In which of the two forms of payment does the exporter not give up control of the merchandise until paid: a documents against payment collection or a documents against acceptance collection?
What will be an ideal response?
Answer: Under a D/P collection, the importer must pay the amount of the sight draft to the collecting bank before the documents are released. When the funds are received, they are transmitted to the remitting bank for payment to the exporter. The exporter consequently does not give up control of the merchandise until payment is received by the collecting bank.
Under a D/A collection, the exporter extends credit to the importer in the following way. The collecting bank presents a time draft to the importer, who must sign it, date it, and write accepted across it. The shipping documents are then released to the importer.
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Which of the following is true of a contract, the object of which has become unlawful after the creation of the contract?
A) The contract is still legal as the object was legal at the time of creating that contract. B) The contract is illegal even if the parties don't complete the contractual agreement. C) The parties of the contract will be discharged from that contract. D) Both parties are still obligated to complete their contractual agreements.
Joe and Peter goes to the local sports bar Goals to watch the hockey game on the big screen. Their waiter Lisa served Joe 8 beers but Peter drank Coke all night long. Lisa asked who was driving home and Peter said he would be
When they left Joe drove though and he went through a red light hitting Gail's car. Gail did not have her seat belt on and was thrown from her car and suffered serious injuries. Peter was also injured in the accident too. Which of the following statements is FALSE? A) Joe is liable for negligence B) Gail can be awarded pecuniary and non-pecuniary damages C) Goals and Lisa are partially liable for Gail's injuries D) Gail's injuries will be reduced due to contributory negligence E) If the court rules that Peter voluntarily assumed the risk he will not be able to successfully sue Joe