TACN2 chương 1+2

1 / 56
Payment guarantee is usually for
Click the card to flip 👆
Terms in this set (56)
L/c = Documentary Credit becauseDocuments are exchanged for moneyThe advising bank never pays the exporter directlyIt depends on the type of creditNo connection btw sale contract and L/CCompletely rightA FOB sale contract agrees that the exporter can deposit the goods in the warehouse if the ship arrives late and this counts as delivery if the L/C requires B/L and make no mention of the warehouse receipt.The bank simply cannot pay against the warehouse receipt becauseWhat happen first when the bank refuses to pay under a L/C?The bank will sign a discrepancy, some aspects of the documentation which are not in line with the terms in the L/C.What is not discrepancy reported by the bank?Problems with certificate of dangerous goodsWhat is not problem with L/C?There is no endorsement if endorsement is necessary.What is not problem with insurance?Documents are not presented within the required time.What happens if the issuing bank find problems with the documents and refuses to send funds to the advising bank to cover payment?Payments from the advising bank to the exporter are always made with recourse. the exporter has to pay back to the advising bank.A commercial invoice must be made out to whom?The applicants for the L/C, normally the buyerWhen the exporter is notified that an L/c is opened, the exporter should:The exporter check if L/C complies with the agreements negotiated with the buyer.The amount of credit should be expressed:BOTH IN FIGURES AND WORDSThe method of payment is most advantageous for the exporter:Sight paymentIn a confirmed L/C, what happens if the bank pays the exporter and the issuing bank find problems with documentsTHE CONFIRMING BANK HAS PAID TO THE EXPORTER AND HAS NO WAY OF RECOVERING IT BECAUSE THE CONFIRMING BANK MUST PAY THE EXPORTER WITHOUT RECOURSE.The method of payment is least satisfactory for the exporter:NegotiationPick the right statement:The bank must check if the documents specified in the L/C are in perfect orderTransferable credit is :It is the kind of credit which allows the beneficiary to request the confirming bank to pay a third partyWhich method is appropriate for the following case: a new small customer in a specific island having political disturbances?Confirmed L/CWhich method is appropriate for the following case: Sale of a bale of cloth costing 200 dollars to a nearby tailor shop with whom you have long-term relationshipOpen account with no securityWhich method is appropriate for the following case: A contract for supply of cloth worth 5,000 dollar per month to the government of a properous nation, in 2 years but renewable. The transaction represents high % of company's revenueOpen account with bank guaranteeBest solution to make late payment impossible?At sight confirmed irrevocable L/CExporter should export credit insurance when:The transaction represents a high proportion of their turnoverHow many kinds of third-party guarantee for payment?2: export credit insurance and payment guaranteeWho offer exp credit insurance?Exp credit agency/ companyWho bears the cost of bank guarantee?BuyerExp credit premium depends on (goods, buyer's creditworthiness, stability of buyer's country) excluding :Terms of PaymentHow many steps in issuing a L/C?4How many steps in presenting an L/C?6Which of the following might be chosen as the delivery date?Date of loading goods onto shipsHow many remedies given to the buyer for any unexcused delays?2: continue to ship, compensateIn which country belows does the court require the exporter compensate for unexcused delay in delivery?USAMinimum coverage clauseCMost extensive coverageACargo clause C doesnt protect goods fromEntry of sea, lake, river water into vesselHow many questions raised by the court to the seller in setting a figure in compensatory damages for late delivery?3Insurance cover under CIF/ CIP contract is for value of the goods plus:10%The contract becomes binding and effective upon:Effective dateWhich of ICT terms is most favourable to seller?EXWHow many terms in ICT 2020?11Which principle of L/C that aim to protect the right of the sellerAutonomyIn the guarantee triangle, the bank is :GuarantorExport credit insurance is at the .. of the sellerExpensePayment guaranteeprotect seler from risk ofnon-paymentWhich note doesnt make B/L unclean?Second-hand material useWhat kind of guarantee is more secure than demand guarantee?Conditional guaranteeA guarantee involves how many parties?3