Deck 26: International Law and Global Commerce

Question 1

Mediation and conciliation both involve a ________ process.

Answer 1

consensual

Question 2

________ policy is primarily governed by the Paris Convention and the Madrid Protocol.

Answer 2

International trademark

Question 3

The civil law system relies heavily on ________ to define the laws.

Answer 3

written codes

Question 4

The common law legal system allows judges to fill in gaps in the law that are not covered by a statute.

Question 5

Common law jurisdictions adhere to the concept of ________, whereby a court may strike down a piece of legislation if it violates an overriding principle of law.

Question 6

Saudi Arabia uses Islamic law for personal conduct and civil law for business transactions. Because of this, it has a religious-based legal system.

Question 7

The Foreign Corrupt Practices Act was created to prevent bribery of foreign officials.

Question 8

The CISG provisions do not apply to transactions in which one party is a _______.

Question 9

The idea that nations defer to and give effect to laws and court decisions is referred to as ______.

Question 10

The Paris Convention sets international standards for the patentability of inventions.

Question 11

The World Trade Organization (WTO) has certain authority over disputes on trade barriers.

Question 12

________ international law addresses relations between individual countries and international organizations.

Question 13

The ICC, LCIA, and AAA all use the same rules to govern their arbitrations.

Question 14

The ________ of the International Court of Justice is the main document constituting and regulating the International Court of Justice.

Question 15

The United States is bound to follow the judgments of the International Court of Justice.

Question 16

The U.N. Commission on International ________ provides arbitration rules for parties who do not wish to spend money on arbitration services but would like a standard procedure.

Question 17

Under the concept of ______, nations are exempt from jurisdiction in other nations' courts.

Question 18

In a sale between Mark Merchant and Norm Nonmerchant the CISG rules for the sale of goods are applicable.

Question 19

Private international law primarily addresses relationships between countries, business entities, and international organizations.

Question 20

The CISG has a writing requirement that is similar to that of the statute of frauds.

Question 21

The International Court of Justice primarily hears civil and criminal cases.

Question 22

Countries that follow the common law system include the United States, Canada, Australia, and most of Latin America.

Question 23

Diplomatic relations do not play a role in the creation of international law.

Question 24

Only current government officials are included in the antibribery restrictions of the Foreign Corrupt Practices Act.

Question 25

Mediation is an involuntary process that involves a third-party decision maker.

Question 26

Intellectual property rights protections come from several multilateral agreements.

Question 27

Public international law primarily addresses relationships between countries, business entities, and international organizations.

Question 28

The use of treaties as a modern source of international law dates to World War I and the Treaty of Versailles.

Question 29

Under the concept of sovereign immunity, a foreign country is exempt from jurisdiction in U.S. courts.

Question 30

There are no exemptions to the doctrine of sovereign immunity.

Question 31

The American Arbitration Association arbitration rules permit the parties to choose an arbitrator as long as the AAA receives notification of their choice.

Question 32

The right of a seller to cure any problems with the goods ends when the time for performance has ended under CISG.

Question 33

The Paris Convention removes all risk for inventors regarding patents.

Question 34

Reciprocity is an important concept in the Berne Convention.

Question 35

An international arbitration usually has no connection with the country in which the arbitration is being held.

Question 36

International Chamber of Commerce terms and abbreviations are usually used in conjunction with the CISG.

Question 37

As long as there is proof that the parties intended to form a contract for the sale of goods and there is mention of the goods, quantity, and price, there is a valid offer under the CISG.

Question 38

The standard for finding violations of the Foreign Corrupt Practices Act has never been amended.

Question 39

Company executives taking foreign officials to dinner is not bribery under the Foreign Corrupt Practices Act.

Question 40

The only major difference between the UCC and the CISG is the lack of a writing requirement under the CISG.

Question 41

Which international body created the Convention of Contracts for the International Sale of Goods (CISG)?

A) World Trade Organization
B) U.N. Commission on International Trade Law
C) International Monetary Fund
D) Organization for Economic Cooperation and Development

Question 42

The civil law system is based on the ______ legal heritage.

A) English
B) Roman
C) American
D) Italian

Question 43

Legal systems that are made of two or more different legal systems are known as:

A) mixed legal systems.
B) combined legal systems.
C) multiple legal systems.
D) blended legal systems.

Question 44

What is the standard used to find violations of the Foreign Corrupt Practices Act (FCPA)?

A) a standard of good faith and fair dealing
B) a standard of reasonable care
C) a standard under which no intent is necessary
D) a knowing standard

Question 45

What is the main problem with international courts?

A) finding judges who understand the complexities of international law
B) creating a body of law that reflects multiple legal systems
C) enforcing a ruling on sovereign nations
D) lacking recognition from the United Nations and World Trade Organization

Question 46

Which of the following agreements applies to copyrights?

A) Madrid Protocol
B) U.N. Intellectual Property Accord
C) Berne Convention
D) Paris Convention

Question 47

Which of the following is not a primary source of international law?

