Exam 19: International Law in a Global Economy

Fashion Industries Corporation owns assets in Vietnam,a country in Asia. The gov-ernment of Vietnam wants to nationalize all assets owned by foreign firms and investors. What can Fashion Industries do? Can it at least obtain payment for the assets?

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Question 1

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If a government decides to seize property within its bor-ders,and not to pay for it,there are few remedies available. This is of course a confiscation,which results when a government takes private property for an illegal purpose without paying just compensation. (An expropriation,by contrast,occurs when a government seizes private assets or a private business for a legal purpose and pays for the seizure.)Under most circumstances,it is unlikely that a confiscating nation's courts would order its government to pay just compensation,even if the court had the authority to do so. In a case alleging that a foreign government has wrongfully taken a business firm's property,the defendant government has the burden to prove that the taking was an expropriation,not a confiscation.
But the act of state doctrine can prevent a firm's recovery in a court in the firm's home country. Under that doctrine,a court in one country will not review the validity of a public act of a recognized foreign government within it own territory. (Some na-tions guarantee compensation to for-eign investors in their constitutions,stat-utes,or treaties. Others (such as the United States)pro-vide some in-surance for their citizens' investments abroad. Claims are often resolved by lump-sum settlements after negotiations,as between the United States and the confiscating nation.)

West Africa Investments,Inc.,a U.S. firm,and Findora Commercial,a Nigerian firm,are parties to a contract that specifies that the official language of the contract is English. This is

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Question 2

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To obtain a contract with the Chinese government,Road & Bridge Engineering Corporation,a U.S. firm,gives a Chinese official a sport utility vehicle. This may violate

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Question 3

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Ecuador seizes the assets of Resourced Oil,Inc.,a U.S. firm. Resourced's recovery from Ecuador in a U.S. court may be prevented by

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Question 4

The chief aim of the European Union is to maximize trade barriers among its members.

(True/False)

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Question 5

U.S. laws that prohibit discrimination in employment apply to U.S. em-ployees working for U.S. firms located abroad.

(True/False)

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Question 6

Renew Energy Company,a U.S. firm,and Royal Petro,a Dutch firm,enter into a contract that includes an arbitration clause. This clause must provide that the arbitrator will be

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Question 7

Northwest Resources,Inc.,and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resourcesand Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law,Commerce and other U.S. banks are

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Question 8

In the global environment of business,the law of a particular nation,such as Germany,Japan,or the United States,is classified as

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Question 9

Skye Pye Corporation,a U.S. firm,wishes to participate,but limit its involvement,in Middle Eastern markets. Skye Pye empowers Alem,Ltd.,a United Arab Emirates firm,to enter into contracts in certain countries on Skye Pye's behalf. This is

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Question 10

When a contract contains a forum selection clause,a lawsuit arising from a dispute under the contract will be heard by a court in the specified forum.

(True/False)

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Question 11

The doctrine of sover-eign immu-nity can immunize a foreign nation from the jurisdiction of U.S. courts.

(True/False)

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Question 12

The management of Sport Shoes Corporation,a U.S. firm,wants to expand into foreign investment and employment markets. They are considering ei-ther opening their own production facility in a foreign country or enter-ing into a licensing agreement with a foreign firm. What are the advan-tages and disadvantages of each of these courses of action?

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Question 13

A party to a licensing agreement generally agrees to pay royalties on some basis.

(True/False)

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Question 14

The chief aim of the World Trade Organization is to minimize trade barriers among its members.

(True/False)

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Question 15

Global Holdings,Inc. owns property in Kazakhstan. The Kazakhstan government seizes the property. In order for the seizure to be considered an expropriation and not a confiscation,the Kazakhstan government must

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Question 16

Mountain Mining Company,a U.S. firm,owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

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Question 17

Real World Sports Corporation (RWSC)is a U.S. firm with a workplace in Switzerland. Generally,RWSC must abide by U.S. anti-discrimination laws in Switzerland

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Question 18

Firms overseas have almost total legal protection against government acts in the countries in which they operate,under the act of state doctrine.

(True/False)

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Question 19

The act of state doctrine provides that the executive branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.

(True/False)

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Question 20

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Exam 19: International Law in a Global Economy

Fashion Industries Corporation owns assets in Vietnam,a country in Asia. The gov-ernment of Vietnam wants to nationalize all assets owned by foreign firms and investors. What can Fashion Industries do? Can it at least obtain payment for the assets?

West Africa Investments,Inc.,a U.S. firm,and Findora Commercial,a Nigerian firm,are parties to a contract that specifies that the official language of the contract is English. This is

To obtain a contract with the Chinese government,Road & Bridge Engineering Corporation,a U.S. firm,gives a Chinese official a sport utility vehicle. This may violate

Ecuador seizes the assets of Resourced Oil,Inc.,a U.S. firm. Resourced's recovery from Ecuador in a U.S. court may be prevented by

The chief aim of the European Union is to maximize trade barriers among its members.

U.S. laws that prohibit discrimination in employment apply to U.S. em-ployees working for U.S. firms located abroad.

Renew Energy Company,a U.S. firm,and Royal Petro,a Dutch firm,enter into a contract that includes an arbitration clause. This clause must provide that the arbitrator will be

Northwest Resources,Inc.,and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resourcesand Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law,Commerce and other U.S. banks are

In the global environment of business,the law of a particular nation,such as Germany,Japan,or the United States,is classified as

Skye Pye Corporation,a U.S. firm,wishes to participate,but limit its involvement,in Middle Eastern markets. Skye Pye empowers Alem,Ltd.,a United Arab Emirates firm,to enter into contracts in certain countries on Skye Pye's behalf. This is

When a contract contains a forum selection clause,a lawsuit arising from a dispute under the contract will be heard by a court in the specified forum.

The doctrine of sover-eign immu-nity can immunize a foreign nation from the jurisdiction of U.S. courts.

A party to a licensing agreement generally agrees to pay royalties on some basis.

The chief aim of the World Trade Organization is to minimize trade barriers among its members.

Global Holdings,Inc. owns property in Kazakhstan. The Kazakhstan government seizes the property. In order for the seizure to be considered an expropriation and not a confiscation,the Kazakhstan government must

Mountain Mining Company,a U.S. firm,owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

Real World Sports Corporation (RWSC)is a U.S. firm with a workplace in Switzerland. Generally,RWSC must abide by U.S. anti-discrimination laws in Switzerland

Firms overseas have almost total legal protection against government acts in the countries in which they operate,under the act of state doctrine.

The act of state doctrine provides that the executive branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.

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Title and Risk of Loss

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

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Bankruptcy

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All Forms of Partnership

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Investor Protection, insider Trading, and Corporate Governance

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