Deck 7: International and Space Law

Question 1

Nations impose laws to restrict or facilitate international business because business activities can affect national interests.

Answer 1

True

Question 2

When a foreign country represents a substantial market for a U.S.manufacturer,the firm may enter into an agreement for the distribution of its products in that market by a foreign distributor.

Answer 2

True

Question 3

A U.S.court can assert jurisdiction over a foreign government in a case involving the control of natural resources within that government's territory.

Answer 3

False

Question 4

In a case alleging that a foreign government wrongfully confiscated a domestic firm's property,the foreign government must prove the taking was an expropriation.

Question 5

In direct exporting,a U.S.company sets up a specialized marketing organization in a foreign market by appointing a foreign agent.

Question 6

Under the principle of comity,a domestic court will not examine the validity of any act committed by a foreign government within the court's jurisdiction.

Question 7

Sovereign nations agree to be governed by international law to facilitate trade,commerce,and civilized discourse.

Question 8

The parties to an international contract can indicate what court,jurisdiction,or tribunal will decide any disputes arising under the contract.

Question 9

A business firm is subject only to the laws of its home nation even when it maintains operations or otherwise does business in other nations.

Question 10

International law is formed as result of international customs,treaties,agreements,and organizations.

Question 11

In an action by a domestic business to attach a foreign nation's property,the plaintiff must prove that the defendant is not entitled to sovereign immunity.

Question 12

Goods made by a U.S.business firm in a foreign manufacturing plant are not subject to taxes when the goods are imported into the United States.

Question 13

A foreign state is immune from the jurisdiction of a U.S.court when the state has engaged in commercial activity only outside the United States.

Question 14

A company can export indirectly and thereby limit its involvement in an international market by making use of agency relationships.

Question 15

By means of an arbitration clause,the parties to an international business contract agree in advance to resolve any dispute without involving a third party.

Question 16

A foreign state is not immune from the jurisdiction of a U.S.court when it has engaged in commercial activity within the United States.

Question 17

When a wholly owned subsidiary is established in a foreign country,the parent company,which remains in the United States,gives up ownership,authority,and control over all phases of the operation in the foreign country.

Question 18

When a foreign government acts as a "private party" in the market,its actions qualify as commercial activity for purposes of the Foreign Sovereign Immunities Act.

Question 19

Under the act of state doctrine,a U.S.court can rule on the validity of a foreign government's acts within its own territory.

Question 20

A U.S.court will likely uphold a contract created in the United Kingdom because the U.K.'s laws are generally compatible with those of the United States.

Question 21

In the United States,each government agency that operates or authorizes spacecraft is responsible for complying with U.S.law and international treaties.

Question 22

An export tax imposed by Congress would be unconstitutional.

Question 23

A U.S.employer operating in a foreign country must abide by U.S.discrimination laws even if doing so violates the laws of that foreign country.

Question 24

A body of law-formed as a result of international customs,treaties,and organizations-that governs relations among or between nations is

A) space law.
B) universal law.
C) international law.
D) national law.

Question 25

Comida de Chile S.A. ,an export company in Chile,and Deli Source Inc. ,an import firm in the United States,enter into a contract.When Deli breaches the contract,Comida obtains an award of damages in a Chilean court.Comida then asks a U.S.court to enforce the award.The U.S.court defers to and enforces the Chilean court's decree.This is an application of

A) none of the choices.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

Question 26

U.S.law allows U.S.citizens,including private companies,to engage in the commercial exploration and exploitation of space resources.

Question 27

Under United Nations guidelines,objects no longer in operation should be removed from orbit if this can be accomplished in a controlled manner.

Question 28

The Outer Space Treaty declares that internationally recognized political boundaries extend from Earth into the farthest reaches of space.

Question 29

Normal trade relations status granted to a member of the World Trade Organization means that the member will receive other members' most favorable treatment with regard to imports and exports.

Question 30

To prevent the sale of imported goods at less than fair value,an extra tariff-known as an antidumping duty-may be assessed on the imports.

Question 31

A nation that launches objects into space is absolutely liable for personal injury and property damage caused by its objects on Earth or in flight.

