Deck 24: International and Space Law

Question 1

A party to a licensing agreement generally agrees to pay royalties on some basis.

Answer 1

True

Question 2

International law is a body of law that governs relations among nations.

Answer 2

True

Question 3

Franchising is a form of licensing.

Answer 3

True

Question 4

When a U.S. firm wishes to increase its involvement in an international market, it normally establishes an agency relationship with a foreign firm.

Question 5

According to the Foreign Sovereign Immunities Act, a foreign state that waived its immunity by implication is subject to the jurisdiction of the U.S. courts.

Question 6

A foreign state is immune from the jurisdiction of U.S. courts as long as the state is involved in commercial activity in the United States.

Question 7

The doctrine of sovereign immunity can immunize a foreign nation from the jurisdiction of U.S. courts.

Question 8

​In a joint venture, the parent company in the United States retains complete ownership and authority over all phases of the operation.

Question 9

A treaty is a contract or other agreement between two or more nations that must be ratified by the United Nations to take effect.

Question 10

The Foreign Sovereign Immunities Act spells out what a "foreign state" includes.

Question 11

Firms overseas have almost total legal protection against government acts in the countries in which they operate, under the act of state doctrine.

Question 12

Confiscation occurs when a government seizes private property for an illegal purpose or without just compensation.

Question 13

In direct exporting, a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment of goods.

Question 14

Under the principle of comity, all foreign governments are subject to all U.S. laws.

Question 15

Under the Foreign Sovereign Immunities Act, a foreign state can be a political subdivision of a foreign state.

Question 16

The act of state doctrine provides that the executive branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.

Question 17

The simplest way for a U.S. firm to do business in a foreign market is to export its products directly to that market.

Question 18

Restrictions on imports include tariffs.

Question 19

Expropriation occurs when a government seizes private property for a proper public purpose and awards just compensation.

Question 20

To restrict or encourage exports, Congress can set quotas on various items, such as grain being sold abroad.

Question 21

The basis for India to give effect to the laws and court decisions of the United States is primarily

A) ​courtesy and respect.
B) ​U.S. military superiority.
C) ​the relative economic power of the two nations.
D) ​United Nations resolutions.

Question 22

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 World Trade Organization.

Question 23

A foreign citizen can bring a civil suit in a U.S. court for a violation of an international tort law.

Question 24

In the global environment of business, the law of a particular nation, such as Germany, China, or the United States, is classified as

A) ​space law.
B) ​global law.
C) ​international law.
D) ​national law.

Question 25

The chief aim of the World Trade Organization is to minimize trade barriers among its members.

Question 26

The chief aim of the European Union is to maximize trade barriers among its members.

Question 27

International contracts frequently include arbitration clauses.

Question 28

Minerals 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) ​defalcation.
C) ​dumping.
D) ​expropriation.

Question 29

Dumping is the exporting of environmentally polluting goods to a foreign market.

Question 30

​Sofia, a citizen of Chile, and Trent, a citizen of the United States, enter into a contract. When Trent breaches the contract, Sofia obtains an award of damages in a Chilean court. She 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) ​a travesty of justice.
B) ​the act of state doctrine.
C) ​the doctrine of sovereign immunity.
D) ​the principle of comity.

Question 31

Few countries guarantee compensation to foreign investors if their property is taken.

Question 32

A choice-of-law clause in an international contract designates the applicable law.

Question 33

The primary goal of the North American Free Trade Agreement is to eliminate tariffs among the United States, Canada, and Mexico.

Question 34

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

Question 35

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 36

Quotas include limits on the amounts of goods that can be exported.

Question 37

Restrictions on imports include quotas.

Question 38

Generally, a foreign government cannot sue under U.S. antitrust laws in U.S. courts.

Question 39

U.S. laws that prohibit discrimination in employment apply to U.S. employees working for U.S. firms located abroad.

Question 40

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

Question 41

Business Universal Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Brazil. In this situation, Business Universal retains complete control and authority over

A) ​all of the operation.
B) ​only the part of the operation in the United States.
C) ​none of the operation.
D) ​about half of the operation.

Question 42

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) ​an arbitration clause.

Question 43

Financial Invest Corporation, a U.S. firm, files a suit against Ghana in a U.S. court. Ghana claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act

A) ​the plaintiff must show that Ghana is not entitled to sovereign immunity.
B) ​Ghana must show that it is entitled to sovereign immunity.
C) ​the court must dismiss the suit without any showing.
D) ​the court may hear the suit but its decision will have no effect.

