Question 1

Michael,a citizen of Ireland,and Nina,a citizen of the United States,enter into a contract.When Nina breaches the contract,Michael obtains an award of damages in an Irish court.He asks a U.S.court to enforce the award.The U.S.court defers to and enforces the Irish court's decree.This is

Accepted Answer

The principle of comity is the recognition of foreign court judgments by the courts of the receiving state out of deference and respect for the sovereignty of other nations. In this case, the U.S. court defers to and enforces the Irish court's decree, reflecting the principle of comity.

Question 2

Secure Investments,Inc.,a U.S.firm,expands into international markets through a joint venture.In this situation,Secure Investments owns

Accepted Answer

In a joint venture, ownership is shared between two or more companies. Therefore, Secure Investments will only own a part of the operation, along with the other partner(s) involved in the joint venture.

Question 3

UniVision Corporation,a U.S.company,sets up a firm in Vietnam.UniVision remains in the United States and retains ownership of the Vietnamese branch,as well as authority and control over all phases of the operation.This is

Accepted Answer

This scenario is describing a wholly owned subsidiary, as UniVision Corporation retains ownership and control over the Vietnamese branch without partnering with any local companies or investors. A franchise involves licensing a brand and business model to a third party, joint ventures involve partnerships between two or more firms, and direct exporting involves selling products directly to foreign customers without establishing a local presence.

Question 4

Mont Blanc S.A.,a French firm,imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in

Accepted Answer

The answer of Mont Blanc S.A.,a French firm,imports its goods...

Question 5

Congresswoman Smith and other politicians want to prohibit the import of certain genetically modified agricultural products that they believe may pose a danger to domestic crops.With respect to these products' import,Congress can

Accepted Answer

Congress can choose to prohibit the imports of certain genetically modified agricultural products if they believe they pose a danger to domestic crops. This would be the most direct and effective approach to addressing the perceived threat. Imposing quotas or tariffs may not sufficiently address the issue or may have unintended consequences. Doing nothing would not address the concerns raised by Congresswoman Smith and her colleagues.

Question 6

Omega,Ltd.,imports athletic shoes made in Southeast Asia into the United States.To obtain a larger share of the U.S.market,Omega sells the athletic shoes at lower prices here than in its exporting countries.With respect to these imports,the United States may

Accepted Answer

The United States may assess antidumping duties on the imports if it is determined that the shoes are being sold at less than fair value, which can harm domestic producers. This action would allow for fair competition in the market while allowing Omega to continue importing and selling its products in the United States. The other choices would either be too extreme or not address the issue at hand.

Question 7

The government of Korea sets a limit on the amount of rice that can be imported from the United States.This is

Accepted Answer

The government setting a limit on the amount of rice that can be imported is a quota. A dumping duty and antidumping duty are specific types of tariffs that are imposed on goods that are sold at unfairly low prices in order to protect domestic industries. While a tariff is a tax on imported goods, it does not necessarily involve a specific limit on the amount that can be imported. Therefore, the most accurate choice is C: a quota.

Question 8

Dynamic Oil Corporation,a U.S.firm,owns property in Ecuador.When the government of Ecuador seizes the property,Dynamic Oil asks a U.S.court to order the property's return.The U.S.court rules that Ecuador is exempt from the court's jurisdiction.This is

Accepted Answer

The ruling that Ecuador is exempt from the court's jurisdiction is based on the principle of sovereign immunity, which is a widely recognized legal principle that grants immunity to foreign governments from being sued in the courts of another country. This principle is often applied in cases involving foreign states and their entities, including cases involving expropriation or nationalization of foreign property. Therefore, the best choice is C, the doctrine of sovereign immunity.

Question 9

Optima Medico Corporation,a U.S.firm,signs a contract with Pharma Beneficial,Ltd.,a Canadian firm,to give Pharma the right to sell Optima's products in Canada.This is

Accepted Answer

This is a distribution agreement because Optima Medico Corporation is giving Pharma Beneficial, Ltd. the right to sell its products in Canada. This allows Optima to reach a wider market and increase its sales, while Pharma can offer its customers new products to sell.

Question 10

Big Deal! Marketing Company,a U.S.firm,signs a contract with Comercio Exterior,Ltd.,a Chilean firm,to give Comercio the right to use Big Deal!'s animation techniques and characters in product promotions.This is

Accepted Answer

Licensing is the agreement in which a company grants another company the right to use its intellectual property, such as patents, copyrights, or trademarks, for a fee or royalty. In this case, Big Deal! Marketing Company is granting Comercio Exterior the right to use its animation techniques and characters in product promotions, which is an example of licensing.

Question 11

Global Marketing,Inc.,a U.S.firm,owns property in Honduras.The government in Honduras takes Global Marketing's property without paying for it.A U.S.court will probably not examine the validity of this act committed by Honduras within its own territory,under

Accepted Answer

The act of state doctrine holds that a court of one country may not sit in judgment of the acts of the government of another done within its own territory. Therefore, a U.S. court would likely not examine the validity of Honduras' act of taking Global Marketing's property without compensation.

Question 12

The government of North Korea violates an international law.Persuasive tactics to remedy the situation fail.The only recourse of other nations is to

Accepted Answer

The answer of The government of North Korea violates an...

Question 13

The basis for India to give effect to the laws and court decisions of the United States is primarily

Accepted Answer

The basis for India to give effect to the laws and court decisions of the United States is primarily courtesy and respect. As sovereign nations, countries generally respect each other's legal systems out of courtesy and a desire to maintain peaceful and productive international relations, rather than out of fear or financial transactions.

Question 14

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 can apply U.S. antitrust laws if the price fixing has a substantial effect on U.S. commerce, regardless of where the agreement was made.

Question 15

Reality Financial Corporation,a U.S.firm,files a suit against Switzerland in a U.S.court.Switzerland claims foreign sovereign immunity.Under the Foreign Sovereign Immunities Act

Accepted Answer

The answer of Reality Financial Corporation,a U.S.firm,files a suit against...

Question 16

Miranda is a U.S.citizen working in Europe for Tourist Vacations,Inc.,a U.S.travel agency.Tourist fires Miranda for reasons that she believes violate U.S.antidiscrimination laws.Those laws apply

Accepted Answer

U.S. antidiscrimination laws can apply extraterritorially in certain circumstances, such as when a U.S. citizen is working for a U.S. company abroad. Therefore, Miranda may be able to pursue legal action under these laws.

Question 17

Mountain Mining Company,a U.S.firm,owns property in Bolivia.The government of Bolivia seizes the property for an illegal purpose without paying just compensation.This is

Accepted Answer

Confiscation is the seizure of property by a government without compensation and for illegal purposes, which is exactly what happened in this scenario. Defalcation is the misappropriation of funds by someone in a position of trust, which does not apply in this case. Dumping is a business strategy of selling goods at lower prices in foreign markets, and does not apply here. Expropriation is the seizure of property by a government with compensation, which also does not apply in this scenario since no compensation was offered.

Question 18

Fresh Meds,Inc.,a U.S.firm,contracts with Gong,Ltd.,a Hong Kong firm,allowing Gong to use and profit from Fresh Meds' patented products.This is

Accepted Answer

This is a licensing agreement where Fresh Meds, Inc. is allowing Gong, Ltd. to use and profit from their patented products.

Question 19

Yokio,Ltd.,and Zeno,S.A.,transact an international sale of goods.At the request of these parties,a court in Portugal resolves a dispute between them.A U.S.court will most likely honor the judgment

Accepted Answer

The answer of Yokio,Ltd.,and Zeno,S.A.,transact an international sale of goods.At...

Question 20

The United States and other members of a certain organization agree to grant normal trade relations (NTR)status to each other with regard to imports and exports.This organization is

Accepted Answer

Normal trade relations (NTR) status is a term used in relation to the World Trade Organization (WTO). When a country grants NTR to another country, it means that the first country will treat the second country no less favorably than any other country with regard to trade. This is a key principle of the WTO, and it helps to promote fair and open trade between countries.

Quiz 24: International Law in a Global Economy