Question 1

Franchising is a form of licensing that now is very common in international business.

Accepted Answer

A) True 
 B)False  True

Question 2

The jurisdictional rule of reason addresses the problems that arise when a foreign country has a significant interest in regulating conduct taking place within the United States.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following actions is not prohibited by The Foreign Corrupt Practices Act?

Accepted Answer

A)  offers of payments to government officials to influence a decision on behalf of the firm making the payment 
B)  payments to government officials to influence a decision on behalf of the firm making the payment 
C)  payments to low-level officials for expediting the performance of routine government services 
D)  all of the above actions are prohibited by The Foreign Corrupt Practices Act 
A)  offers of payments to government officials to influence a decision on behalf of the firm making the payment 
B)  payments to government officials to influence a decision on behalf of the firm making the payment 
C)  payments to low-level officials for expediting the performance of routine government services 
D)  all of the above actions are prohibited by The Foreign Corrupt Practices Act C

Question 4

When a U.S. trademark holder licenses a foreign business use of its trademark overseas and a third party imports these goods into the United States to compete against the U.S. manufacturer's goods, the foreign-made goods are called __________ goods.

Accepted Answer

A)  "gray market" 
B)  counterfeit. 
C)  specially-licensed. 
D)  dumped goods. 
A)  "gray market" 
B)  counterfeit. 
C)  specially-licensed. 
D)  dumped goods.

Question 5

The General Agreement on Tariffs and Trade (GATT):

Accepted Answer

A)  is a multilateral treaty 
B)  is subscribed to by the United States 
C)  has as its goal the liberalization of world trade 
D)  all of the above 
A)  is a multilateral treaty 
B)  is subscribed to by the United States 
C)  has as its goal the liberalization of world trade 
D)  all of the above

Question 6

A societé anonyme is the European counterpart of a U.S. corporation.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following does not describe the European Union (EU)?

Accepted Answer

A)  It was formerly known as the European Economic Community. 
B)  It had ten members sign on in 2004. 
C)  It eliminated internal barriers to the free movement of goods, persons, services, and capital between member countries. 
D)  It is administered solely by the heads of state of the member countries. 
A)  It was formerly known as the European Economic Community. 
B)  It had ten members sign on in 2004. 
C)  It eliminated internal barriers to the free movement of goods, persons, services, and capital between member countries. 
D)  It is administered solely by the heads of state of the member countries.

Question 8

Which is a correct statement about arbitration of contractual disputes regarding international trade?

Accepted Answer

A)  It is done in court. 
B)  There is extensive judicial review of the decision. 
C)  Parties frequently arbitrate in neutral countries. 
D)  It is not available in disputes of more than $1 million. 
A)  It is done in court. 
B)  There is extensive judicial review of the decision. 
C)  Parties frequently arbitrate in neutral countries. 
D)  It is not available in disputes of more than $1 million.

Question 9

The provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG) have been strongly influenced by:

Accepted Answer

A)  the GATT's most-favored nation clause. 
B)  the European Economic Community's Treaty of Rome. 
C)  the Uniform Commercial Code. 
D)  the success of the Organization of Petroleum Exporting Companies. 
A)  the GATT's most-favored nation clause. 
B)  the European Economic Community's Treaty of Rome. 
C)  the Uniform Commercial Code. 
D)  the success of the Organization of Petroleum Exporting Companies.

Question 10

The most common method used by countries to restrict foreign imports is the ______, which is essentially a(n) ______ placed on goods as they move into or out of a country.

Accepted Answer

A)  quota, tax. 
B)  tariff, tax. 
C)  license, tax. 
D)  computed value, quota. 
A)  quota, tax. 
B)  tariff, tax. 
C)  license, tax. 
D)  computed value, quota.

Question 11

The goal of the North American Free Trade Agreement (NAFTA) is to eliminate all tariffs between the United States and Europe.

Accepted Answer

A) True 
 B)False

Question 12

The use of import quotas represents the most common form of tariff barrier.

Accepted Answer

A) True 
 B)False

Question 13

United States antitrust laws have broad extraterritorial reach.

Accepted Answer

A) True 
 B)False

Question 14

Under which of the following doctrines is it held that a foreign sovereign cannot be sued unless it engages in illegal commercial conduct?

