In the Context of Methods of Payment in International Business

question 36

Multiple Choice

In the context of methods of payment in international business, unlike cash in advance, a commercial letter of credit:

• A) is a safer method of payment for an exporter.
• B) is not a safe method of payment for an importer.
• C) provides a level of protection to both the exporter and the importer.
• D) does not transfer ownership of goods to an importer.

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Definitions:

Express Warranty

A seller's promise or guarantee that a product meets certain quality or performance standards.

Legally Enforceable

A term that describes a contract or obligation that is recognized by law and can be upheld in a court of law.

Writing

The activity or skill of marking coherent words on paper and composing text.

Defective Tender

Involves an offer of payment that does not meet the legal requirements or criteria specified in a contract.