Question 1

Explain what the GATT is and give pro and con arguments concerning this agreement.

Accepted Answer

GATT refers to the General Agreement on Tariffs and Trade.The United States and 125 other countries formally signed GATT in 1994.The general purpose of GATT is to eliminate trade barriers between signatory countries and to bolster commerce.
Proponents of GATT claim that the United States will be a primary beneficiary since this country has traditionally assessed lower tariffs than other countries.Accordingly,the U.S.will be able to compete on a more equal footing with foreign competitors.The result will be a great increase in world trade and greater income for this country.
Opponents of GATT argue that this country will lose millions of jobs since labor-intensive goods will be made via exploited labor in foreign countries.Given the low cost of production in countries with no labor standards and low pay,American companies will not be able to compete.Additionally,opponents claim that domestic job losses will be in low-end employment,so those put out of work are the ones least able to find alternative employment.

Question 2

Zebra Toy Company invests a large sum of money in retail stores located in a foreign country.Zebra intends to bring its foreign earnings back home to the United States.This practice is known as:

Accepted Answer

A)  repatriation of profits. 
B)  inflow profit streaming. 
C)  expropriation. 
D)  comity. 
A)  repatriation of profits. 
B)  inflow profit streaming. 
C)  expropriation. 
D)  comity. A

Question 3

The Australian government has opened a tourist information center/gift shop in New York City.If a dispute arises over the lease of the storefront,may the landlord sue the Australian government in the United States courts?

Accepted Answer

A)  Yes, because the Australian government was engaged in a commercial activity. 
B)  No, because of the Foreign Sovereign Immunities Act which forbids U. S. courts from hearing any cases involving foreign governments. 
C)  It depends. The Australian government can only be sued if it signed a written waiver giving up its immunity. 
D)  It depends. The Australian government can only be sued if it is a signatory on the CISG. 
A)  Yes, because the Australian government was engaged in a commercial activity. 
B)  No, because of the Foreign Sovereign Immunities Act which forbids U. S. courts from hearing any cases involving foreign governments. 
C)  It depends. The Australian government can only be sued if it signed a written waiver giving up its immunity. 
D)  It depends. The Australian government can only be sued if it is a signatory on the CISG. A

Question 4

Although the United States government officially signed the GATT treaty,the United States Congress has refused to ratify the agreement.

Accepted Answer

A) True 
 B)False

Question 5

A contract involving the sale of goods from a Texas seller to a French wholesaler must use the United Nations Convention on Contracts for the International Sale of Goods (CISG).

Accepted Answer

A) True 
 B)False

Question 6

If a foreign company "dumps" goods on the United States market:

Accepted Answer

A)  the goods will be considered illegal goods and will not be allowed to be sold in the United States. 
B)  the United States will issue trade sanctions against the country that allowed the dumping. 
C)  a "dumping duty" will be imposed on the dumped goods if the Commerce Department determines the goods are being sold at less than fair value and that this harms an American industry. 
D)  the goods will be placed on the Controlled Commodities List and the seller must obtain a license in order to sell them. 
A)  the goods will be considered illegal goods and will not be allowed to be sold in the United States. 
B)  the United States will issue trade sanctions against the country that allowed the dumping. 
C)  a "dumping duty" will be imposed on the dumped goods if the Commerce Department determines the goods are being sold at less than fair value and that this harms an American industry. 
D)  the goods will be placed on the Controlled Commodities List and the seller must obtain a license in order to sell them.

Question 7

The United States and Singapore have signed the Convention on Contracts for the International Sale of Goods (CISG).Notren,Inc.,a U.S.company,and SWT,a Singapore company,have entered into a contract under which SWT is to ship party supplies to Notren.One of the terms of the contract states,"The validity and performance of this contract will be governed by the Uniform Commercial Code (UCC)of the state of New York,not the Convention on Contracts for the International Sale of Goods (CISG)." The contract will be governed by the:

Accepted Answer

A)  CISG. 
B)  Uniform Commercial Code of New York. 
C)  common law. 
D)  World Trade Law. 
A)  CISG. 
B)  Uniform Commercial Code of New York. 
C)  common law. 
D)  World Trade Law.

