ACCA Applied Skills · Corporate and Business Law (Global) · Transportation documents and means of payment
A bill of lading is described as a 'claused' or 'unclean' bill. What does this mean?
A claused or unclean bill of lading carries a carrier's notation that the goods or packaging were damaged or defective when received. A clean bill has no such remark. Buyers and banks often refuse claused bills under a letter of credit.
- AIt carries a notation by the carrier that the goods were damaged or defective when receivedCorrect
- BIt states that the goods are in apparent good order
- CIt is made out to bearer
- DIt has been endorsed more than once
Explanation
A claused bill contains a carrier's remark about defects in the goods or packaging at shipment. A clean bill has no such remark. Banks under letters of credit commonly reject claused bills. Bearer or multiple endorsement is unrelated to whether a bill is clean.
Did you get it right without looking?
One question tells you little. A timed set on Transportation documents and means of payment shows your real accuracy, how long you take and where you lose marks.
More Transportation documents and means of payment questions
- Orlin Co ships goods by air to a buyer. Which document is normally issued by the air carrier and, unlike an order bill of lading, is not a d…
- Kessel Ltd ships goods to a buyer overseas. The goods are carried by sea and the carrier issues a sea waybill naming the buyer as consignee.…
- A buyer in Country A asks its bank to issue a documentary credit in favour of a seller in Country B. Which statement best describes the issu…
- A carrier issues a bill of lading to a seller after goods are loaded on a vessel. Which of the following is the primary function of a bill o…
- A seller ships goods on a container vessel and wants the buyer to be able to collect them quickly at the port of discharge without waiting f…
- Tamsin Ltd sells machinery to a buyer overseas and ships it by sea. The carrier issues a document that acknowledges receipt of the goods, re…