Question 44

Global Enterprise Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Global Enterprise empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Global Enterprise's behalf. This is

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

Question 45

Brew Heaven Inc., a U.S. corporation, makes a deal with Celtic Pubs, Ltd., an Irish firm, that allows Celtic to use Brew's trade name in Ireland in return for a fee. This is

A) ​a franchise.
B) ​piracy.
C) ​a joint venture.
D) ​direct exporting.

Question 46

​The government of Korea 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 47

Finance International Inc., a U.S. firm, and Euro Invest, Ltd., a firm based 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 48

Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are

A) ​encouraged by credit guaranties to lend such funds.
B) ​discouraged by administrative rules to make such loans.
C) ​asked by enforcement agencies to report such requests.
D) ​banned by statute from opening such credit lines.

Question 49

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is

A) ​a distribution agreement.
B) ​a joint venture.
C) ​direct exporting.
D) ​licensing.

Question 50

Hong 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) ​defalcation.
C) ​dumping.
D) ​expropriation.

Question 51

Significant business develops in Spain for Graphic Comix, Inc., a U.S. firm. Graphic Comix appoints Comicas Graphico, Ltd., a Spanish firm, to act as Graphic Comix's marketing representative in Spain. This is

A) ​a joint venture.
B) ​franchising.
C) ​indirect exporting.
D) ​licensing.

Question 52

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

A) ​a distribution agreement.
B) ​a joint venture.
C) ​direct exporting.
D) ​licensing.

Question 53

Tropic Foods Corporation, a U.S. firm, owns property in Ecuador. When the Ecuadoran government seizes the property, Tropic Foods asks a U.S. court to order the property's return. The court rules that Ecuador is exempt from the court's jurisdiction. This is

A) ​a travesty of justice.
B) ​the act of state doctrine.
C) ​the doctrine of sovereign immunity.
D) ​the principle of comity.

Question 54

Renew Energy Company, a U.S. firm, and Seawater 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 55

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 56

Without permission, a Russian firm names itself McDonald's and begins selling hamburgers and French fries in Russia. This is

A) ​piracy.
B) ​a licensing agreement.
C) ​indirect exporting.
D) ​franchising.

Question 57

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 58

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

A) ​a distribution agreement.
B) ​a joint venture.
C) ​direct exporting.
D) ​licensing.

Question 59

World Media, Inc., a U.S. firm, expands into international markets through a joint venture. In the venture, World Media shares responsibilities

A) ​both the profits and liabilities.
B) ​none of the profits or liabilities.
C) ​the profits, but not the liabilities.
D) ​the liabilities, but not the profits.

Question 60

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 World Trade Organization.
C) ​the Central American Free Trade Agreement.
D) ​the principle of comity.

Question 61

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 62

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 63

Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would constitute, in the United States, violations of U.S. antitrust laws. These laws apply

A) ​extraterritorially.
B) ​only to signatories of the North American Free Trade Agreement.
C) ​only to members of the World Trade Organization.
D) ​only within U.S. borders.

Question 64

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Team 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 65

To obtain a contract with the Chinese government, Road & Bridge Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

A) ​the act of state doctrine.
B) ​the doctrine of sovereign immunity.
C) ​the Foreign Corrupt Practices Act.
D) ​the principle of comity.

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

World Sports Corporation is a U.S. firm with a facility in Spain. Generally, World Sports must abide by U.S. anti-discrimination laws in Spain

A) ​under any circumstances.
B) ​under no circumstances.
C) ​unless to do so would contravene the cultural norms of Spain.
D) ​unless to do so would violate the law of Spain.

Question 68

Chocolate Delectable, Inc., a U.S. firm, enters into an agreement with Columbiana Cacao, S.A., a South American firm, to fix the price of imported chocolate in the U.S. market. If the agreement is a per se violation of U.S. antitrust laws, a U.S. court could exercise jurisdiction over

A) ​both firms.
B) ​Chocolate Delectable only.
C) ​Columbiana Cacao only.
D) ​neither firm.

Question 69

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 70

Jackson, or any U.S. citizen, can bring a civil suit in a U.S. court against a foreign entity for a tort allegedly committed in

A) ​the United States only.
B) ​the United States or overseas.
C) ​overseas only.
D) ​none of the choices.

Question 71

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 72

Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Deep 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.