Unit 4. Quiz on Trading Documents and INCOTERMS

A Quotation is a...

• A reference to a previous letter during the negotiation of a sale

• A document that reflects the amount of money that the buyer would have to pay for certain products or services

• A document that confirms that the seller can dispatch the goods from its premises

• A reference to an invoice that contains inaccuracies

The document that reflects the goods or services provided by a seller, their price, the total amount to be paid and the date by which the payment should be made is:

• A purchase order

• A receipt

• An invoice

• An Enquire

Ex Works means...

• The price that the buyer pays for the manufacture of a certain product or for the labor involved in providing a given service

• The amount of money that a company charges clients in order to pay for the maintenance of its headquarters and factories

• That the seller is responsible for loading the goods on a truck or container and for the costs of transportation by road or train.

• That the seller is only responsible for the preparation and packaging of the goods to be sold

Free Carrier means...

• That the seller should bear transportation costs and these costs are therefore ‘free’ for the buyer

• That the buyer should arrange the transportation of the goods so that the seller does not have to spend any money on this

• That the seller is responsible for loading the goods on a truck or container and transporting them to the place from which they will be dispatched

• That the seller is responsible for loading the goods on a truck or container and for all the logistic costs, whatever the means of transport used

When the seller and the buyer agree that the buyer is not responsible for any side costs associated with the delivery and insurance of the goods to the buyer’s premises, companies use the term:

• FAS

• CIF

• CFR

• DDP

Can the INCOTERMS be agreed at any stage of a transaction?

• True

• False