Deck 11: International and Space Law

Question 1

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.

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

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.

Answer 3

False

Question 4

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.

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

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

Question 7

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

Question 8

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 9

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.

Question 10

Because exchanges of goods on a global level are routine, students of business law do not need to be familiar with laws pertaining to international business transactions.

Question 11

National laws-involving taxes, for example-do not become international law until they are applied beyond a nation's borders.

Question 12

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

Question 13

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 14

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 15

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 of over all phases of the operation in the foreign country.

Question 16

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 17

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 18

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 19

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

Question 20

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

Question 21

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 22

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

Question 23

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 24

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

Question 25

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 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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 31

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 32

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 33

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 34

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 35

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 36

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

Question 37

Comida de Chile S.A., an export company in Chile, and Deli Source Inc., an import form 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 38

An export tax imposed by Congress would be unconstitutional.

Question 39

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

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

Fiscal 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 42

Sugar Company, a U.S. firm, owns property in Trinidad and Tobago. When the foreign government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Trinidad and Tobago 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 43

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 44

Burger Bistros, a U.S. firm, makes a deal with a Canadian firm, Donny's Diners, that allows Donny's to use Burger'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 45

The United States taxes most goods imported from China at a flat rate. This is

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

Question 46

In international business, franchising involves

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

Question 47

The government of Japan 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 48

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 49

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 50

Agri Products Inc., a U.S. firm, 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 prefers to limit its involvement in Chinese markets.

Question 51

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 52

Resort Hotel Corporation, a U.S. firm, establishes a wholly owned subsidiary in Singapore. As a parent corporation, with respect to the subsidiary, Resort 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 53

Habitat 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 54

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 55

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 56

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 57

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 58

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

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

Question 59

Market Maven 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 60

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 61

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 62

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, the corporate explorer

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 63

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 64

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.

Question 65

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 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

Star Flights Inc. launches 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 68

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 69

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 70

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 71

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 72

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?