Deck 7: The International Legal Environment: Playing by the Rules

Question 1

One of the deterrents to litigation with respect to disputes in the international business arena is the fear of creating a poor image and damaging public relations.

Answer 1

True

Question 2

The form of law found in the United States and England is classified as civil or code law.

Answer 2

False

Question 3

Common law is based on an all-inclusive system of written rules of law.

Answer 3

False

Question 4

The World Court can settle disputes between governments.

Question 5

In the United States,a common-law country,ownership of intellectual property rights is established by registration versus prior use (whoever registers first is considered to be the rightful owner).

Question 6

If conciliation is not used to settle a difference in an international business dispute or an agreement cannot be reached,the next step is litigation.

Question 7

The form of law found in Germany,France,and Japan is called civil or code law.

Question 8

Most disputes that arise in commercial transactions are settled informally.

Question 9

In many code-law countries,ownership of intellectual property rights is established by registration rather than by prior use--the first to register a trademark or other property right is considered to be the rightful owner.

Question 10

To prevent piracy companies are developing new technologies that make it impossible for counterfeiters to overcome.

Question 11

Under code law,the legal system is generally divided into three separate codes: commercial,civil,and criminal.

Question 12

If a company plans to market products abroad,securing expert legal advice is a wise decision because of the complicated nature of international law.

Question 13

Under Marxist-socialist tenets (law)it would be illegal to pay interest on a loan.

Question 14

The piracy industry has grown so sophisticated that many counterfeit goods are almost impossible to distinguish from the original.

Question 15

All countries have laws regulating marketing activities in promotion,product development,labeling,pricing,and channels of distribution.

Question 16

China,Russia,Japan,and Vietnam have made major progress in reducing software piracy.

Question 17

Mick Masters had an arbitration clause added to a contract between his Australian company and the German government because he knows that enforcing an arbitration agreement is relatively easy and almost always binding in international law disputes.

Question 18

The basis for Islamic Law is interpretation of the Koran.

Question 19

Another term for conciliation is mediation.

Question 20

When dealing with foreign countries,a domestic marketer should refer to "international commercial law" for guidance.

Question 21

Which of the following types of law is primarily found in the United States,England,Canada,and other countries once under English influence?

A)code law
B)common law
C)religious law
D)civil law
E)universal law

Question 22

The United States passed the most stringent green marketing laws that regulate the management and recycling of packaging waste.

Question 23

The overriding objective of ___________ is social justice.

A)common law
B)code law
C)Islamic law
D)Marxist-socialist tenets
E)legal tradition

Question 24

In Germany,any implied or stated superiority in comparison advertisements is not subject to legal challenges.

Question 25

Leaving the political boundaries of a home country with a business venture has been interpreted to mean that a company is then exempt from home-country laws because business is not being conducted in that home-country.

Question 26

Which of the following forms of law was derived from English law?

A)code law
B)common law
C)religious law
D)civil law
E)universal law

Question 27

Another term for code law is:

A)business law
B)common law
C)religious law
D)civil law
E)universal law

Question 28

Civil or code law was derived from which of the following?

A)English law
B)economic law
C)Greek law
D)Persian law
E)Roman law

Question 29

___________ is considered complete as a result of catchall provisions found in most of this type of law's system.

A)Common law
B)Code law
C)Islamic law
D)Marxist-socialist tenets
E)legal tradition

Question 30

If law is founded on tradition,past practices,legal precedents set by the courts through interpretations of statutes,legal legislation,and past rulings,it is called:

A)common law
B)code law
C)Islamic law
D)Marxist-socialist tenets
E)legal tradition

Question 31

U.S.firms,their subsidiaries,or foreign firms that are licensees of U.S.technology cannot sell a product to a country in which the sale is considered by the U.S.government to affect national security.

Question 32

The basis for which of the following is tradition,past practices,and legal precedents set by the courts through interpretations of statutes,legal legislation,and past rulings?

A)common law
B)code law
C)Islamic law
D)Marxist-socialist tenets
E)legal tradition

Question 33

In general,U.S.firms are allowed to participate in foreign-based boycotts as long as the U.S.firm can demonstrate that they would loose business in the foreign country if they did not participate in the boycott.

Question 34

A creative non-traditional way for companies with intellectually property to make money in China is to employ the oldest strategy of all,i.e.,charging what the market will bear.

Question 35

The U.S.Foreign Corrupt Practices Act (FCPA)makes it illegal for companies to pay bribes to foreign officials,candidates,or political parties.

Question 36

Which of the following is based on an all-inclusive system of written rules of law that is generally divided into commercial,civil,and criminal sections?

A)common law
B)code law
C)Islamic law
D)Marxist-socialist tenets
E)legal tradition

Question 37

Many countries have modeled their antitrust laws after U.S.laws.

Question 38

One of the purposes of U.S.antitrust legislation is to protect American export and investment opportunities against any privately imposed restrictions.

Question 39

Which of the following countries has ownership of IP rights established by prior use-whoever can establish first use is typically considered the rightful owner?

