Question 1

Telfonix Corporation,a U.S. firm,and Adex,Inc.,a British firm,are parties to a contract with a choice-of-forum clause. The forum specified in the clause must be within the geographic boundaries of

Accepted Answer

The answer of Telfonix Corporation,a U.S. firm,and Adex,Inc.,a British firm,are...

Question 2

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 enter-ing into a licensing agreement with a foreign firm. What are the advan-tages and disadvantages of each of these courses of action?

Accepted Answer

The answer of The management of Sport Shoes Corporation,a U.S....

Question 3

Suisse Internationale,a Swiss maker of athletic equipment,enters into a price fixing agreement with Total World Sports,a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if

Accepted Answer

U.S. courts will apply U.S. antitrust laws if the price fixing has a substantial effect on U.S. commerce, regardless of where the agreement was made. Therefore, choice (C) is the correct answer. The other choices do not necessarily determine the jurisdiction of U.S. antitrust laws.

Question 4

To obtain a contract with the Chinese government,Road & Bridge Engineering Corporation,a U.S. firm,gives a Chinese official a sport utility vehicle. This may violate

Accepted Answer

The act of giving a gift to a Chinese official to obtain a contract is considered bribery, which violates the Foreign Corrupt Practices Act (FCPA). The FCPA prohibits U.S. companies from bribing foreign officials to obtain or retain business.

Question 5

Bango! Business,Inc.,a U.S. firm,may have committed,in Chile,acts that would constitute,in the United States,violations of U.S. anti-trust laws. These laws apply

Accepted Answer

U.S. anti-trust laws apply extraterritorially, meaning that they can be enforced on a U.S. firm that has committed acts that would constitute violations of these laws even in a foreign country such as Chile. Therefore, Bango! Business, Inc. may still be subject to prosecution for antitrust violations in the United States despite the fact that they occurred outside of the country.

Question 6

Real World Sports Corporation (RWSC)is a U.S. firm with a workplace in Switzerland. Generally,RWSC must abide by U.S. anti-discrimination laws in Switzerland

Accepted Answer

As RWSC has a workplace in Switzerland, they must abide by the laws of Switzerland. If the anti-discrimination laws in Switzerland are more stringent than the U.S. laws, RWSC must comply with the Swiss laws. Therefore, they must abide by U.S. anti-discrimination laws in Switzerland unless to do so would violate the law of Switzerland.

Question 7

Dark Chocolate,Inc.,a U.S. firm,enters into an agreement with Columbiana Cacao,S.A.,a South American firm,to fix the price of imported chocolate in the U.S. market. If the agreement is a per se violation of U.S. antitrust laws,a U.S. court could exercise jurisdiction over

Accepted Answer

If the agreement is a per se violation of U.S. antitrust laws, it means that it is considered illegal without any consideration of its actual competitive effects. Therefore, a U.S. court could exercise jurisdiction over both Dark and Columbiana, as they both participated in the agreement to fix prices in the U.S. market.

Question 8

Fashion Industries Corporation owns assets in Vietnam,a country in Asia. The gov-ernment of Vietnam wants to nationalize all assets owned by foreign firms and investors. What can Fashion Industries do? Can it at least obtain payment for the assets?

Accepted Answer

The answer of Fashion Industries Corporation owns assets in Vietnam,a...

Question 9

Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Earth Mining Company,a U.S. firm. To seek redress for their injuries in a U.S. court,these citizens can

Accepted Answer

The Alien Tort Claims Act allows foreign citizens to bring civil suits in U.S. courts for violations of international law, including human rights abuses committed by a foreign government or company. This would be the best choice for Nakeya and other foreign citizens to seek redress for the environmental destruction allegedly committed by the government of Cameroon on behalf of Earth Mining Company. The other choices are not applicable to this situation.

Question 10

West Africa Investments,Inc.,a U.S. firm,and Findora Commercial,a Nigerian firm,are parties to a contract that specifies that the official language of the contract is English. This is

Accepted Answer

The clause specifying that the official language of the contract is English is a choice-of-language clause.

Question 11

Renew 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

Accepted Answer

The arbitration clause can specify any third party as the arbitrator, as long as both parties agree to it. The other options are specific organizations, but the clause does not have to specify one of them unless agreed upon by both parties.

Question 12

Jack,or anyU.S. citizen,can bring a civil suit in a U.S. court against a foreign entity

Accepted Answer

A U.S. citizen can bring a civil suit in a U.S. court against a foreign entity for a tort allegedly committed in the United States or overseas. However, there are some limitations based on the jurisdiction of the court and the availability of personal jurisdiction over the foreign entity.

Quiz 19: International Law in a Global Economy