Question 8

Acme believes that L'la,Inc.,a competing company,is violating United States antitrust law based on its conduct in France.Acme has a good case if it can prove:

Accepted Answer

A)  L'la's conduct has a direct and substantial effect on the U. S. market. 
B)  L'la's conduct was intended to affect the U. S. market. 
C)  Both of the above are needed. 
D)  Neither of the above is correct since L'la is a foreign company. 
A)  L'la's conduct has a direct and substantial effect on the U. S. market. 
B)  L'la's conduct was intended to affect the U. S. market. 
C)  Both of the above are needed. 
D)  Neither of the above is correct since L'la is a foreign company.

Question 9

The world-wide problem of child labor has increased as the world has become more prosperous.

Accepted Answer

A) True 
 B)False

Question 10

What is a major argument against the GATT Treaty?

Accepted Answer

A)  The United States will have to compete against countries with unlimited pools of exploited labor. 
B)  The United States will lose millions of jobs involving low-end employment and these types of workers are least capable of finding other employment. 
C)  Both (a) and (b) above are major arguments against GATT. 
D)  Neither (a) nor (b) above is a major argument against GATT. 
A)  The United States will have to compete against countries with unlimited pools of exploited labor. 
B)  The United States will lose millions of jobs involving low-end employment and these types of workers are least capable of finding other employment. 
C)  Both (a) and (b) above are major arguments against GATT. 
D)  Neither (a) nor (b) above is a major argument against GATT.

Question 11

With respect to United States patents and copyrights,GATT:

Accepted Answer

A)  expressly excludes controversies involving patent and copyright violations. 
B)  will allow the United States to assess tariffs against a country that refuses to honor U. S. copyrights or patents. 
C)  imposes sanctions against any country refusing to honor another signatory country's patents or copyrights. 
D)  requires retribution to be paid to the United States by any country ignoring U. S. patents or copyrights. 
A)  expressly excludes controversies involving patent and copyright violations. 
B)  will allow the United States to assess tariffs against a country that refuses to honor U. S. copyrights or patents. 
C)  imposes sanctions against any country refusing to honor another signatory country's patents or copyrights. 
D)  requires retribution to be paid to the United States by any country ignoring U. S. patents or copyrights.

Question 12

To advance foreign policy goals,the United States has threatened or imposed economic sanctions against:

Accepted Answer

A)  Colombia for permitting drug trafficking. 
B)  the Netherlands and Switzerland for trading with Cuba. 
C)  Taiwan for environmental violations. 
D)  All of the above. 
E)  None of the above; economic sanctions cannot be used to advance foreign policy goals. 
A)  Colombia for permitting drug trafficking. 
B)  the Netherlands and Switzerland for trading with Cuba. 
C)  Taiwan for environmental violations. 
D)  All of the above. 
E)  None of the above; economic sanctions cannot be used to advance foreign policy goals.

Question 13

It is a violation of United States law for a domestic company to pay money to a foreign governmental official in order to obtain favorable influence of the foreign government.

Accepted Answer

A) True 
 B)False

Question 14

Axle Corporation imports goods into the United States.Who is required to pay the duty on the goods?

Accepted Answer

A)  The importer, Axle Corporation. 
B)  The World Trade Organization. 
C)  The importer and exporter each pay one-half the duty. 
D)  The exporter of the goods. 
A)  The importer, Axle Corporation. 
B)  The World Trade Organization. 
C)  The importer and exporter each pay one-half the duty. 
D)  The exporter of the goods.

Question 15

Tariffs are primarily used to protect a country's domestic industries.

Accepted Answer

A) True 
 B)False

Question 16

Oxtron,Inc.,a U.S.company,and Leer,an Argentinean company,orally agreed to a contract under which Oxtron is to ship medical devices to Leer.The contract is governed by the CISG.Which statement is correct?

Accepted Answer

A)  The contract is not enforceable because it is oral. 
B)  Whether the contract is enforceable without a written agreement depends on the value of the medical devices. 
C)  Whether the contract is enforceable without a written agreement depends on whether the medical devices are a necessity. 
D)  The contract is enforceable without a written agreement. 
A)  The contract is not enforceable because it is oral. 
B)  Whether the contract is enforceable without a written agreement depends on the value of the medical devices. 
C)  Whether the contract is enforceable without a written agreement depends on whether the medical devices are a necessity. 
D)  The contract is enforceable without a written agreement.

