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Unformatted text preview: V - True or False and Simple ChoiceA. TRADE TERMS1.Trade terms in sales contracts (such as FOC, CIF, etc.) describe:a. the method by which goods are to be manufactured.b. the place where the buyer is to take delivery.c. the time when the buyer is to take delivery.d. All of the above.e. Both b. and c. above.2.Almost all domestic laws allow the parties to a sales contract to define the meaning of the trade terms (such as FOC, CIF, etc.) that they use in their contract.3.The most commonly used private trade terms are the International Chamber of Commerces Incoterms.4.If parties to an international sales contract fail to define the meaning of a trade term within their contract, or fail to state that it is to be interpreted in accordance with a particular set of rules, than courts will apply their own domestic rules of interpretation.5.It is a common and widely accepted practice for parties adopting a particular set of rules governing trade terms (such as the Incoterms) to make extensive changes to those rules so that they better fit the circumstances of their particular transaction.1.A Note on the Incoterms6.The 1990 revisions to the International Chamber of Commerces Incotermswere made to reflect changes in technology and shipping practices that occurred during the 1980s.7.Which of the following of the Incoterms trade term groups requires the buyer to take delivery of the goods at the sellers premises?a. C Group.b. D Group.c. E Group.d. F Group.e. None of the above.8.Which of the following of the Incoterms trade term groups requires the seller to deliver goods to a carrier?a. C Group.b. D Group.c. E Group.d. F Group.e. None of the above.9.Which of the following of the Incoterms trade term groups requires the seller to arrange and pay for carriage, but does not have him assume the risk for loss or damage once the goods are delivered to the carrier?a. C Group.b. D Group.c. E Group.d. F Group.e. None of the above.10.Which of the following of the Incoterms trade term groups requires the seller to bear all costs and risks of bringing the goods to the buyers country?a. C Group.b. D Group.c. E Group.d. F Group.e. None of the above.11. Which of the following Incotermsapplies only to air and rail transport? a. CFR.b. CIF.c. FAS.d. FCA.e. FOB.2.Free Terms12. The word free when used in a trade term means that the seller must pay all costs associated with delivering the goods to the buyer.3.FOB - Free On Board13. The FOB trade term as it is defined by the Incotermsapplies to both inland carriage and carriage by sea.14. The FOB (named port of shipment) trade term requires a seller to deliver goods on board a vessel that is to be designated by the buyer in a manner customary at the particular port....
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This note was uploaded on 05/27/2011 for the course BUSINESS 401 taught by Professor Dr.rams during the Spring '11 term at Kentucky State University.
- Spring '11