Question 32

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) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) expropriation.

Question 33

Regional trade agreements and associations help to minimize trade barriers among nations.

Question 34

U.S.antitrust laws can protect foreign consumers and competitors from violations committed by U.S.citizens and companies.

Question 35

Countries restrict exports to protect national security,further foreign policy objectives,and conserve resources.

Question 36

An allegation that certain imported goods infringe on a U.S.firm's patents will be investigated by the Export-Import Bank of the United States.

Question 37

The U.S.government does not generally regulate private spaceports and the launch and reentry of private spacecraft.

Question 38

The federal Alien Tort Claims Act allows foreign citizens,but not U.S.citizens,to file civil actions in U.S.courts for torts that were committed abroad.

Question 39

Mexico is likely to defer and give effect to the laws and judicial decrees of the United States as long as

A) the laws and decrees are consistent with Mexican law and public policy.
B) smaller countries fear and are intimidated by more powerful nations.
C) poorer countries admire and envy richer nations.
D) all of the choices.

Question 40

Retail Operations,Inc. ,a U.S.firm,obtains a judgment in a U.S.court against Shinobu,Ltd. ,a Japanese business.Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of

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

Question 41

Market Maker,Inc. ,a U.S.firm,can license a foreign manufacturing company to use its

A) patented intellectual property.
B) trade secrets.
C) trademarked brand.
D) any of the choices.

Question 42

Wei 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) a trade barrier.
C) dumping.
D) normal trade relations.

Question 43

Sufficient business develops in France for Graphic Comics Inc. ,a U.S.firm,to appoint Comics Graphique Ltd. ,a French firm,to act as Graphic's marketing representative in France.This is

A) direct exporting.
B) franchising.
C) indirect exporting.
D) licensing.

Question 44

Consolidated Corporation,a U.S.firm,wishes to participate,but limit its involvement,in Middle Eastern markets.Consolidated empowers Doha Ltd. ,an Egyptian firm,to enter into contracts in certain countries on behalf of Consolidated.This is

A) a distribution agreement.
B) an agency relationship.
C) indirect exporting.
D) direct exporting.

Question 45

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

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

Question 46

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 47

Finance Corporation,a U.S.firm,files a suit against Ghana in a U.S.court.Under the Foreign Sovereign Immunities Act,Ghana is immune from the jurisdiction of the court if Ghana has

A) engaged in commercial activity within the United States.
B) engaged in commercial activity outside the United States that has a direct effect in the United States.
C) committed a tort in the United States.
D) none of the choices.

Question 48

Equity International Inc. ,a U.S.firm,and Finance Invest Ltd. ,a firm in Great Britain,are parties to a contract with a forum-selection clause.The forum specified in the clause must be within the geographic boundaries of

A) the United States.
B) Great Britain.
C) none of the choices.
D) a "select" forum,such as a United Nations protectorate.

Question 49

Opti-Med Inc. ,a U.S.firm,signs a contract with Pharma Ltd. ,a Canadian firm,to give Pharma the right to sell Opti-Med's products in Canada.This is

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

Question 50

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

A) confiscation.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) expropriation.

Question 51

Global Project,a U.S.firm,owns property in Hong Kong.The government of China seizes the property.The firm claims that this is confiscation.The government claims that it is expropriation.The difference concerns

A) the location of the seizure and the nature of its government.
B) the purpose of the seizure and the payment of compensation.
C) the business of the firm and the citizenship of its owners.
D) none of the choices.

Question 52

In international business,franchising involves

A) a license.
B) a distribution agreement.
C) a subsidiary.
D) direct exporting.

Question 53

Coffee Company,a U.S.firm,owns property in the Dominican Republic.When the Dominican government seizes the property,the company asks a U.S.court to order the property's return.The court rules that the Dominican Republic is exempt from the court's jurisdiction.This is an application of

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

Question 54

Agri Products Inc. ,a U.S.firm that currently distributes its products in China itself,signs a contract with Bao Ltd. ,a Chinese firm,to distribute Agri's products in China.The most likely reason for this deal is

A) China represents a substantial market for Agri.
B) China is a new market for Agri.
C) Agri will thereby avoid jurisdictional and contract-law issues.
D) Agri wants to withdraw from any potential liability in China.

