Deck 6: International and Comparative Law

Question 1

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

A) Comparative law
B) International law
C) Joint law
D) Foreign subsidiary law
E) Affiliate law

Answer 1

International law

Question 2

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

A) It is the study of the legal systems of different states.
B) It is the study of the laws governing the conduct of states and international organizations and their relationships with one another.
C) It is the study of the difference between public and private law in the United States.
D) It is the study of the difference between constitutions and administrative rules and regulations within the United States.
E) It is the study of international organizations and their structure.

Answer 2

It is the study of the legal systems of different states.

Question 3

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

Answer 3

False

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.

Question 5

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.

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.

Question 8

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

Question 9

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

A) Through the advice and consent of two-thirds of the Senate after the president submits the agreement for consideration.
B) Through the advice and consent of two-thirds of the House of Representatives after the president submits the agreement for consideration.
C) Through the advice and consent of two-thirds of the Senate and two-thirds of the House of Representatives after the president submits the agreement for consideration.
D) Through consent of the president.
E) Through the consent of the president and the approval of at least half the individual state legislatures.

Question 10

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

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.

A) Foreign sales representative
B) Distributor
C) Licensing agent
D) Joint agent
E) Affiliate agent

Question 12

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

Question 13

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

A) Importation
B) Subsidization
C) Exportation
D) Foreign transaction
E) Foreign distributing

Question 14

The United States has no bilateral trade agreements.

Question 15

Which of the following is true regarding international organizations?

A) The United Nations is an international organization, but the International Monetary Fund is not.
B) The International Monetary Fund is an international organization, but neither the United Nations nor the International Bank for Reconstruction and Development (World Bank) are international organizations.
C) The International Bank for Reconstruction and Development (World Bank) and the International Money Fund are international organizations, but the United Nations is not an international organization.
D) The United Nations and the International Monetary Fund are international organizations, but the International Bank for Reconstruction and Development (World Bank) is not.
E) The United Nations, the International Monetary Fund, and the International Bank for Reconstruction and Development (World Bank) are all 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.

Question 17

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

A) The U.S. Supreme Court has held that U.S. courts may disregard customary international law.
B) The U.S. Supreme Court has held that even if a governing international agreement says otherwise, a U.S. court must rely on customary international law.
C) The U.S. Supreme Court has held that even if a controlling executive act is to the contrary, U.S. courts must rely on customary international law.
D) The U.S. Supreme Court has held that regardless of the existence of any legislative act to the contrary, U.S. courts must rely on customary international law.
E) 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] ______.

A) Export representative
B) Import representative
C) Foreign sales representative
D) Foreign exportation proponent
E) International sales and importation expert

Question 19

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

Question 20

Which of the following is an international agreement?

A) A written agreement made between states governed by international law and relating to international subject matter.
B) An agreement that is only between two states, not three or more, relating to an international subject matter.
C) An agreement that is made between at least three states regarding an international subject matter.
D) A general and consistent practice by states regardless of whether the practice is accepted as law.
E) A general and consistent practice by states that is accepted as law.

Question 21

Which type of legal system exists in North Korea?

A) Civil legal system
B) Common law legal system
C) Socialist legal system
D) Islamic legal system
E) Asian legal system

Question 22

Which of the following systems originated from the English legal system?

A) Civil law
B) Asian law
C) Statutory law
D) Inquisitorial law
E) Common law

Question 23

The ____ allows recognized governments of WTO member states to bring an action alleging a violation of the GATT.

A) Trade barrier agreement
B) Mediation/arbitration agreement
C) World dispute resolution agreement
D) Dispute settlement understanding
E) GATT violation accord

Question 24

Which of the following is a practice wherein an exporter sells products in a foreign state for less than the price charged for the same or comparable goods in the exporter's home market?

A) Price cutting
B) Disposal
C) Dumping
D) Profit maximizing
E) Subsidizing

Question 25

Which of the following countries are signatories to the North American Free Trade Agreement?

A) United States, Canada, and Japan
B) United States, Canada, and Mexico
C) Canada, Mexico, and Great Britain
D) England, France, and Italy
E) England, France, and Spain

Question 26

Which of the following is a comprehensive multilateral trading system designed to achieve distortion-free international trade through the minimization of tariffs and removal of artificial barriers?

A) The International Agreement on Nontariffs and Trade
B) The World Trade Organization Agreement
C) The General Agreement on Tariffs and Trade
D) The North and South American Free Trade Agreement
E) The European Free Trade Agreement

Question 27

_____ prohibits U.S. companies from offering or paying bribes to foreign government officials, political parties, and candidates for office for the purpose of obtaining or retaining business.

