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20 Cards in this Set
- Front
- Back
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Bill of Lading
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Document issued by a carrier to a shipper upon receipt of goods from the shipper. Acts as contract between shipper and carrier as well as document of title to goods being shipped.
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Negotiable Bill of Lading
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Carrier promises to deliver goods only to the person who is in possession of the properly indorsed Bill of Lading.
•Control of the physical Bill itself is equivalent to control of the actual goods •Letter of Credit transaction requires a negotiable Bill of Lading |
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Non-negotiable ("Straight") Bill of Lading
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Carrier promises to deliver goods only to the person named as consignee on the Bill of Lading.
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CIF
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Certified, Insurance, Freight
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C&F
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Certified & Freight
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What type of Bill of Lading is required for letter of credit transactions?
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Negotiable Bill of Lading
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Prepaid Freight
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Shipper pays freight fee
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Collect Freight
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Buyer pays freight fee
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What are the two primary documents that a seller endorses to his bank in order to receive payment?
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Bill of Lading and Draft
(draft is drawn for amount due under sales contract) |
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How many days does Buyer have to "honor" the draft (pay for goods) after notification of its arrival from Buyer's Bank?
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3 banking days
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What are the major risks for the Seller?
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Buyer doesn't pay and Seller's only choices may be filing suit in a foreign court, paying to ship goods somewhere else, or a distress sale in Buyer's nation.
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What are the major risks for the Buyer?
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• Goods are non-conforming
• Shipper has damaged goods • Bill of Lading has been obtained by fraud |
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What is the international conventions that regulates many Bills of Lading?
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The Hague Rules (which the US has enacted into its domestic law as the COGSA)
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COGSA
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Carriage of Goods by Sea Act
(derived from The Hague Rules) |
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Which U.S. federal law governs the transfer of all Bills of Lading originating in the U.S.?
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The Federal Bills of Lading Act
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The Harter Act
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Governs liability for cargo between the vessel owner or carrier and the shipper in domestic trade.
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Carriage of Goods by Sea Act
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Establishes uniform ocean bills of lading to govern liability for cargo between vessel owner or carrier and the shipper in international trade. Applies to all bills of lading for carriage of goods by sea to and from U.S. ports.
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FBLA
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Federal Bills of Lading Act
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Federal Bills of Lading Act
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Governs all outbound international shipments that use a bill of lading issued by a common carrier. (defines types of BOLs, outlines rules and liabilities of parties)
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What are the 3 main risks/liabilities of bills of lading?
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1) misdelivery
2) misdescription 3) theft/forgery |