A) treaties
B) customs
C) U.N. statutes
D) judicial decisions

Question 48

Under the Foreign Sovereign Immunities Act (FSIA) a foreign country is not under the jurisdiction of U.S. courts if the foreign nation:

A) is engaged in some commercial enterprise on U.S. soil.
B) takes actions that have a direct effect on U.S. interests.
C) files a lawsuit in its own courts against a U.S.-based business.
D) waived immunity, explicitly or by implication.

Question 49

What is the purpose of the Paris Convention?

A) extend national patent rights to foreign inventors who have patents in their home country
B) place limits on the items that are able to be protected under trademark laws
C) set requirements for filing for copyrights in foreign jurisdictions
D) standardize requirements for filing for trademarks around the world

Question 50

The World International Property Organization created an arbitration center in Switzerland for the arbitration of each of the following except:

A) copyrights.
B) patents.
C) trademarks.
D) contracts.

Question 51

How are the International Court of Justice's rulings enforced?

A) in no way (There are no means to enforce the judgments.)
B) through the U.N. Security Council
C) through monetary sanctions
D) through unilateral agreement by the parties before their case is heard

Question 52

If Gina, an American musician, sold copies of her latest album in Great Britain, her music would be protected the same as that of a British citizen under the:

A) Vienna Convention on the Law of Treaties
B) Paris Convention
C) Madrid Protocol
D) Berne Convention

Question 53

In Butters v. Vance International Inc., Vance International was hired to provide security for the Saudi royal family while they were in California. Butters was employed by Vance International as a security officer. She was assigned to the Saudi detail and worked occasionally as an acting supervisor in a security command post. Vance International recommended to the Saudis that Butters be promoted to a full rotation in the command post. The Saudis rejected this recommendation on their belief that it was against Islamic law to have a woman in the command post. Butters sued over gender discrimination for the loss of promotion. Vance International argued that it was immune under the Federal Sovereign Immunities Act because it was carrying out the orders of a foreign government. The court found that Vance International:

A) was not immune because the discrimination took place on American soil.
B) was not immune because the Saudis waived immunity by hiring an American security company.
C) was immune because the Saudis were performing an act peculiar to a sovereign and not a commercial activity.
D) was immune because U.S. courts recognize the jurisdiction of Saudi Arabia's laws for Saudi nationals in the United States.

Question 54

The common law system is based on the legal concepts and organization of:

A) the United States.
B) ancient Rome.
C) England.
D) France.

Question 55

What is the purpose of the International Chamber of Commerce terms?

A) to standardize contractual terms and avoid confusion due to language barriers
B) to provide basic contract law for international sales of goods
C) to standardize the monetary units used in international contracts
D) to provide a forum for arbitration of CISG contracts

Question 56

When did the U.S. withdraw from compulsory jurisdiction of the International Court of Justice?

A) It withdrew in 1959.
B) It was never under compulsory jurisdiction of the court.
C) It withdrew in 1986.
D) It never withdrew.

Question 57

What type of legal system would a government that based its laws on the tenets of Buddhism have?

A) a karma law system
B) a blended legal system
C) a religious-based legal system
D) a mixed legal system

Question 58

What is the major difference between domestic and international arbitrations?

A) The arbitration rules differ between the arbitration organizations.
B) International arbitration awards have wide enforceability in many countries.
C) International arbitration awards have limited enforceability in many countries.
D) American courts do not recognize the validity of international arbitration.

Question 59

Jose is from Argentina. He works for a railroad business that is controlled by the government. Big Container Shipping Company is considering sending its South American cargo on that railroad. Should Big Container Shipping be concerned with the Foreign Corrupt Practices Act when they take Jose out to an expensive dinner?

A) yes, because Jose is a foreign national
B) yes, because Jose works for a government-controlled business
C) no, because Jose does not work directly for the government administration but, instead, works for a business
D) no, because it is only dinner

Question 60

Pierre and Fritz have an oral agreement to ship goods from Switzerland to Quebec, Canada. If the CISG applies:

A) there is no contract to ship the goods because it is not in writing.
B) there is no contract to ship the goods because both Pierre and Fritz are not European.
C) the oral agreement is binding only if the goods are shipped and received without protest from either party.
D) there may be a contract, depending on the totality of the circumstances.

Question 61

What are the four major differences between the UCC and the CISG?

Question 62

In Forestal Guarani S.A. v. Daros International Inc., Forestal was a maker of wood finger joints based in Argentina. Daros, a U.S. business, orally agreed to sell Forestal's finger joints to third parties in the United States. A dispute arose over the amount Daros owed for the product that Forestal delivered. Argentina, like the United States, had ratified the U.N. Convention on Contracts for the International Sale of Goods (CISG) to govern contracts between merchants for the sale of goods. Unlike the United States, Argentina had made an Article 96 declaration, which meant the country required that contracts governed by the CISG be in writing. When Forestal sued Daros for the money it claimed Daros owed, Daros argued that the claim was precluded because the contract was not in writing. The appeals court held that:

A) when one country has adopted an Article 96 declaration and the other country has not, courts should consider the past conduct of the parties in determining whether the parties had or did not have a contract relationship.
B) when one country has adopted an Article 96 declaration and the other country has not, courts should not look to the past conduct of the parties in determining whether the parties had or did not have a contract relationship.
C) Argentina's declaration was sufficient to bar Forestal's claim.
D) a contract existed and Daros owed Forestal the amount it claimed.

