Deck 11: International Law in a Global Economy

Question 1

All nations have restrictions on imports.

Answer 1

True

Question 2

Restrictions on imports may include quotas.

Answer 2

True

Question 3

The Foreign Sovereign Immunities Act spells out the particulars of what constitutes a commercial activity.

Answer 3

False

Question 4

Tariffs are imposed only on exports.

Question 5

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 6

The act of state doctrine provides that only a head of state can make treaties with another nation.

Question 7

Tariffs are taxes on imports.

Question 8

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

Question 9

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

Question 10

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

Question 11

Expropriation occurs when a government seizes private property for an illegal purpose and awards just compensation.

Question 12

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

Question 13

Under the principle of comity, one nation may defer and give effect to the laws and judicial decrees of another country.

Question 14

Under the act of state doctrine, a firm whose assets a foreign government has expropriated may not recover compensatory damages in a U.S.court.

Question 15

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

Question 16

Congress cannot impose any restrictions on exports except taxes.

Question 17

Restrictions on exports may include tariffs.

Question 18

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

Question 19

International law is a body of law that governs relations between and among citizens, not nations.

Question 20

Quotas are limits on the amounts of goods that can be imported.

Question 21

A foreign citizen can bring a civil suit in a U.S.court for a violation of a treaty of the United States.

Question 22

Premier Clothing, Inc., a U.S.firm, obtains a judgment in a U.S.court against Quang Tri, Ltd., a Vietnamese business.Whether the court's judgment will be enforced by a court in Vietnam depends on the Vietnamese 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

All international sales contracts should have a choice-of-language clause to designate the official language by which the contract will be interpreted.

Question 24

Kitchen Appliances Co., a U.S.firm, wants to enforce a U.S.court judgment against Far East Manufacturing Ltd., an Indian firm.The basis for India to give effect to the decision of a U.S.court is primarily

A)courtesy and respect.
B)fear and intimidation.
C)admiration and envy.
D)payments of cash and exchanges of property.

Question 25

The chief aim of the World Trade Organization and other trade agreements is to maximize trade barriers among their members.

Question 26

Mountain 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 27

Under a letter of credit, the issuer is bound to pay the beneficiary after the beneficiary complies with the terms of the letter.

Question 28

Force majeure clauses in international business contracts commonly set forth the major clauses of the contracts.

Question 29

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

Question 30

Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract.When Nina breaches the contract, Michael obtains an award of damages in an Irish court.He asks a U.S.court to enforce the award.The U.S.court defers to and enforces the Irish 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

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

Question 32

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

Question 33

A foreign citizen can bring a civil suit in a U.S.court for a violation of a treaty of the United States.

Question 34

Yokio, Ltd., and Zeno, S.A., transact an international sale of goods.At the request of these parties, a court in Portugal resolves a dispute between them.A U.S.court will most likely honor the judgment

A)if it is consistent with U.S.laws and public policy.
B)if it is consistent with Portuguese laws and public policy.
C)if it does not benefit the U.S.to deny it.
D)under no circumstances.

Question 35

Dumping is the sale of imported goods at "greater than fair value."

Question 36

Foreign exchange markets comprise a worldwide system for buying and selling currency.

Question 37

Antidumping duties are the responsibilities of international environmental polluters.

Question 38

A forum-selection clause indicates the place for the resolution of a dispute arising under a contract.

Question 39

Any conspiracy that has a substantial effect on U.S.commerce is within the reach of the U.S.antitrust laws.

Question 40

A U.S.citizen can bring a civil suit in a U.S.court against a U.S.entity for a tort allegedly committed overseas.

Question 41

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 42

UniOil, a U.S.firm, owns property in Venezuela.When the government of Venezuela seizes the property, UniOil asks a U.S.court to order the property's return.The court rules that Venezuela 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 43

Sudan seizes the assets of Triage Medical, Inc., a U.S.firm.Triage's recovery from Sudan in a U.S.court may be prevented by

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

Question 44

Senator Smith and other politicians want to restrict the flow of technologically advanced products and data from the United States to other countries.To restrict or encourage exports, Congress can

A)do nothing.
B)assess antidumping duties.
C)impose export taxes.
D)set export quotas.

Question 45

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 46

Chiang 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 47

Hemisphere Financial Corporation, a U.S.firm, files a suit against Italy in a U.S.court.Italy claims foreign sovereign immunity.Under the Foreign Sovereign Immunities Act, this claim is determined by

A)a neutral third-party court.
B)an international law court.
C)an Italian court.
D)the U.S.court in which the suit is filed.

