Exercises练习
I.True or False
1.As exporter,you are suggested to set a deadline in the contract for the importer to open the L/C.( )
2.The issuing bank and the paying bank cannot be the same bank.( )
3.As an L/C is opened in accordance with the contract,it is bound by the contract.( )
4.The advising bank for an L/C has an obligation to make the payment to the beneficiary.( )
5.If the applicant of an L/C is bankrupt,the issuing bank can refuse to pay the beneficiary even under a complying presentation of documents.( )
6.Under a confirmed L/C,both the issuing bank and the confirming bank assume primary undertaking for payment.( )
7.If the documents presented by the exporter comply with the L/C,but not the sales contract,the issuing bank can refuse to pay.( )
8.If you agree to an amendment to an L/C,you must inform your agreement both to the importer and the advising bank.( )
9.An L/C is deemed transferable even if it does not indicate“transferable”.( )
10.If the L/C does not indicate whether “partial shipments are allowed”,they are deemed to be allowed.( )
II.Multiple Choice Questions
1.If the on-board date is July 15,and the L/C is valid till August 15.According to UCP 600,the latest date of presentation by the beneficiary to the bank is( ).
[A]July 15
[B]August 5
[C]August 15
[D]August 6
2.When payment is to be made by( ),a bank undertakes to pay.
[A]a telegraphic transfer
[B]a documentary collection
[C]a documentary credit
[D]a demand draft
3.Which of the following party should NOT be the drawee of a bill of exchange drawn under an L/C?( )
[A]The issuing bank.
[B]The paying bank.
[C]The confirming bank.
[D]The importer.
4.The drawer of a bill of exchange under an L/C is( ).
[A]the issuer of the L/C
[B]usually the applicant of the L/C
[C]usually the negotiating bank of the L/C
[D]usually the exporter or beneficiary of the L/C
5.The confirming bank of a confirmed L/C can refuse to pay if( ).
[A]the product quality does not conform to the contract
[B]the applicant goes bankrupt
[C]the issuing bank goes bankrupt
[D]the documents presented do not comply with the credit
6.Which of the following requirements for documents under an L/C is acceptable to the exporter?( )
[A]One of the original B/Ls should be airmailed straight to the applicant.
[B]The inspection certificate should be signed by the applicant.
[C]The documents should be presented within 21 days after shipment but prior to the credit’s expiry date.
[D]The credit shall not take effect unless the carrying vessel has been approved by the applicant in the form of an amendment to the credit.
7.Which bank’s payment could be with recourse to the beneficiary?( )
[A]The issuing bank’s.
[B]The confirming bank’s.
[C]The negotiating bank’s.
[D]The nominated paying bank’s.
8.From an exporter’s view,which of the following facts about an L/C does NOT necessitate an amendment to the credit?( )
[A]The total amount of credit in figures are not in consistent with that in words.
[B]The place of expiry is in the importer’s country.
[C]The documents must be presented 5 days after the time of shipment but within the validity of the credit.
[D]All banking charges outside the applicant’s country are for the account of beneficiary.
9.Which of the two roles cannot be assumed by just one bank?( )
[A]The advising bank and the negotiating bank.
[B]The advising bank and the confirming bank.
[C]The advising bank and the paying bank.
[D]The advising bank and the issuing bank.
10.Which type of the following L/C helps the beneficiary get payment sooner?( )
[A]An L/C by sight payment.
[B]An L/C by negotiation with any bank.
[C]An L/C by deferred payment.
[D]An L/C by acceptance.
III.Case Study
1.When a deal is concluded under an L/C with the amount available by negotiation,it is customary for the exporter to draw a bill of exchange with the negotiating bank,instead of himself/herself as payee of the bill.Can you explain why?What is the difference if the exporter is filled out as the payee?Discuss in a group of 4 or 5 and try to fill out such a bill in the right way.
2.To prevent a B/L from becoming stale,the importer requires such a clause in a letter of credit that “the beneficiary should post one of the three original B/Ls straight to the applicant of the L/C by express airmail,and the post receipt should be one of the documents required and be presented to the bank with the other two original B/Ls”.Is this requirement acceptable to the exporter?
3.A UAV(unmanned aerial vehicle)manufacturer in China entered into a deal in November 2021 with an American trading company of exporting 30 UAVs for agricultural use under Incoterm CIF,and payment by L/C at sight.The American company opened an L/C through its bank in early March 2022,which was verified to be consistent with the contract.The insured amount was 110% of the invoice amount.When the exporter was busy with production,the American company advised the exporter an amendment to the L/C through the banks,which changed the insured amount to 130% of the invoice amount.The exporter insured and delivered the goods in accordance with the original L/C,and submitted the full set of shipping documents to the negotiating bank within the validity of the L/C after shipment.After negotiation,the negotiating bank sent the full set of documents to the issuing bank,which refused to pay on the ground that the insurance policy was inconsistent with the amendment to the L/C.Is the issuing bank justified in refusing to honor the L/C?Why?