Deck 7: International Law

Question 1

NATO is the result of a multilateral treaty.

Answer 1

True

Question 2

Some of the most active pirates are from Cuba.

Answer 2

False

Question 3

The U.S. system of law is based primarily on code law.

Answer 3

False

Question 4

U.S. courts have no jurisdiction over foreign businesses with operations in the United States.

Question 5

The doctrine of forum non conveniens is used to dismiss cases brought in courts in the wrong nation.

Question 6

Under the doctrine of sovereign immunity, a country cannot be forced to answer civil or criminal charges in a U.S. court.

Question 7

Sovereign immunity protects individual nation's operations from outside interference.

Question 8

Foreign businesses engaging in commercial activity in the United States are not subject to U.S. antitrust laws.

Question 9

Nationalization is a process of eminent domain.

Question 10

Under the doctrine of sovereign immunity, commercial transactions cannot be regulated.

Question 11

The act of state doctrine precludes outside interference in expropriation.

Question 12

A foreign country engaging in commercial transactions in the United States is not protected by the doctrine of sovereign immunity for those transactions.

Question 13

The U.S. antitrust laws apply only to U.S. firms.

Question 14

The overseas Private Investment Corporation is an insurer against expropriation.

Question 15

Expropriation is prohibited in countries that are members of the United Nations.

Question 16

U.S. securities laws would not apply to countries selling securities in the United States under the doctrine of sovereign immunity.

Question 17

The Export Trading Company Act allows for international joint ventures that would otherwise be anticompetitive.

Question 18

GATT is a 150-member free trade agreement.

Question 19

Repatriation is the limitation on removal of profits earned in a country from that country.

Question 20

Tariffs can be revenue-raising and protectionist for domestic goods.

Question 21

Expropriation or nationalization is protected under the act of state doctrine.

Question 22

The U.S. courts can be used by citizens of foreign countries to recover for injuries occurring in their countries at the hands of U.S. companies.

Question 23

MFN stands for most favored nation status under GATT.

Question 24

The Act of State Doctrine applies to antitrust issues for member countries of the United Nations.

Question 25

Sovereign immunity provides that our court system cannot be used to right injustices in other countries.

Question 26

The effect of the FCPA has been to decrease U.S. companies' competitiveness.

Question 27

The Foreign Corrupt Practices Act applies to all companies doing business abroad.

Question 28

The LESCANT factors are a means of understanding various issues in cultures prior to beginning contract negotiations.

Question 29

The Kyoto Treaty has now been ratified by all signatory countries.

Question 30

NAFTA applies only to goods that originate in the U.S., Mexico, and Canada.

Question 31

NGO officials are included as government officials for purposes of the Foreign Corrupt Practices Act .

Question 32

The Export Trading Company Act provides antitrust exemptions for international joint ventures.

Question 33

The Export Trading Company Act of 1982 provides an exception to U.S. antitrust laws in international markets.

Question 34

The Hickenlooper Amendment is the Foreign Corrupt Practices Act.

Question 35

The only types of transactions covered under the Foreign Corrupt Practices Act are those that involve contracts with foreign governments.

Question 36

The Justice Department does not offer any assistance to companies with questions about Foreign Corrupt Practices
Act requirements.

Question 37

Nearly 30 nations have accepted OECD principles.

Question 38

The WTO is the body charged with OECD enforcement.

Question 39

The Foreign Corrupt Practices Act is not applicable in NAFTA or GATT contracts.

Question 40

The OECD is resistant to the U.S. position against bribery.

Question 41

The U.S. sanctions against trade with Iran are an example of a unilateral trade sanction.

Question 42

The contact lens company, Here's Clear Eye, sold thousands of pairs of contact lenses in Kenya. The lenses were defective and resulted in severe eye infections, and in 156 cases, blindness. The purchasers of the lenses who bring suit in Kenya will be entitled to recover their purchase price, attorney fees and medical bills. Kenya does not permit recovery for pain and suffering nor for permanent injury. Several of the purchasers who are blind have brought suit in South Carolina, the home of Here's Clear Eye. South Carolina permits recovery for permanent injury as well as punitive damages. The average recovery in Kenya for the purchasers is $600. A lawyer for the purchasers from Columbia, South Carolina estimates the average verdict will be $600,000. Which of the following statements is true?

