Deck 8: International Law

Question 1

If the United States sets a limit on the number of cars that can be imported,this action is a form of tariff.

Answer 1

False

Question 2

A contract involving the sale of goods from a Texas seller to a French wholesaler must use the United Nations Convention on Contracts for the International Sale of Goods (CISG).

Answer 2

False

Question 3

Although the United States government officially signed the GATT treaty,the United States Congress has refused to ratify the agreement.

Answer 3

False

Question 4

Under European Union law,any agreement,contract,or discussion that distorts competition within European Union countries is illegal.

Question 5

The United States is the world's largest exporter of agricultural products,which helps to explain the annual positive balance of trade for this country.

Question 6

It is a violation of United States law for a domestic company to pay money to a foreign governmental official in order to obtain favorable influence of the foreign government.

Question 7

As of 2007 data,the top five nations that trade the most goods with the United States,in order of percentage of total trade are China,Canada,Mexico,Japan,and Brazil.

Question 8

If a federal appellate court rules that imported Halloween costumes in question in a case are festive articles rather than fancy-dress garments,the classification of goods is significant because the:

A) rate of the tariff depends on the classification.
B) fair value will vary depending on the classification.
C) subsidy will vary depending on the classification.
D) dumping duty will vary depending on the classification.

Question 9

Ad valorem duty is based on the fair market value of the imported good as of the date it reaches the United States,not the price actually paid for the good when sold for export to the United States.

Question 10

GATT created the WTO,which is empowered to hear arguments from any signatory nation about tariff violations or nontariff barriers.

Question 11

Axle Corporation imports goods into the United States.Who is required to pay the duty on the goods?

A) The importer, Axle Corporation.
B) The World Trade Organization.
C) The importer and exporter each pay one-half the duty.
D) The exporter of the goods.

Question 12

The two principal requirements of the Foreign Corrupt Practices Act involve bribes and grease payments.

Question 13

Tariffs are primarily used to protect a country's domestic industries.

Question 14

The world-wide problem of child labor has increased as the world has become more prosperous.

Question 15

NAFTA,with the principal goal of eliminating almost all tariff and nontariff trade barriers between the United States,Canada,and Mexico,has nevertheless failed to appreciably increase trade between the three member nations since the agreement was entered in 1993.

Question 16

The country that traded the most goods with the United States,as of 2007 figures,was:

A) Canada.
B) Mexico.
C) China.
D) Japan.

Question 17

The presidents of Oxtron,Inc.,a U.S.company,and Dunka,Inc.a German company,met in Munich,Germany.Oxtron and Dunka are direct competitors in over-the-counter medicines.The presidents agree to fix prices on their major products.This agreement may violate U.S.antitrust law even though the agreement was made in Germany.

Question 18

A potential buyer in Venezuela contacts your company to order materials to manufacture military weaponry and to order a quantity of a relatively rare natural resource available in your locale.Your ability to legally respond to the request will be influenced by the:

A) Export Administration Act, which may restrict exports if they endanger national security, harm foreign policy goals, or drain scarce materials.
B) Controlled Commodities List, which would deny the export of any commodity on the list.
C) Arms Export Control Act, which permits the Secretary of Commerce to create a list of controlled goods related to military weaponry, which cannot be exported under any circumstances.
D) All of the above.
E) None of the above; what your company exports is a business decision based only on your business's economic factors and resource availability.

Question 19

If a foreign company "dumps" goods on the United States market:

A) the goods will be considered illegal goods and will not be allowed to be sold in the United States.
B) the United States will issue trade sanctions against the country that allowed the dumping.
C) a "dumping duty" will be imposed on the dumped goods if the Commerce Department determines the goods are being sold at less than fair value and that this harms an American industry.
D) the goods will be placed on the Controlled Commodities List and the seller must obtain a license in order to sell them.

Question 20

Generally,consumers are not adversely affected by tariffs since tariffs affect wholesale prices,not retail prices.

