A Letter of Credit Reduces an Importer's Ability to Borrow

question 83

Multiple Choice

A letter of credit reduces an importer's ability to borrow funds for other purposes because:

• A) the importer has to request for it.
• B) it is a financial liability against the importer.
• C) the importer has to pay for the merchandise even before receiving the documents.
• D) the importer has to pay even if the conditions stated in the letter are not satisfied.
• E) it does not give the importer any extra time to resell the merchandise before requiring payment.

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Definitions:

Reasonable Force

The minimum amount of force necessary to protect oneself, one's property, or someone else, which is legally justified under circumstances requiring self-defense or defense of another.

Grand Jury

A legal body empowered to conduct official proceedings to investigate potential criminal conduct and determine whether criminal charges should be brought.

Indictment

A formal charge or accusation of a serious crime, issued by a grand jury or by other legal authority.

Criminal Suit

Legal proceedings initiated by the state against an individual or entity accused of committing a criminal act.