Law - Ch6: Transportation Documents and Means of Payment

Which of the following is a non-transferable bill of lading issued as a receipt for goods?

• 1. Inland bill of lading

• 1. Through bill of lading

• 1. Waybill

• 1. Bill of exchange

In respect of a Bill of Exchange, which of the following roles is fulfilled by the bank?

• 1. Discounter

• 1. Drawer

• 1. Drawee

• 1. Payee

A Co wishes to buy some goods from Z Co. The owners of Z Co are concerned that A Co will not pay in full so ask A Co’s owner, H Co for some assurance. H Co wrote to Z Co stating “It is out firm belief that A Co can pay all of its debts as they fall due”.

Which of the following describes the communication from H Co to Z Co?

• 1. A letter of credit

• 1. A bill of exchange

• 1. A guarantee

• 1. A letter of comfort

X Co has applied for a letter of credit from its bank MM Co. This is required to support the purchase of goods from an overseas seller D Co. MM Co passed the letter of credit to T Co, the bank of D Co.

Which of the following correctly describes the role of MM Co?

• 1. Payee

• 1. Issuing bank

• 1. Advising bank

• 1. Applicant

Which of the following can always be revoked?

1. 1. Bill of exchange

2. 2. Letters of credit

3. 3. Credit transfers

• 1. 1 only

• 1. 1 and 2 only

• 1. 3 only

• 1. 1, 2 and 3

Which TWO of the following are true statements about negotiable bills of lading?

• 1. They require the carrier to deliver to the consignee named in the bill

• 1. They permit the legal owner of the bill to re-route the shipment

• 1. The carrier hold the goods until they receive the original bill endorsed by the seller

• 1. An airway bill is an example of a negotiable bill of lading

Which of the following bills allows for inland and international transportation?

• 1. Inland bill of lading

• 1. Ocean bill of lading

• 1. Airway bill

• 1. Through bill of lading

Which of the following statements about bills of lading is/are correct?

1. 1. A bill made out to a named consignee may be negotiable

2. 2. A bill made out “to bearer” is non-negotiable

3. 3. A seller can make the bill out to themselves, creating an order bill

• 1. 1 and 2 only

• 1. 2 and 3 only

• 1. 1 and 3 only

• 1. 1, 2 and 3

Which of the following is NOT a requirement of an international bill of exchange under the UN Convention on International Bills of Exchange and International Promissory Notes?

• 1. It must be dated

• 1. It must be payable on demand

• 1. It must be an unconditional order

• 1. It must be for a definite sum of money

Which of the following documents confirms receipt of specified goods?

• 1. Bill of lading

• 1. Bill of cargo

• 1. Bill of exchange

• None