Deck 52: International Law in a Global Economy

Question 1

The doctrine of sover?eign immu?nity can immunize a foreign nation from the jurisdiction of U.S. courts.

Answer 1

True

Question 2

The Foreign Sovereign Immunities Act spells out the particulars of what constitutes a com?mercial activity.

Answer 2

False

Question 3

Confiscation occurs when a government seizes a private property for a proper public purpose and awards just compensation.

Answer 3

False

Question 4

A treaty is a contract or other agreement between two or more nations that must be ratified by the United Nations to take effect.

Question 5

In a common law system, the courts independently develop the rules governing certain areas of the law.

Question 6

Under the principle of comity, a foreign business that deals with a U.S. business may be subject to U.S. law.

Question 7

An international custom is a general practice accepted in the international arena as law.

Question 8

Under the act of state doctrine, a firm whose assets a foreign gov?ernment has expro?priated may not recover compensatory damages in a U.S. court.

Question 9

Firms overseas have almost total legal protection against government acts in the countries in which they operate, under the act of state doctrine.

Question 10

A foreign state is immune from the jurisdiction of U.S. courts as long as the state is involved in commercial activity in the United States.

Question 11

Expropriation occurs when a government seizes private property for an il?legal pur?pose and awards just compensation.

Question 12

Legal systems around the world are generally divided into common law and civil law systems.

Question 13

In a civil law system, courts impose only civil sanctions for the commission of crimes.

Question 14

The simplest way for a U.S. firm to do business in a foreign mar?ket is to ex?port its products directly to that market.

Question 15

In a civil law system, the only official source of law is a statutory code.

Question 16

The act of state doctrine provides that only a head of state can make trea?ties with an?other nation.

Question 17

International law is a body of law that governs relations among nations.

Question 18

Common law and civil law systems are wholly distinct.

Question 19

International law attempts to reconcile the authority of each nation over its own affairs with its desire to benefit from trade and harmonious relations.

Question 20

The principle of comity is based primarily on international treaties.

Question 21

A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort allegedly committed overseas.

Question 22

Dumping is the exporting of environmentally polluting goods to a foreign market

Question 23

A foreign citizen can bring a civil suit in a U.S. court for a violation of a treaty of the United States.

Question 24

Dumping is the sale of imported goods at "greater than fair value."

Question 25

The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members.

Question 26

Quotas are limits on the amounts of goods that can be imported.

Question 27

Restrictions on imports may include quotas.

Question 28

Franchising is a form of licensing.

Question 29

Antidumping duties are the responsibilities of international environmental polluters.

Question 30

Tariffs are imposed only on exports.

Question 31

Tariffs are taxes on imports.

Question 32

The chief aim of the World Trade Organization and other trade agreements is to maximize trade barriers among their members.

Question 33

All nations have restrictions on imports.

Question 34

Congress cannot impose any restrictions on exports except taxes.

Question 35

A party to a licensing agreement agrees to keep certain information confidential.

Question 36

A party to a licensing agreement generally agrees to pay royalties on some basis.

Question 37

The whistleblower provisions of the Sarbanes-Oxley Act of 2002 have foreign, as well as domestic, application.

Question 38

Restrictions on exports may include tariffs.

Question 39

A foreign state is immune from the jurisdiction of U.S. courts unless the state is involved in commercial activity within the United States.

Question 40

A foreign citizen can bring a civil suit in a U.S. court for a violation of a treaty of the United States.

Question 41

UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela seizes the property, UniOil asks a U.S. court to order the property's return. The court rules that Venezuela is exempt from the court's jurisdiction. This is

A) a travesty of justice.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

Question 42

Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Irish court's decree. This is

A) a travesty of justice.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

Question 43

Hemisphere Financial Corporation, a U.S. firm, files a suit against Italy in a U.S. court. Italy claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act, this claim is determined by

A) a neutral third-party court.
B) an international law court.
C) an Italian court.
D) the U.S. court in which the suit is filed.

Question 44

The government of the United States and the governments of other nations have the power to enforce their respective national laws within their borders. The power to enforce international law within the borders of all nations rests with

A) no court or international organization.
B) the European Union.
C) the International Court of Justice.
D) the United Nations General Assembly.

Question 45

China and India form an agreement to govern their commercial ex?changes with one another. This is

A) a bilateral agreement.
B) a lateral agreement.
C) a multilateral agreement.
D) a unilateral agreement.

Question 46

WiFi Corporation, a U.S. firm, signs a contract with Bueno Computadores, Ltd., an Argentinean firm, for a shipment and payment for WiFi's goods. This is

A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Question 47

Fact Pattern 52-1B
Sociedad Guarantia , a Mexican firm, borrows $1 million from Tri-national Bank, a U.S. firm. Later, SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of certain payments on the loan. Tri-national files a suit against SG in a U.S. court, arguing that the funds do not belong to SG.
Refer to Fact Pattern 52-1B. The U.S. court in Tri-national's suit is most likely to apply the principle of comity because

A) the actions of foreign nations "taken in connection with commer?cial activities" are exempt from the jurisdiction of U.S. courts.
B) the bankruptcy proceedings in the Mexican court appear to be fun?damentally fair and not in violation of U.S. public policy.
C) the courts of one country will not review the validity of acts by the courts of another country within their own jurisdiction.
D) the nations of the world are constitutionally bound to honor the ac?tions of each others' courts.

Question 48

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is

A) confiscation.
B) defalcation.
C) dumping.
D) expropriation.

Question 49

Business Abroad, Inc., a U.S. firm, obtains a judgment in a U.S. court against Quang Tri, Ltd., a Vietnamese business. Whether the court's judgment will be enforced by a court in Vietnam depends on the Vietnamese court's application of

A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the principle of comity.
D) the World Trade Organization .

Question 50

The Association of Southeast Asian Nations is a regional trade associa?tion that was created through

A) a bilateral agreement.
B) a lateral agreement.
C) a multilateral agreement.
D) a unilateral agreement.

Question 51

Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

A) confiscation.
B) defalcation.
C) dumping.
D) expropriation.

Question 52

Mexico has a civil law system. In theory, in this system, the courts

A) are obligated to follow the doctrine of stare decisis.
B) may not develop their own laws.
C) must create new rules of law.
D) must develop legal concepts by case law.

Question 53

Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by

A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the Foreign Corrupt Practices Act.
D) the principle of comity.

Question 54

Pakistan giving effect to the laws and court decisions of the United States is an application of

A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the principle of comity.
D) the World Trade Organization.

Question 55

Yoko, Ltd., and Zeno, S.A., transact an international sale of goods. For these parties, and other international buyers and sellers, the United Nations Convention on Contracts for the International Sale of Goods spells out the duties that apply

A) if Article 2 of the Uniform Commercial Code does not apply.
B) if a dispute is submitted to the International Court of Justice.
C) if the parties have not agreed otherwise in their contracts.
D) under all circumstances.

Question 56

Global Properties, Inc. (GPI), a U.S. firm, owns property in Hong Kong. The government in Hong Kong takes GPI's property without paying for it. A U.S. court will proba?bly not examine the validity of this act commit?ted by China within its own territory, under

A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the principle of comity.
D) the World Trade Organization .

Question 57

Fact Pattern 52-1B
Sociedad Guarantia , a Mexican firm, borrows $1 million from Tri-national Bank, a U.S. firm. Later, SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of certain payments on the loan. Tri-national files a suit against SG in a U.S. court, arguing that the funds do not belong to SG.
Refer to Fact Pattern 52-1B. Under the principle of comity, the U.S. court in Tri-national's suit is most likely to

A) ask the Mexican court to drop SG's petition.
B) ask Tri-national to drop its suit.
C) dismiss Tri-national's suit.
D) order the Mexican court to deny SG's request.

Question 58

Overseas Trading Corporation is a U.S. firm that does business here and abroad. International law establishes standards for

A) nations and private transactions that cross national borders.
B) nations only.
C) neither nations nor private transactions that cross national borders.
D) private transactions that cross national borders only.

Question 59

The government of Iran violates an international law. Persuasive tactics to remedy the situation fail. The only recourse of other nations is to

A) approve the European Union's enforcement of the law.
B) ask the International Court of Justice to enforce sanctions.
C) seek enforcement of the law through the United Nations.
D) take coercive action-sever relations, impose boycotts, go to war.

Question 60

Precision Motors Corporation (PMC), a U.S. firm, expands into international markets through a joint venture. In this situation, PMC owns

A) all of the operation.
B) as much of the operation as PMC wants.
C) none of the operation.
D) part of the operation.

