Unit 4. Commercial legal institutions

The main fields of application of the Lex Mercatoria were

• Maritime law

• Trade routes

• Banking

• Cottage industry

This is an example of a

(a)  

Bill of exchange: Its main purpose was to prevent cash from being stolen

• True

• False

The bill of exchange

• Facilitated the exchange of currency

• Gave credit to the buyer

• Was based on the advance of money in local currency in exchange for the promise of repayment of an equivalent amount at a later date, in another city and in the local currency

• Obliged to transport money phisically

A mercantile association grouping together several merchants who were generally and jointly and severally liable to third parties

• Stonemason

• The general merchants' society

• Guild

• Hansa

The general merchants' society are the predecessor of today's general partnerships and limited partnerships

• True

• False

The declaration of bankruptcy for traders and compulsory arrangement for minority creditors were restablished during the Middle Ages

• True

• False

Three types of bankers

• Financial analyst

• Pawnbrokers

• Money changers

• Merchant bankers

Banking was an activity considered correct by medieval society

• True

• False

Main institutions of maritime law

• Commenda

• Usury

• Negotiatio

• Bottomry