Chipper's Golf Resort is in the process of purchasing rare Kauri wood from New Zealand to be made into an impressive mantle on the fireplace of its new clubhouse.Before disbursing payment to the New Zealand dealer,the director of the construction project is concerned about the timeliness of delivery as well as the quality of the slab of wood once it is delivered.As the representative of Chipper's bank,you suggest that the Golf Resort sign an):

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The best choice in this scenario would be a Letter of Credit. This gives the New Zealand dealer assurance that they will be paid once they provide the agreed-upon quality and delivery timeliness. It also protects Chipper's Golf Resort in case the dealer fails to meet the terms, as the bank will not release payment until the conditions are met. A Banker's Acceptance is typically used for international transactions, but in this case, it would not give Chipper's enough protection. An Authorization of Conditional Acceptance and a Fair Exchange Certificate are not relevant to this scenario.

Chipper's Golf Resort Is in the Process of Purchasing Rare