Fact Pattern 21-B1
First State Bank issues a letter of credit in favor of Oboe Company,an American firm,to facilitate an international sales contract to buy resources from Lapland Mining,Ltd. ,a Finnish company.
-Refer to Fact Pattern 21-B1.Lapland is entitled to payment when it
A)enters into the contract with Oboe.
B)verifies that Oboe has the money to pay for the purchase.
C)complies with the terms and conditions of the letter of credit.
D)asks to be paid.

Question

Fact Pattern 21-B1 
First State Bank issues a letter of credit in favor of Oboe Company,an American firm,to facilitate an international sales contract to buy resources from Lapland Mining,Ltd. ,a Finnish company.
-Refer to Fact Pattern 21-B1.Lapland is entitled to payment when it
A)enters into the contract with Oboe.
B)verifies that Oboe has the money to pay for the purchase.
C)complies with the terms and conditions of the letter of credit.
D)asks to be paid.

Quizplus · Accepted Answer

Lapland Mining, Ltd. is entitled to payment when they comply with the terms and conditions of the letter of credit issued by First State Bank. This means that they must meet all of the requirements outlined in the letter of credit before they can receive payment.