A) The Foreign Corrupt Practices Act
B) The Foreign Bribery Act
C) The Foreign Political Act
D) The International Fairness Objective Act
E) The International Trade Act

Question 28

Which of the following is literally the "law of merchants?"

A) Lex Mercatoria
B) Lex Seller
C) Ad Merchandiso
D) Lex Loci
E) Res Judicata

Question 29

In the civil law system, which of the following has the primary responsibility for the development of evidence?

A) The attorneys
B) The court clerk
C) Officers of the court specifically charged with gathering evidence
D) The judge
E) Witnesses

Question 30

_____ principle requires that World Trade Organization member states treat like goods coming from other World Trade Organization member states on an equal basis.

A) The normal trade relations
B) The like treatment
C) The quantitative restrictions
D) The nondiscriminatory
E) The fairness

Question 31

Which of the following is one of the three basic types of subsidies?

A) Indirect subsidy
B) Actionable subsidy
C) International subsidy
D) Group subsidy
E) Quantitative subsidy

Question 32

The ____ facilitates international cooperation in opening markets and provides a forum for future trade negotiations and the settlement of international trade disputes.

A) World Trade Organization
B) Generally Favored Nation Organization
C) National Trade Organization
D) International Cooperation Agreement
E) International Marketing Agreement

Question 33

Which of the following is false regarding the Convention on the International Sale of Goods?

A) It applies to transactions involving the commercial sale of goods.
B) National contract law applies in areas not covered by the Convention on the International Sale of Goods.
C) The Convention on the International Sale of Goods was adopted in 2000.
D) The United States has adopted the Convention on the International Sale of Goods.
E) The Convention on the International Sale of Goods has been ratified by the majority of states in the developed world.

Question 34

The Convention on the International Sale of Goods recognizes a concept by which a buyer may give notice to the seller that delivery will be accepted beyond the time prescribed in the contract. That concept is known as _____________.

A) Nachfrist
B) Benach
C) Offer of late performance
D) Tender of late performance
E) Stare decisis

Question 35

Which of the following is true regarding nontariff barriers?

A) Quotas are nontariff barriers, but embargoes are not.
B) Embargoes are nontariff barriers, but quotas are not.
C) Indirect barriers are nontariff barriers, but quotas and embargoes are not.
D) Quotas and embargoes are nontariff barriers, but indirect barriers are not.
E) Quotas, embargoes, and indirect barriers are all nontariff barriers.

Question 36

A ____ is a free trade area with the additional feature of a common external tariff on products originating from outside the union.

A) Customs union
B) Free trade union
C) External tariff union
D) International tariff union
E) Customs trade union

Question 37

Which of the following is a characteristic of civil law?

A) Precedent is an important source of law in the civil law system.
B) Civil law systems use a form of system of separation of powers.
C) The civil law procedure is like the U.S. system of checks and balances.
D) In civil law systems the legislative branch has little authority.
E) The judicial branch in civil law systems may create its own new law.

Question 38

Many ______ are derived from Roman law.

A) Common law systems
B) Case law legal systems
C) Civil law systems
D) Socialist legal systems
E) Islamic legal systems

Question 39

Which of the following is a tax levied on imported goods?

A) Non-tariff barrier
B) Embargo
C) Indirect barrier
D) Tariff
E) Dumping

Question 40

Which of the following references a standard meaning that either the employer or the employee may terminate the employment relationship at any time?

A) Employment-at-will
B) Unconnected employment
C) Nachfrist
D) Reasonable employment
E) Unreasonable employment

Question 41

"Weeds." Susie developed a product guaranteed to immediately kill weeds, but absolutely no other type of grass or shrub. She has encountered several individuals and businesses in other countries who would like to enter into contracts with her and market her products internationally. She went to Willie, who just graduated law school and has yet to pass the bar, and asks him for advice regarding those contracts. Willie proceeded to tell her that she should simply enter into the same type of contract with international businesses and individuals from other countries as she would if those individuals and businesses were located in the United States. He tells her that if there is any problem, then they will simply have to come to the United States to settle the matter, and that any issues would be determined in Susie's home county, in her home state, and under her state's law. He also mentions to her that she should consider contacting local foreign officials in the areas in which she would like her product sold and suggest to them that she can contribute heavily to election campaigns if she is allowed without any hassles to obtain necessary business licenses and approvals to do business.

-Which of the following is true regarding Willie's advice that she contacts foreign officials regarding election campaign contributions?

