lOMoARcPSD|15991806

Đề midterm sales contract

Luật kinh doanh quốc tế (Trường Quốc tế - Đại học Quốc gia Hà Nội)

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FTU-TEST 3-DELIVERY+PAYMENT
Read the clause below and choose the correct answer
“If a material discrepancy in quantity exists and is duly notified to the Seller, the Buyer at his
discretion and subject to Clause 8.2 above may either (a) Accept the delivered portion of the
Goods and require the Seller to deliver the remaining portion forthwith; or (b) Accept delivered
portion of the Goods and terminate the remaining portion of the Contract upon due notice given
to the Seller”.
This clause means that____________________
A. In case there is any differences in quantity, which has been informed by the Buyer to the
Seller, the Buyer may reject the goods delivered.
B. Accept the goods delivered and reject the balance.
C. Both A&B are correct
Complete the statement below with ONE given term
- UCP 600 - Article 14 stipulates that the shipper or consignor of the goods indicated on
any document need not be the ______________of the credit.
A. applicant
B. beneficiary
C. drawee
D. drawer
Study the case below and answer the question
“A contract stipulates payment by confirmed letter of credit. When the seller presents the perfect
shipping documents to the confirming bank for payment, this bank refuses to pay because of
some reason”.
Question: Can the seller present the documents to the issuing bank for getting payment?
A. Yes
B. No
C. Arguable
Read the clause below and answer the question
A seller is in Vietnam. A buyer is in Japan. The goods are exported from Hochiminh city,
Vietnam. The goods are sport shoes in 02 containers. Risk to the goods transfers from the
seller to the buyer when the goods are loaded in containers in Cat Lai port, HCM city.

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Insurance is excluded. Destination for the goods is Kobe, Japan. The seller is responsible
for main carriage.
- Which rule is the most appropriate under Incoterms 2020?
A. CPT Kobe, Japan
B. CIP Kobe, Japan
C. FCA Cat Lai, HCM city, VN
D. FOB Cat Lai, HCM city, VN
Complete the statement below by choosing one correct answer
- The seller is best protected by which of the following payment terms?
A. Open account
B. Transferable letter of credit
C. Confirmed, irrevocable letter of credit
D. Documentary collection
Choose the correct document for the definition below
A _________________works under the term ‘import documentary credit,’ where the bank
releases documents on receipt from the negotiating bank. The importer does not pay the
bank until the maturity of the draft under the relative credit.
A. Bearer Bill of Lading
B. Surrender Bill of Lading
C. Master Bill of Lading
D. Order Bill of Lading
Read the clause below and answer the question
“The Buyer may, at the Buyer’s option, inspect the Goods prior to shipment. At least 15
days before the actual delivery Date, the Seller shall give notice to the Buyer, or to any
agent nominated by the Buyer, that the Goods are available for inspection. The Seller shall
permit access to the goods for the purposes of inspection at a reasonable time agreed by the
parties”.
A. At any time required by the Buyer, the seller must make the goods available for inspection
purpose.
B. 15 days before delivery, a written notice by the seller about the availability of the goods for
inspection must be sent to the buyer.

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C. Both A&B are correct

D. Both A&B are incorrect.
Read the clause below and choose the correct answer
8. “If the vessel named by the Buyer fails to arrive on or before 1 January, 20--, then the
Seller may at his discretion deliver the Goods to a bonded warehouse in the port of Saigon,
and shall be deemed to have fulfilled his delivery obligations under this Contract. In this
event, the Seller must notify the Buyer of the full circumstances of the delivery to the
warehouse, all costs, including but not limited to cost of storage and insurance are to the
Buyer’s account”
This clause means that_____________________
A. The Seller is entitled to terminate the contract in case of unavailability of the ship at the port
of loading at the date of delivery.
B. In case the ship is not available at the port of Saigon, the Seller must deliver the goods to a
bonded warehouse and inform the Buyer of such circumstance.
C. In the event of the unavailability at the port of loading of the carrier on the delivery date, the
Seller is considered to have completed his delivery obligation after he has released the goods to
the bonded warehouse at Saigon port.
Complete the statement below by choosing one correct answer
- 9. In a documentary collection, the banks________________
A. evaluate the quality of the goods before shipment
B. act as intermediaries in the collection process
C. Dictate the terms
D. Only check the drafts

10. Read the clause below and choose the correct answer
“The Buyer shall inspect the Goods on their arrival at the place of destination. If the Goods fail
to conform with the Contract in either quality or quantity, then the Buyer shall notify the Seller
of any discrepancy without delay and may, at his discretion, terminate this Contract. If the Buyer
fails to notify the Seller of any such discrepancies within 15 days of the arrival of the Goods,
then the Goods shall be deemed to have been in conformity with the Contract on arrival”.
This clause means that____________________
A. The Buyer is entitled to discharge this contract if the Seller makes delivery of defective
goods.

