Deck 32: International Law in a Global Economy

Question 1

In a civil law system,courts impose only civil sanctions for the commission of crimes.

Answer 1

False

Question 2

Congress cannot impose any restrictions on exports except taxes.

Answer 2

False

Question 3

A party to a licensing agreement generally agrees to pay "royalties" to a foreign official.

Answer 3

False

Question 4

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

Question 5

The simplest way for a U.S.firm to do business in a foreign mar?ket is to ex?port its products directly to that market.

Question 6

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

Question 7

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

Question 8

Common law and civil law systems are wholly distinct.

Question 9

Franchising is a form of licensing.

Question 10

A party to a licensing agreement agrees to keep certain information con?fidential.

Question 11

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 12

Legal systems around the world are generally divided into common law and civil law systems.

Question 13

The act of state doctrine provides that if a nation states how it will act,it must act in compliance with that statement.

Question 14

Under the principle of comity,foreign nations are exempt from the juris?diction of U.S.courts.

Question 15

A public law that creates standards for relations among or between nations is an international law.

Question 16

The principle of comity is based primarily on international treaties.

Question 17

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

Question 18

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

Question 19

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.

Question 20

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 21

Tariffs are taxes on imports.

Question 22

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 23

A force majeure clause stipulates eventualities that excuse a party from liability for nonperformance of a contract.

Question 24

Restrictions on exports may include tariffs.

Question 25

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 26

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 27

Quotas are limits on the prices at which imported goods can be sold.

Question 28

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

Question 29

In the international legal environment of business,the law of a particular nation,such as Brazil,China,or India,is classified as

A)environmental law.
B)extra-legal law.
C)international law.
D)national law.

Question 30

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

Question 31

A contract for an international business deal should specify the currency in which payment is to be made.

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

A body of private law-including the 1980 United Nations Convention on Contracts for the International Sale of Goods-that establishes international standards for private transactions that cross national borders is classified as

A)international law.
B)national law.
C)standard-crossing law.
D)united goods law.

Question 34

Antidumping duties are the responsibilities of international environmental polluters.

Question 35

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 36

A contract for an international business deal should not specify a method of payment.

Question 37

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

Question 38

When a forum-selection clause is included in an interna?tional contract,legal proceedings are more complex and attended by more uncertainty.

Question 39

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

Question 40

The primary aim of the North American Free Trade Agreement is to eliminate tariffs among the United States,Canada,and Mexico.

Question 41

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 42

The government of Canada sets a limit on the amount of beef 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 43

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 44

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 45

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 46

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 47

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

A)a distribution agreement.
B)establishing a foreign manufacturing facility.
C)indirect exporting.
D)licensing.

Question 48

Yokio,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

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 50

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 51

Mexico has a civil law system.In theory,in this system,the courts

A)are obligated to follow the doctrine of stare decisis.
B)may not develop their own laws.
C)must create new rules of law.
D)must develop legal concepts by case law.

Question 52

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 53

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 54

KO Marketing Company,a U.S.firm,signs a contract with Librador Corporacion,a Chilean firm,to give Librador the right to use Innovative's animation techniques and characters in product promotions.This is

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

Question 55

Significant business develops in Mexico for Natural Beauty Cosmetics,Inc. ,a U.S.firm.Natural Beauty appoints Ojos,Ltd. ,a Mexican firm,to act as Natural Beauty's marketing representative in Mexico.This is

A)a joint venture.
B)franchising.
C)indirect exporting.
D)licensing.

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

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 58

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 59

World Trading Company imports products made in South America to North America,including the United States.Restrictions on these imports may include

A)neither quotas nor tariffs.
B)quotas only.
C)quotas or tariffs.
D)tariffs only.

Question 60

Senator Wyden and other politicians want to limit the flow of technologically advanced products and data from the United States to other countries.To carry out this objective,Congress can

A)do nothing.
B)assess antidumping duties.
C)impose export taxes.
D)impose export restrictions on these products.

Question 61

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 62

A clause in a contract between Lumber Products Corporation,a U.S.business,and Misuda,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 63

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

Question 64

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

Question 65

Real World Sports Corporation (RWSC)is a U.S.firm with a workplace in Switzerland.Generally,RWSC must abide by U.S.anti-discrimination laws in Switzerland

A)under any circumstances.
B)under no circumstances.
C)unless to do so would contravene the cultural norms of Switzerland.
D)unless to do so would violate the law of Switzerland.

Question 66

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.

Question 67

To obtain a contract with the Chinese government,Definitive Engineering Corporation a U.S.firm,gives a Chinese official a sport utility vehicle.This may violate

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

Question 68

Aung-San and other Burmese citizens allege that Railway Construction Company,a U.S.firm,collaborated with the government of Myanmar (Burma)in committing human rights violations within that country.To seek redress for their injuries in a U.S.court,these citizens can

A)"blow the whistle" under the Sarbanes-Oxley 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 69

Wang 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 70

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

Question 71

The Council of Ministers and the Court of Justice are among the govern?ing authorities of an international trading organization known as

A)the European Union.
B)the North American Free Trade Agreement.
C)the United Nations.
D)the World Trade Organization.

Question 72

Bytes Business Corporation,a U.S.firm,and Comida 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.