A) Willie was incorrect, and following his advice would put Susie in danger of violating the Foreign Corrupt Practices Act.
B) Willie was incorrect, and following his advice would put Susie in danger of violating foreign laws in the countries in which she makes such offers; but she would not be in danger of violating any U.S. laws.
C) Willie was incorrect, and following his advice would put Susie in danger of violating the Uniform Anti-Bribery Statute.
D) Willie was incorrect, and following his advice would put Susie in danger of violating the federal Unfair Competition Act.
E) Willie was correct, and following his advice is a good idea for Susie.

Question 42

Which of the following refers to the power of a court over persons appearing before it?

A) Subject matter jurisdiction
B) Individual jurisdiction
C) Personal jurisdiction
D) Litigation jurisdiction
E) Superior jurisdiction

Question 43

Which of the following prohibits slavery and grants everyone the right to free choice of employment, just and favorable conditions of work, reasonable limitations on working hours, and compensation adequate to provide for the worker's health and that of his or her family?

A) The Universal Declaration of Human Rights of 1948
B) Title VII of the Civil Rights Act of 1964
C) The Fair Wage Standard of 2000
D) The Universal Employee Care Act of 1990
E) The International Freedom Act of 2003

Question 44

"Miracle Face." Tara developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Tara has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Tara has an offer, however, from another Mexican citizen, Maria. Maria proposes that she and Tara associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Tara has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then, hire employees in Mexico to sell the product. Another matter Tara has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements in effect between the U.S. and Mexico.

-If Tara ships Miracle Face to Mexico for sale, she would be involved in the _____ of goods.

A) import
B) franchising
C) licensing
D) export
E) affiliating

Question 45

"Employment law." Clare, who has a successful pet grooming business, is planning to expand her operations from the U.S. into Canada and perhaps Mexico. A friend of hers, Bill, told her that she should carefully investigate the laws in those countries before she proceeded. Clare responded, however, that she was not concerned because by international treaty, and under NAFTA, so long as she is a U.S. citizen, she only has to obey the U.S. laws. Laws of other countries would not apply to her business operations. Clare also replied that any other country would have the same strict employment-at-will standard as exists in the U.S. She tells him the strict employment-at-will standard has not changed over the years, and that the nature of the relationship between employer and employee remains untouched.



-Which of the following is true regarding Clare's statement that so long as she obeys the laws of the U.S., she does not need to be concerned about laws of other countries?

A) She is accurate.
B) She is accurate, but only in regard to laws pertaining to employment.
C) She is inaccurate.
D) She is accurate, but only in regard to laws involved with the Uniform Commercial Code.
E) She is accurate, but only if countries are signatories to NAFTA.

Question 46

Which of the following is a multilateral convention establishing procedures for transnational discovery between private persons in different states?

A) Smith Evidence Conventions
B) International Evidence Convention
C) Discovery Convention
D) Hague Evidence Convention
E) NAFTA Evidence Convention

Question 47

"Miracle Face." Tara developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Tara has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Tara has an offer, however, from another Mexican citizen, Maria. Maria proposes that she and Tara associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Tara has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then, hire employees in Mexico to sell the product. Another matter Tara has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements in effect between the U.S. and Mexico.

-Assuming that Tara decides to make the deal Sam proposes, Sam would be referred to as a(n) _____ and Tara would be referred to as a(n) ______.

A) Franchisor; Franchisee
B) Franchisee; Franchisor
C) Affiliator; Affiliatee
D) Venturor; Venturee
E) Representative Offeror; Representative Offeree

Question 48

"Weeds." Susie developed a product guaranteed to immediately kill weeds, but absolutely no other type of grass or shrub. She has encountered several individuals and businesses in other countries who would like to enter into contracts with her and market her products internationally. She went to Willie, who just graduated law school and has yet to pass the bar, and asks him for advice regarding those contracts. Willie proceeded to tell her that she should simply enter into the same type of contract with international businesses and individuals from other countries as she would if those individuals and businesses were located in the United States. He tells her that if there is any problem, then they will simply have to come to the United States to settle the matter, and that any issues would be determined in Susie's home county, in her home state, and under her state's law. He also mentions to her that she should consider contacting local foreign officials in the areas in which she would like her product sold and suggest to them that she can contribute heavily to election campaigns if she is allowed without any hassles to obtain necessary business licenses and approvals to do business.

-Assuming Susie wants some additional protection to guarantee that any dispute with international business will be resolved in her state in the U.S., what should she do?

A) There is nothing she can do.
B) She should put a forum selection agreement clause within the contract.
C) She should put a choice of law provision in the contract.
D) She should put a choice of general jurisdiction clause in the contract.
E) She should put a Hague clause in the contract.

