Question 1

Compare and contrast the instances in which an individual holding a bill of lading will and will not be protected from the adverse claims of third parties.

Accepted Answer

The answer of Compare and contrast the instances in which...

Question 2

When would and would not a bill of exchange constitute bearer paper?

Accepted Answer

The answer of When would and would not a bill...

Question 3

What term from Incoterms 2000 would you recommend under each of these scenarios?
A transaction wherein an American seller is to transport the goods by sea from the port of Oakland,California to Vancouver,Canada and the Canadian buyer's sole obligations are to arrange for import clearance and purchase insurance against loss from the moment the goods cross the ship's rail.
A transaction wherein a Greek buyer seeks to impose all obligations on the French seller,including export clearance,the cost of insurance,transportation of the goods by sea from Marseille,France,and import clearance at Piraeus,Greece,the port of destination.
A transaction wherein a Dutch seller wishes to limit its obligations to notification of the American buyer that the goods are available for pickup at the seller's warehouse in Antwerp,Netherlands.
A transaction wherein an American seller is to deliver the goods on board a ship in New York and arrange for export clearance for ultimate shipment to Rio de Janiero with the Brazilian buyer responsible for contracting with the carrier,the cost of obtaining insurance and obtaining import clearance.
A transaction wherein a Canadian seller is to transport the goods by sea from Halifax,arrange for export clearance,unload the goods at their final destination in Oslo,Norway and make them available on the wharf while the buyer arranges for import clearance in Norway.
A transaction wherein a Belgian seller is to deliver the goods to the wharf at the port of Antwerp,provide a receipt evidencing such delivery and facilitate export clearance with the Swedish buyer responsible for contracting with a carrier for their transport to Stockholm and bearing all risk of loss from the moment the goods are placed alongside the ship.
A transaction wherein a Mexican seller is to contract for motor carriage of the goods,deliver the goods to another motor carrier for transport across the U.S.border,pay unloading and loading costs,arrange for export clearance and obtain insurance on the U.S.buyer's behalf for final delivery to Phoenix,Arizona.

Accepted Answer

The answer of What term from Incoterms 2000 would you...

Question 4

If the seller in Omaha wishes to place the goods in the hands of a trucking company named by the foreign buyer and have the risk of loss pass to the buyer at that time,the seller should quote his prices:

Accepted Answer

FCA (Free Carrier) Omaha is the most suitable option as it allows the seller to place the goods in the hands of the trucking company named by the foreign buyer, which means that the seller has fulfilled their obligation of delivery once they hand off the goods to the carrier. At this point, the risk of loss passes to the buyer. The other options do not allow for the buyer to name the carrier or do not indicate a specific handover location, which could lead to confusion or issues with delivery.

Question 5

Compare and contrast the risk of loss and expenses associated with "C" and "F" terms.

Accepted Answer

The answer of Compare and contrast the risk of loss...

Question 6

An importer in Germany requests a price quotation from a cotton broker in Memphis.The broker wishes to place the cotton in the hands of a multimodal terminal operator in Memphis for shipment through the port of New Orleans.He will pay the freight charges through to the German seaport,but he wishes the risk of loss to the cotton to pass to the German importer as soon as he places the cotton in the hands of the multimodal terminal operator in Memphis.The broker should quote his prices for the cotton:

Accepted Answer

The answer of An importer in Germany requests a price...

Question 7

Draft a contract that includes shipping terms.

Accepted Answer

The answer of Draft a contract that includes shipping terms....

Question 8

Prepare an invoice that contemplates any number of the following:
 ocean freight and insurance costs,ground transportation costs,port charges,customs fees,forwarder's fees,and communications expenses.

Accepted Answer

The answer of Prepare an invoice that contemplates any number...

Question 9

In an effort to satisfy an important customer in Portugal,the seller is willing to pay all ocean freight charges and bear all risks of the journey to the port of Lisbon.The buyer,however,has agreed to pay all unloading charges.The exporter should quote his prices:

Accepted Answer

The answer of In an effort to satisfy an important...

Question 10

Consider when a shipping term as opposed to contradictory contract language will be most persuasive in identifying the type of contract.Vice versa?

Accepted Answer

The answer of Consider when a shipping term as opposed...

Question 11

The government of Venezuela is purchasing a large quantity of American beans to be loaded on its own ship at the port of New Orleans.The buyer will arrange to have its vessel loaded and will obtain its own export licenses.The seller may be asked to quote its prices:

Accepted Answer

FAS Venezuelan vessel (Free Alongside Ship) indicates that the seller is responsible for delivering the goods alongside the buyer's vessel at a specific port in Venezuela. This is the most suitable option given that the buyer is arranging the shipping and obtaining its own export licenses. FOB is not ideal as the buyer is responsible for the shipping and insurance. CIF and DEQ involve the seller arranging the shipping and insurance, which is not necessary in this situation.

Question 12

Draft a bill of lading.

Accepted Answer

The answer of Draft a bill of lading....

Question 13

Compare and contrast the circumstances under which a buyer would and would not accept "E"-term contracts.

Accepted Answer

The answer of Compare and contrast the circumstances under which...

Question 14

What are the benefits and possible detriments of using an inspection firm?

Accepted Answer

The answer of What are the benefits and possible detriments...

Quiz 5: The Documentary Sale and Terms of Trade