Accepted Answer

A)  act-of-state 
B)  sovereign compliance 
C)  Timberlane 
D)  sovereign immunity 
A)  act-of-state 
B)  sovereign compliance 
C)  Timberlane 
D)  sovereign immunity

Question 15

The SEC has accused the Acme Company of fraud in connection with the sale of its securities to American citizens. Although the firm is American-owned, it is located in Switzerland. All of the accounts and business records of the firm are in several Swiss banks. The SEC has been actively pursuing the case, although it has not been able to provide a great deal of hope for those victimized by the fraud. What factors are probably hindering the SEC, and how might this be handled?

Accepted Answer

Secrecy laws (which prohibit the disclos

Question 16

The jurisdictional ________, which is based on ________, balances the vital interests, including laws and policies, of the United States with those of the foreign country involved.

Accepted Answer

A)  Rule of Reason, Comity. 
B)  Effects Doctrine, Comity. 
C)  Act-of-State Doctrine, Comity. 
D)  Rule of Reason, Sovereign Immunity. 
A)  Rule of Reason, Comity. 
B)  Effects Doctrine, Comity. 
C)  Act-of-State Doctrine, Comity. 
D)  Rule of Reason, Sovereign Immunity.

Question 17

Since 1947 and the end of the World War II era, the goal of the General Agreement on Tariffs and Trade (GATT) has been to restrict world trade.

Accepted Answer

A) True 
 B)False

Question 18

When an international sale is made, the parties often set forth in their contract which country's law will govern a dispute.

Accepted Answer

A) True 
 B)False

Question 19

Three defenses are commonly raised to the extraterritorial application of U.S. antitrust laws. They are:

Accepted Answer

A)  act-of-state, sovereign compliance, and sovereign immunity doctrines. 
B)  jurisdictional rule of reason, effects doctrine, and comity. 
C)  foreign legislation, sovereign compliance, and comity. 
D)  foreign antitrust laws, sovereign immunity doctrine, and International Monetary Fund applications. 
A)  act-of-state, sovereign compliance, and sovereign immunity doctrines. 
B)  jurisdictional rule of reason, effects doctrine, and comity. 
C)  foreign legislation, sovereign compliance, and comity. 
D)  foreign antitrust laws, sovereign immunity doctrine, and International Monetary Fund applications.

Question 20

Which of the following statements is true regarding the World Trade Organization (WTO)?

Accepted Answer

A)  The WTO has been in place since 1947. 
B)  The WTO coordinates its activities with GATT. 
C)  It provides a dispute settlement body to promote the resolution of trade disputes. 
D)  It has the ability to impose criminal penalties. 
A)  The WTO has been in place since 1947. 
B)  The WTO coordinates its activities with GATT. 
C)  It provides a dispute settlement body to promote the resolution of trade disputes. 
D)  It has the ability to impose criminal penalties.

Exam 10: The Legal Environment of International Trade

Franchising is a form of licensing that now is very common in international business.

The jurisdictional rule of reason addresses the problems that arise when a foreign country has a significant interest in regulating conduct taking place within the United States.

Which of the following actions is not prohibited by The Foreign Corrupt Practices Act?

When a U.S. trademark holder licenses a foreign business use of its trademark overseas and a third party imports these goods into the United States to compete against the U.S. manufacturer's goods, the foreign-made goods are called __________ goods.

The General Agreement on Tariffs and Trade (GATT):

A societé anonyme is the European counterpart of a U.S. corporation.

Which of the following does not describe the European Union (EU)?

Which is a correct statement about arbitration of contractual disputes regarding international trade?

The provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG) have been strongly influenced by:

The most common method used by countries to restrict foreign imports is the ______, which is essentially a(n) ______ placed on goods as they move into or out of a country.

The goal of the North American Free Trade Agreement (NAFTA) is to eliminate all tariffs between the United States and Europe.

The use of import quotas represents the most common form of tariff barrier.

United States antitrust laws have broad extraterritorial reach.

Under which of the following doctrines is it held that a foreign sovereign cannot be sued unless it engages in illegal commercial conduct?

The jurisdictional ________, which is based on ________, balances the vital interests, including laws and policies, of the United States with those of the foreign country involved.

Since 1947 and the end of the World War II era, the goal of the General Agreement on Tariffs and Trade (GATT) has been to restrict world trade.

When an international sale is made, the parties often set forth in their contract which country's law will govern a dispute.

Three defenses are commonly raised to the extraterritorial application of U.S. antitrust laws. They are:

Which of the following statements is true regarding the World Trade Organization (WTO)?

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters

The most common method used by countries to restrict foreign imports is the , which is essentially a(n) placed on goods as they move into or out of a country.

The jurisdictional , which is based on , balances the vital interests, including laws and policies, of the United States with those of the foreign country involved.