MCQs 1
1. The delivery depends on: effective date – date of coming into force
2. Some contracts set a cut-off date after which the contract 🡪 it becomes null and
void/cannot come into force
3. Grace period is sometimes used to …. 🡪 facilitate early delivery
4. If the force majeure event continues for too long, both parties have the right to
terminate the contract
5. What the term should be used when the lump sum compensation is set too high? 🡪
Penalty
6. What term should be used when the lump sum compensation is set right/fair 🡪
liquidated damages
7. What term should be used when the lump sum compensation is set too low? 🡪 Quasi-
indemnity
8. A penalty is not enforceable in English law or some other common law systems
a) Continental law
b) Anglo-American law
c) Civil law
d) Legal code
9. The exporter should have no liability for the goods when they are ….. 🡪 beyond
control
10. The place of delivery should not be confused with the ……. Of the goods 🡪
a) Departure
b) Destination
c) Transshipment
d) Partial shipment
11. The cheapest mode of transport is …… 🡪 sea
12. The most expensive mode of transport is …………… 🡪 air
13. Which type of B/L is negotiable?
a) Surender BL
b) Straight BL
c) To order BL
d) Designated BL
14. Bill of lading is the most important document because it is a …… 🡪 document of title
to the goods
15. A marine BL becomes negotiable document and no restriction on ownership when it
is
a) To order, blank endorsed
b) Surendered, blank endorsement
c) To order, endorsed
d) Surendered, endorsed
16. ………… original(s) bill of lading constitutes(s) a full set 🡪 3
17. …………. BL meanss goods were taken on board in good condition 🡪 clean
18. …………... BL meanss found something wrong with the consignment 🡪 unclean
19. How do you know bill of lading is “Marine BL”
� There is a on board notation
20. War risk is not included in A,B, C Cargo clause
21. General Average is included in _______ (hy sinh tổn thất chung) 🡪 Cargo Clause A,
B, C/Institute Cargo ABC
22. Minimum Average is the so-called_____ 🡪 Institute Cargo C
23. A contract requiring the exporter to send the contract goods by road from Kenya to
Zambla with freight paid by the exporter. Which Incoterms should be used in this
case?
CFR Lusaka
CPT Lusaka
CFR Nairobi
CP Lusaka
24. A contract requiring an exporter in Mozambique to deliver the contract goods in
Beira, Mozambique, for the shipment by sea to Dar es Salaam, Tanzania. Which
incoterms should be used in this case?
FAS Beira
CIF Beira
FOB Dar es Salaam
CFR Beira
25. A contract requiring an exporter in Ethiopia to send the contracts goods by air for
delivery in Whindhoek, Namibia. Which incoterm shoul dbe used in this case?
CIF Windhoek
CIP Windhoek
DEQ Windhoek (Delivered ex Quay) cảng
DES Windhoek (Delivered ex Ship)
By air 🡪 remove A and B
26. If the price is quoted CIF San Francisco, who pays for the insurance and freight?
Exporter
27. FOB – buyer at his discretion 🡪 buyer
28. EXW who pays for the freight 🡪 buyer
29. CPT who pays for the the freight 🡪 exporter
30. If the price is quoted FCA who pays for the freight 🡪 buyer
31. DP Marseille, who pays for the insurance and freight 🡪 exporter
32. A BL with the note is claused
33. Who issues ocean BL? 🡪 shipping company/carrier
34. What is the point of transfer of risk from the seller to the buyer (Incoterm 2000) under
FOB shipping term?
a) When the goods are at the seller’s premises
b) When the goods are handed to the first carier
c) When the goods across the ship’s rail
d) When the goods are on board
35. What is the point of transfer of risk from the seller to the buyer (Incoterm 2000) under
DDP shipping term?
a. When the goods are at the seller’s premises
b. When the goods are handed to the first carier
c. When the goods across the ship’s rail
d. When the goods are on board
36. In CIF and CIP contracts, _____ must pay for insurance from the point of delivery to
the named point of arrival 🡪 exporter
37. The disadvantage of ____ policy is that it is set up for particular time and
automatically expires 🡪 Floating
38. If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance
and freight. Right or Wrong?
a) Completely right
b) Wrong
c) Partly right, as the seller is obliged to pay only the freight and insurance necessary
to put the goods on board of the designated bessel by the buyer
d) Completely wrong, because the buyer is obliged to pay for insurance and freight
on his own account if term of trade is FOB.
39. Unless the letter of credit states otherwise, insurance coverage on a CIF or CIP
shipment must be for ____ of the CIF (or CIP) value of the goods
� 110% (100% the value of lô hàng + 10%)
40. Door to door service is offered. Which term should be used?
DDP
CIP
CIF
CFR
41. What is the point of transfer of risk from the seller to the buyer (Incoterm 2000) under
CIF shipping terms?
a. When the goods are at the seller’s premises
b. When the goods are handed to the first carier
c. When the goods across the ship’s rail
d. When the goods are on board
42. The bill of lading issed by the carrier for air transport is called ____ 🡪 air waybill
43. Who signs on “shipped on board” notation? 🡪
Captain
Exporter
Shipping company
Agent
44. Which of the following is NOT considered to be special requirement in a
sale/purchase contract?
Containers are required to be fumigated before shipment
Upgraded packaging materials
Goods must be packed according to export standards
Health inspection for foodstuffs
45. The contract should regulative what happens if Incoterm 2000 and the terms of the
contract conflict normally the ____ prevails 🡪 contract provision/term
46. Which date chosen to be delivery date 🡪 the date of uploading or to be shipped
47. How many remedies are given for unexcused delay 🡪 2
48. In what country below does the court require the Exporter to pay compensatory
damages when unexcused delay occurs 🡪 USA
49. What aspects of the goods does the carrier (the transportation company) inspect? 🡪
The contents of the goods
The BL
The Commercial Invoice
The packaging and the appearance of the goods
50. Institue Cargo Clause C does not protect the Goods from damage caused by ____
Collision of the vessel with other objects
Fire or explosion
Entry of sea lake or river water into vessel craft
Discharge of cargo at port of distress
51. How many questions do the courts raise to the Seller is setting a figure for
compensatory damages for late delivery? 🡪 3
52. Insurance cover under CIF and CIP contracts is for the value of the goods plus
____ 🡪 10%
53. The contract becomes binding and effective upon ___ 🡪 effective date/date of
coming into force
54. Which of the following incoterms is the most favorable to the Seller? EXW
55. How many terms are available in the Incoterms 2020? 🡪 11
56. ____ is the amount to be paid for the late delivery, which is used as a threat of
punishment to achieve acceptable performance? 🡪 Penalty
57. ____ is to relieve the exporter of liability for delay in delivery. It is enforceable
everywhere but open to challenge as “unconscionable” – Quasi-indemnity
58. Which of the following notes does not make B/L unclean?
Secondhand packaging material used
Packaging badly dented
Packaging broken
Insufficient packaging
59. Which of the following is true about Penalty/?
It is enforceable everywhere
It is not enforced in the USA
It aims to compensate the buyer when the goods are delivered late
It aims to relieve the Seller’s liability for the late delivery
60. Under FOB terms, the place of delivery is ____ 🡪
The seller’s plant
The port of shipment
The port of arrival
The buyer’s warehouse
61. When the goods are delivered Ex Works, the place of delivery is ___
The seller’s plant
62. When the BL is ___ it has comments on the damage of the Goods
Claused
Torn
Clean
Market
63. The Marine BL must state that the Goods have been shipped ____ a named vessel
Prepaid
On board
With insurance
With commercial voice
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