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B. The Buyer is not entitle to terminate the contract if he fails to notify the seller of any
differences in quality or quantity within 15 days of the arrival of the goods.
C. Both A&B are correct

11. Read the clause below and choose the correct answer
In the event that the Seller becomes liable to pay the maximum sum payable as liquidated
damages under Clause 8.3 above, then the Buyer shall, upon due notice, have the right to
terminate the Contract.
Under this clause, __________________
A. Liquidated damages are the agreed sum payable by the defaulting party, which has been
specified in the contract.
B. Due notice means the information that must be given or made available to the other party
within a legally mandated period of time.
C. Both A&B are correct.

12. Complete the statement below by choosing one correct answer

- A full set of clean perfect documents is a basis for ___________
A. an exporter to ask the issuing bank for payment
B. an issuing bank to be reimbursed by an importer
C. an issuing bank to confirm its payment to the exporter
D. all are correct

13. Read the clause below and choose the correct answer
“This Contract shall not come into force under clause 16 below until the Seller has received
advice that the Letter of Credit has been opened in his favor and has ascertained that the terms
are in accordance with those agreed between by the Parties and the letter of Credit as issued
shall be notified by the Seller to the Buyer immediately”.
This clause means that____________________
A. “This contract become valid and effective after the parties have agreed that payment for the
goods will be made by Letter of Credit”.
B. The contract will take effect only after the L/C has been issued with the terms and conditions
as agreed by the parties.

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C. The L/C as issued will be in favor of the buyer.

14. Complete the statement below with ONE given term

- According to UCP, if a credit requires presentation of multiple documents by using terms
such as "in duplicate", "in two fold"or "in two copies", this will be satisfied by the
presentation of ___________ except when the document itself indicates otherwise.
A. at least one original and the remaining number in copies.
B. two originals
C. two copies
D. all are correct

15. Read the clause below and answer the question

- A buyer is in Vietnam. A seller is Japan. The seller is responsible for bringing the goods
safely to the buyer’s premises in Hochiminh City, the goods have been discharged from the
arriving vehicle on arrival. The buyer is responsible for import procedures.
A. DPU Hochiminh City, VN
B. DAP Hochiminh City, VN
C. DDP Hochiminh City, VN
D. CPT Hochiminh City, VN

16. Complete the statement below with ONE given term

- When a nominated bank determines that a presentation is complying and honours or
negotiates, it must forward the documents to the confirming bank or ______________.
A. issuing bank
B. transmitting bank
C. advising bank
D. negotiating bank

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17. Complete the statement below by choosing one correct answer

- Subject to UCP 600, a letter of credit where it cannot be modified unless all parties agree
to the modifications is named ____________ letter of credit.
A. revocable
B. transferable
C. irrevocable
D. revocable

18. Read the clause below and choose the correct answer
“The Seller shall indemnify and hold harmless the Buyer against any loss or damage however
arising whether direct or indirect which shall be suffered by the Buyer as the result of defective
or faulty Goods delivered by the Seller”.
This clause means that_____________________
A. If the Buyer is at loss of profit because of defective goods delivered by the seller, he will get
compensation from the seller.
B. If the goods are loss of use because of defective goods delivered by the seller, he will get
compensation from the seller.
C. Both A&B are correct.

19. Read the clause below and choose the correct answer
“Delivery up to 15 days early is permitted; however, payment shall not become due until the
date agreed for payment under this Contract”.
This clause means that__________________
A. The seller is entitled to make early shipment up to 15 days but he can only get payment at the
time agreed under this contract.
B. The seller can make early delivery up to 15 days and is entitled to be paid by the buyer right
after his delivery.
C. Both A&B are correct.

