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ACCA Applied Skills · Corporate and Business Law (Global) · Transportation documents and means of payment

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 of lading in international trade?

A bill of lading is a receipt for the goods, evidence of the contract of carriage and a document of title. It does not guarantee payment or certify import compliance, so the first option is correct.

  1. AIt acts as a document of title to the goods, as well as a receipt and evidence of the contract of carriageCorrect
  2. BIt guarantees that the buyer will pay the price on the due date
  3. CIt confirms that the goods comply with the import regulations of the destination country

Explanation

A bill of lading has three functions: a receipt for goods shipped, evidence of the terms of the contract of carriage, and a document of title enabling transfer of the goods by endorsement and delivery. It does not guarantee payment (that is the role of a documentary credit or similar) and does not certify regulatory compliance.

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