#1
Which international organization is responsible for the settlement of disputes related to international trade agreements?
World Trade Organization (WTO)
ExplanationThe WTO resolves disputes between member countries regarding trade agreements.
#2
What does the Incoterm 'FOB' stand for in international commerce?
Free On Board
ExplanationFOB means the seller is responsible for goods until they are loaded onto a vessel.
#3
Which convention provides a uniform set of rules governing international contracts for the sale of goods?
Vienna Convention on the International Sale of Goods (CISG)
ExplanationCISG offers standard rules for cross-border sales contracts.
#4
In the context of international commerce, what is the function of a letter of credit?
To provide financial security in transactions
ExplanationLetters of credit ensure payment security between buyers and sellers in international trade.
#5
What is the significance of the 'Most Favored Nation' principle in international trade law?
It ensures equal treatment to all trading partners, eliminating discrimination.
ExplanationThe principle promotes fairness by preventing preferential treatment among trading partners.
#6
Under the New York Convention, what is the purpose of the arbitral award's recognition and enforcement?
To streamline international trade procedures
ExplanationIt facilitates the enforcement of arbitration awards across borders, easing international trade.
#7
Which international court is responsible for resolving disputes between states and has compulsory jurisdiction?
International Court of Justice
ExplanationThe International Court of Justice settles disputes between states and has mandatory authority.
#8
Which organization administers the International Centre for Settlement of Investment Disputes (ICSID)?
World Bank
ExplanationThe World Bank oversees the ICSID for resolving investment disputes.
#9
What is the purpose of the 'Force Majeure' clause in international contracts?
To excuse performance in the event of unforeseen circumstances beyond control
ExplanationIt relieves parties from contractual obligations due to unforeseeable events beyond their control.
#10
Which convention governs the liability of carriers in international carriage of goods by sea?
Hague-Visby Rules
ExplanationHague-Visby Rules establish liability standards for carriers in sea freight.