Law - Ch-6,7,8

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

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

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

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

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

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

• Inland bill of lading

• Ocean bill of lading

• Airway bill

• Through bill of lading

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

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

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

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

• 1 and 2 only

• 2 and 3 only

• 1 and 3 only

• 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?

• It must be dated

• It must be payable on demand

• It must be an unconditional order

• It must be for a definite sum of money

Which of the following documents confirms receipt of specified goods?

• Bill of lading

• Bill of cargo

• Bill of exchange

• None

Which of the following is most likely provide immediate payment?

• Bills of exchange

• Letters of credit

• Inter-bank credit transfers

• Letters of comfor

Bruce has agreed to buy some sheep from Sheila. The parties have agreed that Bruce will pay in Australian Dollars on a bill of exchange.

Which of the following correctly describes Bruce’s role?

• Drawee

• Drawer

• Payee

• Endorser

Faith has agreed to purchase a consignment of barrels of herrings from Charity. Faith’s bank has countersigned the bill of exchange.

What is the role of Faith’s bank?

• Drawer

• Acceptor

• Guarantor

• Payee

Which of the following statements about bills of exchange is correct?

• A seller will only be paid when the drawer is able to honour the bill

• Payees may not themselves transfer a bill they possess

• Delivery can occur by handing over a bill

• A person endorsing a bill is known as the endorsee

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

A person who endorses a bill of exchange is liable on the bill

A bill of exchange, like a bill of lading, is a negotiable instrument

• 1 only

• 2 only

• Both 1 and 2

• Neither 1 nor 2