20. Read the following case and answer the question

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- The seller is responsible for main carriage by sea, insurance excluded, but not responsible
for additional costs or risk of loss or damage to the goods once they have been delivered on
board the vessel at the port of shipment.
Question: Which rule under Incoterms 2020 should be used in this case?
____________________
A. CIP
B. CPT
C. CIF
D. CFR

21. Read the following case and answer the question

- The seller is responsible for contracting and paying for main carriage, insurance
excluded, and risk of loss or damage to the goods once will pass to the buyer when the
goods are shipped to the first carrier in the buyer country.
Question: Which rule under Incoterms 2020 should be used in this case?
____________________
A. CIP
B. CPT
C. CIF
D. CFR

22. Read the clause below and answer the question

“Buyers shall tender vessel(s) in readiness to load between 01/01/2023 and 28/1/2023, both
dates inclusive. Vessel(s) to load in accordance with the custom at the port of loading unless
otherwise stipulated. Bill of lading shall be considered proof of delivery in the absence of
evidence to the contrary. Buyers have the right to substitute the nominated vessel, but in any
event the original delivery period and any extension shall not be affected thereby.
This clause means that_________________
A. Buyers are entitled to change the named ship and the shipment time as first agreed by the
parties.
B. If there are no other proof of the delivery date, the date on the B/L must be considered as the
date of delivery.

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C. Even if the parties agree otherwise, loading must be in accordance with the customs at the
port of shipment.
D. all are correct.
23. Choose the correct document for the definition below
A _______________is a document generated by an Ocean Transport Intermediary freight
forwarder or non-vessel operating company. The paper is an acknowledgment of the
receipt of shipped goods issued to the suppliers when the cargo is received.
A. House Bill of Lading
B. Forwarder’s Bill of Lading
C. Charter party Bill of Lading
D. A&B

24. Read the clause below and choose the correct answer
“The Seller’s liability for defects is subject to the Buyer having adhered to all procedures and
instructions applicable to the storage, installation, use or operation of the item, and expressly
exclude damage to the Goods caused by fair wear and tear or by misuse occurring after
delivery”.
This clause means that_____________________
A. The Seller is not responsible for the quality of the goods during warranty period if his
instructions for the use of goods have not been followed by the Buyer.
B. The Seller is liable for defects to the goods in all cases, excluded damage caused by fair wear
and tear or misuse by the Buyer.
C. Both A&B are correct.

25. Read the clause below and answer the question

A seller is in Vietnam. A buyer is in Japan. The goods are exported from Hochiminh city,
Vietnam. Goods are coffee of 100 MT in containers. The seller is responsible for bringing the
goods safely to the buyer’s premises in Kobe, Japan, not unloaded. The seller is responsible for
import procedures.
- Which rule is the most appropriate under Incoterms 2020?
A. DDP Kobe, Japan
B. DPU Kobe, Japan

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C. DAP Kobe, Japan

D. CIP Hochiminh city, Vietnam

26. Complete the statement below by choosing one correct answer

- In a letter of credit transaction, the bank deals____________________
A. Only with the goods, not with the documents
B. Only with the documents, not with the goods
C. With the documents and the goods
D. With quantity and quality of the goods
27. Read the following case and answer the question
- The seller delivers the goods, export cleared, close to the side a vessel, and does not bear
risk or costs once the goods have been handed over._________________
Question: Which rule under Incoterms 2020 should be used in this case?
____________________
A. FAS
B. FOB
C. FCA
D. CPT
28. Read the clause below and choose the correct answer
“Payment of liquidated damages by the Seller shall not preclude the Buyer from seeking
compensatory damages from the Seller for any loss, injury or damage arising from or in
connection with late delivery of any Goods. In particular the Buyer shall be entitled to
compensation from the Seller for any indirect or consequential loss or damage, including but not
limited to loss of profit, loss of use or loss of contract, arising from or in connection with late
delivery of any Goods. However, payments made as liquidated damages shall be offset against
any recovered from the Seller for the late delivery of any Goods”.
This clause means that_____________________
A. The Seller is responsible for any actual damages.
B. If the Seller has paid the compensatory damages, he will be exempted from liquidated
damages.
C. Both A&B are correct.

