Question 1

Export Industries Ltd., a Canadian Corporation with a factory in London, Ontario, agrees to sell a customer in Germany 2,000 microwave ovens FOB Lufnaia Airlines, Toronto, Pearson Airport. Which of the following statements is CORRECT?

Accepted Answer

FOB (Free on Board) Lufnaia Airlines, Toronto, Pearson Airport means that Export Industries Ltd. is responsible for the goods until they are loaded onto the airline. Therefore, option E is correct. Option A implies that Export is responsible only until the goods leave Toronto, which is incorrect. Option B is incorrect because the customer's insurance does not cover the goods until they take delivery. Option C is incorrect because title passes at a different point than responsibility for the goods. Option D is also incorrect because Export is liable for all damages to the goods until they arrive at the destination.

Question 2

A seller in Ontario is sending goods by train to a buyer in Michigan under an FOB contract. The seller's obligations have been satisfied when:

Accepted Answer

Under an FOB (Free on Board) contract, the seller fulfills their obligations when the goods have been delivered to the carrier (railway company in this case) and conform to the contract. Once the goods are handed over to the carrier, the responsibility and risk of transportation pass on to the buyer. The buyer's obligation to pay arises only after the goods have been delivered to them. Therefore, choices A, B, C, and E are incorrect.

Question 3

Unlike domestic contracts, international contracts are more likely to involve special problems such as

Accepted Answer

E

Question 4

The invoice is of special importance in the international sale of goods. It provides information not only to the parties to the transaction but also

Accepted Answer

The invoice is crucial for customs authorities in the country of importation as it provides necessary details for assessing duties and taxes.

Question 5

The best means of establishing the proper law for an international contract is

Accepted Answer

The best means of establishing the proper law for an international contract is for the parties themselves to make express provision. This ensures that both parties have agreed on the applicable law and prevents any ambiguity or disputes that may arise from leaving it up to default or neutral laws.

Question 6

International business transactions require, by definition, parties in

Accepted Answer

International business transactions involve parties from two or more different countries.

Question 7

Countertrade

Accepted Answer

Countertrade is where payment is made in goods produced or procured by the buyer. The seller may agree to accept goods or services from the buyer in exchange for their own goods or services. This method is useful for companies that want to avoid currency fluctuations, deal with countries that have strict exchange controls, or penetrate new markets where traditional payment methods may not be accepted. However, countertrade can also be complex and may require the buyer to consume the goods acquired in exchange.

Question 8

Public international law is

Accepted Answer

Public international law primarily concerns the relationships between states and the legal principles and rules that govern their conduct with one another. The other options may fall under private international law or domestic law.

Question 9

Among the world's trading nations, Canada ranks eighth in exports of merchandise and twelfth in exports of services. Regarding these exports,

Accepted Answer

The answer of Among the world's trading nations, Canada ranks...

Question 10

agent in the other country, 3) _ , 4) branch or subsidiary, 5) , and 6) multinational enterprise.

Accepted Answer

The answer of agent in the other country, 3) _...

Question 11

The proper "law of the contract" is the law of the country where the

Accepted Answer

The proper law of the contract is generally the law that the parties intended to govern their contract, which is often explicitly stated in the contract itself.

Question 12

Tariffs and import duties in Canada are

Accepted Answer

Tariffs and import duties in Canada are administered by Revenue Canada by virtue of the Customs Act.

Question 13

SlamDunk Inc., a Vancouver, B.C. firm, agrees to sell to SuperVideo Ltd. of Barcelona, Spain, 500 video games with DDP terms. This means that SlamDunk will arrange for and pay the cost of shipping, the insurance, and the

Accepted Answer

DDP (Delivered Duty Paid) terms mean that the seller, SlamDunk Inc., is responsible for delivering the goods to the buyer's location and paying all costs associated with the delivery, including import duties.

Question 14

Which fo the following has not promoted the interpretation and standardisation of international contractual terms?

Accepted Answer

GATT (General Agreement on Tariffs and Trade) primarily focuses on reducing trade barriers and promoting free trade, rather than standardizing international contractual terms.

Question 15

Non- tariff barriers for bringing commercial goods into Canada would include all EXCEPT

Accepted Answer

Non-tariff barriers refer to restrictions that are not related to the payment of customs duties. Enforcing custom payments is a tariff-related barrier, while the other options are non-tariff barriers.

Question 16

A buyer in British Columbia purchases equipment from a manufacturer in China. The contract between the parties stipulates that any dispute between the parties arising out of the transaction will be decided by an arbitrator in Switzerland. The buyer is not satisfied with the quality of the equipment and brings the dispute before an arbitrator in Switzerland. What law will the arbitrator apply to resolve the dispute?

Accepted Answer

The contract between the parties explicitly states that any dispute arising out of the transaction will be decided by an arbitrator in Switzerland. It also implies that the parties agree to the law that the arbitrator will apply to resolve the dispute. Therefore, the arbitrator will apply the law that the parties agree should apply, which is E in this case.

