Question 1

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...

Question 2

Sam, or any U.S. citizen, can bring a civil suit in a U.S. court against a foreign entity for

Accepted Answer

Under the Alien Tort Claims Act (ATCA), U.S. citizens can sue foreign entities for torts committed both in the United States and overseas. However, it is important to note that the scope of the ATCA has been narrowed by recent court decisions, and it may only be available in limited circumstances.

Question 3

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

RWSC must follow the anti-discrimination laws of the country where it is operating, which in this case is Switzerland. If following U.S. anti-discrimination laws would violate Swiss law, then RWSC must comply with Swiss law.

Question 4

Telfonix Corporation, a U.S. firm, and Adex, Inc., a British firm, are parties to a contract with a forum-selection clause. The forum specified in the clause

Accepted Answer

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

Question 5

Quality Energy Company, a U.S. firm, and Royal Petro, a Dutch firm, en?ter into a contract that includes an arbitration clause. This clause must provide that the arbitrator will be

Accepted Answer

The answer of Quality Energy Company, a U.S. firm, and...

Question 6

Savory Cooking Sauces, Inc., a U.S. business firm, makes and sells distinc?tively flavored cooking sauces. Although the recipes are secret, the ingre?di?ents could be revealed and the sauces could be reconstructed with dili?gent efforts. What can Savory do to prevent its products from being "decoded" and pirated abroad?

Accepted Answer

The answer of Savory Cooking Sauces, Inc., a U.S. business...

Question 7

Qang and other foreign citizens allege human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can

Accepted Answer

The most appropriate option for seeking redress for human rights violations committed overseas by a foreign government on behalf of a U.S. company is to bring a civil suit under the Alien Tort Claims Act. This Act allows foreign citizens to sue in the U.S. federal courts for violations of international law or treaties, such as human rights violations. Options A and C are not relevant to the given scenario, while option D is not a viable option for seeking justice.

Question 8

Two Japanese firms-Mikato, Ltd., and Shuzushi, Ltd.-enter into a joint venture in an attempt to in?crease their market share of the U.S. auto market. If the joint venture is not a per se violation of U.S. antitrust laws, a U.S. court could ex?ercise jurisdiction over the firms

Accepted Answer

The U.S. court could exercise jurisdiction over the firms if the joint venture has a substantial effect on U.S. commerce, even if the joint venture is not a per se violation of U.S. antitrust laws. This is because the substantial effect on U.S. commerce creates a nexus or connection to the U.S. that would allow the court to have jurisdiction over the foreign firms.

Question 9

Bulbous Cordials, Inc., a U.S. firm, enters into an agreement with Columbiana Cacao, S.A., a South American firm, to fix the price of dark 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

Both Bulbous Cordials and Columbiana Cacao can be subject to jurisdiction by a U.S. court as they have entered into an agreement to fix prices in the U.S., which is a violation of U.S. antitrust laws.

Question 10

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 apply to acts committed by U.S. firms abroad that may violate these laws in the United States. Therefore, Bango! Business, Inc. may still be held accountable for any potential violations of U.S. anti-trust laws despite the fact that the acts were committed in Chile.

Question 11

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 agreement has a substantial effect on U.S. commerce. This means that even if the agreement was made outside the United States, it can still be subject to U.S. antitrust laws if it affects the U.S. market. Therefore, choice A is not correct. Choice B is not relevant because where the agreement was made does not determine which antitrust laws apply. Choice D is incorrect because the Swiss government's agreement to be sued in the United States is not relevant to this scenario.

Question 12

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 vio?late U.S. antidis?crimination laws. Those laws apply

Accepted Answer

U.S. antidis?crimination laws can apply extraterritorially when a U.S. citizen is working for a U.S. company abroad.

Quiz 27: International Law in a Global Economy