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29. Read the clause below and choose the correct answer
“Partial shipment is permitted under this Contract, subject to the agreement of both parties;
however, any costs arising from partial shipment shall be to the account of the Seller”.
This clause means that__________________
A. The Seller will bear all costs arising in case of partial shipment
B. Partial shipment means the delivery of goods in more than one lot.
C. Both A&B are correct.
30. Read the clause below and choose the correct answer
“Delivery up to 15 days early is permitted; in this case, payment shall fall due as though the
actual delivery date were agreed in the Contract.”
This clause means that__________________
A. The seller is entitled to make early shipment up to 15 days but he can only get payment at the
time agreed under this contract.
B. The seller can make early delivery up to 15 days and is entitled to be paid by the buyer right
after his delivery.
C. Both A&B are correct.

31. Consider the following clause in a contract and answer the question
“Quantity: 100MT, tolerance 10% more or less; franchising 0.1%”
- Which of the following statement is True?
A. Under this clause, the seller is not considered to be at fault is he makes delivery of 110 MT
B. Under this clause, the seller is considered not to violate the contract in case he makes delivery
of 90 MT
C. If the goods weight 99.9MT on arrival, the buyer is required to pay for 100MT.
D. all are correct

Reading 2.
Read the Bill of Lading attached and answer questions 1-7
Choose the correct answers

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32. This Bill of Lading _____________

A. cannot be used for payment
B. is an original bill of Lading
C. evidences that the goods are received for shipment
D. all are correct
33. The person receives an advice when a shipment arrives at its destination
is_____________
A. C & P VINA CO., LTD
B. ORENDA US, INC.
C. ALL ROUND EXPRESS INC
D. Information not given
34. The transportation cost _______________
A. has been paid
B. has not been paid
C. Information not given
35. The term “said to contain” means_____________
A. The shipper is liable for the content of the goods transported
B. The consignee is legally responsible for the content of the goods transported
C. The carrier is liable for the content of the goods transported
D. all are correct
36. This is a_________________ Bill of Lading
A. House Bill of Lading
B. Master Bill of Lading
C. To order Bill of Lading
D. Blank endorsed Bill of Lading
37. The terms “attached rider” means______________
A. the number of containers transported specified in the appendix of the Bill of Lading
B. attached list
C. both A&B are correct

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D. both A&B are incorrect

38. The term CFS/CFS means_______________
A. The goods are transported from a CFS Vietnam to a CFS US
B. the goods freighted are often less than a container
C. both A&B are correct
D. both A&B are incorrect
39. Complete the statement below by choosing one correct answer
- Under UCP 600, All amendments or modifications to an L/C can ONLY be made by
a(n)______________
A. advising bank
B. issuing bank
C. remitting bank
D. confirming bank
40. Read the clause below and choose the correct answer
“Goods are to be packed in wooden cases and are to be well protected against dampness,
shock, rust or rough handling. The Seller shall be liable for any damage to or loss of the Goods
attributable to improper or defective packaging.”
This clause means that__________________
A. If the Goods are damaged or lost during transit due to any reason, the Seller will be
responsible for such loss or damage.
B. The goods must be contained in strong cases to avoid damage in transit.
C. Both A&C are correct

41. Read the statement below and choose the correct answer.
- An “open account” transaction gives all of the advantages to the_________
A. Consignee
B. Seller
C. Bank
D. Buyer

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Complete the statement below with ONE given term

- UCP 600 , Article 20 stipulates that a Bill of Lading must appear to indicate the name of
the carrier and be signed by the carrier or a named agent for or on behalf of the carrier, or
the ____________or a named agent for or on behalf of the master.
A. principal
B. forwarder
C. master
D. forwarding agent

Reading 3

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Read the L/C attached and answer questions 1-10

1. Which bank sent this L/C?
A. Issuing bank
B. Advising bank
C. Negotiating bank
D. Unspecified
2. This L/C is in favour of ___________
A. NIPPONEXPORT
B. ELEKTRO-IMPORT AG
C. MITSURO BANK
D. unspecified
3. The Bill of Lading presented for payment must be___________
A. 03 originals and 03 copies
B. 03 originals
C. 02 originals and 02 copies
D. 04 originals
4. Who holds the title of the Bill of Lading?
A. NIPPONEXPORT
B. ELEKTRO-IMPORT AG
C. ELEKTRO-IMPORT AG, ZURICH
D. Unspecified
5. The person designated on the Bill of Lading to be notified when a shipment arrives at its
destination is ____________
A. NIPPONEXPORT
B. ELEKTRO-IMPORT AG
C. EXPEDITIO AG
D. D. Unspecified
6. Under this L/C, the shipping documents must be presented __________
A. before 21-MAY-08

