TRUE OR FALSE

1.An Incoterms rule, when used, covers only certain aspects of a commercial transaction.

2.Notwithstanding the buyer paying for the consideration or price of the object of the transaction, they may be made to pay certain costs relating to the shipment of the goods based and depending on Incoterms rules.

3.Incoterms rules are issued and updated by the International Institute for the Unification of Private Law or Unidroit.

4.As a general observation, the more a party has control over a certain part or leg of the shipment of the goods, the more probable that the risks and costs belong to that party during that leg.

5.Depending on the Incoterms rules used, it is possible for only one party to shoulder most of the costs and risks of the shipment of the goods. This party may either be the seller or the buyer.