Exam 6: International and Comparative Law

Because ethical issues vary from country to country, international business persons should not take ethical considerations into account in the decision-making process.

[DroneTek] DroneTek, Inc., a Swedish company, produces drones that are sold in the United States and many countries. DroneTek's D2000 model is a top seller in Illinois, where Reymond lives. While vacationing in Mexico, Reymond purchased a D2000 drone. Unfortunately, during a tour in Mexico City, the blades of the D2000 broke from the unit and caused serious and permanent injury to Reymond. Reymond wants to file suit in Illinois against DroneTek for its defective product. -After Reymond's accident, DroneTek created the D3000, a much safer unit. Tristyn, an International Sales Manager with DroneTek, is negotiating a deal with BigBox Stores, a U.S. company, to sell the D3000 exclusively in BigBox Stores in the United States. The contract from BigBox Stores states that all disputes will be resolved in an Illinois court using Illinois law. Tristyn knows his bosses would be furious if DroneTek had to litigate a case in Illinois, but Tristyn believes the contract provision would not be enforceable. Is Tristyn correct?

The Islamic legal system is based on the fundamental tenet that laws are from and interpreted in harmony with ________.

The law of lex mercatoria is a treaty between the U.S. and Mexico.

Dominique makes beautiful beaded shirts. Her company sends their products to be sold in a foreign marketplace. Her business is engaged in ________.

[Miracle Face] Yoshe developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Yoshe has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Yoshe has an offer, however, from another Mexican citizen, Nora. Nora proposes that she and Yoshe associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Yoshe has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then hire employees in Mexico to sell the product. Another matter Yoshe has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements between the U.S. and Mexico. -If Yoshe decides to proceed as Nora proposes, their arrangement would be a[n] ________.

For a U.S. court judgment to be enforceable, the court must have either personal jurisdiction or subject-matter jurisdiction.

Which of the following would be considered a free trade area with the additional feature of a common external tariff on products originating from outside the union?

If DroneTek signs the contract and a dispute arises with BigBox under the contract, what is likely the most cost-effective way for DroneTek to resolve the dispute?

The ________ systems originated from the English legal system.

[Lambswool tax] The U.S. and Canada are members of the World Trade Organization and GATT. Frustrated by the tough competition from Canadian suppliers, Lambswool suppliers in the U.S. have pressured Congress to pass a law requiring importers to pay a tax per pound of lambswool imported to the U.S. and restricting the number of pounds of lambswool imported from specific countries, including Canada. Wholly Wool, Inc., is a Canadian company that sells lambswool that is nearly identical to lambswool produced and sold in the U.S. -The European Union (EU) is considered a(n) ________ and is considered the largest regional trading bloc in the world.

[Pet Products] Sonya, who has a successful pet products business, is planning to expand her operations from the U.S. into Canada and perhaps Mexico. A friend of hers, Troy, told her that she should carefully investigate the laws in those countries before she proceeded. Sonya responded, however, that she was not concerned because by international treaty, and under NAFTA, so long as she is a U.S. citizen, she only has to obey the U.S. laws. Laws of other countries would not apply to her business operations. Sonya also replied that any other country would have the same contract laws as exists in the U.S. She tells him that the Uniform Commercial Code (UCC) applies to all contracts and that as long as she has a written contract, she is covered. Sonya receives a contract from a Mexican company, signs it, drops it in the mail, and tells Troy the contract is complete. -Is Sonya correct in saying that the UCC applies to all contracts and as long as she has a written contract, she is covered?

A nontariff barrier is any impediment to trade other than tariffs and includes:

A court is said to have ________ over persons appearing before it.

Which of the following is one of the three basic types of subsidies?

The World Trade Organization requires that member states treat like goods coming from other World Trade Organization member states on an equal basis. This principal is known as ________.

Which of the following best describes the term "comparative law?"

[DroneTek] DroneTek, Inc., a Swedish company, produces drones that are sold in the United States and many countries. DroneTek's D2000 model is a top seller in Illinois, where Reymond lives. While vacationing in Mexico, Reymond purchased a D2000 drone. Unfortunately, during a tour in Mexico City, the blades of the D2000 broke from the unit and caused serious and permanent injury to Reymond. Reymond wants to file suit in Illinois against DroneTek for its defective product. -If DroneTek signs the contract with BigBox, under what grounds could DroneTek ignore the clause requiring disputes to be resolved in an Illinois court.

The ________ allows recognized governments of WTO member states to bring an action alleging a violation of GATT.

[Lambswool tax] The U.S. and Canada are members of the World Trade Organization and GATT. Frustrated by the tough competition from Canadian suppliers, Lambswool suppliers in the U.S. have pressured Congress to pass a law requiring importers to pay a tax per pound of lambswool imported to the U.S. and restricting the number of pounds of lambswool imported from specific countries, including Canada. Wholly Wool, Inc., is a Canadian company that sells lambswool that is nearly identical to lambswool produced and sold in the U.S. -Under the Dispute Settlement Understanding, who may bring an action alleging a violation of GATT?