ACCA Applied Skills · Corporate and Business Law (Global) · Transportation documents and means of payment
Tandia Co ships 500 cartons of tiles. The goods are loaded in apparent good order, and the carrier issues a bill of lading with no notation about the condition of the goods or packaging. How is this bill of lading best described?
It is a clean bill of lading. A clean bill records that the goods were received in apparent good order and condition, with no notation of defects in the goods or packaging. A claused bill would carry such a notation, and banks usually require a clean bill under a letter of credit.
- AA clean bill of ladingCorrect
- BA claused bill of lading
- CA straight bill of lading
- DA received for shipment bill of lading
Explanation
A clean bill of lading carries no notation that the goods or packaging are defective. A claused bill would record damage or shortage. Straight describes the consignee being named (non-negotiable), and received for shipment describes when the goods have not yet been loaded; the facts say nothing on those points.
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