Question 63

Describe the current state of international protections of trademarks.

Question 64

The nation of Tobago is looking for new boats for its coast guard. Tobago enters into a contract to purchase boats from an American manufacturer while visiting its facility in Miami. Tobago revokes the contract after the acceptance period under the UCC. The boat manufacturer sues for contract enforcement in a U.S. federal court. Does the court have jurisdiction over the nation of Tobago?

Question 65

What is the purpose of the Madrid Protocol?

A) set standards for international trials
B) make the trademark process more uniform and single-sourced for multinational companies
C) ensure copyright protection in foreign jurisdictions
D) limit abilities of multinational companies to file for trademark protections

Question 66

What does the Paris Convention address? What is the major enforcement problem with it?

Question 67

In Yahoo! v. La Ligue Contre Racisme et L'Antisemitisme, Yahoo! ran an auction site that allowed users to post and sell items to buyers around the world. Yahoo!'s policies included prohibitions on the sale of particular illegal items. Yahoo! also told sellers that they could not list items in jurisdictions where the sale of those items would violate the jurisdiction's applicable laws. La Ligue Contre Racisme et L'Antisemitisme (LICRA) sued Yahoo! in France under a French law prohibiting the sale of Nazi- and Third Reich-related items. The French court held that Yahoo! violated the French code with the sale of such items. Yahoo! filed a suit in a U.S. district court, claiming that the ban infringed impermissibly on its rights under the U.S. Constitution's First Amendment and asked that the court find that the French court's holding was not enforceable under U.S. law. The district court held that U.S. courts:

A) are bound by foreign judgments if both of the two countries recognize the sovereignty of each other.
B) are not bound by foreign judgments if the judgment is inconsistent with the Constitution and laws of the United States.
C) are bound by foreign judgments based on the principles set forth through comity and the Vienna Treaty.
D) are not bound by foreign judgments based on the idea of sovereign immunity.

Question 68

What are the sources of international law? Briefly discuss each.

Question 69

Discuss the ways that the three major international arbitration organizations choose arbitrators.

Question 70

Which of the following is not a major part of the Foreign Corrupt Practices Act?

A) requiring that corporations keep accurate records, books, and accounts
B) requiring that corporations refrain from committing copyright violations abroad
C) prohibiting bribery of foreign officials by American corporations
D) requiring that issuers registered with the Securities and Exchange Commission maintain a responsible internal accounting control system

Question 71

What are the four major types of legal systems, and what is the basis of each?

Question 72

What are the roles of the International Court of Justice?

Question 73

A certain website lets anyone sell items to buyers around the world. The site's policies include prohibitions on selling particular illegal items. The site also tells sellers that they cannot list items in jurisdictions where the sale of those items would violate the jurisdiction's applicable laws. The European Union has an antiterrorism law prohibiting the sale over the Internet of items relating to and supporting the Irish Republican Army. The website had several IRA items for sale, and the
E.U. found this to be a violation of its law. Would a U.S. court find the same?
No. An American court would hold that it would not be bound by the European judgment because it is inconsistent with the U.S. Constitution. The IRA is a political organization. The items promoting the IRA would be protected under the right to free speech. This decision would follow the reasoning and holding of the Yahoo! case.

Question 74

What is the role of the International Court of Justice?

A) settle legal disputes submitted to it by member states
B) set rules and standards for international arbitrations
C) hear cases on war crimes and crimes against humanity
D) interpret legislation drafted by the United Nations

Question 75

What is the problem with the Madrid Protocol?

A) There are no specifics that require fundamental enforcement.
B) Few countries have signed the agreement.
C) The European Union chose to create its own agreement instead of following the Madrid Protocol's terms.
D) The terms of the protocol are very limited in their application.

Question 76

Platkos Inc., a U.S. company, applies for a permit to import its goods to Russia. A Russian official denies the permit. Platkos hires a Russian consultant, a very low level official, to act as a lobbyist. The consultant is paid a very large fee. When the permit is approved, Platkos sends the consultant a thank-you gift. Is this scenario permissible under the FCPA?

Question 77

In a contract governed by the CISG, when must a contract for the sale of goods be written?

A) when the price exceeds $500
B) when the price exceeds $1,500
C) when the price exceeds $5,000
D) never (There is no requirement that the contract be written.)

Question 78

Why does the Paris Convention still leave inventors at risk?

A) Very few countries have signed it.
B) Many member countries do not comply with it.
C) It does not specify common standards for patentability.
D) It is limited to only patents.

Question 79

Which treaty is a standard that courts use for interpreting treaty law?

A) Convention on the Recognition and Enforcement of Foreign Laws
B) U.N. Treaty on Foreign Jurisprudence
C) Berne Convention
D) Vienna Convention on the Law of Treaties

Question 80

Which of the following is not a prominent group that administers arbitrations?

A) International Chamber of Commerce's International Court of Arbitration (ICC)
B) World Arbitration Organization (WAO)
C) London Court of International Arbitration (LCIA)
D) American Arbitration Association (AAA)