economics

posted by .

The manager of the international department of the McAllen Bank learns on the way to work that the ship
on which a local exporter shipped some goods has sunk. The manager has received all the documents required in the letter of credit and is ready to pay the exporter for the shipment. In view of the news about the ship, the manager now knows that the foreign customer will never receive the goods.

Should the manager pay the exporter, or should he withhold payment and notify the overseas customer?

  • economics -

    The fact that the bank manager knows the ship sank is immaterial. The proper paperwork has been received to authorize payment. If the purchaser did not pay for insurance, and the shipper provide it, it is the purchaser's loss.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Business Management and Leadership

    You work in the Human Resources department of your organization. You have been charged with recruiting a manager for a department within the Services division. The Vice-President of the Services division stresses to you that "This …
  2. Accounting

    Hi, I am having trouble figuring out the below question. Can someone please provide some guidance. Thanks! _____________________________________ It’s December 31, 2007 and you are about to close the firm’s books for the year. Just …
  3. Managerial Finance & Accounting

    P10-9 Performance Evaluations (M324) - Objs. 2, 5 The Promotion and Advertising Department at Jefferson Corporation coordinates point of purchase promotions for its distributors. Employees of this department are graphic arts or marketing …
  4. a

    Susan Rojas is applying for a position in the marketing department of a local corporation. Although Greg Ellis is the director of this department, she has been instructed to send her resume and other documents to Jeff Cohen, manager …
  5. auditing

    Bill Jensen, a staff member of Zhan & Co., CPAs, has given you the following list of what he refers to as “internal control deficiencies” for the Zabling Co. audit and has asked you to review each point and make certain that …
  6. Math

    An appliance company has a warehouse and two terminals. To minimize shipping costs, the manager must decide how many appliances should be shipped to each terminal. There is a total supply of 1200 units in the warehouse and a demand …
  7. MGF 1106

    Four accounting majors, two economics majors, and three marketing majors have interviewed for five different managerial positions with a large company. Find the number of different ways that five of these people could be hired if the …
  8. business

    Discussing the future of management, Manager A maintains that we can expect a continued rise of virtual management and growth in technology. Manager B acknowledges that Manager A’s projections are likely, but incomplete. He adds …
  9. Microeconomics

    A bank manager advises all of his loan officers that the average cost of funds for the bank over the past year has been 6%. The bank has borrowed $1 million at 5%, another $1 million at 6% and another $1 million at 7%. Future borrowing …
  10. mgf liberal arts

    Four accounting majors, two economics majors, and three marketing majors have interviewed for five different managerial positions with a large company. Find the number of different ways that five of these people could be hired if the …

More Similar Questions