Question 1

In Briggs and Stratton Corp. v. Baldridge , Briggs was blacklisted by Arab countries because of its compliance with U.S. anti-boycott regulations. Briggs subsequently brought a lawsuit claiming damages as a result of U.S. government action. Specifically, Briggs demanded "just compensation" under the Fifth Amendment "takings clause." The court:
A) invoked sovereign immunity to avoid taking subject matter jurisdiction.
B) refused relief because the amount of damages was "speculative, at best."
C) refused relief because Briggs's property had not been "seized or restrained."
D) allowed relief, since Briggs could demonstrate a complete taking of certain contractual opportunities and reasonable investment expectations.
E) refused relief because Briggs lacked "standing."

Accepted Answer

C

Question 2

Export controls have been extended by the president through the issuance of executive orders pursuant to the USA Patriot Act.

Accepted Answer

Export controls are primarily governed by laws such as the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR), not the USA Patriot Act. The President can issue executive orders related to export controls, but these are not extensions of the USA Patriot Act.

Question 3

Among the reasons for controlling exports are the protection of national security, the prevention of terrorism, the promotion of regional stability, and the preservation of scarce materials.

Accepted Answer

This statement accurately reflects the common reasons for countries to control exports.

Question 4

Unilateral export controls are determined by several countries (against another or group of other countries) but enacted by only one country; multilateral export controls are determined and enacted by several countries to control the exports to another country or groups of countries.

Accepted Answer

Unilateral export controls are determined and enacted by only one country on its own, without the cooperation of other countries, while multilateral export controls are determined and enacted by several countries together to control exports to another country or group of countries.

Question 5

Items that are not classified on the Commerce Control List may be exported without an in individual export license.

Accepted Answer

Items that are not classified on the Commerce Control List (CCL) are considered "EAR99" and can be exported without an individual export license, as long as they are not restricted by other laws or regulations. However, it is still the responsibility of the exporter to determine if their item requires a license or falls under a restricted party screening.

Question 6

The trade sanctions against the Castro government in Cuba has been successful in encouraging a more democratic style representation.

Accepted Answer

The effectiveness of the trade sanctions against Cuba is a topic of debate, but it has not led to a significant increase in democratic representation in the country.

Question 7

Formulas, blueprints, and technical data are subject to controls when exported.

Accepted Answer

Formulas, blueprints, and technical data are often subject to export controls because they may contain sensitive or proprietary information that could potentially harm national security or economic interests if they were to fall into the wrong hands. As such, governments may require companies to obtain licenses or permits before exporting these types of materials.

Question 8

The current law that controls the export of goods from a U.S. manufacturer to a foreign buyer also controls the re-export of those goods beyond the boundaries of the country of the original foreign buyer.

Accepted Answer

The current law on export controls, such as the Export Administration Regulations, control the export of goods from the U.S. to all foreign destinations, including the re-export of those goods beyond the initial foreign buyer's country. Companies exporting from the U.S. must comply with all relevant export regulations regardless of the final destination of their products.

Question 9

There is no global consensus on an effective international control system over arms and technology.

Accepted Answer

There are different opinions among countries on how to effectively control the trade of arms and technology. Some nations advocate for stricter regulations and oversight, while others prioritize national sovereignty and commercial interests. As a result, there is no single agreement or framework that has been universally accepted by all countries.

Question 10

Companies in some countries cooperate with the boycott against Israel.

Accepted Answer

Some companies in certain countries, such as those in the Middle East and some European countries, have joined the boycott against Israel, known as the BDS (Boycott, Divestment, and Sanctions) movement. However, it is not a universal practice and many countries and companies maintain trade relationships with Israel.

Question 11

Th e U.S . expor t contro l syste m i s conflicted as o n on e hand it advocate s fre e trad e argu e with limited restrictions whil e nationa l securit y on the other hand advocate s pres s fo r relativel y mor e restrictions.

Accepted Answer

The statement accurately reflects the conflicted nature of the U.S. export control system. On one hand, there is a push for free trade and limited restrictions, while on the other hand, national security concerns can lead to calls for more restrictions on exports.

Question 12

Since the end of the cold war all controls have been abolished on all commodities going to Russia.

Accepted Answer

This statement is false. While some controls were lifted after the cold war, there are still various restrictions and regulations on certain commodities going to Russia, particularly in light of ongoing geopolitical tensions.

Question 13

In 1949, NATO's COCOM was created:
A) to aid Europe's economic recovery after WWII.
B) to control the exporting of goods with military applications to communist countries.
C) to prevent the escalation of the Cold War.
D) to provide U.S. manufacturers with fairer trading opportunities outside the U.S.

Accepted Answer

COCOM (Coordinating Committee for Multilateral Export Controls) was created by NATO in 1949 to control the exporting of goods with military applications to communist countries, particularly the Soviet Union and its allies, to prevent them from acquiring advanced military technology. This was aimed at maintaining a balance of power and preventing any further escalation of the Cold War.

Question 14

"Diversion" is when controlled goods are sold by a U.S. exporter to an importer in Country A, who in turn re-exports them to a buyer in Country B, which is unfriendly with the United States.

Accepted Answer

This is a correct definition of diversion.

Question 15

The two principal agencies that regulate the export of goods from the U.S. are:
A) U.S. Department of Commerce, U.S. Department of State.
B) U.S. Department of Defense, U.S. Bureau of Customs and Border Protection.
C) U.S. Customs Service, Federal Trade Commission.
D) Federal Trade Commission, U.S. Department of Commerce.

Accepted Answer

The U.S. Department of Commerce and the U.S. Department of State are the two principal agencies that regulate the export of goods from the U.S.

Question 16

The U.S. anti boycott laws are applicable to foreign affiliates of U.S. based companies.

Accepted Answer

The U.S. anti boycott laws apply to all U.S. citizens and businesses, regardless of location or whether they have foreign affiliates. Therefore, foreign affiliates of U.S. based companies are also subject to these laws.

Question 17

In some circumstances, the presentation of research by a U.S. scientist at a convention in a foreign nation may require an export license.

Accepted Answer

Depending on the technology or information being presented, it may be considered a controlled export and require an export license under U.S. export control regulations.

Question 18

An example of a successful unilateral use of export controls was the embargo of wheat destined to Russia as a political response to the Russian invasion of Afghanistan.

Accepted Answer

The U.S. embargo on wheat to the Soviet Union in 1980, in response to the invasion of Afghanistan, was largely considered unsuccessful as it did not achieve its political objectives and harmed U.S. farmers.

Question 19

The Department of Commerce has the  responsibility for the control of nonmilitary commercial goods, commodities, and technology.

Accepted Answer

This is true according to the Export Administration Regulations (EAR) which are administered by the Department of Commerce.

Question 20

Diversion refers to the illegal placement of goods in the hands of an individual for whom an export license would not be granted because of the type of product, the product's end use, or the country involved.

Accepted Answer

Diversion involves the illegal transfer of goods to individuals or countries that are not eligible for an export license.

Quiz 13: Regulating Exports