Deck 13: Business in the Global Legal Environment

Question 1

When domestic laws apply to businesses operating internationally,it is a horizontal legal structure.

Answer 1

False

Question 2

In the United States,laws are handed down by the executive branch in the form of common law.

Answer 2

False

Question 3

Mexico is one of the signatories of North American Free Trade Agreement NAFTA).

Answer 3

True

Question 4

A domestic law is a horizontal structure of law,because there is some "higher" authority that imposes a rule of law on the people.

Question 5

Though improper disposal of e-waste has serious effects on environment,it does not pose any severe threat to human health.

Question 6

Trade regulations are relevant to importers but not necessarily for exporters of products.

Question 7

Living in a sovereign state means that we are subject to domestic laws.

Question 8

It is important for all companies contemplating business in the international environment to understand the laws that apply to their activities to avoid criminal and civil liability.

Question 9

It is legal for a U.S.company to contract with an overseas manufacturer without insisting on minimum wages per U.S.laws.

Question 10

Environmental degradation,such as the overuse of natural resources,generation of pollution,and improper disposal of waste products,is a common by-product of global businesses.

Question 11

The rule of law system is ultimately derived from authority granted by the U.S.Constitution.

Question 12

The contracts signed between parties from different nations doing business together are horizontal in nature and are not subject to a vertical legal structure.

Question 13

Economists argue that the global market place captures the most efficient method of production and labor.

Question 14

When a U.S.company conducts business in another country,it needs to comply only with applicable U.S.laws.

Question 15

An international law is an example of a law in a vertical structure.

Question 16

Companies engaging in global business practices may face the ire of consumers at home if these questions represent an ethical dilemma at home.

Question 17

A sovereign state cannot generally be compelled to submit to the authority of the international law if it chooses not to participate.

Question 18

It is uncommon for polluting industries to locate to countries that have laxer environmental regulations than they would face at home.

Question 19

In the United States,contracts laws are federal laws rather than state laws.

Question 20

The Senate must ratify a treaty before the treaty binds the United States and before its provisions become law for the people within the United States.

Question 21

U.S.citizens are not permitted to engage in trade or business dealings with those in countries in which a U.S.embargo exists.

Question 22

The U.S.Department of Homeland Customs and Border Protection Agency CBA)inspects imports to classify them to establish their tariff schedule.

Question 23

Americans with Disabilities Act is a federal statute that prohibits illegal discrimination.

Question 24

A favorable tariff on certain quantities of particular types of imports is known as a quota.

Question 25

The Foreign Corrupt Practices Act FCPA)outlaws grease payments.

Question 26

Customs Modernization and Informed Compliance Act places responsibility for compliance with export laws on the exporter.

Question 27

The General Agreement on Tariffs and Trade GATT)was created by World Trade Organization WTO).

Question 28

Countervailing duty is a type of quota imposed on subsidized goods.

Question 29

In the international legal environment,ethical considerations involving human rights and the natural environment are ever present.

Question 30

Under the Uniform Commercial Code UCC),an offer is revocable unless it expressly contains language to the contrary.

Question 31

The North American Free Trade Agreement NAFTA)is a multinational agreement to remove trade barriers.

Question 32

Prohibition of certain types of trade,such as the unlicensed export of weaponry and certain chemicals is the prerogative of U.S.Department of Commerce Bureau of Industry and Security.

Question 33

Treaties for removal of trade barriers help member nations in lowering the costs of imports and maximizing the costs of exports.

Question 34

The U.S.government views exporting as a privilege and not as a right.

Question 35

Export controls prohibit or restrict the export of certain types of products while limiting or restricting specific products from entering a country by way of tariffs or quotas.

Question 36

One of the factors that stops small businesses from exporting their products is:

A)the business owners' over familiarity with U.S.laws regarding imports and exports.
B)the business owners' inability to negotiate a successful contract with a supplier overseas.
C)the need to pay a wage equal to the U.S.federal minimum wage in the oversees market.
D)the lucrativeness of the global market .
E)the U.S.federal laws that prohibit marketing of any product oversees.

Question 37

If permitted by local governments,grease payments are legal.

Question 38

Bans apply to goods that are prohibited by law to export.

Question 39

The U.N.Convention on Contracts for the International Sale of Goods CISG)provides gap-fillers for terms that may not be expressly stated in the contract.

Question 40

The contracting parties cannot opt out of the U.N.Convention on Contracts for the International Sale of Goods CISG).

Question 41

Precedents are set by the:

A)legislative branch.
B)judicial branch.
C)executive branch.
D)President.
E)Supreme Court.

Question 42

A _____ is a political entity that governs the affairs of its own territory without being subjected to an outside authority.

A)county
B)colony
C)sovereign state
D)secular province
E)province

Question 43

The bureau that administers the Export Administration Regulations and regulates items that may have a dual commercial or military use,such as computers and electronics is the:

A)U.S.Department of the Treasury Office of Foreign Assets Control.
B)U.S.Department of State International Traffic in Arms Regulation.
C)U.S.Department of Commerce's International Trade Administration.
D)U.S.Department of Commerce Bureau of Industry and Security.
E)U.S.Department of State Directorate of Defense Trade Controls.

Question 44

The department of federal government that regulates and enforces trade sanctions is the:

A)U.S.Department of the Treasury Office of Foreign Assets Control.
B)U.S.Department of Homeland Security.
C)U.S.Department of Privacy,Transparency,and Records.
D)U.S.Department of Commerce Bureau of Economic Analysis.
E)U.S.Department of the Treasury Office of Intelligence and Analysis.

Question 45

Which of the following is a form of environmental degradation?

A)Underuse of natural resources
B)Exploitation of human resources
C)Forcing laborers to work in sweatshop conditions
D)Generation of pollution
E)Safe recycling of toxic electronic waste

Question 46

Created by the General Agreement on Tariffs and Trade GATT),the _____ addresses trade between nations,including dispute resolution.

A)International Court of Justice ICJ)
B)European Court of Justice
C)World Trade Organization WTO)
D)International Chamber of Commerce ICC)
E)International Court of Arbitration

Question 47

Which of the following items is an e-waste?

A)Domestic sewage
B)Old electronic products
C)Unwanted electronic data on the Internet
D)Untreated chemical discharges
E)Paints and solvents

Question 48

The international treaty that worked to reduce trade barriers is the:

A)Paris Convention for the Protection of Industrial Property.
B)Sykes-Picot Agreement.
C)General Agreement on Tariffs and Trade.
D)Svalbard Treaty.
E)Vienna Convention on Consular Relations.

Question 49

Electronic waste is subject to regulation by the:

A)Agency for Toxic Substances and Disease Registry.
B)U.S.Department of the Treasury Office of Foreign Assets Control.
C)Environmental Management Office.
D)Customs and Border Protection Agency.
E)U.S.Environmental Protection Agency.

Question 50

Which of the following laws comes under the horizontal structure?

A)Common law
B)Statutory law
C)Administrative law
D)Domestic law
E)International law

Question 51

A law that is applicable only within the nation in which it is created and which bestows powers to some legitimate authority to create,apply,and enforce a rule of law system is the:

A)domestic law.
B)European Union law.
C)foreign trade law.
D)supranational law.
E)international law.

Question 52

The statutes in the United States are set by the:

A)legislative branch.
B)judicial branch.
C)executive branch.
D)President.
E)Supreme Court.

Question 53

The department supporting the United States exports and competitiveness abroad is the:

A)U.S.Department of the Treasury Office of Foreign Assets Control.
B)U.S.Department of State International Traffic in Arms Regulation.
C)U.S.Department of Commerce's International Trade Administration.
D)U.S.Department of Commerce's Bureau of Economic Analysis.
E)U.S.Department of State Directorate of Defense Trade Controls.

Question 54

The North American Free Trade Agreement is a trade agreement between:

A)the United States,Canada,and Mexico.
B)the United States,Canada,and Cuba.
C)the United States,Mexico,and Chile.
D)the United States,Mexico,and Bermuda.
E)the United States,Canada,and Bermuda.

Question 55

When a company based in the United States conducts business in another country,it is governed:

A)by applicable U.S.laws alone.
B)only by the laws of the foreign nation in which it operates.
C)solely by laws of the state where the company has its headquarters.
D)by laws of the World Trade Organization alone.
E)by both laws of the U.S.and the foreign nation where it is located.

Question 56

The treaty that provides for the enforcement of arbitral awards among member states is the:

A)U.N.Arbitration Award.
B)Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
C)General Agreement on Trade and Tariffs.
D)Revised Uniform Arbitration Act.
E)U.N.Convention on Contracts for the International Sale of Goods.

Question 57

A U.S.company decides to outsource a part of its operations to a Tokyo -based company.Both parties sign a contract specifying various terms of agreement.The contract includes a clause that specifies that any dispute or conflict arising during the contract period will be resolved based on the U.S.laws.What is this clause known as?

A)Statute of limitations clause
B)Non-waiver clause
C)Severability clause
D)Arbitration clause
E)Choice of law clause

Question 58

In the United States,controls that prohibit or restrict the transport of certain types of products to another country are known as:

A)export controls.
B)import controls.
C)tariff controls.
D)antiboycott controls.
E)customs.

Question 59

The executive branch hands down laws by defining:

A)statutes.
B)orders,rules,and regulations.
C)common law.
D)a law-creating authority at the top.
E)the people to be governed at the bottom.

Question 60

Unlike vertical structures of law,horizontal structures of law:

A)have some legitimate authority.
B)do not allow members to opt-out.
C)have clear path to redressability when parties have disputes.
D)can find it difficult to enforce treaty agreements.
E)always allow the U.S.government to exact punishment in case of any violations.