Question 17

According to the text, the stages in the evolution of a multinational enterprise are: 1) foreign trade,
2)	agent in the other country, 3) __________, 4) branch or subsidiary, 5)_______, and 6) multinational enterprise.

Accepted Answer

The answer of According to the text, the stages in...

Question 18

Which of the following is NOT one of the services that the Canadian government provides to assist Canadian companies to compete in the global market?

Accepted Answer

The Canadian government does not provide tax credits specifically for the export sales of Canadian products. The other options are services or requirements that assist Canadian companies in the global market.

Question 19

Which of the following documents is NOT usually required for an export sale?

Accepted Answer

The answer of Which of the following documents is NOT...

Question 20

To an international seller of goods, the currency used to denominate the price should be currency and the currency to be paid in should be currency.

Accepted Answer

A stable currency should be used to denominate the price to avoid volatility and uncertainty. The currency to be paid in should be freely convertible to ensure easy exchange and no restrictions.

Quiz 33: International Business Transactions

Export Industries Ltd., a Canadian Corporation with a factory in London, Ontario, agrees to sell a customer in Germany 2,000 microwave ovens FOB Lufnaia Airlines, Toronto, Pearson Airport. Which of the following statements is CORRECT?

A seller in Ontario is sending goods by train to a buyer in Michigan under an FOB contract. The seller's obligations have been satisfied when:

Unlike domestic contracts, international contracts are more likely to involve special problems such as

The invoice is of special importance in the international sale of goods. It provides information not only to the parties to the transaction but also

The best means of establishing the proper law for an international contract is

International business transactions require, by definition, parties in

Countertrade

Public international law is

Among the world's trading nations, Canada ranks eighth in exports of merchandise and twelfth in exports of services. Regarding these exports,

agent in the other country, 3) _ , 4) branch or subsidiary, 5) , and 6) multinational enterprise.

The proper "law of the contract" is the law of the country where the

Tariffs and import duties in Canada are

SlamDunk Inc., a Vancouver, B.C. firm, agrees to sell to SuperVideo Ltd. of Barcelona, Spain, 500 video games with DDP terms. This means that SlamDunk will arrange for and pay the cost of shipping, the insurance, and the

Which fo the following has not promoted the interpretation and standardisation of international contractual terms?

Non- tariff barriers for bringing commercial goods into Canada would include all EXCEPT

According to the text, the stages in the evolution of a multinational enterprise are: 1) foreign trade, 2) agent in the other country, 3) ____, 4) branch or subsidiary, 5) _, and 6) multinational enterprise.

Which of the following is NOT one of the services that the Canadian government provides to assist Canadian companies to compete in the global market?

Which of the following documents is NOT usually required for an export sale?

To an international seller of goods, the currency used to denominate the price should be currency and the currency to be paid in should be currency.

Quiz 33: International Business Transactions

Export Industries Ltd., a Canadian Corporation with a factory in London, Ontario, agrees to sell a customer in Germany 2,000 microwave ovens FOB Lufnaia Airlines, Toronto, Pearson Airport. Which of the following statements is CORRECT?

A seller in Ontario is sending goods by train to a buyer in Michigan under an FOB contract. The seller's obligations have been satisfied when:

Unlike domestic contracts, international contracts are more likely to involve special problems such as

The invoice is of special importance in the international sale of goods. It provides information not only to the parties to the transaction but also

The best means of establishing the proper law for an international contract is

International business transactions require, by definition, parties in

Countertrade

Public international law is

Among the world's trading nations, Canada ranks eighth in exports of merchandise and twelfth in exports of services. Regarding these exports,

agent in the other country, 3) _ , 4) branch or subsidiary, 5) , and 6) multinational enterprise.

The proper "law of the contract" is the law of the country where the

Tariffs and import duties in Canada are

SlamDunk Inc., a Vancouver, B.C. firm, agrees to sell to SuperVideo Ltd. of Barcelona, Spain, 500 video games with DDP terms. This means that SlamDunk will arrange for and pay the cost of shipping, the insurance, and the

Which fo the following has not promoted the interpretation and standardisation of international contractual terms?

Non- tariff barriers for bringing commercial goods into Canada would include all EXCEPT

According to the text, the stages in the evolution of a multinational enterprise are: 1) foreign trade, 2) agent in the other country, 3) __________, 4) branch or subsidiary, 5) _______, and 6) multinational enterprise.

Which of the following is NOT one of the services that the Canadian government provides to assist Canadian companies to compete in the global market?

Which of the following documents is NOT usually required for an export sale?

To an international seller of goods, the currency used to denominate the price should be currency and the currency to be paid in should be currency.

According to the text, the stages in the evolution of a multinational enterprise are: 1) foreign trade, 2) agent in the other country, 3) ____, 4) branch or subsidiary, 5) _, and 6) multinational enterprise.