International Business INB355 Study Guide - Final Guide: Force Majeure, The Seller, Credit Risk
28 Jul 2016
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Document Summary
Interpret uniform rules for collection icc publication 522. See pages number4-18 to 4- 23: compare clean vs. documentary collection. Risk of seller same as on open account, 100% security for buyer"s point of view. Seller sends shipment and document directly to buyer, only draft goes through the bank. It is clean because the commercial documents don"t go to the bank. If the commercial document go to the bank it is documentary collection. Gov"t control is the reason for clean collection. Again if the bank handles the draft it is a clean collection: discuss how a documentary collection works and parties to a collection. Seller sends shipment to buyer, without consign to buyer, seller sends documents straight to importers bank, importers bank pays seller. The drawee/importer/buyer: state the responsibilities of the banks when handling collections. As discussed in class plus pages number 4-19 and 4-20 ( articles 9 to 15)