Question 61

The Council of Ministers and the Court of Justice are among the govern?ing authorities of an international trading organization known as

A) the European Union.
B) the North American Free Trade Agreement.
C) the United Nations.
D) the World Trade Organization.

Question 62

World Trading Company imports products made in South America to North America, including the United States. Restrictions on these imports may include

A) neither quotas nor tariffs.
B) quotas only.
C) quotas or tariffs.
D) tariffs only.

Question 63

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is

A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Question 64

The United States and other members of a certain organization agree to grant normal trade relations status on each other with regard to im?ports and exports. This organi?zation is

A) the Convention on Contracts for the International Sale of Goods.
B) the International Export-Import Bank.
C) the United Nations.
D) the World Trade Organization.

Question 65

Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure owns

A) all of the operation, and its profits and liabilities.
B) all of the operation, and none of its profits and liabilities.
C) none of the operation, and none of its profits and liabilities.
D) part of the operation, and shares its profits and liabilities.

Question 66

Expansive Sales Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Germany. In this situation, Expansive retains

A) control over the operation and ownership of the foreign facility.
B) control over the operation, but not ownership of the foreign facility.
C) neither control over the operation nor ownership of the foreign facility.
D) ownership of the foreign facility, but not control over the operation.

Question 67

Vieux Carré S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of

A) comparable goods in a select "basket" of other countries.
B) Vieux Carré's goods in France.
C) Vieux Carré's goods in the United States.
D) Vieux Carré's goods on the world market.

Question 68

Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restau?rants in Germany. This is

A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Question 69

Exotic Pets, Inc., exports goods from the United States in violation of ex?port laws. Fiery Products Corporation makes its goods in the United States, where Fiery sometimes sells them for less than cost. Anti?dumping duties may be imposed on

A) Exotic's exports and Fiery's products.
B) Exotic's exports only.
C) Fiery's products only.
D) neither Exotic's exports nor Fiery's products.

Question 70

Eagle, Inc., a U.S. firm, contracts with Fong, Ltd., a Hong Kong firm, al?lowing Fong to use and profit from Eagle's patented products. This is

A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Question 71

The government of Canada sets a limit on the amount of beef that can be imported from the United States. This is

A) a dumping duty.
B) an antidumping duty.
C) a quota.
D) a tariff.

Question 72

Sam, or any U.S. citizen, can bring a civil suit in a U.S. court against a foreign entity for

A) a tort allegedly committed in the United States only.
B) a tort allegedly committed in the United States or overseas.
C) a tort allegedly committed overseas only.
D) no purpose.

Question 73

Congresswoman Pelosi and other politicians want to prohibit the import of certain agricultural products that pose a danger to domestic crops. With respect to these products' import, Congress can

A) do nothing.
B) impose quotas, but not tariffs.
C) impose tariffs, but not quotas.
D) prohibit the imports.

Question 74

Senator Wyden and other politicians want to restrict the flow of technologically advanced products and data from the United States to other countries. To restrict or encourage exports, Congress can

A) do nothing.
B) assess antidumping duties.
C) impose export taxes.
D) set export quotas.

Question 75

The United States taxes each barrel of imported oil at a flat rate. This is

A) an antidumping duty.
B) a dumping duty.
C) a quota.
D) a tariff.

Question 76

Wang Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is

A) confiscation.
B) defalcation.
C) dumping.
D) expropriation.

Question 77

The United States is a member of the World Trade Organization, which, among its members,

A) does not affect trade barriers.
B) maximizes trade barriers.
C) minimizes trade barriers.
D) outlaws trade barriers.

Question 78

Fabiola, or any foreign citizen, can bring a civil suit in a U.S. court for

A) a violation of a treaty of the United States only.
B) a violation of a treaty of the United States or of the law of nations.
C) a violation of the law of nations only.
D) no purpose.

Question 79

Innovative Manufacturing Company, a U.S. firm, signs a contract with Librador Corporacion, a Columbian firm, to give Librador the right to use Innovative's production processes. This is

A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Question 80

Qang and other foreign citizens allege human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can

A) "blow the whistle" under the Sarbanes-Oxley Act.
B) bring civil suits under the Alien Tort Claims Act.
C) file criminal complaints under Title VII of the Civil Rights Act.
D) do nothing.