Question 21

To advance foreign policy goals,the United States has threatened or imposed economic sanctions against:

A) Colombia for permitting drug trafficking.
B) the Netherlands and Switzerland for trading with Cuba.
C) Taiwan for environmental violations.
D) All of the above.
E) None of the above; economic sanctions cannot be used to advance foreign policy goals.

Question 22

The European Union was formerly known as the:

A) GATT.
B) Common Market.
C) NAFTA.
D) Euro.

Question 23

Don is considering selling goods to a foreign retailer.Don needs to consider:

A) in what language the contract will be written.
B) what currency will be used to pay for the goods.
C) under what law and what forum a controversy will be resolved.
D) all the above.

Question 24

MagNet,a small United States computer company,started doing business in a foreign country.The foreign country later decided to take over all computer industry,including MagNet's operation.The foreign country paid MagNet inadequate compensation in United States dollars.The foreign country's action is:

A) called confiscation, and the action is generally illegal.
B) called repatriation, and the action is generally legal.
C) called expropriation, and the action is generally legal.
D) called inflow profit streaming, and its legality depends upon whether MagNet agrees to the action.

Question 25

The Australian government has opened a tourist information center/gift shop in New York City.If a dispute arises over the lease of the storefront,may the landlord sue the Australian government in the United States courts?

A) Yes, because the Australian government was engaged in a commercial activity.
B) No, because of the Foreign Sovereign Immunities Act which forbids U. S. courts from hearing any cases involving foreign governments.
C) It depends. The Australian government can only be sued if it signed a written waiver giving up its immunity.
D) It depends. The Australian government can only be sued if it is a signatory on the CISG.

Question 26

Oxtron,Inc.,a U.S.company,and Leer,an Argentinean company,orally agreed to a contract under which Oxtron is to ship medical devices to Leer.The contract is governed by the CISG.Which statement is correct?

A) The contract is not enforceable because it is oral.
B) Whether the contract is enforceable without a written agreement depends on the value of the medical devices.
C) Whether the contract is enforceable without a written agreement depends on whether the medical devices are a necessity.
D) The contract is enforceable without a written agreement.

Question 27

The primary goal of the North American Free Trade Agreement (NAFTA)is to:

A) allow Canada, the United States, and Mexico to compete as a common economic entity against other countries in the world.
B) allow for the free and unrestricted movement of people from one country to another to improve the labor market of all three counties.
C) eliminate almost all trade barriers, tariff and nontariff, between the three nations.
D) All the above are correct.

Question 28

The primary antitrust law in the United States is the:

A) Wagner Act.
B) Sherman Act.
C) SEC Act of 1933.
D) Robinson-Patman Act.

Question 29

The United States and Argentina have signed the Convention on Contracts for the International Sale of Goods (CISG).Oxtron,Inc.,a U.S.company,and Leer,an Argentinean company,have entered into a contract under which Oxtron is to ship medical devices to Leer.The contract does not include a choice of law provision.The contract will be governed by:

A) the CISG.
B) the UCC.
C) the domestic contract law of Argentina.
D) the domestic contract law of the United States.

Question 30

The United States may impose a tariff on:

A) radios to be sold in the United States by Taiwan at less than fair value, which would harm the American radio industry.
B) automobiles to be sold in the United States by Germany, which had subsidized them.
C) Canadian beef to be sold in the United States.
D) All of the above.
E) Only (a) and (b).

Question 31

Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland.Big Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to Hardhat.The "account party" is:

A) Irish Eyes.
B) Hardhat Machine Company.
C) Big Bank.
D) None of the above.

Question 32

Zebra Toy Company invests a large sum of money in retail stores located in a foreign country.Zebra intends to bring its foreign earnings back home to the United States.This practice is known as:

A) repatriation of profits.
B) inflow profit streaming.
C) expropriation.
D) comity.

Question 33

What is a major difference between a United States lawsuit versus a French lawsuit?

