Fact Pattern 31-1

question 27

Multiple Choice

Fact Pattern 31-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
-Refer to Fact Pattern 31-1.To obtain payment,Lapland must comply with all of the requirements of the letter of credit

• A)strictly.
• B)substantially.
• C)reasonably.
• D)materially.

---

Definitions:

Minimum Wage Laws

Laws set by legislation that determine the lowest hourly rate that workers can be paid.

Lower Skills

Lower Skills refer to a relatively low level of expertise or competency in performing tasks, usually requiring less education or training.

Compensating Differentials

Wage differentials that arise to compensate workers for the desirability or undesirable aspects of their jobs, such as risk or location.

Property Income

Income received by individuals or entities through ownership of property. This could include rental income, dividends from investments, or interest on savings.