Question 1

A reference to laws governing the conduct of states and international organizations and their relationships with one another is ______.

Accepted Answer

International law governs the conduct of states and international organizations and their relationships with one another and with natural and juridical persons.

Question 2

Which of the following best describes the term "comparative law?"

Accepted Answer

Comparative law is the study of the legal systems of different states. For example, a comparative legal theorist might study contracts in the American, Chinese, and French legal systems by identifying and contrasting applicable national laws.

Question 3

The United States is not a party to the Central American Free Trade Agreement.

Accepted Answer

The United States is a party to the Central American Free Trade Agreement (CAFTA) with El Salvador, Guatemala, Nicaragua, Honduras, Costa Rica, and the Dominican Republic.

Question 4

A foreign company that maintains a passive website advertising the company's services is subject to personal jurisdiction in any state in the U.S. because the website may result in sales in the U.S.

Accepted Answer

In Pebble Beach Company v. Caddy, the court recognized that an Internet domain name and passive website alone are not enough to subject a party to jurisdiction.

Question 5

In a multilateral free trade agreement, three or more states agree to reduce and gradually eliminate tariffs and other trade barriers.

Accepted Answer

In a multilateral free trade agreement, three or more states agree to reduce and gradually eliminate tariffs and other trade barriers.

Question 6

The European Union is an example of a customs union.

Accepted Answer

The European Union (EU) is an example of a customs union meaning a free trade area with the additional feature of a common external tariff on products originating outside the union.

Question 7

Because ethical issues vary from country to country, international business persons should not take ethical considerations into account in the decision-making process.

Accepted Answer

International business persons must take ethical considerations into account in the decision-making process.

Question 8

The General Agreement on Tariffs and Trade became effective in 2000.

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) became effective on January 1, 1948.

Question 9

How does ratification of international agreements occur in the U.S.?

Accepted Answer

In the United States, ratification of an international agreement requires the advice and consent of two-thirds of the Senate after the president submits the agreement for consideration.

Question 10

The terms international law and comparative law do not mean the same thing.

Accepted Answer

International law governs the conduct of states and international organizations and their relationships with one another and natural and juridical persons, while comparative law is the study of legal systems of different states.

Question 11

A[n] _____ purchases goods from a seller for resale in a foreign market and actually takes title to the goods assuming the risk of being unable to resell them.

Accepted Answer

Companies may engage distributors for their products, who purchase goods from a seller for resale in a foreign market. Unlike the foreign sales representative, the distributor takes title to the goods and assumes the risk of being unable to resell them at a profit.

Question 12

When doing business internationally, a foreign sales representative does the same thing as a distributor.

Accepted Answer

Unlike the foreign sales representative, the distributor takes title to the goods and assumes the risk of being unable to resell them at a profit.

Question 13

A company that sends its products to a foreign marketplace for sale has engaged in ______.

Accepted Answer

The simplest method of entering a foreign market is through the export of the company's product to the foreign marketplace.

Question 14

The United States has no bilateral trade agreements.

Accepted Answer

The United States has several bilateral free trade agreements, including those with Australia, Bahrain, Chile, and others.

Question 15

Which of the following is true regarding international organizations?

Accepted Answer

The United Nations, the International Monetary Fund, the International Bank for Reconstruction and Development (World Bank), and the World Trade Organization are international organizations.

Question 16

As understood in the General Agreement on Tariffs and Trade, a subsidy is a government financial contribution that confers a benefit on a specific industry or enterprise.

Accepted Answer

As understood in the General Agreement on Tariffs and Trade, a subsidy is a government payment to a specific industry or enterprise. Subsidies can be direct transfers of funds, such as loans and grants; loan guarantees; tax credits; government procurement; and price supports.

Question 17

What has the U.S. Supreme Court held regarding whether U.S. courts must rely on customary international law?

Accepted Answer

The U.S. Supreme Court has held that in the absence of a governing international agreement or controlling executive or legislative act or judicial decision, U.S. courts must rely on customary international law.

Question 18

An agent who distributes, represents, or sells goods on behalf of a foreign seller is referred to as a[n] ______.

Accepted Answer

A foreign sales representative is an agent who distributes, represents, or sells goods on behalf of a foreign seller and forwards orders directly to the company.

Question 19

A franchise agreement is the same thing as a joint venture.

Accepted Answer

A franchise agreement is a contract whereby a company (known as the franchisor) grants permission (a license) to a foreign entity (known as a franchisee) to utilize the franchisor's name, trademark, or copyright in the operation of a business and associated sale of goods in a foreign state. In a joint venture with a company in the host state, the parties share profits and management responsibilities for a specific project.

Question 20

Which of the following is an international agreement?

Accepted Answer

An international agreement is a written agreement made between states governed by international law that relates to an international matter. International agreements can be bilateral (between two states) or multilateral (between three or more states).

Quiz 6: International and Comparative Law

A reference to laws governing the conduct of states and international organizations and their relationships with one another is ______.

Which of the following best describes the term "comparative law?"

The United States is not a party to the Central American Free Trade Agreement.

A foreign company that maintains a passive website advertising the company's services is subject to personal jurisdiction in any state in the U.S. because the website may result in sales in the U.S.

In a multilateral free trade agreement, three or more states agree to reduce and gradually eliminate tariffs and other trade barriers.

The European Union is an example of a customs union.

Because ethical issues vary from country to country, international business persons should not take ethical considerations into account in the decision-making process.

The General Agreement on Tariffs and Trade became effective in 2000.

How does ratification of international agreements occur in the U.S.?

The terms international law and comparative law do not mean the same thing.

A[n] _____ purchases goods from a seller for resale in a foreign market and actually takes title to the goods assuming the risk of being unable to resell them.

When doing business internationally, a foreign sales representative does the same thing as a distributor.

A company that sends its products to a foreign marketplace for sale has engaged in ______.

The United States has no bilateral trade agreements.

Which of the following is true regarding international organizations?

As understood in the General Agreement on Tariffs and Trade, a subsidy is a government financial contribution that confers a benefit on a specific industry or enterprise.

What has the U.S. Supreme Court held regarding whether U.S. courts must rely on customary international law?

An agent who distributes, represents, or sells goods on behalf of a foreign seller is referred to as a[n] ______.

A franchise agreement is the same thing as a joint venture.

Which of the following is an international agreement?