A) In a French civil lawsuit, there is usually no right to a jury trial.
B) The French legal system does not engage in extensive discovery procedures commonly used in the United States.
C) In a French lawsuit, the rules of evidence are more flexible.
D) All of the above are correct.

Question 34

The United States and Singapore have signed the Convention on Contracts for the International Sale of Goods (CISG).Notren,Inc.,a U.S.company,and SWT,a Singapore company,have entered into a contract under which SWT is to ship party supplies to Notren.One of the terms of the contract states,"The validity and performance of this contract will be governed by the Uniform Commercial Code (UCC)of the state of New York,not the Convention on Contracts for the International Sale of Goods (CISG)." The contract will be governed by the:

A) CISG.
B) Uniform Commercial Code of New York.
C) common law.
D) World Trade Law.

Question 35

The organization,representing the fourth largest economic entity in the world,made up primarily of Brazil,Argentina,Uruguay,and Paraguay,with associate members of Colombia,Bolivia,Chile,Ecuador,and Peru is:

A) the South American Union. .
B) the Association of South American Nations.
C) Mercosur.
D) SAFTA.

Question 36

Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland.Big Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to Hardhat.The documents required by the letter of credit are presented to the bank for payment while the goods are still in transit.Is Hardhat entitled to be paid?

A) No, payment is not due until the goods are delivered.
B) No, payment is not due until 30 days after delivery.
C) No, payment is not due until the buyer has had a reasonable time to inspect the goods.
D) Yes, the letter of credit is a promise by the bank to pay when certain documents are presented.

Question 37

Acme believes that L'la,Inc.,a competing company,is violating United States antitrust law based on its conduct in France.Acme has a good case if it can prove:

A) L'la's conduct has a direct and substantial effect on the U. S. market.
B) L'la's conduct was intended to affect the U. S. market.
C) Both of the above are needed.
D) Neither of the above is correct since L'la is a foreign company.

Question 38

What is a major argument against the GATT Treaty?

A) The United States will have to compete against countries with unlimited pools of exploited labor.
B) The United States will lose millions of jobs involving low-end employment and these types of workers are least capable of finding other employment.
C) Both (a) and (b) above are major arguments against GATT.
D) Neither (a) nor (b) above is a major argument against GATT.

Question 39

Kjell is the vice president of international sales for Oxtren,Inc,a U.S.company.To secure a multimillion dollar contract for his company,Kjell paid a Mongolian governmental officer $10,000.Kjell:

A) has violated the Foreign Corrupt Practices Act.
B) has not violated the Foreign Corrupt Practice Act because the payment was a grease payment.
C) has not violated the Foreign Corrupt Practices Act because the government official was from Mongolia, not the United States.
D) has not done anything illegal because Congress has not ratified the Convention of Combatting Bribery of Foreign Public Officials in International Transactions.

Question 40

With respect to United States patents and copyrights,GATT:

A) expressly excludes controversies involving patent and copyright violations.
B) will allow the United States to assess tariffs against a country that refuses to honor U. S. copyrights or patents.
C) imposes sanctions against any country refusing to honor another signatory country's patents or copyrights.
D) requires retribution to be paid to the United States by any country ignoring U. S. patents or copyrights.

Question 41

MagNet is a U.S.company based in Utah.It is negotiating to sell $4 million worth of computer goods to a French company,L'la.MagNet's attorney suggests that payment be by a letter of credit.What is a letter of credit and why does MagNet's attorney recommend payment by letter of credit?

Question 42

MagNet is a U.S.company based in Utah.It is negotiating to sell $4 million worth of computer goods to a French company,L'la.L'la is insisting that the contract be governed by the CISG.What are some of the primary differences between the UCC and the CISG?

Question 43

Explain what the GATT is and give pro and con arguments concerning this agreement.

Question 44

Yount,Inc.is interested in expanding its business to include exporting its products to several other countries.Discuss two federal statutes that should be considered before making the decision to export.

Question 45

Explain the origin and purpose of the World Trade Organization.