Deck 43: International and Space Law

Question 1

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.

Answer 1

False

Question 2

Companies that export indirectly can make use of agency relationships.

Answer 2

True

Question 3

A choice-of-language clause designates the official language for a contract's interpretation.

Answer 3

True

Question 4

Universally accepted rules govern which court has jurisdiction over parties to a dispute involving a deal struck between a U.S. company and a company in another country.

Question 5

Courts apply International law in the interest of maintaining judicial power across borders.

Question 6

The act of state doctrine immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.

Question 7

Confiscation occurs when a government seizes a privately owned business for a proper public purpose and awards just compensation.

Question 8

Because international contracts cross the laws of multiple countries, parties to an international contract can choose the law that will apply to the contract.

Question 9

The doctrine of sovereign immunity is the principle by which one nation defers to the laws of another.

Question 10

International contracts are more complicated than contracts between parties from the same country because of language and custom differences.

Question 11

On a worldwide basis, nations attempt to honor judgments rendered in other countries when it is feasible to do so.

Question 12

The Foreign Sovereign Immunities Act governs the circumstances in which an action may be brought in the United States against a foreign nation.

Question 13

Under certain clauses in international business contracts, acts of God or government may excuse a party from liability for nonperformance.

Question 14

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

Question 15

A U.S. firm cannot license a foreign manufacturing company to use its intellectual property or trade secrets.

Question 16

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

Question 17

When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up control of the facilities in the foreign country.

Question 18

A distribution agreement is a contract between the seller and the distributor setting out the terms and conditions of the distributorship.

Question 19

The principle of comity states that the courts of one country will not examine the validity of government acts of a foreign country within that country's own borders.

Question 20

Expropriation occurs when a government seizes privately owned goods for a proper public purpose and awards just compensation.

Question 21

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

Question 22

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

Question 23

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

Question 24

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 25

Under the Trading with the Enemy Act, any goods can be imported from nations that have been designated enemies of the United States.

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

Desayuno 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, Desayuno obtains an award of damages in a Chilean court. Desayuno 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

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

Question 28

Because business activities can affect national interests, nations impose laws to restrict or facilitate international business.

Question 29

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 30

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

Question 31

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

Question 32

Under the U.S. Constitution, Congress can impose export taxes.

Question 33

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 34

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 35

Restrictions on imports include quotas and tariffs.

Question 36

A tariff is a set limit on the amount of goods that can be imported.

Question 37

International space law consists of international treaties primarily negotiated by the United States and Russia.

Question 38

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 39

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

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

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) made a political decision that impacts the United States.

Question 42

Energy Company, a U.S. firm, and Fresh Petro, a Dutch firm, enter into a contract that includes an arbitration clause. This clause must provide that the arbitrator will be

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

Question 43

Global Fashion, Inc., a U.S. firm, and Haute Couture, a Haitian firm, are parties to a contract that specifies the official language of the contract is English. This is

A) a choice-of-forum clause.
B) a choice-of-language clause.
C) a choice-of-law clause.
D) a force majeure clause.

Question 44

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

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

Question 45

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

A) all of it.
B) more than half, but less than all, of it.
C) none of it.
D) no more than half of it.

Question 46

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 47

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 48

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 49

In an international contract, under a force majeure clause, a party may be excused from liability for nonperformance by

A) changes in price.
B) the principal of comity.
C) an embargo.
D) corporate office turnover.

Question 50

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 51

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 52

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 intellectual property in Canada in return for a fee and a promise to follow Burger Heaven's guidelines and standards. This is

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

Question 53

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 54

Overland Rail 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 55

Consolidated Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Consolidated contracts with 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 56

Equity International Inc., a U.S. firm, and Finance Invest Ltd., a firm in Great Britain, are parties to a contract with a choice-of-forum 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) any "choice," or superior, forum.

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) force majeure .
D) the principle of comity.

Question 58

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 59

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

A) force majeure .
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity .

Question 60

In international business, franchising involves

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

Question 61

Under the Outer Space Treaty, the outer space activities of private entities require authorization and supervision by

A) the United Nations.
B) an internationally recognized space agency.
C) a government.
D) its owners only.

Question 62

Star Flights Inc. launches exploratory and commercial space flights from its base in the United States. In the event that a Star Flights rocket booster falls to Earth in the Philippines, 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

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 64

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 65

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) expropriation .

Question 66

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 67

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 68

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 69

The U.S. National Aeronautics and Space Administration launches a commercial satellite that falls out of orbit and returns to earth outside U.S. territory. All nations are to assist in recovering the satellite under

A) the Rescue Agreement.
B) the Outer Space Treaty.
C) the Liability Convention.
D) the Commercial Space Launch Act.

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

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 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.