A) The Kenya purchasers may use the South Carolina courts because their remedies in Kenya are inadequate.
B) The South Carolina cases will be dismissed on the grounds of forum non conveniens.
C) The Kenya purchasers can recover only punitive damages in South Carolina.
D) The Kenya purchasers can recover only for permanent injuries in South Carolina.

Question 43

The government of Argentina has taken over all the country's banks. No compensation has been paid. Some U.S. citizens and businesses had accounts in the banks. Absent treaty provisions the takeover:

A) can be set aside by a U.S. federal court because no compensation was paid.
B) can be partially set aside by a U.S. federal court on the accounts of U.S. citizens and businesses.
C) can be reviewed by the U.S. State Department.
D) is immune from review under the act of state doctrine.

Question 44

A U.S. luxury liner was attacked by an Iraqi ship in the Persian Gulf. Many passengers were injured and the ship was damaged. The owner of the ship brought suit in federal district court against the government of Iraq. The suit will:

A) be heard because the attack was a violation of international law.
B) be heard because the attack harmed U.S. citizens.
C) not be heard under the doctrine of sovereign immunity.
D) be heard but only in the International Court of Justice.

Question 45

GATT is an example of a bilateral trade agreement.

Question 46

The CISG:

A) is the contract law of the EU.
B) is part of GATT.
C) was drafted by a commission of the United Nations.
D) has been adopted in virtually every nation.

Question 47

Italian manufacturers of leather goods have agreed to charge uniform prices on all sales in the United States in order to better compete with U.S. manufacturers. Which of the following statements is true?

A) The agreement is a violation of U.S. antitrust laws, and the Italian manufacturers can be prosecuted.
B) The manufacturers are protected under the act of state doctrine.
C) The manufacturers enjoy sovereign immunity.
D) The manufacturers are protected under the forum non conveniens doctrine.

Question 48

The act of state doctrine:

A) is not recognized by the United States.
B) prohibits one government from interfering in the acts of state of another government.
C) is prohibited by members of the United Nations.
D) all of the above

Question 49

EU and countries' antitrust laws do not apply to U.S. companies doing business in the EU.

Question 50

Which of the following is not a LESCANT factor?

A) language
B) law
C) social organization
D) contexting

Question 51

U.S. businesses that break laws while operating in foreign countries:

A) cannot be prosecuted in those countries.
B) are immune under the act of state doctrine.
C) are subject to full prosecution, fines, and imprisonment.
D) none of the above

Question 52

The Doctrine confirms the independence of sovereign nations anf their courts.

A) International Sovereignty
B) Act-of-Sovereign
C) Act-of-State
D) Act-of-Solidarity

Question 53

Which of the following sets limits on removal of profits from a country?

A) expropriation
B) forum non conveniens
C) repatriation
D) sovereign immunity

Question 54

NAFTA is an example of a bilateral trade agreement.

Question 55

There was some resistance to granting China MFN status.

Question 56

Which of the following countries base their legal systems on code law?

A) Great Britain
B) Italy
C) France
D) Spain

Question 57

The European Union:

A) is a trademark registration organization.
B) eliminated tariff protections for its members in 1992.
C) is an international court of justice.
D) none of the above

Question 58

Which of the following is a multilateral treaty?

A) a treaty between the United States and Canada on acid rain
B) a treaty between Mexico and the United States on border drug traffic
C) a treaty between England, Japan, and the United States on trade with China
D) none of the above

Question 59

Which of the following is not a source of international law?

A) custom
B) private law
C) treaties
D) All of the above are sources of international law.

Question 60

Nike and Reebok, the number-one and number-two athletic shoe companies in the United States, could combine to do business:

A) but they would violate U.S. antitrust laws.
B) outside the U.S. under the Export Trading Company Act.
C) but would risk charges of monopolization.
D) none of the above

Question 61

What is the effect of trade sanctions?

A) businesses are prohibited from dealing with certain countries
B) businesses are prohibited from selling certain items in countries subject to the sanctions
C) there is no effect; they are strictly voluntary
D) either a or b
E) none of the above

Question 62

Rich Hasbro is a vice president for Huffy Diapers. He currently heads the African division of this international company. He has just been able to secure approval for sale of Huffy Pull-Ons in the Sudan. When the Pull-Ons arrive at the borders, a customs agent demands $5,000 before he will allow the Pull-Ons into his country. Rich tells the trucking company, "Pay him. I'll reimburse."

