Deck 7: Intellectual Property and Other Legal Forces

Question 1

The U.S.avoids extraterritorial application of its laws.

Answer 1

False

Question 2

ISO (International organization for Standardization)is the only international standardizing organization.

Answer 2

False

Question 3

No worldwide course has the power to enforce its decrees.

Answer 3

True

Question 4

The European Patent Organization makes filing for a patent in all 27 EU member states more difficult than it was previously.

Question 5

To what degree a country's legal system is based on the rule of law makes no difference; it is personal relationships that matter in foreign environments.

Question 6

A choice-of-law clause specifies which law will apply in the event of a dispute and is a good idea to include.

Question 7

The source of international law is frequently the United Nations.

Question 8

Under U.S.law,price fixing is illegal per se,while in other countries,damage or harm has to be done; this is the case in the EU.

Question 9

Arbitration provides foreign businesses a forum other than the U.S.court system to address disputes that involve U.S.sellers or buyers.

Question 10

The UN Convention on the International Sale of Goods (CISG)has established legal rules and outlined the rights and obligations of the buyer and seller.

Question 11

Intellectual property includes patents and trademarks,but not copyrights.

Question 12

Legal uncertainties constrain the growth of international business.

Question 13

There is one main organization that offers IP protection,the UN.

Question 14

The U.S.enforcement of EEOC law in U.S.companies operating abroad is an example of extraterritoriality.

Question 15

Many smaller and developing nations want to reduce patent protection from the current 15 to 20 years down to 5 years or even 30 months.

Question 16

Customary international law draws on practices that have been followed often for centuries.

Question 17

Incoterms are established by the UN Commission on International Trade.

Question 18

Global trademark protection follows the Office of Harmonization in the Internal Market approach.

Question 19

The World Intellectual Property Organization is a UN agency that administers 24 intellectual property treaties.

Question 20

Global standardization of trade-related law is progressing slowly.

Question 21

The FCPA,along with the OECD convention and the UN Convention against Corruption have brought the discussion of bribery and transparency into the open.

Question 22

The Foreign Corrupt Practices Act (FCPA)clearly stipulates terminology and behavior that is illegal on the part of U.S.businesses and foreign business operating in the U.S.

Question 23

Where litigation should occur has to do with the location of the problem and is usually clear to both the defendant and plaintiff.

Question 24

If you're a Westerner and become victim of a miscellaneous law in a foreign country,all you have to do is call your embassy and you'll be released to your government.

Question 25

In the U.S.punitive damage rulings have no measureable effect on medicine.

Question 26

Chinese courts are known for their bias against foreigners.

Question 27

The source of international law is mostly the tendency of powerful nations to apply their laws extraterritorially.

Question 28

The U.S.at times applies antitrust law extraterritorially.

Question 29

Contingency fee cases are limited to the U.S.

Question 30

Microsoft is an example of how a company can avoid multiple antitrust laws in multiple jurisdictions,thanks to equalization agreements.

Question 31

The EU does not apply its competition policy beyond the EU.

Question 32

By UN regulation,contracts can not contain choice of law and choice of forum clauses.

Question 33

Japanese cultural values suggest that in Japan,antitrust law against cartels would be strictly enforced.

Question 34

Tax law is exempt from extraterritoriality.

Question 35

Many U.S.laws affect activities of international firms,and their impacts have been coordinated.

Question 36

Product liability is an area of torts in which the U.S.courts can make large awards,unlike in other countries.

Question 37

Tariffs are categorized as financial and political forces,but they are usually not seen as legal forces.

Question 38

Arbitration is less popular than legal proceedings,largely because arbitration moves too slowly.

Question 39

In the antitrust area,the U.S.is concerned with the impact of the business deal on the consumer,whereas the EU focus is on the competitive structure of the marketplace,so pays attention to rivals.

Question 40

The U.S.avoids trade barriers on imports in support of free trade principles.

Question 41

FCPA includes

A)uncertainties that make its application problematic.
B)specific explicit rules with clear definitions of terms that U.S.companies must follow in their foreign operations.
C)all accounting processes,including the accounting of transfer payments.
D)foreign tax liabilities and other adjustments specific to business outside of the home country.

Question 42

Patent trolls are

A)a record of all patents,recorded by the UN.
B)the numerical controls issued on patents,standardized by the Paris Convention.
C)the organizing system for patent review that is kept internationally by OECD.
D)modern highway robbers who exploit loopholes in IP protection.

Question 43

If an international manager runs afoul of a miscellaneous law while working abroad,calling the embassy

A)will ensure that the charges be dropped.
B)to let them know of the situation may be a good idea,but usually the embassy cannot help much.
C)will lead to meetings that will arrange for everything.
D)to explain the various cultural values in your homeland to the foreign government official is a reasonable approach.

Question 44

Punitive damages in product liability cases can be awarded in

A)Japan.
B)Japan and the EU.
C)the UK.
D)the U.S.

Question 45

The FCPA has

A)hurt American business because managers cannot use bribes any more.
B)challenged the creativity of American managers and consultants to develop ways to work around the FCPA.
C)brought the discussion of bribery into the open,which has,overall,been positive.
D)resulted in American foreign business going to Japanese and German businesses.

Question 46

Antitrust law is intended to

A)challenge successful businesses to allow proper levels of competition.
B)prevent large concentrations of economic power,such as monopolies.
C)create a more trusting business environment.
D)allow socialism to flourish.

Question 47

One difference between the U.S.and EU approach to antitrust law is that

A)the U.S.follows the per se concept,wherein actions are illegal whether they have done harm.
B)the EU forbids market dominance by cartels,no matter the conditions,whereas the U.S.does not.
C)the U.S.focus is on impact on competition,whereas the EU focus is on the consumer.
D)the EU avoids competition,whereas the U.S.seeks it.

Question 48

Enforcing contracts that cross international borders is

A)simply a matter of applying the local law to the contract.
B)quite complicated and governed in most nations by the CISG.
C)secondary to who has possession of the goods,regardless of title.
D)nearly impossible,so negotiation is important.

Question 49

Smaller nations would like patent protection

A)extended,to allow for them to build their competitive advantage.
B)extended,so that they can recoup development costs.
C)reduced,so that they can enter the game earlier,possibly with generics.
D)extended,so that their profits can increase.

Question 50

Transparency International's 2008 Index lists which countries as being among the most transparent?

A)Canada,Belgium,the Netherlands
B)Singapore,Hong Kong,Italy
C)the U.S.,Italy,France
D)Russia,Singapore,Spain

Question 51

WIPO is a

A)UN agency that administers intellectual property treaties and advises countries on intellectual property-related administrative issues.
B)WTO group opposed to patent extension and pro-generic.
C)part of the Club of Rome that lobbies for longer patent periods.
D)a research arm of the Fuel Cartel that has been advocating longer patent protection for biofuel processing systems.

Question 52

A patent gives the inventor

A)property rights for 10 years.
B)the right to use the invention until development costs are recouped.
C)exclusive right to manufacture,exploit,use and sell the invention for a given time period.
D)the right to keep the patented process but not the product for five years.

Question 53

Trademarks can be

A)a shape,color,design,sound,phrase,abbreviation by which the product is designated.
B)any visual property consciously associated with the product.
C)a design associated with the product,using color and shape.
D)a mark under which the firm does business.

Question 54

Anyone studying legal forces affecting international business soon realizes

A)there is a remarkable level of coordination among legal systems in the developed nations.
B)that most laws are predictable,and that,although there is variance,what constitutes illegal behavior is commonly shared.
C)the variety of these forces complicates the task of understanding the laws.
D)thanks to the World Court,officials in most legal systems are open to collaborating with their international colleagues.

Question 55

The Foreign Corrupt Practices Act is U.S.legislation that

A)outlines bribery practices that are allowed abroad but not in the U.S.
B)prohibits bribery by American companies abroad.
C)allows bribery in foreign dealings when culturally sanctioned.
D)outlines and prohibits foreign bribery practices by foreign nationals in foreign nations.

Question 56

The U.S.antitrust law contains both civil and criminal penalties,

A)neither of which can be applied outside the U.S.
B)and the criminal penalties apply to foreign companies even if the conspiracy took place outside the U.S.
C)but their application to foreign companies is limited to actions that have taken place within the U.S.
D)and they can be administered by foreign courts.

Question 57

Patent treatment is standardized thanks to

A)the WTO.
B)the UN Commission on Patents.
C)domestic laws in various nations.
D)the European Patent Organization and the Paris Union.

Question 58

The concept of strict liability,as found in the U.S.legal system,applies

A)to harm done by the designer/manufacturer without the need to prove negligence.
B)to harm done within narrow limits,considering the design of the product.
C)to children harmed by products in both the U.S.and EU.
D)strictly to harm caused by the designer/manufacturer,so no penalties outside of damages can be awarded.

Question 59

Usually,assuming that foreign law

A)will be similar to U.S.law is reasonable.
B)will differ from U.S.law and must be understood is a reasonable approach.
C)won't matter because you and your trading partner will agree to arbitrate is reasonable.
D)will be biased against the foreigner is reasonable.

Question 60

Incoterms include

A)FAS and DAF.
B)CFR and COD.
C)INSAP and ECO.
D)SAE and EBI.

Question 61

Patents are government grants that give the owner

A)exclusive rights to use,sell,manufacture or exploit the invention or process.
B)the exclusive right to use the fundamental ideas on which the invention is based.
C)the rights to sell the invention,but only beyond the patent-granter's borders.
D)rights to the invention but does not prevent others from copying the invention.

Question 62

The existence of the rule of law in a foreign market suggests that

A)lawyers will be necessary in any substantive business transaction.
B)personal relationships will be less effective than in a country governed outside the rule of law system.
C)legal rulings will be the basis of any dispute resolution.
D)foreign investors can assume that their interests will be protected.

Question 63

Incoterms attempt to standardize shipping agreements,and include

A)FAS and CIF.
B)CED and COD.
C)descriptions of portside processes.
D)insurance arrangements for international shipments.

Question 64

The ISO and the IEC both promote

A)harmonization in international accountancy.
B)standardization in technology-related fields through specifications.
C)union membership in fields that are technology-intensive.
D)shared bankruptcy standards across the globe.

Question 65

U.S.antitrust law is applied

A)to all firms doing business in the U.S.
B)to all firms,extraterritorially
C)to U.S.-owned firms with assets in the U.S.
D)to all firms with assets in the U.S.

Question 66

If two English multinational companies had a dispute arising in New York City,and there were no choice of law or choice of forum clauses in their contract,it is likely that

A)a New York court would hear their complaint.
B)they would bring their dispute to an English court.
C)the dispute would not get heard in court,but rather,in the boardrooms.
D)they would reach an agreement informally and develop an off-the-books settlement.

Question 67

Where litigation in international disputes should occur is

A)usually evident from the documentation available.
B)at times unclear,in which case,the UN International Court of Justice will make a jurisdictional ruling.
C)often complex,so contracts should include choice of law and choice of forum clauses.
D)dictated by where the problem arose; a problem arising in India is adjudicated in India.

Question 68

With patents,there is standardization,

A)to some degree,through the Paris Union and the EPO,but harmonization is still in the future.
B)there no standardization,so often companies such as Nestle file many patents applications in different countries.
C)total harmonization has been reached through UN accords.
D)thanks to the accounting harmonization process.

Question 69

Extraterritoriality is

A)a nation's attempt to enforce its law beyond its borders.
B)added territory as a result of dispute settlements in wars,such as the Sakalin Islands.
C)a citizen's claim to government assistance in a foreign environment.
D)a taxable condition most international firms attempt to avoid.

Question 70

The main sources of international law are

A)the UN International Court of Justice.
B)the U.S.Supreme Court and the EU Court of Justice.
C)bilateral and multilateral treaties,along with customary law.
D)nonexistent.

Question 71

Unlike antitrust or competition proceedings in the EU,in the U.S.such proceedings

A)may involve civil and criminal penalties.
B)are heard at the local level.
C)involve the top-management-team.
D)are head by a 3-judge panel.

Question 72

The Alien Torte Statute allows foreigners to

A)sue in the U.S.courts for residency in the U.S.
B)file claims in U.S.courts for violations of international law that may have occurred beyond the U.S.borders.
C)file claims in U.S.courts for alleged violations of foreign laws.
D)file claims against other foreign nationals for violation of U.S.EEOC law.

Question 73

Trade names are protected under

A)national laws in all UN member countries.
B)the International Convention for the Protection of Industrial Property.
C)many local laws in most countries,so that illegal trademark use is a local issue.
D)longstanding convention,but no legal agreements.

Question 74

In the U.S.and EU,attitudes toward competition

A)are quite similar.
B)are based of differing assumptions,with the U.S.following a per se concept and the EU concerned about the existence of harm.
C)differ because the EU is anti-competitive; its Commission on Competition ensures competition isn't too severe.
D)differ on the role of market dominance,the U.S.supporting it and the EU wanting to avoid it.

Question 75

Legal uncertainties have affected international business;

A)they have slowed down IB growth.
B)they have not,though,slowed down the growth of IB; instead,they have made it more complex.
C)prices and insurance costs have risen.
D)fewer large businesses want to be involved across national borders due to the uncertainties of the legal environment.

Question 76

Patent trolling is a process of

A)looking for loopholes in patent protection and exploiting them.
B)recording and registering of patents in foreign countries to protect the firm's IP.
C)searching out patents that have expired and negotiating their replacements.
D)legal research that uncovers obscure,deceased patent-holders and liberating their inventions.

Question 77

Arbitration is often preferred because it is

A)easier to influence an arbiter than a judge.
B)quicker,cheaper,and more private than the U.S.court system.
C)more discreet,although more costly than the court system.
D)less bureaucratic than the court system of any country.

Question 78

Intellectual property includes

A)intangibles,which is why it is a difficult area.
B)thoughts and ideas,but not tangible products.
C)anything that is a result of a creative process that does not have material qualities.
D)anything that is the result of things created using someone's intellect.

Question 79

The EU applied its competition policy

A)extraterritorially.
B)only within EU.
C)within the EU and applicant states.
D)within the EU and other European nations.

Question 80

WIPRO and TRIPS represent

A)patent harmonization agreements in SE Asia and the EU,respectively.
B)anti-counterfeiting agreements in Korea and North America,respectively.
C)WTO and UN agreements on IP.
D)UN and WTO agencies or programs that focus on IP.