Question 55

Burger Heaven,a U.S.firm,makes a deal with a Canadian firm,Donny's Diners,that allows Donny's to use Burger Heaven's trade name in Canada in return for a fee.This is

A) a license.
B) a distribution agreement.
C) a subsidiary.
D) direct exporting.

Question 56

Restful Hotel Corporation,a U.S.firm,establishes a wholly owned subsidiary in Singapore.As a parent corporation,with respect to the subsidiary,Restful retains complete ownership of

A) all of the facilities in Singapore.
B) more than half,but less than all,of the facilities in Singapore.
C) none of the facilities in Singapore.
D) no more than half of the facilities in Singapore

Question 57

Venezuela seizes the assets of World Oil,Inc. ,a U.S.firm.World Oil's recovery from Venezuela in a U.S.court may be prevented by

A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) a court in Venezuela.
D) the principle of comity.

Question 58

As part of a deal for power-generating equipment,Solar Wind Company and Thermal Gen Ltd.enter into a written contract that includes a clause providing for the arbitration of any dispute in the United States.Under the New York Convention,if a dispute arises,a court will compel arbitration if both parties are

A) not U.S.citizens.
B) U.S.citizens.
C) citizens of non-signatory countries.
D) citizens of countries that are members of the World Trade Organization.

Question 59

Mont Blanc 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 Mont Blanc's goods in

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

Question 60

Lunchies Corporation,a U.S.firm,signs a contract with Manger au Brasserie,S.A. ,a French firm,to give Manger the right to use the Lunchies trademark in restaurants in France.This is

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

Question 61

Blue Space Corporation launches exploratory space flights to the moon and Mars.The purpose is to discover and retrieve minerals and other resources.Under U.S.Law,Blue Space

A) cannot profit from resources retrieved in space.
B) cannot legally retrieve resources in space.
C) must share with all interested parties what it retrieves in space.
D) owns what it retrieves in space.

Question 62

Star Flights Inc.launches exploratory and commercial space flights from its base in the United States.In the event of a collision with other space objects,under the Outer Space Treaty,liability for injury or damage

A) is to be assumed by all involved parties equitably
B) is strict liability-that is,liability without fault.
C) is subject to a determination of fault.
D) does not exist.

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

Under the Export Trading Company Act,U.S.banks are

A) encouraged to invest in export trading companies.
B) discouraged from granting credit to export trading companies.
C) required to report financial transactions with export trading companies.
D) prohibited from lending funds to export trading companies.

Question 65

The Outer Space Treaty provides that a nation retains jurisdiction over objects on its space registry that are launched into space.The treaty also prohibits interference with space activities.In effect,these provisions

A) ban the national appropriation of territory in space.
B) protect property rights with respect to private space activities.
C) assert sovereignty over celestial bodies.
D) declare exclusive international jurisdiction over space locations.

Question 66

Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Global Mining Company,a U.S.firm.To seek redress for their injuries in a U.S.court,these citizens can

A) subject the private company to the provisions of 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 67

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 68

Trade barriers are

A) restrictions on imports.
B) restrictions on exports.
C) the lack of incentives and subsidies to stimulate imports.
D) the lack of incentives and subsidies to stimulate exports.

Question 69

The management of Sport 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 70

Under the Outer Space Treaty,with respect to a space object and the personnel aboard it,the launching state

A) forfeits supervisory authority to the United Nations.
B) shares dominion and responsibility with the United Nations.
C) retains complete jurisdiction and control.
D) grants political autonomy to those aboard the object.

Question 71

Global Industries Corporation owns assets in Kazakhstan,a country in Asia.The government of Kazakhstan wants to nationalize all assets owned by foreign firms and investors.What can Global Industries do? Can it at least obtain payment for the assets?

Question 72

Under the Outer Space Treaty,a moon,a planet,an asteroid,or any other celestial body is subject to the appropriation of

A) the first nation to explore it.
B) the first nation to exploit it.
C) the first nation to claim title to it.
D) no single nation.