key_to_Unit_11.doc

Unit 11Payment of GoodsKeyI. True or false1. T2. T3. F this is a discrepancy between the contract and the covering L/C.4. T5. F this “ more or less “ tolerance does not apply when” the Credit stipulates the quantity in terms of a stated number of packing units or individual items.6. F according to article 42of the UCP 500, a freely negotiable credit does not need to “ stipulate a place for negotiation.”7. F article 43of the UCP 500 also states :”if no such period of time is stipulated, banks will accept”. Here the L/C stipulated an expiry date of the L/C, the presentation of documents, therefore, should not exceed that date (September 15)8. T9. F article 11 of the UCP 500 reads :” if a bank uses the services of an Advising Bank to have the Credit advised to the Beneficiary, it must also use the services of the same bank for advising an amendment. 10. T11. T12. F on CFR,CPT or FOB terms, it is the buyer who must insure the goods and pay the insurance premium involved.13.F according to Item of article 13 of the UCP 500:” documents which appear in their face to be inconsistent with one another will be considered as not appearing on their face to be in compliance with the terms and conditions of the Credit ,” discrepancies between the documents themselves are not allowed.14.F banks wont refused to effect payment, as is stated in article 13 of the UCP 500,” documents not stipulated in the Credit will not be examined by banks. If they receive such documents, they shall return them to the presenter or pass them on without responsibility.”15.F the time allowed for examining and negotiating the documents is seven banking days, as is indicated in article 13(b)of the UCP 500:” the Issuing Bank shall each have a reasonable time, not to exceed seven banking days following the day of receipt of the documents, to examine the documents and determine whether to tale up or refuse the documents and to inform the party form which it received the documents accordingly.”16.F the beneficiary does not need to act on suggestions written in the L/C if they ate not indicated as documents, as is stated in article 4 of the UCP 500:” in Credit operations all parties concerned deal with documents and not with goods, services and /or other performances to which the documents may relate.”17.T18.T19.F the beneficiary must present all the originals if more than one original insurance policy has been issued. This is clearly specified in article 34 of the UCP 500 :” if the insurance document indicates that it has been issued in more than one original, all the originals must be presented unless otherwise authorized in the Credit.”20.F a Certificate of Origin is used to prove that a certain commodity is produced and manufactured in a certain country.II. In each blank space write a word that fits naturally:method, international, letter, ideal, for, trade, gives, starts, issue(open, establish), amount, and instructions, transaction, sends, correspondent, On, correspondent, credit, usual, confirm, undertakes, due, forth(out), with, knowing, money, secure, behalf, carried outIII. Payment and acknowledgementA. Read the bill of exchange below and answer questions.1. Drawer: Henan native produce Drawee: Hanover Trust Co.2. 4th DEC, 1999 3. two copies 4. US$63,162.005. Unite States Dollars Sixty Three Thousand One Hundred And Sixty Two Only6. The senders place is on the bottom right and the receivers is on the bottom left.7. 