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B. 30-APR-08
C. 21 DAYS AFTER DATE OF SHIPMENT
D. A&C
7. The value of this L/C includes___________
A. Cost of the goods and Main Carriage
B. Cost of the goods, Main carriage and Insurance
C. Cost, pre-carriage, Main carriage and On-Carriage
D. None are correct.
8. The goods are insured under____________
A. A clause
B. B clause
C. C clause
D. Unspecified
9. The point of delivery is_______________
A. Kobe
B. Hamburg
C. Osaka
D. Unspecified
10. The shipping documents presented for payment consists of__________
A. Bill of Lading, Commercial Invoice, Insurance policy and Packing List
B. Bill of Lading, Commercial Invoice, Insurance certificate and Packing List
C. Bill of Lading, Commercial Invoice, Insurance policy, Packing List and draft
D. Bill of Lading, Commercial Invoice, Insurance policy
Reading 1 Commercial Invoice
Questions 1-10 refer to the attached commercial invoice
Choose the best answer

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1. The tare of the shipment is_______________

A. 16,000 Kg
B. 17,880 Kg
C. 1,880 Kg
D. None are correct
2. The vessel was scheduled to arrive at HCM port on_____________
A. 29, February, 2022
B. 25 February, 2022
C. 15 February, 2022
D. Unspecified
3. Under this invoice, delivery is made in____________
A. Laem Chabang, Thailand
B. HCM city port, Vietnam
C. Unspecified

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4. Payment was made_______________

A. before delivery
B. on delivery
C. after delivery
D. unspecified
5. Under this invoice, ______________ is responsible for contracting for carriage.
A. the buyer
B. the seller
C. the consignee
D. the consigner
6. The value of the invoice includes_______________
A. the cost of the goods and transportation fee
B. the cost of pre-carriage and main carriage
C. the cost of pre-carriage, main carriage and on-carriage
D. the cost, freight and insurance
7. The goods are_______________
A. containerized
B. packed in pallets
C. made in Thailand
D. all are correct
8. Under this invoice, _________________ is responsible for the risk of loss or damage to
the goods from Thailand to Vietnam.
A. The seller
B. The buyer
A. The shipper
A. The consigner
9. Loading charge is for ______________ account.
A. The seller’s
B. The buyer’s

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C. The shipper’s
D. The consigner’s
10. Unloading charge is for ______________ account.
A. The seller’s
B. The buyer’s
C. The shipper’s
D. The consigner’s
Read the clause below and choose the correct answer
“All income taxes, value added taxes, customs duties, excise charges, stamp duties or other fees
levied by any Government, Governmental agency or similar authority shall be borne exclusively
by the party against whom they are levied”.
This clause means that_____________________
A. The seller will pay all taxes imposed on him by his governments.
B. The buyer will pay all taxes imposed on him by his governments.
C. Both A&B are correct.
Read the clause below and answer the question
A buyer is in Vietnam. A seller is Japan. The goods are Polyester yarns of 15MT in containers.
- The seller completes his delivery obligation when the goods are delivered to the first carrier in
Tokyo. Carriage is arranged by the buyer.
- Which rule is the most appropriate under Incoterms 2020?
A. CPT Hochiminh City, VN
B. FCA Tokyo, Japan
C. EXW Tokyo, Japan
D. FCA Hochiminh City, VN

Read the clause below and choose the correct answer

“The Seller shall be liable for defects which come to light during a period of 01 year from the
date of delivery. After the end of this period, the Buyer shall have no right to raise claims of any
kind against the Seller for any defect in any Goods of the Seller’s supply. The defect liability
period shall be prolonged by the length of any period during which the Goods cannot be used by

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the Buyer because of a defect. However, if new Goods are delivered to replace defective Goods,
the defects liability period shall not begin again on the replacement Goods”.
This clause means that_____________________
A. After 01 year from the date of delivery of the goods, the Buyer is not entitled to make claims
against the Seller about the quality of the goods.
B. The period of 01 year warranty will be applied in any case.
C. Both A&B are correct.

