CCNP International Contracts 2

Question 1

Under the CISG, which party bears the risk of loss during transit when goods are handed to a carrier for delivery to a buyer in another country?

Accepted Answer

The buyer bears risk once goods are handed to the first carrier

Answer

CISG Article 67 transfers risk to the buyer when goods are handed to the first carrier if the contract involves carriage.

Question 2

A US company negotiating a contract with a Japanese firm encounters a cultural practice of extensive relationship-building before discussing terms. This practice is best described as:

Accepted Answer

High-context negotiation culture

Answer

Japan is a high-context culture where trust and relationships are established before business terms are discussed.

Question 3

Which international treaty governs the recognition and enforcement of foreign arbitral awards in over 170 countries?

Accepted Answer

The New York Convention (1958)

Answer

The 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards is the primary international instrument for enforcing arbitral awards.

Question 4

In international contracts, a 'hardship clause' is designed to:

Accepted Answer

Allow renegotiation when unforeseen events fundamentally alter the balance of obligations

Answer

A hardship clause triggers renegotiation rights when changed circumstances make performance excessively burdensome for one party.

Question 5

When a US exporter uses the Incoterm CIF (Cost, Insurance, and Freight), the seller's obligation regarding insurance is to:

Accepted Answer

Obtain minimum cargo insurance covering 110% of the contract price

Answer

Under CIF, the seller must obtain minimum cargo insurance (Institute Cargo Clauses C) for 110% of the contract value.

(CCNP) Certified Contract Negotiation Professional Practice Test

(CCNP) Certified Contract Negotiation Professional Practice Test

CCNP International Contracts 2