Read the scenario below and through your team of maximum 3 discussions, provide responses to the questions that follow in the space provided. Your responses must be specific to this scenario not in general terms. You may refer to your Course Documents Tab. However no use of cell phones outside of your team is permitted. Do not colaborate with other teams.

You are a freight forwarder who has received a call from a Canadian export customer. This customer is negotiating a sales contract for a bulk shipment of beans to a large buyer (food wholesaler) located in France. This would be their first order with this company. The buyer is prepared to accept their best CFR price to the port of Le Havre, France of $40,000.00 CAD. The buyer has requested that the seller issue a draft for the full invoice amount upon shipment with terms 30 days sight, and send it to his bank. The buyer also requests that the shipment documents (3/3 set bill of lading, certificate of origin, invoice and packing list) be sent directly to his office within 5 business days from the on board date. Your customer (the seller) is unsure whether to agree to all of these terms and seeks your advice.

QUESTION 5

Which party (buyer or seller) would be required to insure this shipment for main carriage?

[1 Marks]

.

QUESTION 6

Based upon Incoterms 2020 list 5 responsibilities that the seller will have if they agree to this incoterm.

[5 Marks]

.

QUESTION 7

If the product was damaged by salt water while shipping to France which party (buyer or seller) would have risk?

[ 1 Marks]

.

QUESTION 8

Would you recommend that your customer proceed with this transaction using the incoterm that the buyer is requesting? Support your opinion and/or suggest alternatives to your customer. Be specific.

[5 Marks]