Deck 6: International Law

Question 1

GATT is the result of a multilateral treaty.

Answer 1

True

Question 2

Repatriation is the limitation on removal of profits earned in a country from that country.

Answer 2

True

Question 3

U.S. courts have no jurisdiction over foreign businesses with operations in the United States.

Answer 3

False

Question 4

U.S. securities laws would not apply to countries selling securities in the United States under the doctrine of sovereign immunity.

Question 5

Tariffs can be revenue-raising and protectionist for domestic goods.

Question 6

A foreign country engaging in commercial transactions in the United States is not protected by the doctrine of sovereign immunity for those transactions.

Question 7

The U.S. system of law is based primarily on code law.

Question 8

The act of state doctrine precludes outside interference in expropriation.

Question 9

Sovereign immunity protects individual nation's operations from outside interference.

Question 10

The doctrine of forum non conveniens is used to dismiss cases brought in courts in the wrong nation.

Question 11

Nationalization is a process of eminent domain.

Question 12

NAFTA has resulted in the elimination of all trade barriers among the United States, Canada, and Mexico.

Question 13

The U.S. antitrust laws apply only to U.S. firms.

Question 14

Expropriation is prohibited in countries that are members of the United Nations.

Question 15

GATT is a 150-member free trade agreement.

Question 16

The Kyoto Treaty no longer has the support of the U.S.

Question 17

The United States and Canada are examples of polychronic countries.

Question 18

Under the doctrine of sovereign immunities, a country cannot be forced to answer civil or criminal charges in a U.S. court.

Question 19

"When in Rome, do as the Romans do" is a recognized defense under the FCPA.

Question 20

The Overseas Private Investment Corporation is an insurer against expropriation.

Question 21

The corporate fines under the FCPA can be up to $2 million per violation.

Question 22

The Foreign Corrupt Practices Act is not applicable in NAFTA or GATT contracts.

Question 23

The Foreign Corrupt Practices Act applies to all companies doing business abroad.

Question 24

The only types of transactions covered under the Foreign Corrupt Practices Act are those that involve contracts with foreign governments.

Question 25

The Export Trading Company Act provides antitrust exemptions for international joint ventures.

Question 26

The Hickenlooper Amendment is the Foreign Corrupt Practices Act.

Question 27

Expropriation or nationalization is protected under the act of state doctrine.

Question 28

OECD has relationships with 70 countries and NGOs.

Question 29

Sovereign immunity provides that our court system cannot be used to right injustices in other countries.

Question 30

The OECD is resistant to the U.S. position against bribery.

Question 31

The LESCANT factors are a means of understanding various issues in cultures prior to beginning contract negotiations.

Question 32

The effect of the FCPA has been to decrease U.S. companies' competitiveness.

Question 33

The International Court of Justice is a court of mandatory jurisdiction.

Question 34

MFN stands for "most favored nation" status under GATT.

Question 35

EU and countries' antitrust laws do not apply to U.S. companies doing business in the EU.

Question 36

The WTO is the body charged with OECD enforcement.

Question 37

NAFTA applies only to goods that originate in the U.S., Mexico, and Canada.

Question 38

NGO officials are included as government officials for purposes of the Foreign Corrupt Practices Act .

Question 39

The U.S. courts can be used by citizens of foreign countries to recover for injuries occurring in their countries at the hands of U.S. companies.

Question 40

The FCPA provides no imprisonment for violations under the Act.

Question 41

The government of Argentina has taken over all the country's banks. No compensation has been paid. Some U.S. citizens and businesses had accounts in the banks. Absent treaty provisions the takeover:

A)can be set aside by a U.S. federal court because no compensation was paid.
B)can be partially set aside by a U.S. federal court on the accounts of U.S. citizens and businesses.
C)can be reviewed by the U.S. State Department.
D)is immune from review under the act of state doctrine.

Question 42

The primary goal of GATT is to ensure human rights in third world nations.

Question 43

There was some resistance to granting China MFN status.