Choose the correct document for the definition below

A _________________is a document issued by a carrier as evidence of receipt of goods for
shipment. It is given before the vessel loading and is not an onboard bill of lading.
A. Received for shipment Bill of Lading
B. Charter party bill of Lading
C. On board Bill of Lading
D. Endorsed Bill of Lading

Read the clause below and answer the question

The date of issuance of the bill of lading will be deemed to be the date of shipment unless the bill
of lading
contains an on board notation indicating the date of shipment, in which case the date stated in
the on board
notation will be deemed to be the date of shipment.
This clause means that____________________
A. The date of shipment is the date of issuance unless otherwise stated.
B. The date of shipment is the date stated in the on board notation.
C. Both A&B are correct
D. Both A&B are incorrect.

Choose the correct document for the definition below

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_______________ is used for shipments when payment is not made in advance. This can be
shipping to one of distributors or a customer on terms.
A. House Bill of Lading
B. To Order Bill of Lading
C. Through Bill of Lading
D. Direct Bill of Lading

Complete the statement below by choosing one correct answer

The party who decides that the shipping documents presented by an exporter are in
conformity with the terms and conditions in the L/C is the ___________
A. Issuing bank
B. Applicant
C. Negotiating bank
D. Advising bank
. Read the following case and answer the question
- The seller is responsible for all costs associated with delivering the goods, excluding import
duties, to the named point or place of destination at the country of importation. Risks transfer
from the seller to the buyer when goods have been unloaded from the arriving means of
transport in the buyer’s country.
Question: Which rule under Incoterms 2020 should be used in this case?
____________________
A. DAP
B. DDP
C. DPU
D. CPT

Read the following case and answer the question

- The seller is responsible for all costs and risks associated with delivering the goods to the
wharf at the named port of destination.
Question: Which rule under Incoterms 2020 should be used in this case?
____________________

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A. DDP
B. DAP
C. DPU
D. CIP
Read the clause below and answer the question
The contract period of delivery shall, if desired by Buyers, be extended by an additional period
of 21 consecutive days, provided that Buyers give notice in accordance with the Notices Clause
not later than the next business day following the last day of the delivery period.
This clause means that_________________
A. The time of delivery can be change if it is required by the parties.
B. The time of delivery can be prolonged 21 days by any party, provided a notice thereof must be
sent to other party in a timely manner.
C. The Buyer may extend the time of delivery if he notifies the seller thereof
D. All are correct

Read the clause below and choose the correct answer

“Discrepancies in quality shall be considered as defects and shall give rise to claims under the
defects liability provision of this Contract in clause 12 below. However, a fundamental
discrepancy in quality shall give the Buyer the right to refuse delivery of the Goods in whole or
in part and to recover from the Seller all payments made for the unaccepted portion of the
Goods as well as all costs, expenses and customs duties incurred by the Buyer in association
with the shipment, movement through customs, insurance or storage of the unaccepted portion of
the Goods”.
This clause means that_____________________
A. In case discrepancies in quality, the buyer has the right to make claims against the seller.
B. In case discrepancies in quality, the buyer has the right to reject the goods delivered in whole
or in part.
C. Both A&B are correct.

Read the clause below and answer the question

A seller is in Vietnam. A buyer is in Japan. The goods are exported from Hochiminh city,
Vietnam. Goods are garments in 01 containers. The seller completes his delivery obligation

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when the goods are delivered to the first carrier in Tan Son Nhat Airport, HCM, VN.
Destination is Kobe, Japan. Carriage is arranged by the buyer.
- Which rule is the most appropriate under Incoterms 2020?
A. CPT, Tan Son Nhat airport, HCM city, VN
B. CIP Kobe, Japan
C. FCA Tan Son Nhat airport, HCM city, VN
D. FOB Kobe, Japan

Complete the statement below by choosing one correct answer

- Subject to UCP 600 Presentation means either the delivery of documents under a credit to
the issuing bank or ____________ bank or the documents so delivered.
A. negotiated
B. agreed
C. accepted
D. nominated

Read the case below and answer the question

A seller is in Vietnam. A buyer is in Japan. The goods are exported from Hochiminh city,
Vietnam. Goods are rice of 100 MT in bulk. The seller completes his delivery obligation
when the goods are placed on board the vessel at Saigon port. Port of discharge: Kobe,
Japan. Carriage is arranged by the seller. Insurance is arranged by the Seller.
- Which rule is the most appropriate under Incoterms 2020?
A. CIF, Saigon port, HCM city
B. CIF Kobe, Japan
C. CIP Kobe, Japan
D. FOB, Saigon port, HCM city

Read the clause below and answer the question

- A buyer is in Vietnam. A seller is Japan. The seller completes his delivery obligation
when the goods are delivered to the first carrier in Tokyo. Carriage is arranged by the
Seller. Insurance is arrange by the Seller.

