Deck 22: International Law in a Global Economy

Question 1

Quotas are limits on the amounts of goods that can be imported.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Under the act of state doctrine,a firm whose assets a foreign gov?ernment has expro?priated may not recover compensatory damages in a U.S.court.

Answer 3

True

Question 4

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

Question 5

Expropriation occurs when a government seizes private property for an il?legal pur?pose and awards just compensation.

Question 6

A treaty is a contract or other agreement between two or more nations that must be ratified by the United Nations to take effect.

Question 7

The Foreign Sovereign Immunities Act spells out the particulars of what constitutes a com?mercial activity.

Question 8

Tariffs are taxes on imports.

Question 9

The act of state doctrine provides that only a head of state can make trea?ties with an?other nation.

Question 10

Congress cannot impose any restrictions on exports except taxes.

Question 11

Confiscation occurs when a government seizes a private property for a proper public purpose and awards just compensation.

Question 12

Tariffs are imposed only on exports.

Question 13

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

Question 14

Restrictions on exports may include tariffs.

Question 15

Restrictions on imports may include quotas.

Question 16

An international custom is a general practice accepted in the international arena as law.

Question 17

Under the principle of comity,a foreign business that deals with a U.S.business may be subject to U.S.law.

Question 18

A foreign state is immune from the jurisdiction of U.S.courts as long as the state is involved in commercial activity in the United States.

Question 19

International law attempts to reconcile the authority of each nation over its own affairs with its desire to benefit from trade and harmonious relations.

Question 20

All nations have restrictions on imports.

Question 21

The chief aim of the World Trade Organization and other trade agreements is to maximize trade barriers among their members.

Question 22

The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members.

Question 23

The government of the United States and the governments of other nations have the power to enforce their respective national laws within their borders.The power to enforce international law within the borders of all nations rests with

A) no court or international organization.
B) the European Union.
C) the International Court of Justice.
D) the United Nations General Assembly.

Question 24

A foreign citizen can bring a civil suit in a U.S.court for a violation of a treaty of the United States.

Question 25

The Association of Southeast Asian Nations is a regional trade associa?tion that was created through

A) a bilateral agreement.
B) a lateral agreement.
C) a multilateral agreement.
D) a unilateral agreement.

Question 26

Michael,a citizen of Ireland,and Nina,a citizen of the United States,enter into a contract.When Nina breaches the contract,Michael obtains an award of damages in an Irish court.He asks a U.S.court to enforce the award.The U.S.court defers to and enforces the Irish court's decree.This is

A) a travesty of justice.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

Question 27

Under a letter of credit,the issuer is bound to pay the beneficiary after the beneficiary complies with the terms of the letter.

Question 28

Antidumping duties are the responsibilities of international environmental polluters.

Question 29

A U.S.citizen can bring a civil suit in a U.S.court against a U.S.entity for a tort allegedly committed overseas.

Question 30

China and India form an agreement to govern their commercial ex?changes with one another.This is

A) a bilateral agreement.
B) a lateral agreement.
C) a multilateral agreement.
D) a unilateral agreement.

Question 31

The government of Iran violates an international law.Persuasive tactics to remedy the situation fail.The only recourse of other nations is to

A) approve the European Union's enforcement of the law.
B) ask the International Court of Justice to enforce sanctions.
C) seek enforcement of the law through the United Nations.
D) take coercive action-sever relations, impose boycotts, go to war.

Question 32

U.S.laws that prohibit discrimination in employment do not apply to U.S.em?ployees working for U.S.firms located abroad.

Question 33

Foreign exchange markets comprise a worldwide system for buying and selling currency.

Question 34

A forum-selection clause indicates the place for the resolution of a dispute arising under a contract.

Question 35

Any conspiracy that has a substantial effect on U.S.commerce is within the reach of the U.S.antitrust laws.

Question 36

Dumping is the sale of imported goods at "greater than fair value."

Question 37

Dumping is the exporting of environmentally polluting goods to a foreign market.

Question 38

Generally,a foreign government cannot sue under U.S.anti?trust laws in U.S.courts.

