CDCS Study Materials-Sales Contract
MCQ -Sales Contract
1. An exporter sells goods overseas on FOB and CIF Incoterms, respectively.
Who is responsible for the freight charges in each?
A. FOB — importer / CIF – exporter
B. FOB – importer / CIF – importer
C. FOB – exporter / CIF – importer
D. FOB – exporter / CIF – exporter
The correct answer is A. Under FOB terms, the importer is responsible for the freight charges, and under CIF, the exporter.
2. Under FOB terms and UCP 600, a bill of lading would be required to state which of the following?
A. Shipped on board and freight paid
B. Received for shipment and freight paid
C. Shipped on board and freight payable at destination
D. Received for shipment and freight payable at destination
The correct answer is C. UCP 600, article 23, requires the bill of lading to indicate that the goods have been shipped on board. Use of the FOB Incoterm means that freight is payable at destination.
3. What is the meaning of Incoterm CIF?
A. Carriage, insurance and freight
B. Cost, insurance and freight
C. Cost including freight
D. Charges, insurance and freight
The correct answer is B. CIF stands for ‘cost, insurance and freight’.
4. On whom does Incoterm EXW impose the least obligation?
A. The buyer
B. The seller
The correct answer is B. The seller delivers by making the goods available to the buyer at its own location, loaded or unloaded on the departing conveyance.
5. Which of the following is true of the use of trade terms such as Incoterms 2010?
A. They determine the port or place at which title to the goods passes from seller to buyer.
B. They determine the port or place at which delivery of the goods is determined to have been
made by the seller.
C. They determine the port or place at which the goods are to clear customs.
D. They determine the port or place at which the buyer is expected to make payment.
The correct answer is B. Incoterms determine the point at which delivery occurs, and as a result, the point at which costs and risk pass between the seller and buyer.
CDCS Study Materials – Sales Contract
CDCS Study Materials-Sales Contract