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EKR112 Commercial Law 2 > International Trade Law > Flashcards

International Trade Law Flashcards

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1
Q

Is international trade law actually interenational

A

Yes in a way as they are negotiated internationally but they are enforced through harmonization of national laws

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2
Q

Private law covers transactions B2B, B2C and C2C and internationalization tries to harmonize these

A

True

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3
Q

Public law governs transactions, tariffs and business regulation

A

No, only the last two

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4
Q

In B2B the actors are not assumed to be sophisticated

A

False

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5
Q

Why can there be no one law of the world for trade

A

Because there are different cultures and there is no one to enforce it

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6
Q

both public and private law has elements applicable to trade law

A

True

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7
Q

If two companies in a country make a contract to deliver a good to someone outside the nation is the transaction international

A

No

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8
Q

If two companies in different countries make a contract to deliver a good from one company to another in the same nation is the transaction international

A

Yes

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9
Q

What are some physical challanges with international trade

A

Distance, language and multimodal transpportation (land, air and sea)

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10
Q

What are some commercial challanges with international trade law

A

Difficulty to ascess eachothers creditworthyness, fluctuating transport risk and who has controle and responsibility when needs to be descided

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11
Q

Does political forces always want to encurage exports while discuraging imports

A

No, some strategic stuff some countries want to keep in their borders

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12
Q

What are some legal challanges in international change

A

Conflicting laws, which law applies, court arbitration and enforcement as well as third party web of contracts and their privity

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13
Q

ROM 1 & 2 regulates what law applies where and when in south America

A

False, in the EU

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14
Q

Much of commercial law has to do with sales of movable property

A

True

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15
Q

Sales is a species of contract

A

True, that involves the passing of property from the seller to the buyer

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16
Q

What are contracts of affreightment

A

special types of contracts under which goods sold under a sales contract are transported by sea.

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17
Q

Name some examples of contracts of affreightment

A

charterparty and a contract of carriage

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18
Q

What fore contracts are most often involved in international sale

A

A charter party C/P, a bill of lading B/L, a sales contract and a letter of credit

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19
Q

Who finds the vessel of transportation in a CIF contract

A

The seller finds the vessel in a cost insurance fright contract

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20
Q

Who finds the vessel in a C&F contract

A

The seller

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21
Q

The seller finds the vessel in a FOB contract

A

No the buyer finds the vessel in a free on board contract

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22
Q

A charterparty is a contract for the use of a whole ship

A

True

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23
Q

A charterparty is nececary in the case of small cargoes that can be shipped in containers on a liner vessel,

A

False

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24
Q

What are the sellers primary duties in a CIF contract

A

The contract of carriage, isurance, and export lisence. They pay for the transport but are only liable for the goods untill the loading process begins