A) Rich has not violated the FCPA because this is a facilitation payment.
B) Rich has not violated the FCPA because a third party made the payment.
C) Rich has violated the FCPA.
D) none of the above

Question 63

An NGO:

A) is not subject to the controls of the FCPA.
B) is not subject to any nation's laws.
C) is an oil cartel.
D) none of the above

Question 64

Forum non conveniens:

A) is a principle of U.S. justice.
B) is a principle of jurisdiction.
C) can require a case to be sent out of the U.S.
D) all of the above

Question 65

Most-favored-nation status is:

A) part of the GATT treaty.
B) part of United States' trade policy only.
C) is only part of EU governance.
D) none of the above

Question 66

Sovereign immunity:

A) applies to U.S. businesses here if they are engaged in international transactions.
B) applies to commercial transactions by private foreign firms.
C) does not apply to clear violations of international law by governments engaged in commercial transactions.
D) means each country is equal in its authority over its own laws and operations.

Question 67

Which of the following is covered under the FCPA's prohibitions?

A) obtaining business
B) retaining business
C) directing business
D) all of the above

Question 68

Expropriation is the:

A) taking of private property by a country.
B) development of tariffs for goods leaving the country.
C) collection of a line of credit by property repossession.
D) none of the above

Question 69

Which of the following are included as categories to whom payments are prohibited to influence results or outcome under the Foreign Corrupt Practices Act?

A) government officials
B) judicial figures
C) government administrative hearing officers
D) head of the United Nation's International Labor Organization
E) All of the above are included.

Question 70

OPEC is:

A) a treaty among the EU, the Arab nations and the U.S.
B) an international environmental NGO.
C) an oil cartel.
D) disbanded.

Question 71

Which of the following does the U.S. Justice Department refer to as a "red flag" for FCPA violations?

A) large consulting fees
B) hiring consultants to do all foreign business
C) allowing consultants to act independently in foreign countries
D) all of the above

Question 72

The United State has, since 1989, prohibited U.S.-based companies from selling military equipment to China. This restriction is an example of:

A) a treaty trade restriction.
B) an individual nation sanction.
C) an illegal boycott.
D) none of the above

Question 73

Which of the following would be a violation of the Foreign Corrupt Practices Act?

A) A payment to a foreign government official to have a license application accelerated.
B) A payment to a member of the International Olympic Committee in order to obtain his or her vote on an Olympic site.
C) A payment to an official of a government-owned telecommunications company in order to speed up installation of phones in a business office.
D) A payment to a customs official in order to allow the unloading of goods from a ship.
E) All of the above are violations of the Foreign Corrupt Practices Act.

Question 74

The FCPA does not make which of the following acts criminal?

A) giving money to a foreign political candidate
B) giving a gift of clothing to a foreign political official
C) giving money as a means of preventing action from being taken
D) giving a payment for facilitation

Question 75

U.S. antitrust laws:

A) do not apply to companies based in other countries that are doing business in the United States.
B) do not apply to U.S. companies doing business in other countries.
C) apply to companies based in other countries that do business in the U.S.
D) none of the above

Question 76

What is the purpose of the LESCANT factors?

A) To deal with issues beyond the law when doing business in other countries.
B) To control tariff imports and exports.
C) To establish a uniform system of international contract laws.
D) To eliminate grease payments.
E) none of the above

Question 77

Forum selection clauses:

A) are prohibited in cruise contracts.
B) are illegal under U.S. law.
C) eliminate liability.
D) none of the above

Question 78

Most favored nation status means:

A) there are no import or export tariffs.
B) the country can engage in software importation with no intellectual property protections in place.
C) the country is a party to the NAFTA treaty.
D) there are no human rights issues in the country.
E) none of the above

Question 79

Which of the following is not part of the Foreign Corrupt Practices Act?

A) financial statement disclosure requirements
B) requirement of internal monitoring in companies to prevent violations
C) requirement of public disclosure of all bids in foreign countries
D) requirement of monitoring contracts with foreign agents
E) both a and d are not part of the Foreign Corrupt Practices Act

Question 80

The Export Trading Company Act of 1982:

A) permits combinations of U.S. firms for purposes of international competition.
B) is part of NAFTA.
C) is under judicial challenge by the Justice Department.
D) is a tariff provision in the U.S.