Quiz #1 – Week 4 / TIME: 30 Minutes

OPER8340 – Fall 2020

Student Name __________________________ ID # __________

 This is an individual ‘closed book’ quiz, no aids are allowed.

 Answer all questions on this quiz paper.
 This quiz consists of 10 True/False questions worth one point each,
and 10 Multiple Choice questions worth one point each.
 This quiz is marked out of 20 points in total and is worth 5% of
your course grade. It is based on material from Weeks 1, 2 and 3.

True/False Questions (one point each)

Check the correct answer for each question.

1) Exporters are organizations that are seeking sources for goods and services that will reduce costs or
expand their domestics business offerings. True _____ False _____

2) Agents are organizations that are commercial intermediaries, specialized in exporting, importing and
third country trading on behalf of exporters and importers. True _____ False _____

3) Pro-forma invoices typically include gross and net shipping weights. True _____ False _____

4) Commercial invoices form a bill of sale and include the number of units. True _____ False _____

5) With Incoterm CPT, the buyer pays freight costs. True _____ False _____

6) Incoterm FOB is appropriate for ocean container shipments. True _____ False _____

7) Incoterm DAT is appropriate for marine shipments only. True _____ False _____

8) The exporter is responsible for issuing a pro-forma invoice. True _____ False _____

9) Consulate officials of the importing country, located in the exporting country, are responsible for
issuing Consular invoices. True _____ False _____

10) Carriers and/or freight forwarders are responsible for issuing bills of lading. True _____ False _____

Multiple Choice Questions (one point each)

Circle the correct answer for each question.
OPER8340 Fall 2020 -1-
 Quiz #1 – Week 4 / TIME: 30 Minutes

1) Trading houses’ services usually include:

a) Market research and selection.
b) Product /packaging requirements and market adaptations.
c) Facilitating payments.
d) After sales service, including parts supply.
e) All of the above.

2) Freight forwarders’ services include:

a) Seizing illegal goods and enforcing prohibitions on the movement of illegal goods.
b) Selecting shipping routes and carriers.
c) Administering trade legislation by collecting duties.
d) Reviewing pro-forma invoices to ensure the interests of the organization are protected.
e) All of the above.

3) A bill of lading is:

a) A commercial document that specifies the price of each item.
b) A contract that includes incentive and bonus clauses.
c) A bill of sale indicating total value and agreed upon currency.
d) A contract between a shipper and a carrier for the transportation of goods.
e) All of the above.

4) Inland bills of lading:

a) Are used when goods are already paid for.
b) Are shorter versions of straight bills of lading.
c) Are used when the same vessel picks up and delivers the shipment.
d) Allow carriers to transport shipments by road or rail but not by sea.
e) Are used when one carrier assumes responsibility over different carriers.

5) Incoterm EXW:
a) Means the buyer is responsible for all costs and risks.
b) Stands for “extra work”.
c) Requires the seller to buy insurance for the buyer.
d) Is only used with charter shipments.
e) Requires purchase price to be quoted in the buyer’s currency.

6) Incoterm FCA:
a) Is appropriate for ocean container shipments.
b) Means the seller pays all freight costs.
c) Places responsibility for transfer of title on the buyer.
d) Includes charges for customs formalities.
e) Includes insurance charges if shipment is valued under $1,000.00 CDN.

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 Quiz #1 – Week 4 / TIME: 30 Minutes
7) With Incoterms:
a) Title (ownership) of the goods is excluded.
b) Title (ownership) of the goods is included with E term.
c) Title (ownership) of the goods is included with F terms.
d) Title (ownership) of the goods is included with C terms.
e) Title (ownership) of the goods is included with D terms.

8) Documentary letters of credit are issued by:

a) Exporters.
b) Carriers and completed by exporters.
c) Banks and export credit agencies.
d) The Chamber of Commerce.
e) The Customs Agency in the exporting country.

9) An Advanced Shipping Notice (ASN) is issued by the:

a) Carrier.
b) Importer.
c) Exporter.
d) Customs Agency.
e) Bank.

10) A Purchase Order is:

a) Requested by the importer to obtain a quote.
b) The same as a pro-forma invoice.
c) A request for goods from the importer.
d) Used by consulate representatives to inform consular invoices.
e) All of the above.

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