Question 17

The organization,representing the fourth largest economic entity in the world,made up primarily of Brazil,Argentina,Uruguay,and Paraguay,with associate members of Colombia,Bolivia,Chile,Ecuador,and Peru is:

Accepted Answer

A)  the South American Union. . 
B)  the Association of South American Nations. 
C)  Mercosur. 
D)  SAFTA. 
A)  the South American Union. . 
B)  the Association of South American Nations. 
C)  Mercosur. 
D)  SAFTA.

Question 18

Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland.Big Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to Hardhat.
-The "account party" is:

Accepted Answer

A)  Irish Eyes. 
B)  Hardhat Machine Company. 
C)  Big Bank. 
D)  None of the above. 
A)  Irish Eyes. 
B)  Hardhat Machine Company. 
C)  Big Bank. 
D)  None of the above.

Question 19

GATT created the WTO,which is empowered to hear arguments from any signatory nation about tariff violations or nontariff barriers.

Accepted Answer

A) True 
 B)False

Question 20

Kjell is the vice president of international sales for Oxtren,Inc,a U.S.company.To secure a multimillion dollar contract for his company,Kjell paid a Mongolian governmental officer $10,000.Kjell:

Accepted Answer

A)  has violated the Foreign Corrupt Practices Act. 
B)  has not violated the Foreign Corrupt Practice Act because the payment was a grease payment. 
C)  has not violated the Foreign Corrupt Practices Act because the government official was from Mongolia, not the United States. 
D)  has not done anything illegal because Congress has not ratified the Convention of Combatting Bribery of Foreign Public Officials in International Transactions. 
A)  has violated the Foreign Corrupt Practices Act. 
B)  has not violated the Foreign Corrupt Practice Act because the payment was a grease payment. 
C)  has not violated the Foreign Corrupt Practices Act because the government official was from Mongolia, not the United States. 
D)  has not done anything illegal because Congress has not ratified the Convention of Combatting Bribery of Foreign Public Officials in International Transactions.

Exam 8: International Law

Explain what the GATT is and give pro and con arguments concerning this agreement.

Zebra Toy Company invests a large sum of money in retail stores located in a foreign country.Zebra intends to bring its foreign earnings back home to the United States.This practice is known as:

The Australian government has opened a tourist information center/gift shop in New York City.If a dispute arises over the lease of the storefront,may the landlord sue the Australian government in the United States courts?

Although the United States government officially signed the GATT treaty,the United States Congress has refused to ratify the agreement.

A contract involving the sale of goods from a Texas seller to a French wholesaler must use the United Nations Convention on Contracts for the International Sale of Goods (CISG).

If a foreign company "dumps" goods on the United States market:

Acme believes that L'la,Inc.,a competing company,is violating United States antitrust law based on its conduct in France.Acme has a good case if it can prove:

The world-wide problem of child labor has increased as the world has become more prosperous.

What is a major argument against the GATT Treaty?

With respect to United States patents and copyrights,GATT:

To advance foreign policy goals,the United States has threatened or imposed economic sanctions against:

It is a violation of United States law for a domestic company to pay money to a foreign governmental official in order to obtain favorable influence of the foreign government.

Axle Corporation imports goods into the United States.Who is required to pay the duty on the goods?

Tariffs are primarily used to protect a country's domestic industries.

Oxtron,Inc.,a U.S.company,and Leer,an Argentinean company,orally agreed to a contract under which Oxtron is to ship medical devices to Leer.The contract is governed by the CISG.Which statement is correct?

The organization,representing the fourth largest economic entity in the world,made up primarily of Brazil,Argentina,Uruguay,and Paraguay,with associate members of Colombia,Bolivia,Chile,Ecuador,and Peru is:

Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland.Big Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to Hardhat. -The "account party" is:

GATT created the WTO,which is empowered to hear arguments from any signatory nation about tariff violations or nontariff barriers.

Kjell is the vice president of international sales for Oxtren,Inc,a U.S.company.To secure a multimillion dollar contract for his company,Kjell paid a Mongolian governmental officer $10,000.Kjell:

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