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URC 522

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

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


a)

 Invoice


b)

 Contract

c)

Bill of lading 


d)

Bill of exchange 


2.


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


a)

Yes

b)

No

3.

 URC 522 applies to which of the following transactions? 


a)

Domestic transactions only 


b)

International transactions 


c)

 Both domestic and international transactions


4.

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?


a)

Yes

b)

No

5.

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?


a)

Yes

b)

No

6.

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

a)
  1. URC 522 1995 ICC 

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

c)
  1. According to Vietnamese law without specifying anything. 

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

7.

 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?


a)
  1. Ignore the exporter 

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

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

8.

In case of partial payment, the presenting bank will release the documents to the drawee (the buyer) when they have just received the first payment from the drawee. According to URC 522, the presenting bank is not without fault, isn’t it?


a)

yes

b)

no

9.

Due to Acts of God, the bank’s business was interrupted so that the principal is to be borne a loss. As a result, the principal asked the bank for compensation. Is the bank liable for this loss?


a)

yes

b)

no

10.

 If the payment of interest has been refused, which parties will be informed by the presenting bank?

a)
  1. the remitting bank

b)
  1. the principal

c)
  1. the lawyer

11.

Which situations that the collecting bank(s) shall be entitled to recover expenses and charges promptly?


a)
  1. When the expenses and charges are to be borne by the drawee

b)
  1. When the expenses and charges are to be borne by the principal

c)
  1. When the expenses and charges are to be borne by the presenting bank

12.

The presenting bank must make a presentation for payment without delay is the definition of ?


a)

Sight

b)

Acception

13.

According to the ICC URC 522, the following documents are commercials documents?


a)
  1. Draft

b)
  1. Promissory Note

c)

Check

d)
  1. Invoice

14.

According to URC 522 ICC, when a document is refused payment, the collecting bank is responsible for:


a)
  1. Immediately return the declined documents to remitting bank

b)
  1. Advice the reasons of payment refusal to remitting bank

c)
  1. Within 60 days after its advice of non-payment and/or non-acceptance, the documents may be returned to the bank from which the collection instruction was received without any further responsibility on the part of the presenting bank.

15.

Who sets the article of D/P collection?

a)
  1. Importer

b)
  1. Exporter

c)
  1. Remitting bank

d)
  1. Collecting bank