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25
Does the seller pay for the shipment or take the risk on board the ship in a FOB contract
No
26
What is a voyage c/p
When a ship owner or someone who assumes their responsibilities agree to ship form A to B
27
what is a time c/p
A contract where the ship owner or equivalent makes their ship available for a limited time
28
A bill of lading is made before the cargo has been shipped
No, it is sent once the cargo has been shipped and makes sure that everything is in order once it is on its way
29
Explain the framework or interplay of contracts in international trade in the case of C&F trade
A buyer and seller has a sales contract while the seller has a contract of carriage with the ship owner. Once the goods are on their way a bill of lading is issued to the seller who may then pass it to the buyer where the document of title gives a proprietary right to the property on the ship to the buyer (a relationship between the buyer and the shipowner). Remember triangel
30
What are chain sales
When the bill of lading is sold multiple times before the ship has reached port passing proprietary rights of the cargo from one to another through the document of title
31
How can banks be used to mitigate risk in international trade
If the buyer purchases on credit the buyers credit issuing bank undertakes to pay the seller via a confirming bank which makes sure the buyer wont just not pay the distant seller and also open up a channel for compensation if the order does not arrive. In such a scenario the bill of lading passes from buyer to seller via their banks. This ensures that the buyer cannot get the b/l aka right to the property before they pay and that the seller cannot get payed before selling the bill of lading.
32
What is a sea well bill
A non negotiable bill of lading that serves as evidence of carriage
33
What happens in a bank assisted international trade
Seller (shipper) endorses bill of lading in favour of buyer and gives it to his bank. The bank sends it to its correspondent bank in buyer's (consignee's) country. The correspondent bank notifies the consignee and delivers the bill of lading to him upon receiving payment of the purchase price of the cargo. Consignee presents bill of lading to the carrier and takes delivery of the cargo. The correspondent bank sends the money received from the buyer to the seller
34
What are the three functions of a bill of lading
As evidence for the condition of the goods on board aka a receipt, as evidence of the terms of the contract of carriage and lastly as a document of title that cannot be traded
35
What does it mean that the bill of lading is an estopple in the hands of others than the shipper
That it is evidence that may stop others from making assertions about the goods
36
Does it mean that a bill of lading is prima facie evidence
That it is first glance evidence
37
If both bills of lading and the charterparty are contracts of carriage which contract governs the carriage of the cargo on the voyage in question?
* where the B/L is issued to the charterer as shipper (i.e., CIF or C&F) = C/P * where the B/L is subsequently acquired by the charterer as receiver or intermediate buyer (i.e., FOB) = C/P * any other case = B/L (because the holder of the B/L will not be a party to the C/P; he will not be the charterer of the vessel
38
In the case of CIF, C&F or FOB contracts the C/P governs the carriage of cargo on board
True, on any other case bill of lading
39
A document of title is a personalty, chattles personal, choose in action
Yes, it is not land or a right to land and it is a representation of a right
40
The hague rules are 100 years old
True
41
In the past the shippers used to negotiate out of responsibility
True
42
Charter parties create less equal bargaining power
False
43
Historically there has been a move from strict liability to fault based liability in international shipping
True
44
Is intention to make a bill of landing to get the rights of a contract of carriage
Yes
45
live animals and deck cargo are covered by the hague visby rules
False
46
A sea way bill is a document of title
False
47
What are the preconditions for deck cargo to be excluded from hague visby rules
lear statement that goods are carried on deck; and in fact cargo is so carried; it is not enough to have general liberty clause to carry cargo on deck
48
For the hague visby rules to apply they may come from a port or stat that applys them
No, it is enough if it is clearly stated in the bill of lading or C/P
49
The hague rules allows freedom to the parties to agree terms of liability relating to loading or discharge
Yes so if they decide that loading begins when the cross the rail they are free to
50
What must a wronged cargo interest buyer prove to be compensated if their goods are damaged
That the goods were damaged or missing and that there was a contract with the carrier. Then if the shipper gives prima facie evidence in the form of B/L they must prove that the ship was unseaworthy and that the damage was caused by unseaworthyness.
51
How is a ship made seaworthy
exercise due diligence to (a) make the ship seaworthy; (b) properly man, equip and supply the ship; (c) make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage and preservation.
52
The duty to exercise due dilligence to make a ship seaworthy is transferrable
False
53
A shipowner is liable for their servants and agents in making the ship seaworthy
True
54
When is the ship required to be seaworthy according to the Hague rules
Durring the negotiated voyage, from point A to point B
55
A ship is required to be cargo worthy for the immunities against paying damaged or missing cargo to apply
True
56
carrier shall properly and carefully load, handle, stow, carry, keep, care for and discharge the goods carried, if this is broken the hague immunities do not apply
False, this is not and overiding clause and is even negotiable
57
What does carefult and properly mean in the Hague rules
With a sound system and no negligence
58
The shipper has the right to demand a bill of landing, if not demanded a bill of lading is not required
True
59
shipper guarantees statements on bill of lading; gives carrier right of indemnity against shipper
Yes, that is a function of a recipt
60
Can you contract out of the Hague rules compensation by f.ex agreeing to use a law with lower limited liability or some arbitration clause
No
61
Can you alter the Hague rules to gain greater liability for the goods
Yes, the rules only puts a floor in stone
62
The liability can be shifted if damages to carried goods are due to navigation or management errors
True, if the ship was seaworthy
63
Unforseen fire or perrils of the sea may grant the carrier immunity from liability
True if the ship was seaworthy, perrils of the sea did not mention that it needed to be unforseeable though
64
Is a carrier responsible for any cause arising without the actual fault and privity of the carrie
No but they need good evidence, if obscure the carrier is liable
65
Name some carrier defences to be used if the ship is considered seaworthy
* (d) act of God; * (e) act of war; * (f) act of public enemies; * (g) arrest or restraint of princes, rulers or people, or seizure under legal process; * (h) quarantine restrictions; * (i) act or omission of the shipper or owner of the goods, his agent or representative; * (j) strikes or lock-outs or stoppage or restraint of labour from whatever cause, whether partial or general; * (k) riots and civil commotions; * (l) saving or attempting to save life or property at sea; Carrier’s Defences, Catalogue of Exemptions * (m) wastage in bulk or weight or any other loss or damage arising from inherent defect, quality or vice of the goods; * wastage same as leakage * inherent vice means unfitness to withstand ordinary transit (fish bacteria) * (n) insufficiency of packing; * packing to be done in accordance with normal practice for goods on such voyage (it may be apparent on loading) * (o) insufficiency or inadequacy of marks; * insufficiency of marks may cause misdelivery * (p) latent defects not discoverable by due diligence;
66
If the value and nature of the goods s in the bill of landing the carrier cannot be liable for more than 666.67 units of account per package/unit or 2 units of account per kilo
False that is the case if the value is not in the bill of lading
67
What is a package/unit
A box or a bundle of goods, can be specified in a bill of lading
68
Will a course deviation to save llife or property be a breach of contract of carriage
no
69
What are the consequences of an unauthorised course diversion
Damages for delay or fisplacement of the contract if a fundamental breach
70
Shortly explain the buy ship pay process
A customer buys a good from a seller, it is shipped but the buyer does not pay before it is recived and the seller does not relinquish untill payed by bank who handles the risk
71
What are incoterms
harmonised model contracts
72
In FOB the buyer is responsible for the transport of goods
True
73
What are the pros and cons of a letter of credit
The pros are that it allows both buyers and sellers get goods and payed when they want to minimise risk but the conns are that it is expensive
74
English law recognises electronic documents as posessible which makes electronical bills of lading legual
True, they now have the same status as paper documents under english law
75
What is MLETR
The model law for electronic transferrable records
76
Is MLETR widely adopted
not yet

EKR112 Commercial Law 2 (17 decks)

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