Incoterms 2020 for Purchasing Decisions

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1. 1

   Which contractual issue is directly addressed by Incoterms 2020?

   A The allocation of delivery tasks, transportation costs, and risk between seller and buyer B The transfer of legal ownership from seller to buyer C The payment method and credit period granted to the buyer
2. 2

   The image shows an FCA shipment collected from the seller's premises. Which allocation of responsibilities is correct?

   

   A The buyer loads the vehicle, while the seller completes import clearance B The seller loads the collecting vehicle and completes export clearance C The seller transports and unloads the goods at the buyer's warehouse
3. 3

   In the illustrated CIF shipment, at which stage does risk transfer from the seller to the buyer?

   

   A When the goods arrive at the destination port B After the goods are discharged from the vessel C When the goods are placed on board the vessel at the port of shipment
4. 4

   The illustration shows the seller delivering and unloading the goods at the named destination. Which Incoterm uniquely requires this unloading by the seller?

   

   A DPU B DAP C DDP
5. 5

   Unless the parties agree otherwise, what insurance cover must a seller generally obtain under CIP in Incoterms 2020?

   A Minimum cover equivalent to Institute Cargo Clauses C for 100% of invoice value B Broad cover equivalent to Institute Cargo Clauses A for at least 110% of contract value C Liability insurance covering only damage caused by the carrier
6. 6

   Which group consists entirely of Incoterms that may be used with any mode or combination of transport?

   A FAS, FOB, and CIF B CFR, CIF, and FOB C CPT, CIP, and DAP
7. 7

   Why should a purchaser verify the seller's ability to act as importer of record before agreeing to DDP?

   A DDP requires the buyer to arrange export clearance in the seller's country B The seller may face legal, tax, licensing, or registration barriers when completing import clearance C DDP prevents the parties from using road or air transportation
8. 8

   A container is handed to the buyer's nominated carrier at an inland terminal before it is loaded onto the ship. Which Incoterm is generally more appropriate than FOB?

   

   A FCA at the named terminal B FAS at the destination port C CIF at the seller's warehouse
9. 9

   What is the principal delivery difference between DAP and DPU at the named destination?

   A DAP requires seller-paid import duty, while DPU always requires buyer-paid export duty B DAP is restricted to sea transport, while DPU is restricted to road transport C Under DAP the goods are ready for unloading, while under DPU the seller delivers them unloaded
10. 10

    Why can EXW create a practical customs problem in an international purchase?

    A The seller must obtain maximum cargo insurance in the buyer's country B The buyer must arrange export clearance even when local rules make this difficult for a foreign buyer C The buyer is prohibited from selecting its own carrier
11. 11

    The comparison sheet shows two offers for the same goods. Based only on cost up to arrival at the buyer's warehouse, excluding unloading, which conclusion is correct?

    

    A The FCA offer totals $23,000 and is $400 less expensive than the DDP offer B The FCA offer totals $21,700 and is $1,700 less expensive than the DDP offer C The DDP offer is $600 less expensive because duty is excluded from DDP