Deck 8: International Law in a Global Economy

Question 1

In a civil law system,the courts independently develop the rules governing certain areas of the law.

Answer 1

False

Question 2

The principle of comity is based primarily on an international treaty.

Answer 2

False

Question 3

Tariffs are taxes on exports.

Answer 3

False

Question 4

In Islamic countries,the law is often influenced by the religious law of Islam.

Question 5

Antidumping duties are the responsibilities of international environmental polluters.

Question 6

In a common law system,judicial precedents are not binding.

Question 7

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 8

Under the act of state doctrine,a firm whose assets a foreign government has expropriated may not recover compensatory damages in a U.S.court.

Question 9

The act of state doctrine provides that only a head of state can make treaties with another nation.

Question 10

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 11

In a civil law system,the only official source of law is a statutory code.

Question 12

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

Question 13

The Foreign Sovereign Immunities Act broadly defines commercial activity.

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

Franchising is a form of licensing.

Question 19

Many remedies are available for confiscation of property by a foreign government.

Question 20

Generally,U.S.employers abroad must abide by U.S.discrimination laws.

Question 21

Fact Pattern
Sociedad Guarantia (SG),a Mexican firm,borrows $1 million from Tri-national Bank,a U.S.firm.Later,SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of payments on the loan.Tri-national files a suit against SG in a U.S.court,arguing that the funds do not belong to SG.

-Refer to Fact Pattern 8-1B.The U.S.court in Tri-national's suit is most likely to apply the principle of comity because

A)the actions of foreign nations "taken in connection with commercial activities" are exempt from the jurisdiction of U.S.courts.
B)the bankruptcy proceedings in the Mexican court appear to be fundamentally fair and not in violation of U.S.public policy.
C)the courts of one country will not review the validity of acts by the courts of another country within their own jurisdiction.
D)the nations of the world are constitutionally bound to honor the actions of each others' courts.

Question 22

Canada giving effect to the laws and court decisions of the United States is an 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 23

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 24

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

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

Question 25

Innovative Manufacturing Company,a U.S.firm,signs a contract with Librador Corporacion,a Columbian firm,to give Librador the right to use Innovative's production processes.This is

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

Question 26

Delphi,Ltd. ,imports appliances made in Southeast Asia into the United States.To obtain a larger share of the U.S.market,Delphi sells the appliances at lower prices here than in its exporting countries.With respect to these imports,the United States may

A)do nothing.
B)assess antidumping duties.
C)order the return of the appliances to the exporting countries.
D)confiscate the appliances without just compensation.

Question 27

Congresswoman Jones 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 28

Global Properties,Inc.(GPI),a U.S.firm,owns property in Hong Kong.The government in Hong Kong takes GPI's property without paying for it.A U.S.court will probably not examine the validity of this act committed by China within its own territory,under

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

Question 29

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 30

Fact Pattern
Sociedad Guarantia (SG),a Mexican firm,borrows $1 million from Tri-national Bank,a U.S.firm.Later,SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of payments on the loan.Tri-national files a suit against SG in a U.S.court,arguing that the funds do not belong to SG.
Refer to Fact Pattern 8-1B.Under the principle of comity,the U.S.court in Tri-national's suit is most likely to

A)ask the Mexican court to drop SG's petition.
B)ask Tri-national to drop its suit.
C)dismiss Tri-national's suit.
D)order the Mexican court to deny SG's request.

Question 31

Precision Motors Corporation (PMC),a U.S.firm,expands into international markets through a joint venture.In this venture,PMC owns

A)all of the operation.
B)as much of the operation as PMC wants.
C)none of the operation.
D)part of the operation.

Question 32

The United States and other members of a certain organization agree to grant normal trade relations (NTR)status on each other with regard to imports and exports.This organization 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 33

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 34

Eagle,Inc. ,a U.S.firm,contracts with Fong,Ltd. ,a Hong Kong firm,allowing Fong to use and profit from Eagle's patented products.This is

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

Question 35

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 36

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 37

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 Vieux Carré's goods in

A)the Northern Hemisphere.
B)France.
C)the United States.
D)the world market.

Question 38

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 39

Two Japanese firms-Mikato,Ltd. ,and Shuzushi,Ltd.-enter into a joint venture in an attempt to increase their market share of the U.S.auto market.A U.S.court could exercise jurisdiction over the firms

A)if the joint venture has a substantial effect on U.S.commerce.
B)if the joint venture has any effect on U.S.commerce.
C)if the joint venture was entered into in the United States.
D)under no circumstances.

Question 40

Expando Global Corporation,a U.S.firm,establishes a wholly owned subsidiary firm in Germany.In this situation,Expando retains complete ownership of

A)all of the facilities.
B)only those facilities in the United States.
C)none of the facilities.
D)less than half of the facilities.

Question 41

The management of Sportz Shoes Corporation,a U.S.firm,wants to expand into foreign investment and employment markets.They are considering either opening their own production facility in a foreign country or entering into a licensing agreement with a foreign firm.What are the advantages and disadvantages of each of these courses of action?

Question 42

Savory Cooking Sauces,Inc. ,a U.S.business firm,makes and sells distinctively flavored cooking sauces.Although the recipes are secret,the ingredients could be revealed and the sauces could be reconstructed with diligent efforts.What can Savory do to prevent its products from being "decoded" and pirated abroad?