I. Explain the following terms 1. shipment contract 2. symbolic delivery 3. arrival contract 4. actual delivery II. Short questions 1. Who pays for loading for shipment under FOB? 2. Who pays for unloading under CIF? 3. Compare and contrast FOB, CFR and CIF? 4. What are the two types of trade terms concerning the transfer of risks? 5. What are the differences and similarities between CPT and CFR? 6. What are the differences and similarities between CIP and CIF? 7. If you trade with an American, is the sales contract subject to Incoterms without any doubt? What should you do? 8. What are the most commonly used trade terms? 9. Who is responsible for carrying out customs formalities for exports under an FOB contract? 10. If a Chinese trader signs an FOB Hamburg contract, is he exporting or importing? III. Case studies 1. An FOB contract stipulated "The shipment will be effected in March 2011." When the goods were ready on 10 March 2011, the seller contacted the buyer for shipment details. The buyer faxed "Please send the goods to the port on 21 March. Shipment will be made on 22 March." The seller sent the goods to the port accordingly. However the nominated vessel did not turn up and the goods had to be stored in the warehouse at the port. On the night of 21 March a fire happened in the warehouse area and part of the goods was damaged. When the vessel arrived two days later the seller and the buyer had an argument about the settlement of the loss. The seller required the buyer to bear the loss caused by the fire, but the buyer believed that the vessel arrived within the shipment period and the loss occurred before the seller delivered the goods, therefore the seller should bear the loss. Please provide your solution. 2. A contract to sell grain used a CFR term. The grain was officially certified as Grade One at the time of being delivered on board at the port of shipment. After making the shipment, the seller gave the buyer timely notice. However, due to the long voyage, some grain went bad. At the destination, the grain could only be sold as "Grade Three". Consequently, the buyer claimed compensation for the damage. Should the seller pay? 3. Under a CIF contract, the goods had been loaded on board the vessel according to the terms of the contract. Then the vessel departed. An hour later, the vessel struck a rock and sunk. The next day the seller's bank presented the shipping documents, insurance policy and invoices to the buyer, and demanded payment. (1) Knowing that he will not receive the goods, should the buyer pay? (2) Which party would have to take the loss? 4. A Shanghai company signed a CIF contract to sell Christmas goods to a British company. The USD 1 million contract stipulated, "The seller guarantees that the goods arrive at the port of destination by December 1, 2010. If the carriage is late, the buyer can cancel the purchase, and get the refund for the payment." So the shipment was made. Unfortunately, due to mechanical problems, the vessel arrived at the destination a few hours late. The buyer refused to accept the goods. As a result, the goods had to be sold on the spot, and the seller lost USD700 000. Comment on the case. 5. A Chinese company finalized a transaction with a German company under CIF price and L/C payment. Both sales contract and L/C received stipulated that transshipment was not allowed. The Chinese company made the shipment on a direct vessel within the validity period of the L/C and negotiated the payment with a direct Bill of Lading successfully. After departing from the Chinese port, in order to take another shipment, the shipping company unloaded the goods from the original vessel and reloaded them onto another one. Due to the delay and the poor condition of the second vessel, the goods arrived 2 months later than the expected time. The German company suffered and claimed compensation from the Chinese company with the reason that the Chinese side cheated them with a direct B/L. The Chinese company believed that since they signed the contract under a "到岸价格" and they booked the shipping company, they would be responsible for what happened. As a result the Chinese side compensated. Comment on this case.