Question 1

Which of the following would be a valid reason for the parent company to convert a branch into a locally organized subsidiary?

Accepted Answer

A)  to insulate the parent company from local liability 
B)  to remove the separate legal entity status of the branch 
C)  to bring it under even stricter supervision of the parent company 
D)  to decrease local participation in the branch 
A)  to insulate the parent company from local liability 
B)  to remove the separate legal entity status of the branch 
C)  to bring it under even stricter supervision of the parent company 
D)  to decrease local participation in the branch A

Question 2

The ________ is a federal statute enacted in 1890 that forbids combinations and conspiracies in restraint of interstate and international trade.

Accepted Answer

A)  Clayton Act 
B)  Sherman Antitrust Act 
C)  the Federal Trade Commission Act 
D)  Robinson-Patman Act 
A)  Clayton Act 
B)  Sherman Antitrust Act 
C)  the Federal Trade Commission Act 
D)  Robinson-Patman Act B

Question 3

A(n) ________ is a domestic firm that operates internationally through independent foreign agents.

Accepted Answer

A)  national multinational enterprise 
B)  nonmultinational enterprise 
C)  international multinational enterprise 
D)  transnational companies 
A)  national multinational enterprise 
B)  nonmultinational enterprise 
C)  international multinational enterprise 
D)  transnational companies B

Question 4

A person or company must give its consent (either expressly or impliedly) before either will be subject to the jurisdiction of a local state.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of a nonmultinational enterprise and its use of agents?

Accepted Answer

A)  Its agents can only be individuals and not firms. 
B)  Its agents are considered as subsidiaries. 
C)  Its relationship with agents is solely governed by the laws of the parent's home country. 
D)  Its agents have the authority to sell the parent's products or services in that country. 
A)  Its agents can only be individuals and not firms. 
B)  Its agents are considered as subsidiaries. 
C)  Its relationship with agents is solely governed by the laws of the parent's home country. 
D)  Its agents have the authority to sell the parent's products or services in that country.

Question 6

Once a particular kind of activity is classified as a ________violation, the courts do not apply the case-by-case rule of reason analysis but proceed directly to a consideration of the appropriate remedy in the particular case.

Accepted Answer

A)  rule of reason 
B)  per se 
C)  consent decree 
D)  Noerr doctrine 
A)  rule of reason 
B)  per se 
C)  consent decree 
D)  Noerr doctrine

Question 7

Which of the following is true of a company's agent situated in a foreign country?

Accepted Answer

A)  An agent is not subject to the supervision of its parent company. 
B)  An agent's authority is equal to that of the parent company. 
C)  An agent has to be separately incorporated in the foreign country to be considered legal. 
D)  An agent is not subject to the laws of the parent-nation. 
A)  An agent is not subject to the supervision of its parent company. 
B)  An agent's authority is equal to that of the parent company. 
C)  An agent has to be separately incorporated in the foreign country to be considered legal. 
D)  An agent is not subject to the laws of the parent-nation.

Question 8

Which of the following characterizes a national multinational enterprise?

Accepted Answer

A)  It is firm organized in one country that contracts with an independent foreign firm to carry out sales or purchasing abroad. 
B)  It is a domestic firm that operates internationally through independent foreign agents. 
C)  It has a parent firm established in one country with wholly owned branches and subsidiaries in other countries. 
D)  It is made up of two or more parent firms from different countries that co-own operating businesses in two or more countries. 
A)  It is firm organized in one country that contracts with an independent foreign firm to carry out sales or purchasing abroad. 
B)  It is a domestic firm that operates internationally through independent foreign agents. 
C)  It has a parent firm established in one country with wholly owned branches and subsidiaries in other countries. 
D)  It is made up of two or more parent firms from different countries that co-own operating businesses in two or more countries.

Question 9

The Japanese Civil Code uses the concept of "strict liability" for imposing liability for defective products.

Accepted Answer

A) True 
 B)False

Question 10

A representative office does not directly conduct business for the parent company.

Accepted Answer

A) True 
 B)False

Question 11

According to the doctrine of ________, a municipal court will decline to hear a dispute when it can be better or more conveniently settled in a foreign council.

Accepted Answer

A)  negligence per se 
B)  privity of contract 
C)  res ipsa loquitur 
D)  forum non conveniens 
A)  negligence per se 
B)  privity of contract 
C)  res ipsa loquitur 
D)  forum non conveniens

Question 12

An international multinational enterprise consists of a single parent company that operates in foreign markets through independent agents.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is most likely to be true of a branch office in the United States?

Accepted Answer

A)  It is liable for the debts of the parent company. 
B)  It is considered a separate legal entity of the parent company. 
C)  It does not have to be registered with any state agency. 
D)  It is not liable for its own debts. 
A)  It is liable for the debts of the parent company. 
B)  It is considered a separate legal entity of the parent company. 
C)  It does not have to be registered with any state agency. 
D)  It is not liable for its own debts.

Question 14

A(n) ________ is a contractual grant of a legally recognized right which can be used as an international marketing tool whereby trade secrets, minor technological methods or processes, or protectable business plans and processes of an entity in one nation are extended to a party in a different nation.

Accepted Answer

A)  license 
B)  letter of credit 
C)  copyright 
D)  deed 
A)  license 
B)  letter of credit 
C)  copyright 
D)  deed

Question 15

An agent (in a host nation) of a principal is subject to the laws of the principal's country.