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- Which rule is the most appropriate under Incoterms 2020?

A. CPT Hochiminh City, VN

B. CPT Tokyo, Japan
C. FCA Tokyo, Japan
D. CIP Hochiminh city, VN

Complete the statement below with ONE given term

A. transport document bearing a clause such as "shipper's load and count" and "said by
shipper to contain" is acceptable by a paying bank for payment.
This statement is _______________
A. True
B. False
C. Arguable
- A transport document bearing clauses such as " Contents leaking, Packaging soiled by
contents, Packaging broken " or similar clauses is acceptable by a paying bank for
payment.
This statement is _______________
A. True
B. False
C. Arguable

Reading 4
Read the payment clause below and Choose the correct answers.
PAYMENT
If payment for the Goods shall be made by a letter of credit, Buyer shall establish in favor of
Seller an irrevocable letter of credit through a prime bank of good international repute
immediately after the conclusion of this Contract in a form and upon terms satisfactory to Seller.
If Buyer's failure to make payment, to establish a letter of credit or otherwise to perform its
obligations hereunder is reasonably anticipated, Seller may demand that Buyer provide, within a
reasonable time, adequate assurance satisfactory to Seller of the due performance of this

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Contract and may withhold shipment or delivery of the undelivered Goods until such assurance
is given.
Buyer shall pay the price specified on the face of this Contract without set-off, counterclaim,
recoupment or other similar rights which Buyer may have against Seller, which rights shall be
exercised in separate proceedings between Buyer and Seller.
Any new, additional or increased freight rates, surcharges (bunker, currency, congestion or
other surcharges), taxes, customs duties, export or import surcharges or other governmental
charges, or insurance premiums, which may be incurred by Seller with respect to the Goods
after the conclusion of this Contract shall be for the account of Buyer and shall be reimbursed to
Seller by Buyer on demand.
If Buyer fails to pay for the Goods in accordance with this Contract, Buyer shall pay to Seller as
liquidated damages and not as a penalty overdue interest at the rate of the lower of eighteen
percent (18%) per annum or the maximum interest rate permitted by the laws of Buyer's country,
calculated from the due date for such payment until the actual date of payment calculated on the
360 day a year basis for the actual number of days elapsed.
1. The Seller requires the Buyer to apply for an L/C issued by a good bank because
____________
A. he wants to be sure that he can get payment after delivery from the bank.
B. in case the buyer cannot make payment to him, he can get money from the bank.
C. A&B are correct
2. “This clause means that the particulars in the L/C established by the buyer must be in
conformity with those stipulated in the contract”.
This statement is _____________
A. True
B. False
C. Not Given
3. According to this clause, delivery must be made by the seller right after the conclusion of
this contract.
This statement is _____________
A. True
B. False
C. Not Given

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4. In case the seller finds any terms and conditions in the L/C received from an issuing
bank not satisfactory, he is entitled to ask the buyer for amendments of such terms and
conditions.
A. True
B. False
C. Not Given
5. If the Buyer does not establish an L/C, pay for the goods or perform his obligations,
_________
A. the seller has the right to terminate the contract.
B. may suspend his shipment or delivery
C. both A&B
6. The Seller only makes delivery of the goods when receiving an L/C from the bank or an
adequate assurance for payment provided by the Buyer.
This statement is________________
A. True
B. False
C. Not Given
7. If during the performance of this contract, there are any changes in market
price,___________
A. the parties agree to change contract price accordingly.
B. it does not affect the price originally agreed by the parties.
C. the buyer has the right to reduce the contract price.
8. All taxes or legal charges levied by the Buyer’s government will be____________
A. for the Seller’s account.
B. for the Buyer’s account.
C. for the party imposed.
9. “Suppose the maximum interest rate permitted by the laws of Buyer's country is 17%
and in case of late payment, the buyer will have to pay the seller a sum as liquidated
damages of 17% not 18% of contract value”.
This statement is_______________
A. True

