Question 1

Consten, a French company, had exclusive rights to import and distribute German Grundig's electronic products into France.One of the competitors started bringing "parallel imports" into France illegally, importing Grundig product bought from a foreign supplier.Which of the following does not represent an action taken by different legal bodies?

Accepted Answer

All of the options except E represent actions taken by legal bodies in response to Consten's complaint. Option E represents a separate action taken by the European Commission relating to German Grundig's violation of the laws of the Common Market.

Question 2

When companies operate abroad in the absence of home-country legal constraints, the best choice for ethical conduct would be:

Accepted Answer

The answer of When companies operate abroad in the absence...

Question 3

Which of the following is true about protection of computer software?

Accepted Answer

Copyright laws protect the actual code as a form of literary work, while patent laws can protect the unique ideas or processes that the software implements, provided they meet certain criteria for patentability.

Question 4

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

Accepted Answer

The New York Convention is an international treaty that provides for the recognition and enforcement of foreign arbitral awards by the courts of the contracting states. As of 2021, there are 166 parties to the convention, including most major trading nations. Thus, if a company's home-country government has signed the New York Convention, there is a higher likelihood that an international arbitration award will be recognized and enforced in other countries.

Question 5

According to the Transparency International's Corruption Perceptions Index scores for 2010, the country which was listed as most corrupt was:

Accepted Answer

According to the Transparency International's Corruption Perceptions Index scores for 2010, Somalia was listed as the country with the highest level of perceived corruption, with a score of 1.1 out of 10. Afghanistan, Chad, Iraq, and Uzbekistan also scored poorly, but not as low as Somalia.

Question 6

Which of the following statements is correct?

Accepted Answer

The Paris Convention specifically protects patents, while the Berne Convention protects copyrights. The Berne Convention and Paris Convention are separate international agreements. The International Union for the Protection of Literary and Artistic Property is the organization that administers the Berne Convention.

Question 7

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 8

The European Commission has jurisdiction over European-based companies as well as non-European ones that generate significant revenues in Europe.If Microsoft applies in Europe, the Commission has a right to all of the following except:

Accepted Answer

The European Commission has no authority to refer matters to the UN Security Council.

Question 9

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 10

Which of the following best describes the legal basis for protection of trade secrets, patents, and copyrights in the United States?

Accepted Answer

Trade secrets are primarily protected by state law, while patents and copyrights are protected by federal statutes.

Question 11

In order to fight piracy in China, Budweiser Beer's approach includes:

Accepted Answer

The answer of In order to fight piracy in China,...

Question 12

The U.S.Justice Department objected to a recent patent license agreement between S.C.Johnson & Sons and Bayer AG.The antitrust unit at the Justice department objected to:

Accepted Answer

The Justice Department objected to the exclusive nature of the license agreement, which could potentially limit competition in the market.

Question 13

Which of the following is true about revised U.S.patent laws?

Accepted Answer

Patents are valid for 20 years after the filing date of the application, according to the revised U.S. patent laws. This means that the clock starts ticking from the day the application is filed, not the date the patent is granted.

Question 14

The company receiving the most U.S.patents for the year 2009 is:

Accepted Answer

In 2009, IBM received 4,914 U.S. patents, which was the most by any company. Microsoft, Panasonic, Toshiba, and Intel were in the top ten, but did not receive as many patents as IBM.

Question 15

OPEC can be considered as a "cartel" which is a group of separate companies that collectively:

Accepted Answer

OPEC is a cartel that is made up of oil-producing countries that come together to manipulate oil prices and output in order to maximize their profits. They do this by collectively setting a production quota for each member country, which limits production and increases prices. This is considered a tactic to control the market and maintain their dominant position as oil suppliers.

Question 16

The United States has more lawyers than any other country in the world and is arguably the most litigious nation on earth.This is a reflection of:

Accepted Answer

The high number of lawyers and litigious nature in the United States can be attributed to its low-context culture, where communication is explicit, rules and laws are emphasized, and there is a greater reliance on formal legal processes to resolve disputes.

Question 17

Which of the following actions were approved both by the Antitrust Review in the EU as well as in the United States?

Accepted Answer

The answer of Which of the following actions were approved...

Question 18

A proposed merger between two Swiss-based global pharmaceutical companies, Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which of the following?

Accepted Answer

The European Commission would review the proposed merger as both companies are based in Switzerland but also have significant operations in the European Union.

Question 19

The following criminal penalties may be imposed for violations of the FCPA'S (Foreign Corrupt Practices Act)antibribery provisions except:

Accepted Answer

Employers or principals cannot pay fines imposed on individuals under the FCPA; individuals must pay these fines themselves.

Question 20

As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules.Normally, such behavior would be considered harmful to competition, but the U.S.government has granted the two airlines special exemptions from laws concerning:

Accepted Answer

The behavior of jointly setting prices and coordinating schedules is typically considered anticompetitive and in violation of antitrust laws. However, the U.S. government has granted Northwest Airlines and KLM Royal Dutch special exemptions from these laws.

Quiz 5: The Political, Legal, and Regulatory Environments