Which one of the following is NOTtrue when shipping goods under documentary time drafts for acceptance? A)the exporter is extending credit to the importer B)the exporter is relinquishing control of the goods in return for a signature on the acceptance to assure it of payment C)the importer is no longer bound to pay the draft to the exporter D)a bill of lading will be the most important document of the transaction

Question

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When shipping goods under documentary time drafts for acceptance, the exporter is extending credit to the importer, as they are not paid immediately upon shipment. The exporter relinquishes control of the goods in return for the importer's signature on the acceptance to assure payment. However, the importer is still bound to pay the draft to the exporter. The bill of lading is an important document, but not necessarily the most important in this transaction.

Which One of the Following Is NOTtrue When Shipping Goods