Cu 1:

im: 1.00
im tr: 0.00
Directions: Choose the answer that suits the question most.


Another name for Tender Guarantee is

A.
Revocation guarantee.

B.
Bid guarantee.

C.
Bond guarantee.
Cu 2:
im: 1.00
im tr: 0.00
Directions: A word or phrase is missing in each of the sentences below.Four answer choices are given
below each sentence. Choose the best answer to complete the sentence. Then mark the letter (A), (B),
(C) or (D) on the screen.

When parties agree to end a contract, ............ occurs.


A.
Termination

B.
Frustration

C.
Rescission
Cu 6:
im: 1.00
im tr: 0.00
Directions: Choose the answer that suits the question most.


A commercial invoice must be made out to .

A.
The exporter.

B.
The shipper.

C.
Any party endorsing the bill of lading.

D.
The applicant for the letter of credit, normally to the buyer, unless otherwise stated in the credit
Cu 7:
im: 1.00
im tr: 0.00
Directions: Four answer choices are given below each question. Choose the best answer then mark the
letter (A), (B), (C) or (D) on the screen.

If the price is quoted FCA, who pays for the freight?


A.
The exporter

B.
The carrier

C.
The buyer

D.
The forwarding agen
Cu 8:
im: 1.00
im tr: 0.00
Directions: Choose the answer that suits the question most.


If shipment is made on CIF or CIP terms, the letter of credit will call for .

A.
An insurance policy.

B.
A letter of insurance.

C.
A certificate of insurance.

D.
Either A or C
Cu 10:
im: 1.00
im tr: 0.00
Directions: Choose the answer that suits the question most.


Why do most exporters offer a discount for early payment, for example a 1% discount if payment is made
within 10 days of the date of invoice?

A.
Because the discount is so attractive to the buyer

B.
Because the buyer can save on the invoice price

C.
Because the exporter can substantially improves his cash flow

D.
Because the exporter just wants to get payment on delivery
Cu 12:
im: 1.00
im tr: 0.00
Directions: Choose the answer that suits the question most.


Why can a manufacturer sometimes accept a loss on an export deal?

A.
He wants to win a regular customer

B.
His factory may be short of work

C.
He can get some export incentives from the government.

D.
Any of the above
u 13:
im: 1.00
im tr: 0.00
Directions: A word or phrase is missing in each of the sentences below.Four answer choices are given
below each sentence. Choose the best answer to complete the sentence. Then mark the letter (A), (B),
(C) or (D) on the screen.

In a contract, a formal definition is the best way of clarifying what exactly the two sides have . .


A.
excuded

B.
negotiated

C.
agreed

D.
solved
When the Bill of lading marked "freight prepaid. Who pays for the freight?


A.
The Buyer

B.
The Seller

C.
The agent

D.
It depends on the agreement
A contract requiring an exporter in Ethiopia to send the contract goods by air for delivery in Windhoek,
Namibia.


A.
CIF Windhoek

B.
CIP Windhoek

C.
DEQ Windhoek
Cu 26:
im: 1.00
im tr: 0.00
Directions: Four answer choices are given below each sentence. Choose the best answer then mark the
letter (A), (B), (C) or (D) on the screen.

Under most laws, a buyer can make certain assumptions about goods. These assumptions are called (by
lawyers):


A.
Express warranties

B.
Negotiable warranties

C.
Implied warranties

D.
Implied guarantee
Cu 31:
im: 1.00
im tr: 0.00
Directions: Choose the answer that suits the question most.


Which is the most appropriate method of payment for the exporter in the following case?
A new small customer in a Pacific island republic much given to political disturbances. The order is for
$10,000 worth of assorted textiles.

A.
Open account with no security.

B.
Open account with bank guarantee.

C.
Open account with export credit insurance.

D.
Confirmed letter of credit.
Cu 32:
im: 1.00
im tr: 0.00
Directions: Four answer choices are given below each question. Choose the best answer then
mark the letter (A), (B), (C) or (D) on the screen.

If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight.
Right or wrong?


A.
Completely right

B.
Wrong

C.
Partly right, as the seller is obliged to pay only the freight and insurance necessary to put the goods on
board of the designated vessel by the buyer

D.
Completely wrong, because the buyer is obliged to pay for insurance and freight on his own account if
term of trade is FOB
Cu 33:
im: 1.00
im tr: 0.00
Directions: Choose the answer that suits the question most.


Discount Records bought phonograph records from an exporter. Payment was by letter of credit issued
by Barclays Bank. The exporter delivered a mix of cassettes, eight track cartridges and other non -
contractual goods. Discount Records tried to get an injunction to stop Barclays from paying under the
letter of credit. What you think the court would do in that case?

A.
The court refused.

B.
The court accepted.

C.
The court would not involve.

D.
The exporter will be paid although later action in the courts may oblige him to make good any damage
he has caused the buyer
Cu 35:
im: 1.00
im tr: 0.00
Directions: A word or phrase is missing in each of the sentences below. Four answer choices are given
below each sentence. Choose the best answer to complete the sentence. Then mark the letter (A), (B),
(C) or (D) on the screen.

If alternative means of transport or partial shipments are allowed perhaps by different modes of transport,
the letter of credit should have the words .......... between the names of transport documents.


A.
and

B.
or

C.
and/or

D.
Either B or C
Who issues ocean bill of lading?


A.
Captain

B.
Exporter

C.
Shipping company

D.
Agent
Cu 44:
im: 1.00
im tr: 0.00
Directions: A word or phrase is missing in each of the sentences below.Four answer choices are given
below each sentence. Choose the best answer to complete the sentence. Then mark the letter (A), (B),
(C) or (D) on the screen.

The decision of arbitrators is ................ .


A.
Law- oriented

B.
Business- oriented

C.
Action- oriented

D.
Reaction- oriented
Cu 47:
im: 1.00
im tr: 0.00
Directions: A word or phrase is missing in each of the sentences below.Four answer choices are given
below each sentence. Choose the best answer to complete the sentence. Then mark the letter (A), (B),
(C) or (D) on the screen.

In drafting an arbitration clause, the following questions must be resolved :........................

A.
How many arbitrators sit in the court?

B.
What is the language of the court?

C.
Where is the place of the court?

D.
All of the above
Cu 50:
im: 1.00
im tr: 0.00
Directions: A word or phrase is missing in each of the sentences below.Four answer choices are given
below each sentence. Choose the best answer to complete the sentence. Then mark the letter (A), (B),
(C) or (D) on the screen.

The main concern of the parties to contract should be .............. .


A.
Dispute management

B.
Dispute avoidance

C.
Dispute cost

D.
Dispute means