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Question 406 - CSCP discussion

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To handle a dispute over damage to goods shipped between two countries, which international standard should be applied?

A.
United Nations (UN) Global Compact
Answers
A.
United Nations (UN) Global Compact
B.
Incoterms
Answers
B.
Incoterms
C.
Export Trading Company (ETC) Act
Answers
C.
Export Trading Company (ETC) Act
D.
Omnibus Foreign Trade and Competitiveness Act
Answers
D.
Omnibus Foreign Trade and Competitiveness Act
Suggested answer: B

Explanation:

To handle disputes over damage to goods shipped between two countries, Incoterms (International Commercial Terms) should be applied:

Standardized Terms: Incoterms provide internationally recognized standard terms that define the responsibilities of buyers and sellers in international transactions.

Risk Management: They clarify at which point the risk and responsibility for the goods transfer from the seller to the buyer, helping to resolve disputes regarding damage during transit.

Legal Clarity: Using Incoterms ensures that both parties have a clear understanding of their obligations, reducing the potential for conflicts.

Global Acceptance: Incoterms are widely used and accepted across different countries and legal systems, making them a reliable reference in international trade disputes.

International Chamber of Commerce (2020). Incoterms 2020: ICC rules for the use of domestic and international trade terms. ICC Publication.

Schmitthoff, C. M., & Goode, R. (2007). Schmitthoff's Export Trade: The Law and Practice of International Trade. Sweet & Maxwell.

asked 16/09/2024
Chukwuebuka Ogbonna
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