A)Japan
B)Brazil
C)Saudi Arabia
D)France
E)United States

Question 40

The _________ of a legal system profoundly affects how the law is written,interpreted,and adjudicated.

A)foundation
B)legality
C)cost
D)religious ties
E)politics

Question 41

Because of political changes in the late twentieth century,which of the following countries has had to build from scratch an entire commercial legal system?

A)France
B)Germany
C)Taiwan
D)Russia
E)Saudi Arabia

Question 42

Which of the following is usually placed in the arbitration clause that is becoming standard in many international contracts?

A)the names of arbitrators to be involved.
B)the place of the arbitration (city and/or country).
C)the titles of the arbitrators to be involved.
D)the age of the arbitrators to be involved.
E)the nationalities of the arbitrators.

Question 43

In settling international commercial transaction disputes,which of the following methods accounts for the majority of settlements?

A)conciliation
B)informal settlement
C)arbitration
D)litigation
E)coercion

Question 44

When all else fails in an international commercial dispute,the final step is:

A)conciliation.
B)to encourage one's government to force the other party to comply.
C)to find fault or wrong doing as a public relations device.
D)litigation.
E)coercion.

Question 45

One counterfeiting problem for international marketers is:

A)the ease with which consumers can tell the difference between real and counterfeit products.
B)the theft of products by pirates during shipping.
C)government regulations legitimizing counterfeiting.
D)collusion between contract manufacturers and illegitimate sellers.
E)the worldwide availability of duplication software.

Question 46

Ralph Richards has been attempting to solve a problem that his company has with a contract default by the Dutch government.He has tried conciliation but the two parties could never find any common ground on which to begin a fruitful negotiation for settlement.Which of the following will most likely be the course of action that both of the two parties will try next?

A)mediation
B)informal settlement
C)arbitration
D)litigation
E)coercion

Question 47

Arbitration clauses require agreement on two counts.Which of the following is one of those accounts?

A)The complainants agree on who is right and who is wrong.
B)The complainants agree on litigation issues.
C)The complainants agree to abide by the awards resulting from the arbitration.
D)The complainants agree to not hire legal counsel.
E)The complainants agree to hear the case before the World Court if the arbitration fails.

Question 48

Which of the following supranational system of laws governs world commerce today?

A)U.S.law
B)English law
C)traditional Roman law
D)code law as explained by French courts
E)there is no supranational system of laws that governs behavior

Question 49

One authority suggests that settlement of every dispute should follow four steps.Which of the following is considered to be the first step in this process?

A)conciliate
B)arbitrate
C)coerce
D)try to placate the injured party
E)litigate

Question 50

The first step that most arbitrators try to resolve a dispute between two parties is to attempt:

A)conciliation.
B)informal settlement.
C)fault finding or wrong doing.
D)litigation.
E)coercion.

Question 51

The World Court can adjudicate disputes between which of the following?

A)disputes between governments
B)disputes between a company and a government
C)disputes between two companies
D)disputes between a private citizen and a government
E)the World Court does not adjudicate in any of the above matters

Question 52

In the usual ______________ procedure,parties select a disinterested and informed party or parties to sever as a referee to determine the merits of the case and make a judgment that both parties agree to honor.

A)conciliation
B)informal settlement
C)arbitration
D)litigation
E)coercion

Question 53

Most arbitration is successful,but success depends on the:

A)amount of the judgment.
B)personalities of the complainants.
C)nationalities of the complainants.
D)willingness of both parties to accept the arbitrator's rulings.
E)amount of money involved in the dispute.

Question 54

All of the following are considered to be deterrents to litigation EXCEPT:

A)fear of creating a poor image and damaging public relations.
B)fear of unfair treatment in a foreign court.
C)difficulty in collecting a judgment that may otherwise have been collected in a mutually agreed settlement through arbitration.
D)the relatively low cost and time required when bringing legal action.
E)loss of confidentiality.

Question 55

In international commercial disputes,jurisdiction is generally determined in any of the following ways EXCEPT:

A)on the basis of the money involved in a contract (who gains the most).
B)on the basis of jurisdiction clauses included in contracts.
C)on the basis of where a contract was entered into.
D)on the basis of where the provisions of the contract were performed.
E)on the basis of legal documents that define the business transaction.

Question 56

Under _____________,the legal system is subordinate to prevailing economic conditions.

A)common law
B)code law
C)Islamic law
D)Marxist-socialist tenets
E)legal tradition

Question 57

The basis of ___________ is the Koran.

A)common law
B)code law
C)Islamic law
D)Marxist-socialist tenets
E)legal tradition

Question 58

Among the unique aspects of Islamic law is the prohibition against the payment of:

A)taxes.
B)profits.
C)interest.
D)equity.
E)accounting fees.

Question 59

Another name for conciliation as a means for settling a dispute in international commerce is:

A)mediation.
B)informal settlement.
C)arbitration.
D)litigation.
E)coercion.

Question 60

A nonbonding agreement between parties to resolve disputes by asking a third party to mediate differences is called:

A)conciliation.
B)informal settlement.
C)arbitration.
D)litigation.
E)coercion.