Question 44

The act of state doctrine:

A)is not recognized by the United States.
B)prohibits one government from interfering in the acts of state of another government.
C)is prohibited by members of the United Nations.
D)All of the above

Question 45

CISG stands for Customs in Standard Government.

Question 46

The goal of the European Union is to remove barriers to free movement of goods, people, services and capital across the borders of its member nations.

Question 47

The European Union:

A)is a trademark registration organization.
B)eliminated tariff protections for its members in 1992.
C)is an international court of justice.
D)None of the above

Question 48

Which of the following is not a LESCANT factor?

A)Language
B)Law
C)Social organization
D)Contexting

Question 49

In a polychronic culture, multitasking is seen as necessary so that a job can be completed quickly.

Question 50

Which of the following is not a source of international law?

A)Custom
B)Private law
C)Treaties
D)All of the above are sources of international law.

Question 51

The contact lens company, Here's Clear Eye, sold thousands of pairs of contact lenses in Kenya. The lenses were defective and resulted in severe eye infections, and in 156 cases, blindness. The purchasers of the lenses who bring suit in Kenya will be entitled to recover their purchase price, attorney fees and medical bills. Kenya does not permit recovery for pain and suffering nor for permanent injury. Several of the purchasers who are blind have brought suit in South Carolina, the home of Here's Clear Eye. South Carolina permits recovery for permanent injury as well as punitive damages. The average recovery in Kenya for the purchasers is $600. A lawyer for the purchasers from Columbia, South Carolina estimates the average verdict will be $600,000. Which of the following statements is true?

A)The Kenya purchasers may use the South Carolina courts because their remedies in Kenya are inadequate.
B)The South Carolina cases will be dismissed on the grounds of forum non conveniens .
C)The Kenya purchasers can recover only punitive damages in South Carolina.
D)The Kenya purchasers can recover only for permanent injuries in South Carolina.

Question 52

Both GATT and NAFTA are examples of bilateral trade agreements.

Question 53

The DSB is the dispute solving body for GATT.

Question 54

The EU was created in the European Unification and Consolidation Treaty of 2001.

Question 55

Which of the following is not a code system country?

A)Germany
B)France
C)England
D)Spain

Question 56

A U.S. luxury liner was attacked by an Iraqi ship in the Persian Gulf. Many passengers were injured and the ship was damaged. The owner of the ship brought suit in federal district court against the government of Iraq. The suit will:

A)be heard because the attack was a violation of international law.
B)be heard because the attack harmed U.S. citizens.
C)not be heard under the doctrine of sovereign immunity.
D)be heard but only in the International Court of Justice.

Question 57

Which of the following countries is not a monochronic country?

A)Norway
B)Sweden
C)Finland
D)United States

Question 58

Which of the following is a multilateral treaty?

A)A treaty between the United States and Canada on acid rain
B)A treaty between Mexico and the United States on border drug traffic
C)A treaty between England, Japan, and the United States on trade with China
D)None of the above

Question 59

Most of the countries in the world are polychronic.

Question 60

Which of the following countries does not  base its legal system on code law?

A)Great Britain
B)Italy
C)France
D)Spain

Question 61

Rich Hasbro is a vice president for Huffy Diapers. He currently heads the African division of this international company. He has just been able to secure approval for sale of Huffy Pull-Ons in the Sudan. When the Pull-Ons arrive at the borders, a customs agent demands $5,000 before he will allow the Pull-Ons into his country. Rich tells the trucking company, "Pay him. I'll reimburse."

A)Rich has not violated the FCPA because this is a facilitation payment.
B)Rich has not violated the FCPA because a third party made the payment.
C)Rich has violated the FCPA.
D)None of the above

Question 62

Which of the following is not part of the Foreign Corrupt Practices Act?

A)Financial statement disclosure requirements
B)Requirement of internal monitoring in companies to prevent violations
C)Requirement of public disclosure of all bids in foreign countries
D)Requirement of monitoring contracts with foreign agents
E)Both a and d are not part of the Foreign Corrupt Practices Act

Question 63

Most favored nation status means:

A)there are no import or export tariffs.
B)the country can engage in software importation with no intellectual property protections in place.
C)the country is a party to the GATT treaty.
D)there are no human rights issues in the country.

Question 64

The FCPA does not make which of the following acts criminal?

A)Giving money to a foreign political candidate
B)Giving a gift of clothing to a foreign political official
C)Giving money as a means of preventing action from being taken
D)Giving a payment for facilitation

Question 65

The EU created the European _____ that has authority to issue regulations and decisions that are binding on all EU members.

A)Commission
B)Council
C)Parliment
D)Community

Question 66

U.S. antitrust laws:

A)do not apply to companies based in other countries that are doing business in the United States.
B)do not apply to U.S. companies doing business in other countries.
C)apply to companies based in other countries that do business in the U.S.
D)None of the above

Question 67

What is the purpose of the LESCANT factors?

A)To deal with issues beyond the law when doing business in other countries.
B)To control tariff imports and exports.
C)To establish a uniform system of international contract laws.
D)To eliminate grease payments.
E)None of the above

Question 68

What is the effect of trade sanctions?

A)Businesses are prohibited from dealing with certain countries
B)Businesses are prohibited from selling certain items in countries subject to the sanctions
C)There is no effect; they are strictly voluntary
D)Either a or b
E)None of the above

Question 69

The CISG:

A)is the contract law of the EU.
B)is part of GATT.
C)was drafted by a commission of the United Nations.
D)has been adopted in virtually every nation.

Question 70

Which of the following would be a violation of the Foreign Corrupt Practices Act?

A)A payment to a foreign government official to have a license application accelerated.
B)A payment to a member of the International Olympic Committee in order to obtain his or her vote on an Olympic site.
C)A payment to an official of a government-owned telecommunications company in order to speed up installation of phones in a business office.
D)A payment to a customs official in order to allow the unloading of goods from a ship.
E)All of the above are violations of the Foreign Corrupt Practices Act.

Question 71

Which of the following sets limits on removal of profits from a country?

A)Expropriation
B)Forum non conveniens
C)Repatriation
D)Sovereign immunity

Question 72

Italian manufacturers of leather goods have agreed to charge uniform prices on all sales in the United States in order to better compete with U.S. manufacturers. Which of the following statements is true?

A)The agreement is a violation of U.S. antitrust laws, and the Italian manufacturers can be prosecuted.
B)The manufacturers are protected under the act of state doctrine.
C)The manufacturers enjoy sovereign immunity.
D)The manufacturers are protected under the forum non conveniens doctrine.

Question 73

A United States company doing business in Japan must follow the laws of:

A)the United States.
B)Japan.
C)the United States and Japan.
D)either country, but not both of them.

Question 74

Forum non conveniens :

A)is a principle of U.S. justice.
B)is a principle of jurisdiction.
C)can require a case to be sent out of the U.S.
D)All of the above

Question 75

Expropriation is the:

A)taking of private property by a country.
B)development of tariffs for goods leaving the country.
C)collection of a line of credit by property repossession.
D)None of the above

Question 76

Which of these is not a body that has adopted a convention against bribery?

A)Council of Europe
B)United Nations
C)OECD
D)OPEC

Question 77

An NGO:

A)is not subject to the controls of the FCPA.
B)is not subject to any nation's laws.
C)is an oil cartel.
D)None of the above

Question 78

The Export Trading Company Act of 1982:

A)permits combinations of U.S. firms for purposes of international competition.
B)is part of NAFTA.
C)is under judicial challenge by the Justice Department.
D)is a tariff provision in the U.S.

Question 79

U.S. businesses that break laws while operating in foreign countries:

A)cannot be prosecuted in those countries.
B)are immune under the act of state doctrine.
C)are subject to full prosecution, fines, and imprisonment.
D)None of the above

Question 80

Sovereign immunity:

A)applies to U.S. businesses here if they are engaged in international transactions.
B)applies to commercial transactions by private foreign firms.
C)does not apply to clear violations of international law by governments engaged in commercial transactions.
D)means each country is equal in its authority over its own laws and operations.