ch 11 trade documentation

Question 1

basic principle of trade and documentation

Answer 1

control and liability

Question 2

most common reason of documentation

Answer 2

fulfillment regulations

Question 3

documents are often associated with insurance or bank policies that limit a party’s ……. in an international shipment

Answer 3

manage risk

Question 4

there are things that dont necessarily need to be written down, but internatinoal transactions are complex and work with different languages and cultures. documents serve as a…….

Answer 4

common understanding

Question 5

the term documentation implies …… , maintaining official records of an organizations activities. some is legally required, but much is the organizations choice

Answer 5

record keeping

Question 6

The 4 types of documents

Answer 6

transportation, banking, commercial, government

Question 7

documents used for the physical movement of the cargo

Answer 7

transportation documents

Question 8

documents used for the financing of shipment

Answer 8

banking documents

Question 9

documnets used for the purchase of goods

Answer 9

commercial documents

Question 10

filfill government regulations. there are 2 main roles of documentation, business related and law-related. this document serves the needs of a business and the government

Answer 10

government documents

Question 11

refers to the sale of goods in which ownership on the paper documents is more important than the physical possession of the goods

Answer 11

documentary sale

Question 12

do not conflict with different computer systems. easier to see which is the official copy.

Answer 12

paper documents

Question 13

can be trasnported anywhere in the computer world in seconds, an infinite number of copies can be made, also in seconds. not always clear which is the official record

Answer 13

electronic documents

Question 14

used to discourage imports and increase their costs, sometimes to the point where trade is no longer profitable

Answer 14

non-tariff barrier (NTB)

Question 15

on of the roles of documentation was to control risk. requireing proper documentation can control theft and the trafficking of stolen goods

Answer 15

cargo security

Question 16

a concern in all aspects of documentation when communicating with the government and other companies. some info is a matter of public record, semi-private, while others can be very sensitive

Answer 16

confidentiality

Question 17

sets the standards for most of the documents we are concerned with. applies when there is a commercial sale of goods between two parties in different countries

Answer 17

UN Convention on Contracts for the International Sale of Goods (CISG)

Question 18

the basic law governing sales and contracts of sale, established in 1951

Answer 18

Uniform Commercial Code (UCC)

Question 19

the primary international organization that seeks uniformity in trade law, including documentation

Answer 19

UN Commission of International Trade Law (UNCITRAL)

Question 20

the 4 parts to a legally binding contract

Answer 20

1. Offer and acceptance
2. Consideration
3. Legal Capacity
4. Not be for Illegal Purposes

Question 21

states that what is offered must exactly be what is accepted. any changes may be considered a counteroffer

Answer 21

mirror image rule

Question 22

you cannot claim a breach because of a little problem

Answer 22

fundamental breach

Question 23

a buyer can simply no accept a shipment if there is a breach, but this may only be done after the seller has been notified

Answer 23

right of avoidence

Question 24

seller can fix the problem and the right to additional time to perform

Answer 24

right to remedy

Question 25

a contract bw buyer and seller, which includes the agreed terms of sale

Answer 25

Purchase Order

Question 26

The most important document in the entire process this is a document of title, a receipt of goods, and a contract of carriage

Answer 26

Bill of Lading

Question 27

this does not convey title. it is used more for air cargo, but ocean carriers are using it more

Answer 27

Waybill

Question 28

a document listing the cargo and its important characterisitcs

Answer 28

Invoice

Question 29

a certificate, typically provided by the government of the eexporter, certifying the nationality of the cargo

Answer 29

Certificate of Origin

Question 30

commonly used in food shipments to certify that it is gygenic

Answer 30

Sanitary Certificate

Question 31

Permission for sample goods to enter without paying duties as regular cargo

Answer 31

Carnet

Question 32

The form submitted to the government by the exporter providing basic information on the cargo

Answer 32

Export Declaration

Question 33

no notations by the carrier of problems, otherwise it is foul

Answer 33

Clean BL

Question 34

signed by the carrier that it is loaded

Answer 34

Onboard BL

Question 35

means only that it was received

Answer 35

Received-for-shipment BL

Question 36

nonnegotiable, cargo delivers only to the cosignee

Answer 36

Straight BL

Question 37

Created by a forwarder, who is acting as an intermediary

Answer 37

Forwarder’s B: