Deck 6: International and Comparative Law

Question 1

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

A) It is the study of the legal systems of different states.
B) It is the study of the laws governing the conduct of states and international organizations and their relationships with one another.
C) It is the study of the difference between public and private law in the United States.
D) It is the study of the difference between constitutions and administrative rules and regulations within the United States.
E) It is the study of international organizations and their structure.

Answer 1

A

Question 2

When three or more states agree to reduce and gradually eliminate tariffs and other trade barriers, it is called a multilateral free trade agreement.

Answer 2

True

Question 3

The United States is not a party to the Central American Free Trade Agreement.

Answer 3

False

Question 4

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

Question 5

The United States has no bilateral trade agreements.

Question 6

The terms international law and comparative law mean the same thing.

Question 7

Which of the following is true regarding international organizations?

A) The United Nations is an international organization, but the International Monetary Fund is not.
B) The International Monetary Fund is an international organization, but neither the United Nations nor the International Bank for Reconstruction and Development (World Bank) are international organizations.
C) The International Bank for Reconstruction and Development (World Bank) and the International Money Fund are international organizations, but the United Nations is not an international organization.
D) The United Nations and the International Monetary Fund are international organizations, but the International Bank for Reconstruction and Development (World Bank) is not.
E) The United Nations, the International Monetary Fund, and the International Bank for Reconstruction and Development (World Bank) are all international organizations.

Question 8

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

Question 9

The parties to an international contract have the right to select the forum in which disputes are to be resolved.

Question 10

There are three basic types of regional trade agreements: multilateral free trade agreements, customs unions, and bilateral free trade agreements.

Question 11

Which of the following has the U.S. Supreme Court held with respect to whether U.S. courts must rely on customary international law?

A) The U.S. Supreme Court has held that U.S. courts may disregard customary international law.
B) The U.S. Supreme Court has held that even if a governing international agreement says otherwise, a U.S. court must rely on customary international law.
C) The U.S. Supreme Court has held that even if a controlling executive act is to the contrary, U.S. courts must rely on customary international law.
D) The U.S. Supreme Court has held that regardless of the existence of any legislative act to the contrary, U.S. courts must rely on customary international law.
E) The U.S. Supreme Court has held that in the absence of a governing international agreement or controlling executive or legislative act or judicial decision, U.S. courts must rely on customary international law.

Question 12

A foreign sales representative does the same thing as a distributor when conducting business internationally.

Question 13

GATT stands for the Grand Attempts of Tariffs and Trades.

Question 14

Treaties in the United States may be self-executing or non-self-executing.

Question 15

Agents of a foreign state are immune from civil actions against them, but not from situations in which the foreign agent engages in a commercial activity.

Question 16

International agreements take on two forms in the U.S., what are they?

A) A written agreement between Congress and the judicial branch and a bilateral treaty
B) Executive agreement and congressional mandate
C) Judicial decree and congressional mandate
D) Treaties and executive agreements
E) Decree and congressional mandate

Question 17

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

Question 18

A(n) ________, for purposes of international law, is an entity possessing territory, population, a government, and the legal capacity to engage in diplomatic relations.

A) international city
B) international corporation
C) state
D) foreign subsidiary
E) national subsidiary

Question 19

The European Union is an example of a customs union.

Question 20

According to the General Agreement on Tariffs and Trade, a subsidy is a government financial contribution that allots a benefit to a specific industry or enterprise.

Question 21

Ratification of international agreements occurs in the U.S. by which of the following means?

A) Through the advice and consent of two-thirds of the Senate after the president submits the agreement for consideration.
B) Through the advice and consent of two-thirds of the House of Representatives after the president submits the agreement for consideration.
C) Through the advice and consent of two-thirds of the Senate and two-thirds of the House of Representatives after the president submits the agreement for consideration.
D) Through consent of the president.
E) Through the consent of the president and the approval of at least half the individual state legislatures.

Question 22

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

A) Quotas, embargoes, and taxes.
B) Embargoes and quotas only.
C) Indirect barriers, quotas and embargoes.
D) Quotas and indirect barriers only.
E) Quotas, embargoes, taxes, and customs.

Question 23

Which of the following is a characteristic of civil law?

A) Precedent is an important source of law in the civil law system.
B) Civil law systems use a form or system of separation of powers.
C) The civil law procedure is like the U.S. system of checks and balances.
D) In civil law systems the legislative branch has little authority.
E) The judicial branch in civil law systems may create its own new law.

Question 24

Phillip is traveling to North Korea. He asks you which type of legal system exists in North Korea. What would you tell him?

A) North Korea follows the civil legal system
B) North Korea follows the common law legal system
C) North Korea follows the Islamic system
D) North Korea follows the Islamic legal system
E) North Korea follows the socialist legal system

Question 25

What U.S. law prohibits companies from offering or paying bribes to foreign government officials, political parties, and candidates for office for the purpose of obtaining or retaining business?

A) The Foreign Bribery Act
B) The Foreign Political Act
C) The Foreign Corrupt Practices Act
D) The International Agreement on Tariff and Bribery Act
E) The International Trade Act

Question 26

The ________ systems originated from the English legal system.

A) civil law
B) common law
C) statutory law
D) historical law
E) imperial law

Question 27

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

A) the common law system and the Bible
B) the civil law system and statutes
C) Shari'a law and the Koran
D) international law and treaties
E) GATT and NAFTA

Question 28

A(n) ________ is considered a tax that is levied on imported goods.

A) tariff
B) product stamp
C) indirect barrier
D) embargo
E) document pass

Question 29

Which of the following refers to an agent who distributes, represents, or sells goods on behalf of a foreign seller?

A) Export representative
B) Import representative
C) Foreign sales representative
D) Foreign exportation proponent
E) International sales and importation expert

Question 30

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 ________.

A) The nonrestrictive trade agreement
B) Normal trade relations
C) The equal treatment doctrine
D) Nondiscriminatory relations
E) The fairness doctrine

Question 31

Which of the systems are derived from Roman law?

A) Civil law systems
B) Case law legal systems
C) Common law systems
D) Populist legal systems
E) Islamic legal systems

Question 32

________ is a comprehensive multilateral trading system designed to achieve distortion-free international trade through the minimization of tariffs and removal of artificial barriers.

A) The International Agreement on Nontariffs and Trade
B) The World Trade Organization Agreement
C) The General Agreement on Tariffs and Trade
D) The North and South American Free Trade Agreement
E) The European Free Trade Agreement

Question 33

Diliana, your friend from Uganda, is visiting you here in the United States and the talk quickly turns to international trade. She is confused about how international cooperation works in an open marketplace and wonders who provides for trade negotiations and the settlement of international trade disputes. Which organization would you tell her is responsible?

A) World Trade Organization
B) The U.S. Supreme Court
C) International Trade Commission
D) International Supreme Commission
E) The U.S. International Organization

Question 34

Who purchases goods from a seller for resale in a foreign market and actually takes title to the goods, assuming the risk of being unable to resell them?

A) Representative foreign agent
B) Engager
C) Licensing agent
D) Distributor
E) Market agent

Question 35

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

A) Trade barrier agreement
B) Mediation/arbitration agreement
C) World dispute resolution agreement
D) Dispute Settlement Understanding
E) GATT violation accord

Question 36

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

A) Indirect subsidy
B) Actionable subsidy
C) International subsidy
D) Group subsidy
E) Quantitative subsidy

Question 37

What countries are signatories to the North American Free Trade Agreement (NAFTA)?

A) United States and Canada only
B) Canada and Mexico only
C) Guatemala , Mexico and Brazil
D) United States, Mexico and Canada
E) United States, Costa Rica and Mexico

Question 38

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

A) Importation
B) Subsidization
C) Exportation
D) Foreign sales
E) Foreign distribution of goods

Question 39

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?

A) Customs importation union
B) Free trade union
C) External tariff union
D) Customs union
E) International tariff union

Question 40

The country Axton exports their auto parts to the country of Bularny. The price that Axton charges is a significantly lesser price than the same auto part is sold for in Bularny. This practice severely threatens the auto parts industry in Bularny. This practice is known as?

A) Smart business practices
B) Dumping
C) Duplexing
D) Maximization
E) Racketeering

Question 41

[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.
Assuming that Yoshe decides to make the deal Sam proposes, Sam would be referred to as a(n) ________ and Yoshe would be referred to as a(n) ________.

A) Franchisor; Franchisee
B) Franchisee; Franchisor
C) Affiliator; Affiliatee
D) Venturor; Venturee
E) Representative Offeror; Representative Offeree

Question 42

________ permits adjudication of any claims against a defendant regardless of whether the claim has anything to do with the forum.

A) General personal jurisdiction
B) Specific personal jurisdiction
C) Local personal jurisdiction
D) International personal jurisdiction
E) Domestic personal jurisdiction

Question 43

[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 ships Miracle Face to Mexico for sale, she would be involved in the ________ of goods.

A) import
B) franchising
C) licensing
D) export
E) affiliating

Question 44

Under the ________, courts of one country will not sit in judgment on the acts of another state government done within its own territory.

A) theory of res judicata
B) act of state doctrine
C) doctrine of correctness
D) theory of comity
E) theory of full faith and credit.

Question 45

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

A) individual jurisdiction
B) subject matter jurisdiction
C) instructional jurisdiction
D) personal jurisdiction
E) singular jurisdiction

Question 46

Which of the following is an international agreement governing the arbitration of private international disputes that has been ratified by the U.S.?

A) The Hague Convention
B) The International Arbitration Convention
C) The French Convention
D) The New York Convention
E) The NAFTA Convention

Question 47

[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] ________.

A) Franchisee-franchisor arrangement
B) Affiliator-affiliatee arrangement
C) Joint venture
D) Licensing agreement
E) Subsidiary agreement

Question 48

Do both the CISG and the UCC require contracts for the sale of goods be in writing?

A) No. The UCC requires that contracts for the sale of goods in excess of $500 be in writing, however, the CISG does not require a writing.
B) No. The CISG requires that contracts for the sale of goods in excess of $500 be in writing, however, the UCC does not require a writing.
C) Yes, both the UCC and the CISG require that contracts for the sale of goods be in writing.
D) No. The UCC requires that all contracts for the sale of goods be in writing, however, the CISG does not require a writing.
E) No. The CISG requires that all contracts for the sale of goods be in writing, however, the UCC does not require a writing.

Question 49

What doctrine allows courts to decline to exercise jurisdiction where there is a more convenient forum to hear the case?

A) Forum non conveniens
B) Abstention
C) Convenience del forum
D) Jurisdictional convenience
E) Absolute privilege

Question 50

Which of the following translates directly to "law of merchants?"

A) Lex Mercatoria
B) Lex Seller
C) Ad Merchandiso
D) Lex Loci
E) Res Judicata

Question 51

[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.
Which of the following should Yoshe consider concerning trade agreements between the U.S. and Mexico?

A) The North American Free Trade Agreement
B) The Central American Free Trade Agreement
C) The Tri-Country Free Trade Agreement
D) The Multi-Country Free Trade Agreement
E) The Accessibility Trade Agreement

Question 52

The ________ is a multilateral convention which establishes procedures for transnational discovery between private persons in different states.

A) Hague Evidence Convention
B) GATT Evidence Convention
C) Multinational Discovery Convention
D) GATT Discovery Convention
E) International Dispute and Discovery Convention

Question 53

Which of the following is false regarding the Convention on Contracts for the International Sale of Goods?

A) It applies to transactions involving the commercial sale of goods.
B) National contract law applies in areas not covered by the Convention on Contracts for the International Sale of Goods.
C) The Convention on Contracts for the International Sale of Goods was adopted in 2000.
D) The United States has adopted the Convention on Contracts for the International Sale of Goods.
E) The Convention on Contracts for the International Sale of Goods has been ratified by the majority of states in the developed world.

Question 54

[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 open her own business in Mexico in conformity with Mexican laws and hires employees in Mexico to sell the product, she would have opened a[n] ________.

A) Franchise
B) Distributorship
C) Joint venture
D) Licensing subsidiary
E) Affiliate

Question 55

The Convention on Contracts for the International Sale of Goods recognizes a concept by which a buyer may give notice to the seller that delivery will be accepted beyond the time prescribed in the contract. That concept is known as ________.

A) Nachfrist
B) Benach
C) Offer of late performance
D) Tender of late performance
E) Stare decisis

Question 56

________ is a type of alternative dispute resolution procedure wherein disputes are submitted for resolution to private, nonofficial persons selected in a manner provided by law or the agreement of the parties.

A) Mediation
B) Arbitration
C) Neutral evaluation
D) International evaluation
E) Multi-cultural evaluation

Question 57

What types of warranties are recognized by the CISG and the UCC?

A) Express warranties and the implied warranty of merchantability arising from the sale of goods.
B) Actual and express warranties but not the implied warranty of merchantability arising from the sale of goods.
C) Express warranties and the implied warranty of merchantability arising from the sale of goods but not actual warranties.
D) Express warranties only.
E) The implied warranty of merchantability arising from the sale of goods only.

Question 58

In a sales contract between two companies, one in Florida and one in Kentucky, which of the following is true about which set of laws would apply:

A) The UCC, because both parties to the sales transaction are residents of the United States.
B) The CISG, because both parties to the sales transaction are residents of the United States.
C) The UCC, but only if the parties opted out of the CISG.
D) Both the CISG and the UCC would apply.
E) Neither the CISG nor the UCC would apply.

Question 59

Under which of the following circumstances would the Uniform Commercial Code (UCC) apply?

A) When both parties to a sales transaction are residents of the United States.
B) When both parties to a sales transaction engage in interstate commerce.
C) When the parties are residents of different countries and the amount of the sales transaction exceeds $10,000.
D) When the parties are residents of different countries, regardless of the amount of the sales transaction.
E) When the amount of the sales transaction exceeds $10,000.

Question 60

[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.
Which of the following statements is correct regarding Sonya's statement that so long as she obeys the laws of the U.S., she does not need to be concerned about laws of other countries?

A) She is accurate.
B) She is accurate, but only in regard to laws pertaining to employment.
C) She is inaccurate.
D) She is accurate, but only in regard to laws involved with the Uniform Commercial Code.
E) She is accurate, but only if countries are signatories to NAFTA.

Question 61

[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 that her contract with the Mexican company is complete when she drops it in the mail?

A) No, if the CISG applies.
B) No, if the UCC applies.
C) No, because neither the UCC nor the CISG would apply.
D) Yes, because both the UCC and the CISG would apply.
E) Yes, because a contract need not be in writing under the CISG.

Question 62

[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?

A) The WTO
B) The WTO Secretariat
C) Any WTO member state
D) Recognized governments of WTO member states
E) Any corporation in a WTO member state

Question 63

[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.
What type of trade barrier is the lambswool tax?

A) A subsidy
B) A quantitative restriction
C) A quota
D) A tariff
E) A nontariff barrier

Question 64

[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.
Does the lambswool tax violate the principle of normal trade relations, according to Article I of GATT?

A) Yes, because WTO member states must treat like goods coming from other WTO member states on an equal basis.
B) No, because WTO member states need not treat like goods coming from other WTO member states the same.
C) No, because Canada does not have most-favored-nation status.
D) No, because the tax does not violate NAFTA.
E) No, because the U.S. is entitled to tax like goods.

Question 65

[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.
All of the following are issues addressed by NAFTA except which one?

A) Worker's rights issues
B) Free trade in Central America
C) Child labor
D) Equal pay for equal work
E) The right to strike

Question 66

[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.
Wholly Wool's president claims the United States is in violation of GATT because of the improper restriction on the amount of lambswool that can be imported. Is he correct?

A) Yes, because GATT prohibits all restrictions on importation of domestic animal products.
B) Yes, because the quantitative restriction was made for national economic reasons.
C) No, because GATT allows quantitative restrictions that have a rational basis.
D) No, because the goods are also produced in the United States.
E) No, because the U.S. is entitled to tax like goods.

Question 67

[Weeds] Cecelia developed a product guaranteed to immediately kill weeds, but will absolutely not kill any other type of grass or shrub. She has encountered several individuals and businesses in other countries who would like to enter into contracts with her and market her products internationally. She consulted with Willie, who just graduated law school and has yet to pass the bar, and asked him for advice regarding those contracts. Willie proceeded to tell her that she should simply enter into the same type of contract with international businesses and individuals from other countries as she would if those individuals and businesses were located in the United States. He tells her that if there is any problem, then they will simply have to come to the United States to settle the matter, and that any issues would be determined in Cecelia's home county, in her home state, and under her state's law. He also mentions to her that she should consider contacting local foreign officials in the areas in which she would like her product sold and suggest to them that she can contribute heavily to election campaigns if she is allowed, without any trouble, to obtain necessary business licenses and approvals to do business.
What factors does a court use to determine whether or not to decline to exercise jurisdiction under the forum non coveniens doctrine?

A) Whether or not the petitioner has the money to travel to a foreign location.
B) The court looks to see who the parties are; corporate citizens or private citizens.
C) The court must balance both private and public interest factors.
D) The court must always look to the federal statutes and international treaties.
E) The court cannot decline jurisdiction based on convenience of the forum but only on whether or not the court has personal jurisidiction.

Question 68

[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.
Does an Illinois court have specific personal jurisdiction over DroneTek?

A) Yes, because the D2000 was shipped to Illinois.
B) Yes, if the value of Reymond's claim is over $50,000.
C) No, because Illinois has general personal jurisdiction over DroneTek.
D) Yes, because the D2000 entered the stream of commerce.
E) No, because DroneTek has not purposefully availed itself of the protections of the Illinois forum.

Question 69

[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.
A forum for the settlement of the lambswool tax dispute could be:

A) The WTO
B) GATT
C) The International Trade Arbitration Forum
D) The Uruguay Round
E) The International Monetary Fund

Question 70

[Weeds] Cecelia developed a product guaranteed to immediately kill weeds, but will absolutely not kill any other type of grass or shrub. She has encountered several individuals and businesses in other countries who would like to enter into contracts with her and market her products internationally. She consulted with Willie, who just graduated law school and has yet to pass the bar, and asked him for advice regarding those contracts. Willie proceeded to tell her that she should simply enter into the same type of contract with international businesses and individuals from other countries as she would if those individuals and businesses were located in the United States. He tells her that if there is any problem, then they will simply have to come to the United States to settle the matter, and that any issues would be determined in Cecelia's home county, in her home state, and under her state's law. He also mentions to her that she should consider contacting local foreign officials in the areas in which she would like her product sold and suggest to them that she can contribute heavily to election campaigns if she is allowed, without any trouble, to obtain necessary business licenses and approvals to do business.
Which of the following is true regarding Willie's advice that Cecelia should contact foreign officials regarding election campaign contributions?

A) Willie was incorrect, and following his advice would put Cecelia in danger of violating the Foreign Corrupt Practices Act.
B) Willie was incorrect, and following his advice would put Cecelia in danger of violating foreign laws in the countries in which she makes such offers; but she would not be in danger of violating any U.S. laws.
C) Willie was incorrect, and following his advice would put Cecelia in danger of violating the Uniform Anti-Bribery Statute.
D) Willie was incorrect, and following his advice would put Cecelia in danger of violating the federal Unfair Competition Act.
E) Willie was correct, and following his advice is a good idea for Cecelia.

Question 71

[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.
Which of the following is the most common legal system in the world?

A) The EU.
B) The civil law system.
C) The common law system.
D) The United States legal system.
E) The socialist legal system.

Question 72

[Weeds] Cecelia developed a product guaranteed to immediately kill weeds, but will absolutely not kill any other type of grass or shrub. She has encountered several individuals and businesses in other countries who would like to enter into contracts with her and market her products internationally. She consulted with Willie, who just graduated law school and has yet to pass the bar, and asked him for advice regarding those contracts. Willie proceeded to tell her that she should simply enter into the same type of contract with international businesses and individuals from other countries as she would if those individuals and businesses were located in the United States. He tells her that if there is any problem, then they will simply have to come to the United States to settle the matter, and that any issues would be determined in Cecelia's home county, in her home state, and under her state's law. He also mentions to her that she should consider contacting local foreign officials in the areas in which she would like her product sold and suggest to them that she can contribute heavily to election campaigns if she is allowed, without any trouble, to obtain necessary business licenses and approvals to do business.
If Cecelia does not take Willie at his word and wants additional assurance that her state's law would be applied, what should she do?

A) There is nothing she can do.
B) She should insert a forum selection clause in the contract.
C) She should insert a choice-of-law clause in the contract.
D) She should insert a Hague evidence clause in the contract.
E) She should insert a GATT clause into the contract.

Question 73

[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.
In order for any judgment in Illinois to be enforceable against DroneTek, what must the court have?

A) Subject-matter jurisdiction and specific personal jurisdiction.
B) Subject-matter jurisdiction or personal jurisdiction.
C) Subject-matter jurisdiction and either general or specific personal jurisdiction.
D) Subject-matter jurisdiction, general personal jurisdiction, and specific personal jurisdiction.
E) Subject-matter jurisdiction and general personal jurisdiction.

Question 74

[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.
Which of the following would support a claim of specific personal jurisdiction over DroneTek?

A) If DroneTek had a distributor in Illinois.
B) If Illinois were part of the D2000's chain of distribution .
C) If DroneTek's sales in Illinois were over $50,000.
D) If all D2000s were found to have a product defect.
E) If Illinois were part of DroneTek's stream of commerce.

Question 75

[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.

A) customs union
B) part of NAFTA.
C) regional trading zone
D) limited customs union
E) importation center

Question 76

[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.
Which of the following is not true about the common law systems?

A) Judges are appointed or elected.
B) It is an adversarial system.
C) Juries are not used.
D) The judge doesn't typically participate in gathering evidence.
E) There is a right of appeal.

Question 77

[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.
All of the following are examples of a nontariff barrier except ________.

A) A trade embargo
B) A ban on the sale of lambswool
C) A quota or limit on the amount of imported units
D) A fee based on the weight of the imported units
E) A ban on trade with Canada

Question 78

[Weeds] Cecelia developed a product guaranteed to immediately kill weeds, but will absolutely not kill any other type of grass or shrub. She has encountered several individuals and businesses in other countries who would like to enter into contracts with her and market her products internationally. She consulted with Willie, who just graduated law school and has yet to pass the bar, and asked him for advice regarding those contracts. Willie proceeded to tell her that she should simply enter into the same type of contract with international businesses and individuals from other countries as she would if those individuals and businesses were located in the United States. He tells her that if there is any problem, then they will simply have to come to the United States to settle the matter, and that any issues would be determined in Cecelia's home county, in her home state, and under her state's law. He also mentions to her that she should consider contacting local foreign officials in the areas in which she would like her product sold and suggest to them that she can contribute heavily to election campaigns if she is allowed, without any trouble, to obtain necessary business licenses and approvals to do business.
What should Cecelia do if she wants some additional protection to guarantee that any dispute with international business will be resolved in her state in the U.S.?

A) There is nothing she can do.
B) She should put a forum selection agreement clause within the contract.
C) She should put a choice of law provision in the contract.
D) She should put a choice of general jurisdiction clause in the contract.
E) She should put a Hague clause in the contract.

Question 79

[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) She is correct.
B) She is incorrect, because the UCC applies when the value of the contract is over $500.
C) She is incorrect, because the UCC only applies to the sale of goods.
D) She is incorrect. Even though the UCC applies to all contracts, the CISG applies to this situation.
E) She is incorrect.

Question 80

[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.
Does an Illinois court have general personal jurisdiction over DroneTek?

A) Yes, because the D2000 was sold in Illinois.
B) Yes, if the value of Reymond's claim is over $50,000.
C) No, because DroneTek does not maintain a presence in Illinois.
D) Yes, because its product was defective and injured a resident of Illinois.
E) No, because Illinois has specific personal jurisdiction over DroneTek.