Question

Il. Put T for true or F for false in the brackets at the beginning of each statement.( 10 1-10) obligations and costs borne by and risks of the seller are minimum. destination. under CIC: perils of the sea and extraneous risks. roughly the same as that of FPA, WPA, All Risks under CIC respectively refers to banker's credit. )1. EXW in INCOTERMS 2010 is the trade term under which the ) 2. Under FOB San Francisco, San Francisco is the port of ) 3. Two types of risks are covered by ocean marine insurance ) 4. The insurance coverage of ICC (A), ICC (B), ICC (C) is 5. An L/C is a conditional bank undertaking of payment, and 6. Under the terms of DIA, it is the bank in exporter's country

Answer 1

Ans 1)

False

All the risk of transport of goods from seller place to destination is borne by Buyer

Ans 2)

FOB Port of destination

Hence in our case San Francisco is port of destination

True.

Ans 3)

Marine insurance mostly covers different events occurred due to perils of the sea where as extraneous risks are not considered

Hence False

Ans 4)

True

Ans 5)

True

Letter of credit by definition is the guarantee from bank that it will pay to sellers on behalf of buyer on time and if buyer fails to respect commitment then bank will pay to seller