Question 39

A foreign citizen can bring a civil suit in a U.S.court for a violation of a treaty of the United States.

Question 40

Force majeure clauses in international business contracts commonly set forth the major clauses of the contracts.

Question 41

The government of Japan sets a limit on the amount of rice that can be imported from the United States.This is

A) a dumping duty.
B) an antidumping duty.
C) a quota.
D) a tariff.

Question 42

WiFi Corporation,a U.S.firm,signs a contract with Bueno Computadores,Ltd.,an Argentinean firm,for a shipment and payment for WiFi's goods.This is

A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Question 43

UniOil,a U.S.firm,owns property in Venezuela.When the government of Venezuela seizes the property,UniOil asks a U.S.court to order the property's return.The court rules that Venezuela is exempt from the court's jurisdiction.This is

A) a travesty of justice.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

Question 44

Diners Corporation,a U.S.firm,signs a contract with Essen,A,G.,a German firm,to give Essen the right to use Diners' trademark in restau?rants in Germany.This is

A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Question 45

Secure Investments,Inc.,a U.S.firm,expands into international markets through a joint venture.In this situation,Secure owns

A) all of the operation, and its profits and liabilities.
B) all of the operation, and none of its profits and liabilities.
C) none of the operation, and none of its profits and liabilities.
D) part of the operation, and shares its profits and liabilities.

Question 46

Optima Medico Corporation,a U.S.firm,signs a contract with Pharma Beneficial,Ltd.,a Canadian firm,to give Pharma the right to sell Optima's products in Canada.This is

A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Question 47

The United States taxes each barrel of imported oil at a flat rate.This is

A) an antidumping duty.
B) a dumping duty.
C) a quota.
D) a tariff.

Question 48

Yoko,Ltd.,and Zeno,S.A.,transact an international sale of goods.For these parties,and other international buyers and sellers,the United Nations Convention on Contracts for the International Sale of Goods spells out the duties that apply

A) if Article 2 of the Uniform Commercial Code does not apply.
B) if a dispute is submitted to the International Court of Justice.
C) if the parties have not agreed otherwise in their contracts.
D) under all circumstances.

Question 49

The United States is a member of the World Trade Organization,which,among its members,

A) does not affect trade barriers.
B) maximizes trade barriers.
C) minimizes trade barriers.
D) outlaws trade barriers.

Question 50

The United States and other members of a certain organization agree to grant normal trade relations status on each other with regard to im?ports and exports.This organi?zation is

A) the Convention on Contracts for the International Sale of Goods.
B) the International Export-Import Bank.
C) the United Nations.
D) the World Trade Organization.

Question 51

Vieux Carré S.A.,a French firm,imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of

A) comparable goods in a select "basket" of other countries.
B) Vieux Carré's goods in France.
C) Vieux Carré's goods in the United States.
D) Vieux Carré's goods on the world market.

Question 52

Senator Wyden and other politicians want to restrict the flow of technologically advanced products and data from the United States to other countries.To restrict or encourage exports,Congress can

A) do nothing.
B) assess antidumping duties.
C) impose export taxes.
D) set export quotas.

Question 53

Hemisphere Financial Corporation,a U.S.firm,files a suit against Italy in a U.S.court.Italy claims foreign sovereign immunity.Under the Foreign Sovereign Immunities Act,this claim is determined by

A) a neutral third-party court.
B) an international law court.
C) an Italian court.
D) the U.S. court in which the suit is filed.

Question 54

Call Center Corporation,a U.S.firm,owns property in India.The government of India seizes the property for a proper public purpose and pays Call Center just compensation.This is

A) confiscation.
B) defalcation.
C) dumping.
D) expropriation.

Question 55

Chiang Ltd.,a Chinese firm,imports its goods into the United States and offers those goods for sale at "less than fair value." This is

A) confiscation.
B) defalcation.
C) dumping.
D) expropriation.

Question 56

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

A) confiscation.
B) defalcation.
C) dumping.
D) expropriation.

Question 57

Sudan seizes the assets of Triage Medical,Inc.,a U.S.firm.Triage's recovery from Sudan in a U.S.court may be prevented by

A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the Foreign Corrupt Practices Act.
D) the principle of comity.