Question 61

The _____ maintains a list of Specially Designated Nationals and Blocked Persons,which is a list of persons,businesses,and entities with which U.S.citizens are forbidden from conducting business.

A)U.S Department of Commerce's Bureau of Industry and Security
B)U.S.Department of Treasury Office of Foreign Assets Control
C)Department of State Directorate of Defense Trade Controls
D)Office of Intelligence and Analysis
E)Committee on Foreign Investment in the United States

Question 62

_____ are limits on quantities that apply to certain goods.

A)Tariffs
B)Bans
C)Quotas
D)Safeguards
E)Countervailing duties

Question 63

The _____ was created by the Obama administration,and it assists U.S.businesses to operate in the global market.

A)Commerce Bureau of Industry and Security
B)Office of Foreign Assets Control
C)North American Free Trade Agreement
D)National Export Initiative
E)International Trade Administration

Question 64

_____ are import taxes.

A)Tariffs
B)Quotas
C)Bans
D)Excise duties
E)Grease payments

Question 65

The Title VII of Civil Rights Act is an important federal statute that prohibits _____.

A)illegal discrimination
B)same-sex marriages
C)right to education for colored people
D)work permits for immigrants
E)participation of women in politics

Question 66

_____ clauses specify where complaints will be heard.

A)Severability
B)Non-waiver
C)Indemnification
D)Arbitration
E)Choice of forum

Question 67

If a foreign producer exports products to sell at prices less than its cost of manufacturing,it is known as:

A)subsidized importing.
B)dumping.
C)insider trading.
D)countervailing.
E)safeguarding.

Question 68

Which of the following is true of the U.N.Convention on Contracts for the International Sale of Goods CISG)?

A)Parties are limited to a particular forum to resolve disputes.
B)Written contracts are required per Statute of Frauds.
C)Acceptance may include different terms other than offer.
D)Quantity and price are essential terms.
E)Offer is generally revocable unless it contains language to the contrary.

Question 69

An)_____ is a type of tariff imposed for subsidized products.

A)quota
B)ban
C)countervailing duty
D)safeguard
E)antidumping duty

Question 70

A model statute that seeks to provide consistency to contracts law among the different states and is not a law until state legislatures adopt it as a law is the:

A)Uniform Commercial Code UCC).
B)U.N.Convention on Contracts for the International Sale of Goods CISG).
C)Uniform Trade Secrets Act.
D)Code of Federal Regulations.
E)Business Law.

Question 71

_____ apply to goods that are prohibited by law to import,because they are dangerous to public safety,health,the environment,or national interests.

A)Bans
B)Tariffs
C)Tariff rate quotas
D)Safeguards
E)Quotas

Question 72

What are some of the concerns about doing business in the international environment?

Question 73

Limited duration growth restrictions that are imposed when domestic markets are threatened or injured from imports are known as:

A)quotas.
B)excise duties.
C)countervailing duties.
D)safeguards.
E)antidumping duties.

Question 74

Products produced oversees for which a government has provided financial assistance for production are known as:

A)controlled exports.
B)subsidized imports.
C)dumped products.
D)antiboycotted products.
E)boycotted products.

Question 75

The U.S.federal department which plays a primary role in import control administration and inspects imports to classify them to establish their tariffs is the:

A)U.S.Department of Homeland Security and Border Control Agency.
B)U.S.Department of State International Traffic in Arms Regulation.
C)U.S.Department of Commerce's Bureau of Economic Analysis.
D)U.S.Department of Commerce's Bureau of Industry and Security.
E)U.S.Department of State Directorate of Defense Trade Controls.

Question 76

The act that allows noncitizens to bring a suit in a U.S.federal court against U.S.businesses or citizens that have committed human rights violations in foreign lands is the:

A)Title VII of the Civil Rights Act.
B)Alien Torts Claims Act.
C)Foreign Corrupt Practices Act.
D)Oriental Exclusion Act.
E)Immigration Reform and Control Act.

Question 77

Controls that limit or restrict specific products from entering a country are known as:

A)export licenses controls.
B)import controls.
C)choice of forum controls.
D)antiboycott controls.
E)grease payment controls.

Question 78

The _____ prohibits the payment of bribes by U.S.companies and the employees of those companies.

A)Foreign Corrupt Practices Act
B)Aliens Tort Claim Act
C)Title VII of the Civil Rights Act
D)Economic Espionage Act
E)Lanham Act

Question 79

Which of the following Acts is a U.S.federal employment law for protecting the rights of U.S.citizens working for U.S.companies oversees?

A)The Foreign Corrupt Practices Act
B)The Alien Torts Claims Act
C)The Oriental Exclusion Act
D)Title VII of the Civil Rights Act
E)The Occupational Safety And Health Act

Question 80

_____ are imposed to render the imported product more expensive and to keep the cost of nonimported products attractive to consumers.

A)Safeguards
B)Tariffs
C)Bans
D)Restrictions
E)Quotas