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 9.

Insurance is mandatory for this shipment.

True

False

.

QUESTION 10

In the selling price the seller must include unloading at the destination port.

True

False

.

QUESTION 11

If the seller sold this shipment CIF insted of CFR what is the minimum insurable value ( amount) required for this shipment as per Incoterms 2022? Show your calculation and discuss what are the changes to the Incoterms 2020 rules regarding insurance.( See the document posted under Incoterms, related to changes in Insurance).

[4 Marks]

.

QUESTION 12

List the the 2 main resposibilities for the Buyer under CFR incoterm.

[2 Points]