Accepted Answer

A) True 
 B)False

Question 16

What are the different types of per se violations? How does a court deal with a per se violation?

Accepted Answer

The various types of per se violations a

Question 17

Which of the following describes sharp practices of business?

Accepted Answer

A)  business dealings meant to obtain a benefit for a person or firm regardless of the means used 
B)  business exchanges where the manufacturer and consumer are the same 
C)  business plans that also take social responsibility into account 
D)  business practices that are ethical and moral 
A)  business dealings meant to obtain a benefit for a person or firm regardless of the means used 
B)  business exchanges where the manufacturer and consumer are the same 
C)  business plans that also take social responsibility into account 
D)  business practices that are ethical and moral

Question 18

State the article in the European Community Treaty that is analogous to Section 2 of the Sherman Act.

Accepted Answer

Article 82 of the European Community Tre

Question 19

A(n) ________ is a subsidiary company that in turn owns other subsidiaries.

Accepted Answer

A)  agency 
B)  representative office 
C)  branch 
D)  holding company 
A)  agency 
B)  representative office 
C)  branch 
D)  holding company

Question 20

Which of the following is true of a subsidiary?

Accepted Answer

A)  A subsidiary is used to operate a parent company's holding company. 
B)  A subsidiary does not actually conduct business; rather, it functions as a foreign contact point. 
C)  A subsidiary insulates the parent company from unlimited liability. 
D)  A subsidiary is a part of the parent company and is not separately incorporated. 
A)  A subsidiary is used to operate a parent company's holding company. 
B)  A subsidiary does not actually conduct business; rather, it functions as a foreign contact point. 
C)  A subsidiary insulates the parent company from unlimited liability. 
D)  A subsidiary is a part of the parent company and is not separately incorporated.

Which of the following would be a valid reason for the parent company to convert a branch into a locally organized subsidiary?

The ________ is a federal statute enacted in 1890 that forbids combinations and conspiracies in restraint of interstate and international trade.

A(n) ________ is a domestic firm that operates internationally through independent foreign agents.

A person or company must give its consent (either expressly or impliedly) before either will be subject to the jurisdiction of a local state.

Which of the following is true of a nonmultinational enterprise and its use of agents?

Once a particular kind of activity is classified as a ________violation, the courts do not apply the case-by-case rule of reason analysis but proceed directly to a consideration of the appropriate remedy in the particular case.

Which of the following is true of a company's agent situated in a foreign country?

Which of the following characterizes a national multinational enterprise?

The Japanese Civil Code uses the concept of "strict liability" for imposing liability for defective products.

A representative office does not directly conduct business for the parent company.

According to the doctrine of ________, a municipal court will decline to hear a dispute when it can be better or more conveniently settled in a foreign council.

An international multinational enterprise consists of a single parent company that operates in foreign markets through independent agents.

Which of the following is most likely to be true of a branch office in the United States?

An agent (in a host nation) of a principal is subject to the laws of the principal's country.

What are the different types of per se violations? How does a court deal with a per se violation?

Which of the following describes sharp practices of business?

State the article in the European Community Treaty that is analogous to Section 2 of the Sherman Act.

A(n) ________ is a subsidiary company that in turn owns other subsidiaries.

Which of the following is true of a subsidiary?

Introduction to International and Comparative Law

State Responsibility and Environmental Regulation

Dispute Settlement

Foreign Investment

Money and Banking

Trade in Goods

Services and Labor

Intellectual Property

Sales

Transportation

Financing

Filters

Exam 4: The Multinational Enterprise

Which of the following would be a valid reason for the parent company to convert a branch into a locally organized subsidiary?

The ________ is a federal statute enacted in 1890 that forbids combinations and conspiracies in restraint of interstate and international trade.

A(n) ________ is a domestic firm that operates internationally through independent foreign agents.

A person or company must give its consent (either expressly or impliedly) before either will be subject to the jurisdiction of a local state.

Which of the following is true of a nonmultinational enterprise and its use of agents?

Once a particular kind of activity is classified as a ________violation, the courts do not apply the case-by-case rule of reason analysis but proceed directly to a consideration of the appropriate remedy in the particular case.

Which of the following is true of a company's agent situated in a foreign country?

Which of the following characterizes a national multinational enterprise?

The Japanese Civil Code uses the concept of "strict liability" for imposing liability for defective products.

A representative office does not directly conduct business for the parent company.

According to the doctrine of ________, a municipal court will decline to hear a dispute when it can be better or more conveniently settled in a foreign council.

An international multinational enterprise consists of a single parent company that operates in foreign markets through independent agents.

Which of the following is most likely to be true of a branch office in the United States?

An agent (in a host nation) of a principal is subject to the laws of the principal's country.

What are the different types of per se violations? How does a court deal with a per se violation?

Which of the following describes sharp practices of business?

State the article in the European Community Treaty that is analogous to Section 2 of the Sherman Act.

A(n) ________ is a subsidiary company that in turn owns other subsidiaries.

Which of the following is true of a subsidiary?

Introduction to International and Comparative Law

State Responsibility and Environmental Regulation

Dispute Settlement

Foreign Investment

Money and Banking

Trade in Goods

Services and Labor

Intellectual Property

Sales

Transportation

Financing

Filters