VI[1] - pay to Bill Smith John Doe without recourse John...

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Unformatted text preview: pay to Bill Smith John Doe without recourse John Doe n his delivery of 400 bu. Gala apples to my Warehouse No. 7 VI - True or False and Simple Choice A. FINANCING FOREIGN TRADE 1. International Trade Documents 1. Which of the following are financial documents used in international trade? a. Bills of exchange. b. Letters of credit. c. Promissory notes. d. All of the above. e. Both a. and c. above. B. BILLS OF LADING 1. The Essential Document for All International Sales 2. A bill of lading is a document of title. C. BILLS OF EXCHANGE 3. A bill of exchange (or draft) is a two party instrument; that is, it is an unconditional order from a drawer promising to pay a payee a definite sum of money. 4. Because bills of exchange are negotiable instruments they are more readily salable and, therefore, useful financial tools for raising money. 1. The Laws Governing Bills of Exchange 5. The Lex Mercantoria (the old medieval fair law) did not recognize bills of exchange because to have done so would have violated the medieval Christian Churchs prohibition against interest on loans. 6. The English Bills of Exchange Act (BEA) of 1882 was based on the medieval Lex Mercantoria . 7. The Uniform Law on Bills of Exchange and Promissory Notes (ULB) is actually three separate conventions. 8. Because the English Bills of Exchange Act (BEA), the American Uniform Commercial Code (UCC), and the Uniform Law on Bills of Exchange and Promissory Notes (ULB) are all based on the medieval Lex Mercantoria , they are remarkably similar both in arrangement and content. 9. In continental Europe, the Uniform Law for Checks (ULC) governs the making of checks. 10. The International Chamber of Commerces Uniform Rules for Collections (ICC Rules) regulate the collection and/or enforcement of: a. bills of exchange. b. checks. c. promissory notes. d. All of the above. e. Both a. and c. above. 11. In common law countries, a bill of exchange or draft must contain the term bill of exchange both in the heading and the language of the instrument. 12. According to the Bills of Exchange Act (BEA) and the Uniform Commercial Code (UCC), a bill of exchange must: a. be in writing. b. be payable to order or to bearer. c. contain the term bill of exchange in the heading and the language of the instrument. d. All of the above. e. Both a. and b. above. 13. Which of the following require(s) that the words bill of exchange be in both the heading and the language of a bill of exchange? a. Bills of Exchange Act (BEA). b. Uniform Law on Bills of Exchange and Promissory Notes (ULB). c. All of the above. d. None of the above. 14. According to the Uniform Law on Bills of Exchange and Promissory Notes (ULB), a bill of exchange or promissory note must: a. be in writing....
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VI[1] - pay to Bill Smith John Doe without recourse John...

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