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

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. This is based on the doctrine of extraterritoriality, which allows U.S. laws to apply to activities outside the United States that have a significant impact on U.S. interests. Therefore, even if the agreement was made in Switzerland, U.S. antitrust laws can still be applied if the price fixing affects U.S. commerce.

Question 3

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

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, the court's jurisdiction over the foreign entity may be limited, and enforcing a judgment may be difficult.

Question 4

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 abide by the anti-discrimination laws of the country in which they operate. In this case, Switzerland's laws regarding discrimination would take precedence over U.S. laws, so RWSC would need to follow Swiss anti-discrimination laws, even if they differ from the laws in the U.S.

Question 5

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 could be subject to U.S. jurisdiction if they are found to have violated U.S. antitrust laws. The per se violation of price-fixing in the U.S. market would give the U.S. courts jurisdiction over both parties.

Question 6

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

U.S. antitrust laws give jurisdiction to U.S. courts over foreign firms if the joint venture has a substantial effect on U.S. commerce. Simply having any effect on U.S. commerce would not be enough to give U.S. courts jurisdiction. Additionally, the fact that the joint venture was entered into in the United States does not necessarily give U.S. courts jurisdiction.

Question 7

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. antitrust laws apply extraterritorially, meaning they can be enforced against U.S. companies for conduct that occurs outside of the United States. Therefore, Bango! Business, Inc. may potentially face liability under U.S. antitrust laws for its actions in Chile.

Question 8

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 9

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

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Question 10

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 11

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. anti-discrimination laws apply extraterritorially in certain circumstances, including when a U.S. citizen is working for a U.S. company outside of the country. Therefore, Miranda may have grounds to pursue legal action under U.S. anti-discrimination laws.

Question 12

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

Foreign citizens can bring civil suits under the Alien Tort Claims Act to seek redress for human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company, a U.S. firm. The Alien Tort Claims Act allows non-U.S. citizens to file lawsuits in U.S. courts for violations of international law, including human rights abuses.

Quiz 25: International Law in a Global Economy