II. Make suitable choices.

1. A freight collect B/L is acceptable to the buyer when the contract is based on ( ).

1. FCA C. FOB
2. FAS D. CPT

2. On a voyage, a cargo ship was caught in an accidental fire. To save the ship, the captain ordered to have sea water poured into the compartment. The fire was put out. The following losses and expenses were identified: (a) 100 boxes of Party As goods destroyed by fire, (b) 300 cartons of Party Bs goods damaged due to water poured, (c) ship engine damaged due to the fire, (d) USD 100,000 tug fee, (e) USD 50,000 extra fuel fee and wages for seamen.

Which of the following statements are true?

1. (b), (d) and (e) are all general average
2. (a) and (c) are particular average
3. (b) is general average, but (d) and (e) are neither particular average or general average
4. (a), (b) and (c) are all particular average

3. Which of the following statements are NOT true?

1. The draft used in collection is a bankers draft based on bank credit.
2. The draft used in collection is a bankers draft based on commercial credit.
3. The draft used in collection must be a sight draft.
4. The draft used in collection is a commercial draft based on bank credit.

4. X made a selling offer to Y, Shipment within 2 months after receipt of L/C, offer valid if reply here on or before March 20. On March 16, X received Y's reply, Accept your offer, shipment immediately. X didnt reply. On March 18, X received Ys L/C requiring immediate shipment, but the market price of the goods went up by 20%. Which of the following statements are true?

1. Y's reply, Accept your offer, shipment immediately. is a couteroffer.
2. Ys L/C is a new offer.
3. X should ship the goods for the contract was concluded when X received Y's acceptance.
4. X should ship the goods for the contract was concluded when X received Y's L/C.

5. A clean on-board B/L, made out to order and blank endorsed is a B/L on which ( ).

1. there should be no mark indicating the package of the goods is not brand new
2. the consignee is "to order"
3. there should be no name of the transferor
4. There should be no mark indicating the package of the goods is broken or damaged