3. Decide which numbers these bits of information replace on the Bill of Lading above:

8 CASES MICRO- PROCESSORS GLM ENGINEERING LTD10 OAK WAY HALIFAX LIVERPOOL LIVERPOOL LIVERPOOL 19 July 2000 THREE (3)

MELBOURNE BJT (Pty) OUTBACK STREET MELBOURNE GLM/BJT MEL 1/8 139.2K X2053 1.16 cu.m “AUSTRALIAN QUEEN”

4. A Bill of Exchange is a sort of post-dated cheque. Look at this Bill of Exchange and in pairs ask and answer questions about it, like this:

Ask who wrote the B/E.

P: Who wrote the Bill of Exchange? R: Sheila Baker

Bill of Exchange

Exchange for £750 London 14 July 2008 At 90 days pay this solo Bill of Exchange To the order of ourselves The sum of seven hundred and fifty pounds sterling ___________________________________________ Value goods To DOM KK Signed Sheila Baker 705 3-chome Yamaguchi For BOS Ltd Osaka 13 Mill Street Japan Accepted Harlow M Satsuma Essex cm20 2TR For DOMKK

Answer the questions:

1. Ask which company will receive the money.

2. Ask which company Sheila Baker works for.

3. Ask what date the Bill was written.

4. Ask how much the Bill is for.

5. Ask how many copies of the Bill there are.

6. Ask what date the Bill will be paid.

7. Ask whether the Bill will be paid in pounds or in yen.

8. Ask which company will pay the Bill.

9. Ask whether this transaction is ‘documents against payment’ or ’documents against acceptance’.

10. Ask who M Satsuma works for.

5. Read the text: Letter of credit (l/c)

Bruce Stevens of Harbour Imports Pty, Melbourne, Australia, wanted to pay Peter Weaver of Clothco Ltd, Manchester, UK, for some cloth. Bruce wrote to his bank on a special form and asked them to open an irrevocable documentary credit. This is a Letter of Credit from Bruce's bank guaranteeing payment in Britain at a later date. If it is irrevocable, it cannot be cancelled. Neither Bruce nor his bank can change their minds and refuse to pay. Peter's bank knows Bruce's bank very well and they know they will receive the money, so they confirmed the Letter of Credit. This means that they guaranteed to pay the money so Peter was sure he would be paid. However a Letter of Credit is not negotiable, so Peter had to wait until the Letter of Credit was paid before he received his money.

Notes: