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

Question 1

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

Answer 1

False
Explanation: Code law is based on an all-inclusive system of written rules (codes) of law. Under code law, the legal system is generally divided into three separate codes: commercial, civil, and criminal.

Question 2

The General Agreement on Trade and Tariffs, a major provision of the World Trade Organization, is the most comprehensive multilateral agreement on intellectual property to date.

Answer 2

False
Explanation: The Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement, a major provision of the World Trade Organization, is the most comprehensive multilateral agreement on intellectual property to date.

Question 3

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.

Answer 3

False
Explanation: If conciliation is not used or an agreement cannot be reached, the next step is arbitration.

Question 4

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.

Question 5

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

Question 6

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

Question 7

Charging what the market will bear is a suggested strategy for IP-rich firms to make money in China.

Question 8

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

Question 9

In Marxist-socialist societies, law is subordinate to prevailing economic conditions.

Question 10

Another term for conciliation is mediation.

Question 11

Most disputes that arise in commercial transactions are settled informally.

Question 12

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 13

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

Question 14

Names of the arbitrators should be avoided in legal documents or contracts.

Question 15

The World Court can settle disputes between governments.

Question 16

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 17

Islamic law is known as the fatwah.

Question 18

For some companies, piracy is beneficial.

Question 19

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

Question 20

For American companies, establishing rights in the United States confers protection for their rights universally.

Question 21

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 22

The responsibility of determining if a license is required rests with the exporter.

Question 23

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

Question 24

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 25

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

A) constitutional law
B) code law
C) family law
D) religious law
E) traditional law

Question 26

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 27

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 28

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

Question 29

Laws governing _____ offer the most striking differences between common-law and code-law systems.

A) international trade
B) civil disputes
C) criminal offence
D) intellectual property
E) domestic industry

Question 30

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

A) Common law
B) Constitutional law
C) Code law
D) Theological law
E) Family law

Question 31

_____ 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 32

Apart from intellectual property laws, another illustration of how fundamental differences in the common and code systems can cause difficulty is:

A) civil laws.
B) laws governing export and import.
C) heredity laws.
D) criminal laws.
E) in the performance of a contract.

Question 33

Another term for code law is:

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

Question 34

Under common law, ownership is established by _______; under code law, ownership is determined by ___.

A) heredity; shareholding
B) use; registration
C) tradition; legal right
D) legal right; patent
E) shareholding; use

Question 35

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 36

Internet Service Providers (ISPs) buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price.

Question 37

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 38

_____ seeks "interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts."

A) Constitutional law
B) Family law
C) Criminal law
D) Civil law
E) Common law

Question 39

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

A) litigation
B) common law
C) code law
D) constitutional rights
E) intellectual property

Question 40

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 41

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

A) The preferred court/legal body of arbitration.
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 42

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 43

Islamic law is known as the ___.

A) Ulema
B) Jihad
C) Fatwa
D) Shari'ah
E) Barakah

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

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 47

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 48

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 49

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

A) Criminal suits
B) Conciliation
C) Arbitration
D) Litigation
E) Coercion

Question 50

The basis of _____ is the Koran.

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

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) Disputes between trade bodies of various countries

Question 52

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 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

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 55

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

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

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

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 58

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

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

Question 59

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 60

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

Question 61

_____ is by its nature a global enterprise for which no political or national boundaries exist.

A) The ASEAN
B) The OPEC region
C) The Internet
D) The European Union
E) The NAFTA region

Question 62

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 63

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 64

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 65

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 66

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 67

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

Question 68

_____ buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price.

A) Patent trolls
B) Server farms
C) Domain name registries
D) Cybersquatters
E) Universal resource locators

Question 69

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 70

According the press on the topic, which of the following countries is the biggest piracy problem?

A) Myanmar
B) China
C) Ukraine
D) Finland
E) Pakistan

Question 71

Which of the following is the most comprehensive multilateral agreement on intellectual property to date?

A) World Intellectual Property Organization Charter
B) Trade-Related Aspects of Intellectual Property Rights
C) Inter-American Convention Agreement
D) The Madrid Arrangement
E) Paris Agreement for the Protection of Industrial Property

Question 72

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 73

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 74

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 75

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 76

According to Canadian law, what is the standard expected by courts in Canada in determining whether a representation is false or misleading?

A) De Novo standard
B) Credulous person standard
C) Clearly Erroneous standard
D) Arbitrary and Capricious standard
E) Discretionary standard

Question 77

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 78

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 79

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 80

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