URC 522

URC 522

University

15 Qs

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URC 522

URC 522

Assessment

Quiz

Business

University

Hard

Created by

Nhi Huỳnh

Used 1+ times

FREE Resource

15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to URC 522 of ICC, which of the following documents is a financial instrument? 


 Invoice


 Contract

Bill of lading 


Bill of exchange 


Answer explanation

Bill of exchange. According to Article 2 of URC 522, financial instruments are used for payment of goods or services, including bills of exchange, promissory notes, and cheques. Commercial documents, on the other hand, include documents such as invoices, contracts, bills of lading, and certificates of origin.


2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt


Can certain provisions of URC 522 - 1995 ICC be contrary to the basic principles of Vietnamese law? 


Yes

No

Answer explanation

 Yes. URC 522 is a set of guidelines and standards issued by the ICC and is not the law of any specific country. Therefore, in some cases, certain provisions of URC 522 may not be in line with the basic principles of Vietnamese law. In such situations, the parties involved in the transaction should discuss and adjust the provisions to comply with both parties and the relevant Vietnamese laws. (DQUYNH)


3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

 URC 522 applies to which of the following transactions? 


Domestic transactions only 


International transactions 


 Both domestic and international transactions


4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Bank A issues a collection instruction D/P and the accompanying documents to bank B for collection. However, bank B, due to its good relationship with the importer, hands over the documents and allows the importer to pay after 15 days. The exporter knows about this and demands compensation from bank A for choosing bank B without authorization. Is bank A responsible for the actions of bank B?


Yes

No

Answer explanation

No. According to Article 5(c) of URC 522, if the customer does not specify the collecting bank, the remitting bank may use any of its own banks or a bank of its choice in the country of payment.

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Bank B receives a collection instruction from bank A with the importer's information as "ACB Company, 56 Tran Xuan Soan, District 7, Ho Chi Minh City." However, there is no company with this name at the mentioned address; instead, there is a company named "ABC Company, 90 Tran Xuan Soan, District 7, Ho Chi Minh City." Bank B takes one month to clarify the information of the importer, causing a delay in obtaining the documents from the importer. Is bank B liable for this delay?


Yes

No

Answer explanation

No. According to Article 4 of URC 522, the collection instruction needs to clearly state the name and address of the drawee. If the address is incomplete or incorrect, the collecting bank may attempt to determine the appropriate address and is not liable for any delays caused by the incomplete or incorrect address provided.

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

 If there are provisions in URC 522 ICC that are contrary to Vietnamese law, how should the exporter apply the collection method?

  1. URC 522 1995 ICC 

  1. According to Vietnamese law with the condition of clearly specifying alternative provisions in the collection instruction. 

  1. According to Vietnamese law without specifying anything. 

  1. Both parties apply the law of a third country agreed upon by both. 

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

 Bank A received a collection instruction from the exporter on 19/01. However, bank A can not handle a collection or any instructions related to it because of some Force Majure reasons. So, what should bank A do?


  1. Ignore the exporter 

  1. Notify the exporter that we can not handle on 19/10

  1. Immediately, send an announcement via email that we can not handle 

Answer explanation

According to Article 1, for any reason, if a bank decided not to handle a collection or any related instructions that received from the party gave it to the bank. The bank must advise the party from whom it received the collection or the instructions by telecommunication or, if that is not possible, by other expeditious means, without delay.

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