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B. False
C. Not Given
10. The liquidated damages will be computed on the actual days of delay in payment
__________
A. on the basis of a full calendar year.
B. on the 360 day a year basis
C. both A&B
Complete the statement below with ONE given term
- a transport document bearing clauses such as " cargo unprotected/ unboxed " or similar
clauses is acceptable by a paying bank for payment.
This statement is _______________
A. True
B. False
C. Arguable

Read the clause below and choose the correct answer

“Payment of liquidated damages shall constitute full and complete satisfaction of any claim of
the Buyer against the Seller arising from or in connection with late delivery of any Goods. In
particular the Seller shall not be liable for any indirect loss or damage, as defined in Clause 2.7
above, arising from or in connection with late delivery of any Goods”.
This clause means that__________________
A. In case of delay in shipment, the Seller will be responsible for all costs arising.
B. In case of delay in shipment, the Seller will be accountable only for all direct costs arising.
C. Both A&B are correct.

Complete the statement below by choosing one correct answer

- Subject to UCP 600, honour means to accept a bill of exchange (“draft”) drawn by the
beneficiary and pay at maturity if the credit is available by_______________.
A. confirmation
B. agreement

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C. acceptance
D. consent
Study the case below and answer the question
“A seller presents documents to a bank under a letter of credit. The documents are perfect
except that on the Bill of Lading, it is claused “Packing used”.
Question: Can the seller be paid by the bank?
A. Yes
B. No
C. Arguable

Study the case below and answer the question

“A seller presents documents to a bank under a letter of credit. The documents comply with the
terms of the letter of credit. However, the buyer claims that the goods sent by the seller are of
inferior quality and requests the issuing bank not to make payment.”
Question: Will the bank make payment to the seller?
A. Yes
B. No
C. Arguable
Complete the statement below by choosing one correct answer
- Subject to UCP 600, with _________ letter of credit, the bank will cover the full or
remaining amount of the payment if the buyer fails to fulfill payment obligations to the
seller.
A. standby
B. confirmed
C. revocable
D. back to back

Read the clause below and answer the question

- The seller is in Japan, the Buyer is Vietnam, the goods are fertilizer of 100MT in bulk.
The seller is responsible for export procedures and completes his delivery obligation by

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placing the goods onto the vessel at the loading port of Kobe, Japan. Carriage is arranged
by the seller. Port of discharge is Saigon port. Insurance is excluded.
A. FAS Kobe, Japan
B. CFR Saigon port, HCM City, VN
C. FOB Kobe, Japan
D. FCA Kobe, Japan

Read the clause below and answer the question

“Final invoices for monies due may be prepared by either party and shall be settled without
delay. If not settled, either party may declare that a dispute has arisen which may be referred to
arbitration as herein provided”.
This clause means that_________________
A. In the event of late payment by either party, the other party is entitled to terminate this
contract.
B. If one party fails to make payment on due date, the other party has the right to take legal
actions.
C. In case of late payment by the buyer, the seller may bring the case to arbitration for final
settlement.
D. B&C

Read the clause below and choose the correct answer

“The Buyer may, at the Buyer’s option, inspect the Goods prior to shipment. At least 15 days
before the actual delivery Date, the Seller shall give notice to the Buyer, or to any agent
nominated by the Buyer, that the Goods are available for inspection. The Seller shall permit
access to the goods for the purposes of inspection at a reasonable time agreed by the parties”.
This clause means that__________________
A. For inspection purpose, the Buyer must always inspect the goods before delivery.
B. In case of inspection by the Buyer, the Seller must make the goods available for the Buyer or
his agent to check the goods.
C. The Buyer is entitled to determine the time of inspection.
Choose the correct document for the definition below

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A ________________is a document created for shipping companies by their carriers as a

transfer receipt. The document specifies the terms required for transporting the freight,
details of the consignor or the shipper, the consignee, and the respective person who
possesses the goods.
A. Bearer Bill of Lading
B. Surrender Bill of Lading
C. Master Bill of Lading
D. Order Bill of Lading

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