Question 49

____ is the type of alternative dispute resolution procedure wherein disputes are submitted for resolution to private, nonofficial persons selected in a manner provided by law or the agreement of the parties.

A) Mediation
B) Arbitration
C) Neutral evaluation
D) International evaluation
E) Multi-cultural evaluation

Question 50

____ permits adjudication of any claims against a defendant regardless of whether the claim has anything to do with the forum.

A) General personal jurisdiction
B) Specific person jurisdiction
C) Local personal jurisdiction
D) International personal jurisdiction
E) Domestic personal jurisdiction

Question 51

Which of the following is true regarding the enforceability of foreign judgments in the United States?

A) Foreign judgments are entitled to full faith and credit.
B) Foreign judgments are entitled to full faith, but not credit.
C) Foreign judgments are neither entitled to full faith and credit, nor are they evidence of the justice of the plaintiff's claims.
D) Foreign judgments are not entitled to full faith and credit, but are only evidence of the justice of the plaintiff's claims.
E) By statutory law, foreign judgments must be disregarded in the U.S.

Question 52

"Employment law." Clare, who has a successful pet grooming business, is planning to expand her operations from the U.S. into Canada and perhaps Mexico. A friend of hers, Bill, told her that she should carefully investigate the laws in those countries before she proceeded. Clare responded, however, that she was not concerned because by international treaty, and under NAFTA, so long as she is a U.S. citizen, she only has to obey the U.S. laws. Laws of other countries would not apply to her business operations. Clare also replied that any other country would have the same strict employment-at-will standard as exists in the U.S. She tells him the strict employment-at-will standard has not changed over the years, and that the nature of the relationship between employer and employee remains untouched.



-Is Clare correct that there has been no change in the concept of employment-at-will in this country and that the relationship between employer and employee has remained the same?

A) She is correct.
B) She is incorrect, but the employment relationship has changed only in respect to minimum wage.
C) She is incorrect, but the employment relationship has changed only in respect to the issue of workers' compensation.
D) She is incorrect, but the employment relationship has changed only in the area of employment discrimination.
E) She is incorrect.

Question 53

Which of the following is true regarding minimum-wage laws?

A) The People's Republic of China has a national minimum-wage law.
B) Canada has a national minimum-wage law.
C) Italy has a national minimum-wage law.
D) Germany has a national minimum-wage law.
E) Australia has a national minimum-wage law.

Question 54

"Miracle Face." Tara developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Tara has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Tara has an offer, however, from another Mexican citizen, Maria. Maria proposes that she and Tara associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Tara has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then, hire employees in Mexico to sell the product. Another matter Tara has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements in effect between the U.S. and Mexico.

-Which of the following should Tara consider with regard to trade agreements between the U.S. and Mexico?

A) The North American Free Trade Agreement
B) The Central American Free Trade Agreement
C) The Tri-Country Free Trade Agreement
D) The Multi-Country Free Trade Agreement
E) The Accessibility Trade Agreement

Question 55

Which of the following is an international agreement governing the arbitration of private international disputes that has been ratified by the U.S.?

A) The Hague Convention
B) The International Arbitration Convention
C) The French Convention
D) The New York Convention
E) The NAFTA Convention

Question 56

Which of the following is a doctrine that permits courts to decline to exercise jurisdiction where there is a more convenient forum to hear the case?

A) Forum non conveniens
B) Abstention
C) Convenience el forum
D) Jurisdictional convenience
E) Absolute privilege

Question 57

"Employment law." Clare, who has a successful pet grooming business, is planning to expand her operations from the U.S. into Canada and perhaps Mexico. A friend of hers, Bill, told her that she should carefully investigate the laws in those countries before she proceeded. Clare responded, however, that she was not concerned because by international treaty, and under NAFTA, so long as she is a U.S. citizen, she only has to obey the U.S. laws. Laws of other countries would not apply to her business operations. Clare also replied that any other country would have the same strict employment-at-will standard as exists in the U.S. She tells him the strict employment-at-will standard has not changed over the years, and that the nature of the relationship between employer and employee remains untouched.



-What concept is Clare referencing when she mentions employment-at-will?

A) The right of the employer or the employee to terminate the employment relationship at any time.
B) The requirement that an employer have good cause before discharging an employee.
C) The requirement that an employee give notice before quitting.
D) The requirement that employers may at will require employees to work overtime without pay.
E) The requirement that employers allow employees to take breaks at will only after six hours of work.

Question 58

"Miracle Face." Tara developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Tara has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Tara has an offer, however, from another Mexican citizen, Maria. Maria proposes that she and Tara associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Tara has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then, hire employees in Mexico to sell the product. Another matter Tara has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements in effect between the U.S. and Mexico.

-If Tara simply opens her own business in Mexico in conformity with Mexican laws and hires employees in Mexico to sell the product, she would have opened a[n] ______.

A) Franchise
B) Distributorship
C) Joint venture
D) Licensing subsidiary
E) Affiliate

Question 59

"Miracle Face." Tara developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Tara has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Tara has an offer, however, from another Mexican citizen, Maria. Maria proposes that she and Tara associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Tara has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then, hire employees in Mexico to sell the product. Another matter Tara has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements in effect between the U.S. and Mexico.

-Assuming that Tara decides to proceed as Maria proposes, their arrangement would be a[n] ______.

A) Franchisee-franchisor arrangement
B) Affiliator-affiliatee arrangement
C) Joint venture
D) Licensing agreement
E) Subsidiary agreement

Question 60

What is the federal minimum wage per hour in the U.S.?

A) $7.25
B) $8.30
C) $5.30
D) $6.50
E) $10.00

Question 61

Identify and describe a franchise agreement, a joint venture, and an affiliate business in relation to international business.

Question 62

As identified by Article 38 of the Statute of the International Court of Justice, what are four sources that may be used to find international law?

Question 63

What was the result at the U.S. Supreme Court level in Goodyear Dunlop Tires Operations, S.A. v. Brown, involving whether a court in North Carolina could exercise jurisdiction over the defendant tire manufacturer and its subsidiaries who were based in Turkey and France? (The underlying lawsuit involved the deaths of North Carolina residents in France when a bus in which they were riding allegedly overturned due to problems with its tires.)

A) The Court ruled that based on the stream of commerce theory, the North Carolina court could exercise general jurisdiction over the foreign defendants.
B) The Court ruled that based on the stream of commerce theory, the North Carolina court could exercise specific jurisdiction over the foreign defendants.
C) The Court ruled that based on the general contacts theory, the North Carolina court could exercise general jurisdiction over the foreign defendants but not specific jurisdiction.
D) The Court ruled that based on the general contacts theory, the North Carolina court could exercise specific jurisdiction over the foreign defendants but not general jurisdiction.
E) The court ruled that the North Carolina court could not exercise jurisdiction over the defendants.

Question 64

Discuss in detail the World Trade Organization including how it was established and its membership. Also discuss the normal trade relations principle, national treatment, quantitative restrictions, and dumping.

Question 65

Richard is president of a pharmaceutical company which is based in the U.S. but has a substantial amount of sales in other countries. Richard's company manufactures drugs prescribed to those infected with HIV and other illnesses. He is informed by some missionary workers that millions of people in Africa have HIV and that many have died. He is asked to provide medication to certain locations in Africa free of charge. On the other hand, Richard has also been asked by a group in the U.S. to provide medication free of charge to HIV positive individuals in this country and to donate other drugs his company makes for the treatment of other illnesses. Richard, in good faith and based on a good review of the company's financial position, believes that the company can afford to donate some supplies but not in the quantities requested by both foreign and U.S. concerns. What do you believe is the ethical thing for Richard to do under the circumstances?

Question 66

Define tariffs and how they may be calculated. Additionally, define a nontariff barrier and list and define three types of non-tariff barriers.

Question 67

"Weeds." Susie developed a product guaranteed to immediately kill weeds, but absolutely no other type of grass or shrub. She has encountered several individuals and businesses in other countries who would like to enter into contracts with her and market her products internationally. She went to Willie, who just graduated law school and has yet to pass the bar, and asks him for advice regarding those contracts. Willie proceeded to tell her that she should simply enter into the same type of contract with international businesses and individuals from other countries as she would if those individuals and businesses were located in the United States. He tells her that if there is any problem, then they will simply have to come to the United States to settle the matter, and that any issues would be determined in Susie's home county, in her home state, and under her state's law. He also mentions to her that she should consider contacting local foreign officials in the areas in which she would like her product sold and suggest to them that she can contribute heavily to election campaigns if she is allowed without any hassles to obtain necessary business licenses and approvals to do business.

-Assuming Susie does not take Willie at his word and wants additional assurance that her state's law would be applied, what should she do?

A) There is nothing she can do.
B) She should insert a forum selection clause in the contract.
C) She should insert a choice-of-law clause in the contract.
D) She should insert Hague evidence clause in the contract.
E) She should insert a GATT clause into the contract.