of the following statements about commercial invoices are correct? ( )
which one of the statements about the issuing date of the commercial invoice is not correct? ( )
the purposes of providing a packing list along with a commercial invoice are ( ).
which one of the statements about packing list is not correct? ( )
the issuing date of a bill of lading is ( ).
which one of the statements about bill of lading is not correct? ( )
banks won’t accept ( ) submitted by the seller as an insurance document for presentation.
insurance coverage expressed in the letter of credit as percentage of goods/invoice value is deemed to be minimum coverage required. it should be at least ( ) of the cif or cip value of the goods.
which one of the following statements about cargo insurance document is not correct? ( )
which one of the following company is a reputable international inspection company? ( )
in order to apply for commodity inspection by the chinese inspection authority, the exporter needs to fill a form called “application form for inspection on export commodity” and submit it to ( ).
inspection certificate issued by ciq is valid for (x) days for general products and only for (y) days for perishable goods. please find the right number of days in the following combinations. ( )
the payee of a draft should be the exporter in internatonal trade.
insurance policy or certificate is one of the requisite documents in l/c.
documentary credit is a separate transaction from the sale or other contract on which it may be based. banks deal with documents and not with goods, services or performance to which the documents may relate.
documents of presentation under the letter of credit cannot be dated prior to issuance date of credit, also they cannot be dated later than the expiry date for presentation.
according to ucp 600 article 15 and 16, when an issuing bank determines that a presentation is complying, it must honour.
a draft is also called a bill of exchange, it is a written, unconditional order issued by one party (the drawer) to another (the drawee) to pay a certain sum to the payer.
a draft can be made payable to bearer/holder. this type of draft is acceptable by the chinese banks.
the commercial invoice must be made out in the name of the beneficiary of the letter of credit.
the issuing date of a commercial invoice can be earlier than the issuing date of the letter of credit, but should not be later than the expiry date of the credit.
a neutral packing list is a packing list without the name of the buyer printed on the list.
a packing list usually does not contain unit price and total price of the goods.
the bank may accept a received-for-shipment bill of lading because such bill of lading indicates that the exporter’s obligation of delivering goods to the carrier has been fulfilled.
clauses in a bill of lading stating that the carrier reserves the right to tranship will be disregarded by banks.
in practice, the effective date of insurance should not be later than the date when the goods leaving exporter’s warehouse in order to be avail of extended protection of “warehouse-to-warehouse” clause.
if there is no indication in the credit of the insurance coverage required, the amount of insurance coverage must be at least 110% of the cif or cip value of the goods.
if the goods to be exported are in the catalogue of import and export commodities subject to compulsory inspection, they shall be inspected by the commodity inspection authorities. it is known as statutory inspection.
the validity time of inspection certificates issued by ciq for general products and for perishable goods are the same, 30 days.
the letter of credit may specify which institute to issue a certificate of origin (c/o). if the institute is not specified in the letter of credit, usually the chinese exporter should choose aqsiq to issue a c/o. but banks should accept c/o issued by both ccpit and aqsiq.
which of the following institute is a governmental commodity inspection body? ()
in terms of place of commodity inspection, a fair arrangement for both the exporter and the importer is ().
which one of the following reasons will not cause the breach of contract by the seller ().
which one of the following statement about the penalty clause is correct ().
which one of the following events/accidents is a force majeure event? ()
which one of the following items is not an element of force majeure? ()
for different dispute resolutions, a neutral third party is not involved in ().
for the sales of bulk commodities such as wheat, soy bean and coal, ( ) is used as the inspection term.
sgs is a ( ) inspection body.
which one of the following task is not that of gacc in terms of inspection and quarantine? ( )
which one of the following documents is not a legal proof for claim? ( )
un cisg classifies “breach of contract” into ( ).
one of the following conditions is not required for the constitution of a force majeure event, it is ( ).
the consequence of a force majeure event on the contract are ( ).
for chinese exporters, the preferred place for arbitration could be ( ).
award on a trade dispute issued by an arbitration institute is ( ).
according to united nations convention on international sales of goods, article 38 - the buyer must examine the goods, or cause them to be examined.
certificate of inspection at the port of shipment is used as the basis for claim and the settlement of claim by the buyer.
under un conventions on contracts for the international sales of goods, if non-fundamental breach of contract occurs, the non-breaching party has the right to sue for damages and terminate the contract.
the amount of compensation of claim needs to be stipulated in the clause of claim in advance.
when a force majeure event occurs, it will ultimately lead to the termination of the contract.
force majeure events should be verified with a certificate issued by a reputable institute specified in the clause.
the arbitral award is final and binding. usually it cannot be challenged in the court of law.
there are two types of arbitration institution – ad hoc (provisional) arbitration and permanent institutional arbitration body.
two conditions must be met for the breaching party to pay penalty to the aggrieved party - breach of contract and actual loss must incur.
force majeure events are caused by adverse natural phenomena and social factors, the latter include industrial strikes and fluctuation of commodity price due to war actions.
there are two forms of arbitration agreement - arbitration clause before a dispute arises or submission agreement. the main difference between the two forms is that the first form has stronger legal effect than the second form.