Question 16(10 points)

In the event that a material discrepancy is found in the documents presented under a letter of credit, the bank to which the documents have been presented may request a waiver or:

Question 16 options:

void the underlying sales transaction.

refuse delivery of the goods

refuse to pay against the presented documents.

Question 17(10 points)

Your company, Johnson Medical Corp., is based in the United States.Your company manufactures medical equipment, including protective equipment (which is not specially designed, developed, modified, configured or adapted for military uses or applications) in the form of full face masks (also known as gas masks) designed for defense against biological agents.There is a high worldwide demand for the full face masks given the evolving concern over the coronavirus pandemic.Your company could sell its entire inventory and its entire output of the full face masks within the United States (historically your company's exclusive market) if it chose to do so.Your company has decided, however, to sell its full face masks to customers not simply in the United States, but also in Afghanistan.Your company's rationale is two-fold.First, your chief executive officer believes selling outside the United States is the "ethical" thing to do.Second, your company will establish a market presence a market where it currently has no presence.The full face masks will continue to be produced exclusively by the Johnson Medical Corp. factory in the United States.One of your potential customers is Al Qa'idain the Indian Subcontinent (also known as Al-Qaedat in the Indian Subcontinent or Qaedat Al-Jihad in the Indian Subcontinent) which is located in Afghanistan.Steps you should take to identify what, if any, restrictions there may be on your company's ability to exportthe full face masks from the United States to the potential customers in Afghanistan (including Al-Qa'ida in the Indian Subcontinent) include at least the following:

Question 17 options:

Review Harmonized Tariff Schedule of the United States

Review Convention on Contracts for the International Sale of Goods

Review commerce control list, country chart and consolidated screening list

Question 18(10 points)

Same facts as No. 17, however, the CEO of Johnson Medical Corp. also wants to expand the sale of the full face masks to a prospective purchaser in South Korea.Production will remain in the United States at the Johnson Medical Corp. factory.The full face masks will be shipped by ocean carrier. It will be a large, expensive shipment and if there is a problem with the transaction it will not make economic sense to ship the goods back from South Korea to the United States and it may be difficult to easily find a replacement buyer in Asia to take such a large allotment of face masks.You have confirmed that there are no restrictions on Johnson Medical Corp.'s ability to export the goods to South Korea in general and to its specific purchaser in particular (or, if there are any such restrictions, you have confirmed that Johnson Medical Corp.will be able to comply as necessary to overcome those restrictions).The purchaser refuses to agree to pay up front (i.e. in advance), for the full face masks because it does not want to pay without being certain that the masks not contain any latex.Which party issues the bill of lading?

Question 18 options:

Johnson Medical Corp.

The issuing bank

The advising bank

The ocean carrier

The South Korean purchaser