Question 61

Which of the following countries has enacted the most stringent green marketing laws that regulate the management and recycling of packaging waste?

A)Britain
B)France
C)Germany
D)United States
E)Japan

Question 62

Which of the following U.S.government agencies oversees antitrust enforcement in international commerce?

A)Department of State
B)Department of Justice
C)Department of Commerce
D)Department of Defense
E)Department of Home Land Security

Question 63

Companies spend millions of dollars establishing brand names and trademarks primarily to symbolize:

A)U.S.marketing power.
B)environmentally-friendly production processes.
C)local content.
D)consistency with generic products.
E)quality.

Question 64

The question of jurisdiction of U.S.law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law called the:

A)the right of imminent domain.
B)the legal transfer of power.
C)the rights of foreign powers and citizens.
D)the objective theory of jurisdiction.
E)the McNeil Principle of International Law.

Question 65

Which of the following is NOT one of the traditional remedies by American companies to protect intellectual property:

A)threats to withdraw products from country
B)complaints to U.S.government and WTO
C)negotiation and dispute resolution
D)preventative steps such as local representation
E)complaints to country's government

Question 66

A famous case occurred in Japan where a Japanese business registered McDonald's world famous trademark before McDonald's did and was given permission to use the trademark.McDonald's eventually got the trademark back after a lengthy court battle and a monetary award to the Japanese company.McDonald's learned that trademarks registered in the United States:

A)must be ratified by the United Nations trademark protection agency.
B)are worthless.
C)are protected in the European Union under the Geneva Convention but not in Japan.
D)need to be registered with the World Court.
E)are not protected in other countries.

Question 67

In the constant vigilance and battle against counterfeiting and piracy,companies are increasingly developing new __________.

A)regulations
B)products
C)technologies
D)strategies
E)licenses

Question 68

In a common-law country,ownership of intellectual property rights is established by:

A)prior use.
B)registration.
C)design proof.
D)the "common sense mandate."
E)the "golden rule of property."

Question 69

The ________________ of the United States makes it illegal for companies to pay bribes to foreign officials,candidates,or political parties.

A)Constitution
B)Bill of Rights
C)Foreign Corrupt Practices Act
D)Best Practices Act
E)International Codes of Law

Question 70

Which of the following commonly counterfeited products has the potential for doing the greatest harm to the consuming public?

A)toys
B)CDs
C)pharmaceuticals
D)software
E)clothing

Question 71

U.S.firms,their foreign subsidiaries,or foreign firms that are licensees of U.S.technology cannot sell a product to a country in which the sale is considered by the U.S.government to affect:

A)the competitive balance of world trade.
B)the competitive balance of free competition inside the U.S.
C)relationship with the world community.
D)the overall balance of payments of the United States.
E)the national security of the United States.

Question 72

In a common-law country,ownership of intellectual property rights is established by "prior use versus registration." What does the phrase "prior use versus registration" mean?

A)One must register a trademark to gain rightful ownership of it.
B)One must pay for the right to own a trademark.
C)Whoever can establish first use of a trademark is typically considered the rightful owner.
D)Ownership of a trademark can only be established in a court of law.
E)Ownership of a trademark is global and is established by the United Nations.

Question 73

Which of the following conventions is responsible for the promotion of the protection of intellectual property rights?

A)the Paris Convention
B)the Madrid Arrangement
C)the Tokyo Agreement
D)the Eurasian Convention
E)The United Nation's WIPO

Question 74

ALL countries have laws regulating all of the following marketing activities EXCEPT:

A)promotion
B)product development
C)labeling
D)channels of distribution
E)production volume

Question 75

Which of the following acts developed by the European Union erases legal and trade differences that have existed for decades between the member nations?

A)European Sanctity Act
B)European Antitrust Act
C)European Unification Act
D)Single European Market Act
E)No European Union Act exists

Question 76

A creative way for intellectually property rich companies to make money in China is __________.

A)enlist the Chinese government to sell their products
B)to charge what the market will bear
C)to sell older instead of the latest versions of their products
D)to sell only in select populated areas,i.e.,major cities
E)to provide an extreme discount on next purchase

Question 77

Antitrust enforcement has two purposes in international commerce.Which of the following accurately describes one of those purposes?

A)Protection of American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors.
B)Protection of the trade balance of the United States.
C)Protection of the U.S.dollar abroad.
D)Protection of the right to compete abroad.
E)Protection of American consumers from contaminated foreign food products.

Question 78

Which of the following is NOT one of the areas of antitrust enforcement in the European Union and elsewhere?

A)full-line forcing
B)price discrimination
C)supply restrictions
D)competitiveness councils
E)antimonopoly

Question 79

According to the text Vietnam,Russia,Japan and __________ made major progress in reducing software piracy from 2003 to 2006.

A)Tunisia
B)India
C)Iran
D)China
E)Myanmar

Question 80

Which of the following international conventions was established to recognize intellectual property rights?

A)the Paris Convention
B)the Munich Agreement
C)the Tokyo Convention
D)the Eurasian Convention
E)the Kyoto Protocol