1、1Homework of Chapter 3 -Term of Inti. TradeI. True or False. For the false statement, please state the specific reasons.1) Price terms are mainly applied to determining the prices of commodities in international trade.(F Price term is used to indicate the international trade import and exportcommodi

2、ty price structure, both parties shall bear their respective responsibilities,the share of the cost borne and risk transfer of ownership and term.)2) As an exporter, you con eluded a deal with an America n on basis of EXW; the n your transaction risk isreduced the minimum degree. (T)3) On CIP terms,

3、 the seller must pay the freight rate and in sura nee premium as well as bear all the risksun til the goods have arrived at the dest in ati on.(F This term obliges the seller to contract for insurance and pay the insurancepremium for the carriage of the goods in addition to whatever should be covere

4、dunder CPT. The transfer of risk happens when the seller delivers the goods to thecarrier he chooses at the place of shipment.4) DES means that the seller must deliver the goods to the buyer at the destination on his own chargesand at his own risks. (T)5) If you have sig ned a con tract with a Japa

5、nese buyer on the basis of FOBST, you must be respon siblefor stow ing and trim ming the goods at your own expe nse. (T)6) CFR Landed in indicate that the seller must guarantee the arrival of the goods at the destination withoutany damage.(F The seller is only responsiblefor covering the transport c

6、harges under thecontract of carriage, the ocean freight and any other handling charges due tocontingenciesor not included in the contract of carriage would fall upon the buyer)7) The main differe nee betwee n a CIF con tract and a DES con tract lies in the fact that former is asymbolic delivery of g

7、oods, whereas the latter is a physical delivery of goods. (T)8) The com mon feature of an FOB con tract and an FAS con tract is that the seller must load the goods ona n amed ship.(F The common feature of FOB and FAS contract is that the seller is called upon todeliver the goods to a carrier appoint

8、ed by the buyer. But on FAS terms the sellerneeds only to put the goods within the reach of the ships tackle. It is notresponsible for loading the goods on board.9) Both DAT and DAP should be followed by named place of destination. (T)10) Accord ing to In coterms 2010 un der DAP the buyer is not res

9、p on sible for uni oadi ng the goods fromthe arriving vehicle at the place of destination.(F Under DAP at the time of delivery the risk and cost related to unloading thegoods are for the account of the buye r.2II.Suppose you are an exporter and your business place is in China; you judge if the follo

10、wing statements arecorrect or not and give your reasons.1)Offer 1,000 bales of Cotton Price Goods at USD 150 per bale FOB New York.Incorrect. On FOB terms the sellers responsibilities end when he delivers the goods at theport of shipment, that is, at one of the ports of China.2)We accept your offer

11、for 500 paper cases of Chinese Black Tea at USD 400 per case CIF Shanghai.Incorrect. On CIF terms the seller pays for transportation and insurance till the goodsreach the destination; the terms should be followed by the port of destination.3)Your order for Bitter Apricot Kernels at USD 15 per kilo C

12、PT Liverpool has already been delivered.Correct. According to CPT terms we can know it.4)We appreciate your quotation for DD Raincoats at USD 100 per dozen CIP Guangzhou, but the price is rather on thehigh side.Incorrect. On CIP terms the seller pays for transportation and insurance till the goodsre

13、ach the destination; the terms should be followed by the port of destination.5)Your counter-offer for Fairy Brand Leather Shoes at CAND 50 per pair CFR Vancouver has been well received.Correct.6)We shall execute as soon as possible your order for 1,000 sets of Flying Fish Typewriters at USD 30 per s

14、et FCABeijing.Correct.7)We confirm having sold to you 2,000 dozen Pillow Cases at French Francs 50 per dozen FOB Marserlles.Incorrect. On FOB terms the sellers responsibilitiesend when he delivers the goods at theport of shipment, that is, at one of the ports in China.8)Referring to your enquiry of

15、July 15, we quote as follows: Sharp Vacuum Cleaner 500 sets USD 120 per set.Incorrect. On DES terms the seller must put the goods under the actual control of the buyerat the port destination; a port of destination should be attached to DES.9)We offer Chinese Tin Plate DDP Shanghai Reply here July 10

16、 .Incorrect. On DDP terms the seller must physically deliver the goods to the buyer at anamed place in the import country, that is, a named place of destination should be added toDDP terms.10) Our Sales Confirmation No. 9405 for 1,000 Sewing Machines at USD 45 CIF Hong Kong is being airmailed today.

17、Correct.III. Case study 1) A Chinese import and export company concluded a Sales Contract with a Holland firm on August 5, 2000,selling a batch of certain commodity. The contract was based on CIF Rotterdam at USD 2500 per metric ton. The Chinesecompany delivered the goods in compliance with the cont

18、ract and obtained a clean-on-board Bill of Lading. Duringtransportation, however, 100 metric tons of the goods got lost because of rough sea. Upon arrival of the goods, the price ofthe contracted goods went down quickly. The buyer refused to take delivery of the goods and effect payment and claimedd

19、amages from the seller. How would you deal with this case?In this case, the contract between the seller and buyer was on CIF terms, so it was not rightfor the buyer not to take delivery of the goods. According to CIF terms, the sellersresponsibilities ended when he loaded the goods on board of the s

20、hip and paid the freight and3insurance premium; the risk separation was the side of the ship; the risks were transferred tobuyer or other parties concerned after the seller put the goods on board. Since the documentspresented by seller were right and proper, the seller could directly get paid from t

21、he IssuingBank of the L/C.However, part of the goodsgot lost due to rough sea, it is not the case because there areother two sub-contracts existing on CIF terms-I/P and Bill of Lading. In this case the buyercould claim damages with the insurance company, but he had to take delivery of goods. Theactu

22、al reason for the buyesr refusal to accept the goods in this case was that the prices ofgoods were going down. This is unjustified.2) A Chinese trading company E concluded a transaction in steel with a Hong Kong company W on the basis of FOB ChinaPort. Company W immediately resold the steel to Compa

23、ny H in Libya on the terms of CFR Liberia. The L/C form W requiredthe price terms to be FOB China Port and the goods to be directly delivered to Liberia. The L/C also required Prepaid”to beindicated on Bill of Lading. Why did Company W perform so? What should we do about it?In this case the contract