Deck 5: Legal Environment

Question 1

A common law system uses a strict and literal interpretation of the law

Answer 1

False

Question 2

Common law is based on tradition, past practices and rulings, and legal precedent

Answer 2

True

Question 3

The United States is a code law country

Answer 3

False

Question 4

Countries are bound by the international law which prescribes acceptable and legal behavior of international business enterprises

Question 5

The Calvo Doctrine encourages international arbitration

Question 6

According to the extraterritorial-application-of-the-law concept, nations cannot apply their laws to companies' business activities outside their borders

Question 7

The extraterritorial application of the law involves a nation applying its laws to activities outside its own territory

Question 8

The Civil Rights Act barring employment bias protects U.Scitizens working abroad for American firms

Question 9

If a company wants to limit its potential liability which may derive from its foreign operations, it should form a foreign subsidiary rather than a foreign branch

Question 10

Unlike litigation, arbitration saves time, expenses, and relationships

Question 11

Based on the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), arbitral awards rendered in one country is not recognized and enforceable in other signatory countries

Question 12

Since bribery is an absolute, it is easy to determine whether something is a bribe

Question 13

Bribery is a matter of degree rather than an absolute

Question 14

The U.Sgovernment takes the position that payments made to low- and middle-level officials for tasks routinely performed by them are not illegal

Question 15

The trade act does not consider a payment for a routine governmental action to be an illegal bribe

Question 16

The Foreign Corrupt Practices Act does not allow U.Sfirms to make expediting payments for routine government action

Question 17

OECD countries have adopted anti-bribery codes

Question 18

The OECD Anti-Bribery Convention has not been ratified

Question 19

There is evidence that corruption reduces foreign direct investment from countries that have signed the OECD Anti-Bribery Convention

Question 20

Surprisingly, virtually all cultures condemn bribery as being unethical

Question 21

Regardless of cultural values, a bribe is immoral

Question 22

While the legality of bribery is country-specific, the morality of the act is not

Question 23

Perceptions of ethical issues vary by country

Question 24

Culture has an influence on corporate codes of ethics

Question 25

Country differences are not a sufficient reason to preclude a formulation of universal ethical principles

Question 26

Corruption opportunities increase when a government reduces its role in the economy

Question 27

One effective method to deal with foreign bribery is to convert a private bribe into a public donation

Question 28

There are internationally recognized standards of behavior (e.g., OECD codes) which multinational firms can refer to so as to determine whether a certain business activity is a bribe

Question 29

U.Scourts are prohibited from applying the Foreign Corrupt Practices Act extraterritorially

Question 30

The Foreign Corrupt Practices Act cannot be applied in an extraterritorial manner

Question 31

The Foreign Corrupt Practices Act specifically prohibits U.Sfirms from making expediting payments for routine government action

Question 32

An invention that is obvious is not patentable

Question 33

Members of the WTO are required to observe intellectual property rights

Question 34

A patent offers protection against copying by others to an author or artist for his literary, musical, dramatic, and artistic works

Question 35

Computer software cannot be copyrighted

Question 36

Affixing a copyright notice is mandatory in order to obtain copyright protection

Question 37

A copyright cannot exist without registration

Question 38

Patents granted by one country for chemicals and pharmaceuticals are automatically recognized by other countries

Question 39

Centralized protection of trademarks is easier to accomplish than centralized protection of patents

Question 40

As in the case of the Madrid Arrangement, the Trademark Registration Treaty requires a prior home registration

Question 41

A statute law country determines patent ownership based on the "first to file" rather than "the first to invent."

Question 42

Based on a GATT provision, the life a patent is years from the filing date

Question 43

Based on a GATT provision, the life a patent is years after granting

Question 44

The WTO does not allow poor countries to import generic versions of expensive patented medicines because the practice violates trade laws protecting patent rights

Question 45

Manufacturers of low unit-value products do not have to contend with counterfeiting problems

Question 46

Unlike consumer products, industrial products do not have counterfeiting problems

Question 47

Counterfeiting is a low-risk, high-profit venture

Question 48

Counterfeiting may actually benefit a trademark/patent owner in terms of product diffusion

Question 49

Counterfeiting benefits a patent owner by speeding up product diffusion and adoption