Question 1

Which of the following is true of the arbitration framework created by the New York Convention?

Accepted Answer

The New York Convention facilitates international arbitration by allowing signatory countries to enforce arbitration agreements and awards, limiting the grounds for refusing enforcement to specific exceptions that differ from typical court appeals. This creates a supportive global framework for arbitration.

Question 2

Denmark ranks highest in bribery as listed by the Corruption Perceptions Index (CPI) by Transparency International in 2016.

Accepted Answer

Denmark actually ranks as one of the least corrupt countries in the world according to the CPI, with a score of 90 out of 100 and a rank of #1 in 2020. This means that Denmark is perceived as having a very low level of bribery and corruption.

Question 3

Italy recently introduced the Reguzzoni-Versace Law, which is intended to regulate trade in textiles, leather, and footwear. All of the following statements pertaining to the law are correct except:

Accepted Answer

The Reguzzoni-Versace Law does not require that at least four stages of production occur in Italy for a product to be labeled as "Made in Italy." This statement is incorrect as the law focuses on ensuring transparency and authenticity in labeling, rather than specifying a minimum number of production stages that must occur within Italy.

Question 4

The University of Florence in Italy was sued by a lecturer from Belgium on grounds of discrimination. The case would go on to the European Court of Justice (ECJ), which would make a ruling based on Italian laws.

Accepted Answer

The European Court of Justice (ECJ) makes rulings based on European Union law, not the national laws of individual member states like Italy.

Question 5

If an American businessperson pays a Russian customs agent a $20 cash "processing fee" to avoid delay in leaving Russia, the businessperson has violated the Foreign Corrupt Practices Act (FCPA).

Accepted Answer

The answer of If an American businessperson pays a Russian...

Question 6

Italy recently introduced the Reguzzoni-Versace Law which states that if at least two stages of production-there are four stages altogether-occur in Italy, a garment can be labeled "Made in Italy."

Accepted Answer

The statement accurately represents the Reguzzoni-Versace Law.

Question 7

In France, laws forbid the use of foreign words such as le weekend or le marketing in official documents.

Accepted Answer

France has laws aimed at preserving the French language, which include discouraging the use of foreign words (like English terms) in official documents, promoting the use of French equivalents instead. The Toubon Law, for example, mandates the use of French in government publications, legal contracts, advertisements, and other official contexts.

Question 8

A company stands a better chance of having an international arbitration decision upheld if its home-country government has signed:

Accepted Answer

The New York Convention is the most widely recognized and enforced international agreement for the recognition and enforcement of foreign arbitral awards. It has been signed by 164 countries, including most of the world's major economies, making it more likely that an international arbitration decision will be upheld if the home-country government has signed this convention.

Question 9

In most of the European Union countries, the influence of regulatory agencies is pervasive. What steps will be necessary of a corporation to protect business interest and advance new programs?

Accepted Answer

The answer of In most of the European Union countries,...

Question 10

Under the Alternative Fines Act, fines imposed on individuals can be paid by their employer or principal.

Accepted Answer

According to the Alternative Fines Act, fines imposed on individuals can be paid by their employer or principal.

Question 11

In December 2012, U.S. President Barack Obama signed the Russia and Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law Accountability Act. What does this law entail and how does it affect Russia-U.S. relations?

Accepted Answer

The answer of In December 2012, U.S. President Barack Obama...

Quiz 5: The Political, Legal, and Regulatory Environments