In a Global Trade Transaction, Dicky Ships Goods Under a Clean

question 29

Multiple Choice

In a global trade transaction, Dicky ships goods under a clean bill of lading and submits all the necessary documents under a documentary letter of credit to the buyer Joe to his bank.  While on traveling to Turkey in the Mediterranean Sea, the ship sinks.  Is Dicky entitle to receive payment despite the loss of the cargo?

• A) As long as all necessary documents are in order when submitted
• B) Dicky absorbs the risk of loss
• C) Carrier is liable for the loss
• D) None of the above

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