Deck 31: International Law in a Global Economy

Question 1

Congress cannot impose any restrictions on exports except taxes.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

Tariffs are imposed only on exports.

Question 5

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

Question 6

Restrictions on imports may include quotas.

Question 7

All nations have restrictions on imports.

Question 8

Restrictions on exports may include tariffs.

Question 9

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

Question 10

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 11

Tariffs are taxes on imports.

Question 12

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

Question 13

International law attempts to reconcile the authority of each nation over its own affairs with its desire to benefit from trade and harmonious relations.

Question 14

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

Question 15

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 16

An international custom is a general practice accepted in the international arena as law.

Question 17

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

Question 18

Under the principle of comity,a foreign business that deals with a U.S.business may be subject to U.S.law.

Question 19

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

Question 20

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 21

Antidumping duties are the responsibilities of international environmental polluters.

Question 22

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 23

The government of Iran violates an international law.Persuasive tactics to remedy the situation fail.The only recourse of other nations is to

A)approve the European Union's enforcement of the law.
B)ask the International Court of Justice to enforce sanctions.
C)seek enforcement of the law through the United Nations.
D)take coercive action-sever relations,impose boycotts,go to war.

Question 24

A contract for an international business deal should not specify a method of payment.

Question 25

China and India form an agreement to govern their commercial exchanges with one another.This is

A)a bilateral agreement.
B)a lateral agreement.
C)a multilateral agreement.
D)a unilateral agreement.

Question 26

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

Question 27

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

Question 28

The Association of Southeast Asian Nations is a regional trade association that was created through

A)a bilateral agreement.
B)a lateral agreement.
C)a multilateral agreement.
D)a unilateral agreement.

Question 29

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

Question 30

The government of the United States and the governments of other nations have the power to enforce their respective national laws within their borders.The power to enforce international law within the borders of all nations rests with

A)no court or international organization.
B)the European Union.
C)the International Court of Justice.
D)the United Nations General Assembly.

Question 31

A contract for an international business deal should specify the currency in which payment is to be made.

Question 32

The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members.

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

The law of Chile,Germany,or Japan is

A)global,transnational law.
B)national law.
C)private international law.
D)public international law.

Question 38

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

Question 39

U.S.laws that prohibit discrimination in employment do not apply to U.S.employees working for U.S.firms located abroad.

Question 40

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

Question 41

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 42

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 43

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

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

Question 44

Secure Investments,Inc. ,a U.S.firm,expands into international markets through a joint venture.In this situation,Secure owns

A)all of the operation,and its profits and liabilities.
B)all of the operation,and none of its profits and liabilities.
C)none of the operation,and none of its profits and liabilities.
D)part of the operation,and shares its profits and liabilities.

Question 45

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 46

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 47

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 48

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 49

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 50

Yoko,Ltd. ,and Zeno,S.A. ,transact an international sale of goods.For these parties,and other international buyers and sellers,the United Nations Convention on Contracts for the International Sale of Goods spells out the duties that apply

A)if Article 2 of the Uniform Commercial Code does not apply.
B)if a dispute is submitted to the International Court of Justice.
C)if the parties have not agreed otherwise in their contracts.
D)under all circumstances.

Question 51

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 52

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 53

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 54

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 55

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 56

Senator Wyden 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 57

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 58

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 59

Congressman Walden 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 60

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 61

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.

Question 62

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)issue a letter of credit.
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 63

Fact Pattern 31-1
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 31-1.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 64

Bigg Business Corporation,a U.S.firm,and Comercial Grande,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 65

The management of Sport Shoes Corporation,a U.S.firm,wants to expand into foreign investment and employment markets.They are considering ei?ther 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 66

Fact Pattern 31-1
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 31-1.In a letter of credit,the beneficiary is

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

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 31-1
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 31-1.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 69

Fact Pattern 31-1
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 31-1.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 70

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 71

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 72

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.