Question 58

Congresswoman Pelosi and other politicians want to prohibit the import of certain agricultural products that pose a danger to domestic crops.With respect to these products' import,Congress can

A) do nothing.
B) impose quotas, but not tariffs.
C) impose tariffs, but not quotas.
D) prohibit the imports.

Question 59

Premier Clothing,Inc.,a U.S.firm,obtains a judgment in a U.S.court against Quang Tri,Ltd.,a Vietnamese business.Whether the court's judgment will be enforced by a court in Vietnam depends on the Vietnamese court's application of

A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the principle of comity.
D) the World Trade Organization.

Question 60

A clause in a contract between Timber Corporation,a U.S.business,and Wang,Ltd.,a Japanese business,specifies that disputes over the con?tract will be adjudicated in the United States.This is

A) a choice-of-forum clause.
B) a choice-of-law clause.
C) a force majeure clause.
D) an arbitration clause.

Question 61

Business Corporation,a U.S.firm,and Comercial,S.A.,a Mexican firm,are parties to a contract that does not specify a choice of law.The govern?ing law is that of

A) any third country.
B) Spain.
C) the buyer's place of business.
D) the seller's place of business.

Question 62

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?

Question 63

Suisse Internationale,a Swiss maker of athletic equipment,enters into a price fixing agreement with Total World Sports,a U.S.wholesaler of Suisse's products.U.S.courts will apply U.S.antitrust laws if

A) the agreement was made in Switzerland.
B) the agreement was made in the United States.
C) the price fixing has a substantial effect on U.S. commerce.
D) the Swiss government agrees to be sued in the United States.

Question 64

Fact Pattern 22-1 (Questions 28-31 apply)
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
Refer to Fact Pattern 22-1.First State Bank

A) is responsible for making sure that the parties perform the contract.
B) will make payment once the transaction has been completed.
C) will make payment when Lapland presents the proper documents.
D) none of the above.

Question 65

Sam,or any U.S.citizen,can bring a civil suit in a U.S.court against a foreign entity for

A) a tort allegedly committed in the United States only.
B) a tort allegedly committed in the United States or overseas.
C) a tort allegedly committed overseas only.
D) no purpose.

Question 66

Fact Pattern 22-1 (Questions 28-31 apply)
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
Refer to Fact Pattern 22-1.First State Bank must pay Lapland when Lapland

A) enters into the contract with Oboe.
B) verifies that Oboe has the money to pay for the purchase.
C) complies with the terms and conditions of the letter of credit.
D) none of the above.

Question 67

Qang and other foreign citizens allege human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company,a U.S.firm.To seek redress for their injuries in a U.S.court,these citizens can

A) allege antitrust injuries under the Sherman Act.
B) bring civil suits under the Alien Tort Claims Act.
C) file criminal complaints under Title VII of the Civil Rights Act.
D) do nothing.

Question 68

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

A) any specified third party.
B) the American Arbitration Association.
C) the Dutch Arbitration Organization.
D) the International Chamber of Commerce.

Question 69

Fact Pattern 22-1 (Questions 28-31 apply)
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
Refer to Fact Pattern 22-1.In a letter of credit,the ben?eficiary is

A) Lapland.
B) Oboe.
C) First State Bank.
D) none of the above.

Question 70

Capital Diversified Corporation (CDC)owns assets in Dagistan,a new country in Asia.The gov?ernment of Dagistan wants to nationalize all assets owned by foreign firms and investors.What can CDC do? Can it at least obtain payment for the assets?

Question 71

Fact Pattern 22-1 (Questions 28-31 apply)
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
Refer to Fact Pattern 22-1.To obtain payment,Lapland must comply with all of the requirements of the letter of credit

A) strictly.
B) substantially.
C) reasonably.
D) materially.

Question 72

Fabiola,or any foreign citizen,can bring a civil suit in a U.S.court for

A) a violation of a treaty of the United States only.
B) a violation of a treaty of the United States or of the law of nations.
C) a violation of the law of nations only.
D) no purpose.