Deck 24: International Law And Transactions

Question 1

Tariffs are a means by which imports may be limited.

Answer 1

True

Question 2

In India,Hindu law is applied to most commercial transactions.

Answer 2

False

Question 3

Under Islamic law,"Gharar" is the allocation of certain taxes to deprived and poor people as a welfare contribution.

Answer 3

False

Question 4

Laws requiring that pharmaceutical products exported to the United States be produced in facilities that adhere to the manufacturing practices established by the U.S.Food and Drug Administration are known as extraterritoriality.

Question 5

The antidumping law is the most frequently used U.S.import-relief law.

Question 6

U.S.trade laws are enacted by the Congress pursuant to the treaty power of the U.S.Constitution.

Question 7

The principle of equity is unique to civil law legal systems.

Question 8

Civil law systems are based on British law.

Question 9

In CASE 24.2 Morrison v.National Australia Bank Ltd.(2010),the U.S.Supreme Court ruled for the plaintiffs in the case against foreign and American defendants for misconduct in connection with securities of a foreign issuer that were purchased on foreign exchanges.

Question 10

The traditional Islamic rules and laws that regulate Muslim life are called Sharia.

Question 11

A preference given by a country to domestic products in government procurement is a type of nontariff barrier to trade.

Question 12

A foreign investor may have to compromise its employment policies to satisfy local requirements.

Question 13

"National treatment" prohibits WTO members from discriminating against imported products in favor of "like products" produced domestically.

Question 14

Civil law systems are found exclusively in European countries.

Question 15

The Department of State administers embargoes imposed on U.S.trade with countries such as Iraq,Cuba,and North Korea.

Question 16

Codification is a process by which existing civil law positions are restated as case precedents.

Question 17

Section 301 of the Trade Act of 1974 is the principal U.S.statute addressing unfair foreign practices affecting U.S.exports of goods or services.

Question 18

When disputes arise,most western European countries use the "American rule" whereby each party,win or lose,generally pays its own attorney fees.

Question 19

A political union represents the agreement of countries regarding constitutional systems.

Question 20

The transfer of technical data to a foreign citizen while that person is present in the United States is generally not considered to be an export.

Question 21

The __________ is the principal multilateral mechanism devoted to the regulation of international trade,which requires member states to abide by the Multilateral Trade Agreements.

A) World Trade Organization
B) Developing Nations Schedule
C) Harmonized Tariff Schedule
D) Generalized System of Preferences

Question 22

If a country exerts nationalization over a company's assets and does not provide compensation,__________ has occurred.

A) expropriation
B) privatization
C) extraterritoriality
D) confiscation

Question 23

The __________ is the program developed by the industrialized countries to assist developing nations by improving their ability to export.

A) Most Favored Nation Treatment
B) Generalized System of Preferences
C) Customary International Law
D) Harmonized Tariff Schedule of the United States

Question 24

The process by which property ownership is transferred from a private entity to a host country that compensates the private entity for its lost assets is called:

A) privatization.
B) nationalization.
C) appropriation.
D) a transfer.

Question 25

To encourage common banking standards and formulate broad supervisory guidelines and oversight practices at foreign banks,__________ was established in 1974.

A) the Basel Committee on Banking Supervision
B) Section 301 of the Trade Act
C) the World Trade Organization
D) the International Control Act

Question 26

A __________ eliminates internal trade barriers among its members as well as adopts common external trade policies toward countries that are not members.

A) customs union
B) political union
C) free trade area
D) foreign trade zone

Question 27

Choice-of-law provisions in a contract seek to avoid later disputes over which law applies.

Question 28

Some countries require employers to fund employee benefits that are not expected in the United States.

Question 29

__________ tariffs require the importer to pay a percentage of the value of the imported merchandise.

A) Ad valorem
B) Ad hoc
C) Harmonized
D) Customs valuation

Question 30

In CASE 24.1 Awad v.Ziriax (2012),Oklahoma passed the "Save Our State Amendment," which provided that Oklahoma courts could not consider international or Sharia law in making decisions.Awad,a Muslim,was the executive director of the state chapter of the Council on American-Islamic Relations and sued.How did the court rule and why?

A) The court dismissed Awad's lawsuit,holding that the First Amendment's Free Exercise clause does not apply to Muslims.
B) The court dismissed Awad's lawsuit,holding that he had no standing to challenge the law.
C) The court ruled for Awad,holding that the amendment violated Awad's First Amendment Right to Free Exercise of Religion.
D) The court ruled for Awad,holding that Awad's right to Due Process and Equal Protection was denied by the amendment.

Question 31

Exports are controlled by means of export:

A) duties.
B) licenses.
C) subsidies.
D) customs valuations.

Question 32

Under GATT's principle of __________ tariffs,each time tariffs are reduced,they may not be raised again without compensation to other World Trade Organization members.

A) absolute
B) based
C) bound
D) nationalized

Question 33

In a series of laws,known collectively as the __________ laws,Congress authorized the president to raise U.S.tariffs on specified products and to provide other forms of import protection to U.S.businesses.

A) export-relief
B) domestic-relief
C) import-relief
D) international-relief

Question 34

Through the process of __________,a nation that was not an original party to a treaty can elect to participate in a treaty at a later time.

A) ratification
B) accession
C) signing
D) approval

Question 35

The __________ was created to provide financing for the purchase of U.S.exports.

A) World Bank
B) U.S.Bank
C) Export-Import Bank of the United States
D) U.S.Trade Association

Question 36

A product is __________ when it is sold abroad below the current selling price in the exporter's home market or below the exporter's cost of production.

A) subsidized
B) dumped
C) underpriced
D) undervalued

Question 37

__________ law legal systems primarily rely on case law and precedents.

A) Common
B) Civil
C) Statutory
D) Codified

Question 38

__________ is the process by which a country asserts a right to regulate activities that occur beyond its borders.

A) Internationalization
B) Nationalization
C) Extraterritoriality
D) Appropriation

Question 39

All member states of the European Union apply a single set of tariffs,called the __________ tariff,on goods imported from outside the European Union.

A) accepted use
B) mandated application
C) common customs
D) European exaction

Question 40

The __________ collects tariffs in the United States.

A) U.S.Customs and Border Protection
B) Department of Commerce
C) International Trade Commission
D) U.S.Trade Representative

Question 41

Senator Rodriguez is tired of all the imports of televisions coming into this country.The senator proposes a bill by which all foreign-made televisions will be taxed an additional $100 before being allowed into the country.Senator Rodriguez receives a great deal of support for this bill,but one senator questions whether such an arrangement is illegal because it will discriminate against imported goods.Which of the following statements is correct?

A) There is no problem with the additional tax because the United States is a sovereign nation.
B) There is no problem with the tax as long as it can be shown that U.S.jobs are being lost due to the number of televisions being imported.
C) Under the principle of national treatment,the United States,as a member of the World Trade Organization,may not discriminate against imported goods and may not apply the tax unless it is also applied equally to domestic products.
D) The tax may not be imposed under the Uniform Trade Initiative.

Question 42

A(n)__________ has features of a customs union but goes a step further by eliminating barriers that restrict the movement of labor,capital,and technology among member nations.

A) valuation market
B) common market
C) import relief consortium
D) nontariff consortium

Question 43

Which of the following statements best describes the difference between arbitration and litigation for international dispute resolution?

A) Unlike arbitration,once litigation has begun,the parties can negotiate around many rules of a legal system.
B) International arbitral bodies often have less experience in dealing with international commercial disputes than their judicial counterparts.
C) Arbitral bodies,unlike courts,can generally keep the nature and the outcome of the dispute confidential.
D) Litigation is potentially more flexible and allows the structure,formalities,and proceedings to be tailored to the specific case at hand.

Question 44

The European Commission is the __________ of the European Union.

A) executive branch
B) legislative branch
C) administrative agency
D) police arm

Question 45

Which of the following is a legal principle of international law under which nations submit their decision-making authority to a common organization or institution?

A) Private international law
B) Supranational law
C) The international naturalized agreement
D) The foreign resolution principle

Question 46

Aidan was just hired to work for a federal agency in the procurement department.Aidan shops for the best buys possible and finds a great deal.Aidan returns to the office and informs the supervisor about this discovery.Aidan's boss tells him to be sure that the Buy American Act is satisfied.What does Aidan find when researching this law?

A) Under all circumstances federal agencies must purchase products that are 100% made in the United States.
B) Under all circumstances federal agencies must purchase products with at least 75% of the components made in the United States.
C) Unless the price is greater than a certain percentage of the price of the equivalent foreign product,federal agencies must buy products with at least 50% of the components made in the United States.
D) Federal agencies may buy foreign-made products as long as it can be established that a representative did comparison shopping and established that the foreign-made good is a better deal than the product made in the United States.

Question 47

__________ is a process used mainly in the area of public international law whereby a third party,often a disinterested government,brings the parties together by establishing communication and providing a site where the parties can meet,often in secret.

A) Public involvement
B) Good offices
C) International involvement
D) Best transactions

Question 48

Since 1977,when the United States enacted the __________ and became the first major industrial country to ban bribes,__________ countries have adopted similar prohibitions.

A) Export Control Reform Initiative; no other
B) Office of Economic Cooperation and Development; all other
C) Foreign Corrupt Practices Act; multiple other
D) 1934 Securities Exchange Act; most other

Question 49

The Council of Ministers is the legislative body of:

A) NAFTA.
B) GATT.
C) the Treaty of Rome.
D) the European Union.

Question 50

The North American Free Trade Agreement provides for elimination of barriers to trade between:

A) the United States,Canada,and Mexico.
B) the United States,Canada,Mexico,and Brazil.
C) the United States and all South American countries.
D) the United States,Mexico,and Central American countries.

Question 51

When internationally accepted arbitration rules are used in conjunction with the parties' own methods of selecting an arbitration panel,it is known as a(n)__________ arbitration.

A) multinational
B) neutral
C) ad hoc
D) private

Question 52

A domestic business can establish a presence in a foreign country to supervise or manage sales with little or no investment __________,or by creating __________ in the host country.

A) through the use of trade representatives from the host country; an import-relief association
B) by setting up a liaison,representative,or branch office in the host country; a subsidiary
C) through subsidiaries; a common market
D) by arranging tariff classifications; extraterritoriality

Question 53

A __________ is created when a group of states reduce or eliminate tariffs between themselves but maintain their own individual tariffs as to other states.

A) free trade area
B) Caribbean basin initiative
C) customs union
D) most favored nation

Question 54

__________ can include boycotts of goods,refusal to maintain commercial relationships,and quotas.

A) Economic sanctions
B) Embargoes
C) Tariffs
D) Dumping

Question 55

If a country exerts nationalization over a company's assets and provides compensation,__________ has occurred.

A) expropriation
B) privatization
C) extraterritoriality
D) confiscation

Question 56

The principle that each World Trade Organization member must accord to all other member countries tariff treatment no less favorable than it provides to any other country is known as the __________ principle.

A) most favored nation
B) preference
C) bound nation protection
D) product enhancement

Question 57

In Kiobel v.Royal Dutch Petroleum Co.(2013),the defendants,who had engaged in oil exploration and drilling in the Ogoni region of Nigeria for decades,were sued by the Ogoni indigenous peoples.The issue before the U.S.Supreme Court was whether the __________ extended to corporations that aid and abet human rights violations as a matter of customary international law.

A) Common Law
B) World Trade Organization.
C) Foreign Corrupt Practices Act.
D) Alien Tort Statute

Question 58

One simple way of addressing foreign tax risks is a(n)__________,whereby the local licensee is obligated to pay all taxes other than those specifically allocated to the foreign partner.

A) gross-up clause
B) tax shift clause
C) local commitment clause
D) overseas investment clause

Question 59

The members of the European Parliament are elected by the __________ of the member states.

A) legislative branch
B) executive branch
C) citizens
D) Council of Ministers

Question 60

As affirmed in Underhill v.Hernandez,U.S.businesses generally cannot look to the U.S.courts for protection from or compensation for acts such as expropriation.The courts rendered this decision based on the:

A) act-of-State doctrine.
B) Foreign Sovereign Immunities Act.
C) doctrine of comity.
D) doctrine of forum non conveniens.

Question 61

Jaye owns a business in a foreign country that is considered "friendly" with the United States but which has significant political unrest.Jaye is uneasy about the situation in the country and concerned that any business could be the subject of a taking by the foreign country or could suffer losses due to civil unrest.What advice would you give Jaye?

A) Jaye should seek insurance through the Foreign Insurance Services Company,a privately run insurance company specializing in foreign risk.
B) Jaye should do nothing at the present,but seek reimbursement through the U.S.government should losses be incurred.
C) Jaye should seek insurance through the Overseas Private Investment Corporation,a U.S.government agency specializing in providing insurance for foreign risk.
D) Jaye should sell the company and leave the country because insurance is not available.

Question 62

The Gulf Oil Corp.v.Gilbert case,addressed the question of forum non conveniens.What factors did the U.S.Supreme Court set forth that courts should consider in deciding whether to dismiss a case based on forum non conveniens?

Question 63

What is the act-of-state doctrine,and how is it generally applied by U.S.courts?

Question 64

What is the purpose of the Foreign Sovereign Immunities Act?

Question 65

What is the principle of comity? What conditions must usually exist for the principle to be applied?

Question 66

Connie owns a retail establishment that sells electronics and does a lot of business with Company ABC in Japan.Connie does not want to learn Japanese law or travel to Japan in the event of a dispute with the company,so Connie seeks advice regarding how to protect from such risks in the event of a dispute.Which of the following would be a good idea for Connie?

A) A choice-of-law provision
B) A choice-of-forum provision
C) A conflict-of-laws provision
D) Both a choice-of-law provision and a choice-of-forum provision

Question 67

Describe the differences between the current British common law system and the U.S.common law system.How is a solicitor different from a barrister in the British system?

Question 68

What seven principle European institutions are primarily responsible for governing the European Union?

Question 69

Hartley,a dress designer,arranges an apparently great deal with a company in Ireland,called Fashion,which has agreed to purchase a number of Hartley's dresses.The manager of Fashion,however,insists on delivery of the dresses before payment will be provided.Which of the following would be a good idea for Hartley?

A) Hartley should insist on a documentary letter of credit provided by an issuing bank promising payment upon proof of delivery of the dresses.
B) Hartley should insist on a letter of credit issued by the buyer promising payment upon delivery of the dresses.
C) Hartley should personally deliver the dresses so that she can demand payment while there.
D) Hartley should turn down the deal because it is too risky.