Question 48

In some cases, foreign states are not immune from the jurisdiction of U.S.courts.These circumstances are governed by the

A)Uniform Commercial Code.
B)Foreign Sovereign Immunities Act.
C)European Union.
D)North American Free Trade Agreement.

Question 49

A clause in a contract between Timber Corporation, a U.S.business, and Wang, Ltd., a Japanese business, specifies that disputes over the contract will be adjudicated in the United States.This is

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

Question 50

The United States is a member of the World Trade Organization, which, among its members,

A)does not affect trade barriers.
B)maximizes trade barriers.
C)minimizes trade barriers.
D)outlaws trade barriers.

Question 51

Congresswoman Jones and other politicians want to prohibit the import of certain agricultural products that pose a danger to domestic crops.With respect to these products' import, Congress can

A)do nothing.
B)impose quotas, but not tariffs.
C)impose tariffs, but not quotas.
D)prohibit the imports.

Question 52

Soleful Shoes, Inc.owns property in Somalia.The Somalian government seizes the property.In order for the seizure to be considered an expropriation and not a confiscation, the Somalian government must

A)pay just compensation to Soleful Shoes.
B)give Soleful Shoes at least thirty days notice of the seizure.
C)give Soleful Shoes at least ninety days notice of the seizure.
D)notify the U.S.government before the seizure.

Question 53

KO Marketing Company, a U.S.firm, signs a contract with Librador Corporacion, a Chilean firm, to give Librador the right to use Innovative's animation techniques and characters in product promotions.This is

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

Question 54

Diners Corporation, a U.S.firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany.This is

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

Question 55

Mineral Resources Corporation, a U.S.firm, owns property in Ecuador.The government of Ecuador seizes the property for a proper public purpose and pays Mineral Resources just compensation.This is

A)confiscation.
B)defalcation.
C)dumping.
D)expropriation.

Question 56

Vieux Carré 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

A)comparable goods in a select "basket" of other countries.
B)Vieux Carré's goods in France.
C)Vieux Carré's goods in the United States.
D)Vieux Carré's goods on the world market.

Question 57

Wrugged Woolens, Inc., a U.S.corporation, sets up a specialized marketing organization in Scotland by appointing a foreign agent.This is called

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

Question 58

The United States and other members of a certain organization agree to grant normal trade relations status on each other with regard to imports and exports.This organization is

A)the Convention on Contracts for the International Sale of Goods.
B)the International Export-Import Bank.
C)the United Nations.
D)the World Trade Organization.

Question 59

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 60

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

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

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

Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.


-Refer to Fact Pattern 9-1.In a letter of credit, the beneficiary is

A)Lapland.
B)Oboe.
C)First State Bank.
D)none of the above.

Question 63

Capital Diversified Corporation (CDC)owns assets in Dagistan, a new country in Asia.The government of Dagistan wants to nationalize all assets owned by foreign firms and investors.What can CDC do Can it at least obtain payment for the assets

Question 64

Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.


-Refer to Fact Pattern 9-1.First State Bank

A)is responsible for making sure that the parties perform the contract.
B)will make payment once the transaction has been completed.
C)will make payment when Lapland presents the proper documents.
D)none of the above.

Question 65

Quality Energy Company, a U.S.firm, and Royal 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 66

Qang and other foreign citizens allege human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company, a U.S.firm.To seek redress for their injuries in a U.S.court, these citizens can

A)allege antitrust injuries under 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

Fabiola, or any foreign citizen, can bring a civil suit in a U.S.court for

A)a violation of a treaty of the United States only.
B)a violation of a treaty of the United States or of the law of nations.
C)a violation of the law of nations only.
D)no purpose.

Question 68

Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.


-Refer to Fact Pattern 9-1.First State Bank must pay Lapland when Lapland

A)enters into the contract with Oboe.
B)verifies that Oboe has the money to pay for the purchase.
C)complies with the terms and conditions of the letter of credit.
D)none of the above.

Question 69

Business Corporation, a U.S.firm, and Comercial, S.A., a Mexican firm, are parties to a contract that does not specify a choice of law.The governing law is that of

A)any third country.
B)Spain.
C)the buyer's place of business.
D)the seller's place of business.

Question 70

Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.


-Refer to Fact Pattern 9-1.To obtain payment, Lapland must comply with all of the requirements of the letter of credit

A)strictly.
B)substantially.
C)reasonably.
D)materially.

Question 71

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 72

Sam, or any U.S.citizen, can bring a civil suit in a U.S.court against a foreign entity for

A)a tort allegedly committed in the United States only.
B)a tort allegedly committed in the United States or overseas.
C)a tort allegedly committed overseas only.
D)no purpose.