90 days 8. LC 1. US dollars, number, letter of credit, companyB. Figures and words1. one hundred pounds sterling only2. eighty-nine dollars and fifty cents only3. Yen eight hundred and sixty-eight thousands only4. Two hundred and thirty-four pounds, four shillings, and three pence only5. Deutsche mark five hundred and ninety only IV. Read the following letters regarding payment terms. Identify the writer, the term proposed and the reason given. Then fill the Information Form.Letter No.Buyer/SellerTerm proposedReason1BuyerCAD凭单付款Deal of small value2BuyerT/T电汇Assure the time of delivery & save expenses3SellerCIA(not COD货到付款)Usual practice4SellerD/A承兑交单To push sales5SellerD/P付款交单To expand business6BuyerConsignmentUnable to make purchase on his ownV. Identify the problems and complete the letters by suggesting a solution.1. increase the amount of your LC by $600 LC amount is insufficient2. make the necessary amendment to the LC so that the currencies of the documents are the same. discrepancy in currency3. amend your LC as stated in your order payment terms differ between LC and order sheet4. amend your LC to read Transshipment is allowed. discrepancy in terms of delivery VI. VI. Please the following bill carefully, and then fill in the blanks with the questions given:Key(1) The name of the issuing bank SAKURA BANK, LTE., THE (FORMERYLY MITSUI TAIYO KOBE) TOKOYO(2) The number of the credit No. 200909301111(3) The opening date of the credit Sept. 30, 2009(4) The amount and currency of the credit U.S DOLLARS TWENTY-FOUR THOUSAND FIVE HUNDRED AND SIXTY ONLY(5) Draft deadline At sight(6) Payee PAY TO THE ORDER OF BANK OF CHINA(7) Drawee SAKURA BANK, LTE., THE (FORMERYLY MITSUI TAIYO KOBE) TOKOYO(8) Drawer GUANGZHOU MACHINERY IMP. AND EXP. CORP., (GROUP)VII. Please make out the bill of exchange according to the information you have got from the particulars:凭 美国纽约银行Drawn under 信用证 第 10-20090611-1 号L/C .日期 2009 年 6 月 10 日Dated .按 息 付款 Payable with interest % per annum 号码 汇票金额 中国 广州 年 月 日No.Exchange for ., China 20.见票 日后（本汇票之副本未付）付At*sightof this FIRST of exchange (Second of exchange being unpaid) pay to the order of 或其指定人金额 六万美元整 the sum of US DOLLARS SIXTY THOUSAND ONLY 此致VIII. Please give the right settlement method in the form according to the information you have got:Key序号信息资料结算方式1（1）出口的货物是库存的服装商品，且国内没有市场；（2）进口商是我方的长期客户，有着良好的商业信誉Collection2（1）出口的货物是为欧盟研制的新产品，首次打入该市场，不知前景如何；（2）为了获取更多的市场信息，改进新产品，提升品牌；（3）进口商是我方的多年客户，有着良好的商业信誉Collection3（1）出口的货物是一般的电器产品，在该国有一定的市场占有率；（2）该进口商是我方新的客户，商业信誉程度不知L/C4（1）出口的货物是一般的农作物产品，长期出口该国，具有较大的市场占有率；（2）该进口商是我方多年的客户，商业信誉较好；（3）该国最近经济状况不太好，政局有所动荡L/C5（1）该商品为欧盟研制的新产品；（2）目的是参加该国的轻工产品展览会，想了解该国的市场信息；（3）产品展览后，想卖给当地的客商T/TTo 美国纽约银行 广州广发玩具进出口公司IX. Please answer the following questions according to the credit given below:(1) 开证人：ABC Co. （13）交单期限：提单日后15天，但须在信用证的有效期内(2) 受益人：Guangdong Textiles I. & E. Corp. （14）信用证是否保兑：non-confirmed(3) 信用证号码：ILCT507553 （15）信用证是否可转让：transferable(4) 开证日期：May 29, 2002 （16）信用证是否可撤销：irrevocable (5) 信用证有效期：July 1, 2002 （17）信用证金额：USD 80000(6) 到期地点：China （18）信用证金额增减百分比：2%(7) 装运港：Guangzhou （19）汇票付款期限：sight draft(8) 目的港：New York （20）能否分批：with partial shipment allowed(9) 装运期限：June 10, 2002 （21）能否转船：with transshipment allowed(10) 商品名称：Ladies Jeans Assorted Style and Color （22）付款人：JPMORGAN CHASE BANK（11）商品数量：About 800 doz. （23）单据不符点扣费：USD 50（12）数量增减幅度：10% （24）要求单据： commcercial invoice; packing list;customes invoice; certificate of origin; clean bill of lading; beneficiarys certificateX. Please make proper amendment to the credit according to the contract:。XI. Case Study1.Answer: The law of the USA applies to this contract because (1) this was a CIF contract; (2) the place of conclusion of the contract was in the USA; (3) the place of the execution of the contract was also in the USA. The seller completed his responsibilities after he delivered the goods at the port of the USA.2.Answer: It seems that the seller delivered the goods more than what was stipulated in the contract; therefore, according to Article 52 of the CISG, the buyer may refuse to take delivery of the excess quantity delivered. However, in this case because of the ignorance of the staff concerned, difference occurred between the actual goods delivered and the quantity specified in documents. Whats sunny is that the weight indicated on the documents was the