Question 1

National law is formed as a result of international treaties, customs, and organizations.

Accepted Answer

National law is primarily formed through a country's own legislative processes, although it can be influenced by international treaties and customs.

Question 2

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

Accepted Answer

False

Question 3

Under the principle of comity, foreign nations are exempt from the jurisdiction of U.S. courts.

Accepted Answer

Under the principle of comity, foreign nations are given deference and respect by U.S. courts, but they may not necessarily be exempt from their jurisdiction. In certain circumstances, U.S. courts may have jurisdiction over foreign nations, such as in cases involving the Foreign Sovereign Immunities Act.

Question 4

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

Accepted Answer

The principle of comity recognizes that a country will defer to and give effect to the laws and judicial decrees of another country out of respect and deference, without necessarily adopting them as its own. This means that a foreign business that deals with a U.S. business may be subject to U.S. law under the principle of comity.

Question 5

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

Accepted Answer

The answer of Confiscation occurs when a government seizes private...

Question 6

Many countries guarantee compensation to foreign investors if their property is taken.

Accepted Answer

Many countries have laws in place that guarantee compensation to foreign investors in the event of property expropriation or nationalization. This is done to promote foreign investment and protect the property rights of foreign investors.

Question 7

The principle of comity is based primarily on international treaties.

Accepted Answer

The principle of comity is based on the recognition and respect of the laws and judicial decisions of other countries, rather than being strictly based on international treaties. While some international treaties may include provisions related to comity, it is not the primary basis for the principle.

Question 8

A party to a licensing agreement generally agrees to pay royalties.

Accepted Answer

Royalties are a common form of compensation in licensing agreements, where the licensee agrees to pay a percentage of sales or other specified payment to the licensor in exchange for the use of their intellectual property.

Question 9

Restrictions on imports may include strict prohibitions.

Accepted Answer

Restrictions on imports can include strict prohibitions on certain goods or products. This is often seen in cases where the imports pose a threat to national security, public health, or the environment.

Question 10

The Foreign Sovereign Immunities Act spells out what a "foreign state" includes.

Accepted Answer

The Foreign Sovereign Immunities Act defines what constitutes a "foreign state."

Question 11

Restrictions on exports may include tariffs.

Accepted Answer

The answer of Restrictions on exports may include tariffs....

Question 12

Franchising is a form of licensing.

Accepted Answer

Franchising is a form of licensing where a franchisee (individual or company) is granted the right to use the trademarks, products, services, and operating systems of a franchisor (usually a larger parent company) in exchange for an initial fee and ongoing royalties.

Question 13

The act of state doctrine provides that only a head of state can make treaties with another nation.

Accepted Answer

The act of state doctrine is a principle of law that bars a domestic court from reviewing the validity of public acts committed by a foreign government within its own territory. It does not relate to the authority to make treaties, which is typically reserved for the executive branch (in the US, the President).

Question 14

The act of state doctrine can have important consequences for firms doing business in other countries.

Accepted Answer

The act of state doctrine is a legal principle that governs the relationship between foreign governments and national courts. It provides that a court will not question the validity of an act done by a foreign government within its own territory. This can have important consequences for firms doing business in other countries, as their dealings with the foreign government may be subject to this doctrine.

Question 15

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

Accepted Answer

A foreign state may still be subject to jurisdiction in certain circumstances, such as if it has waived immunity or if the lawsuit involves certain types of claims, such as cases involving terrorism or certain violations of international law.

Question 16

Under the act of state doctrine, a firm whose assets a foreign government has expropriated may not recover compensatory damages in a U.S. court.

Accepted Answer

Under the act of state doctrine, U.S. courts will not review the validity of a foreign government's actions within its own territory. Therefore, a firm whose assets have been expropriated by a foreign government may not seek compensatory damages in a U.S. court.

Question 17

Congress cannot impose any restrictions on exports except taxes.

Accepted Answer

Congress has the power to impose restrictions on exports through laws and regulations, such as embargoes, licensing requirements, and trade agreements. Taxes are one tool that can be used to regulate exports, but they are not the only one.

Question 18

Antidumping duties are the responsibilities of international environmental polluters.

Accepted Answer

Antidumping duties refer to additional taxes or tariffs imposed by a country on imported goods that are sold at a lower price than their fair market value. It has nothing to do with environmental pollution or the responsibilities of polluters.

Question 19

In an exclusive distributorship, a distributor agrees to distribute only the seller's goods.

Accepted Answer

In an exclusive distributorship, the distributor is restricted from distributing any other similar or competing products, and therefore agrees to distribute only the seller's goods.

Question 20

The simplest way for a U.S. firm to do business in a foreign market is to establish manufacturing plants abroad.

Accepted Answer

Establishing manufacturing plants abroad is not necessarily the simplest way for a U.S. firm to do business in a foreign market as it involves significant investment and resources. Other options such as licensing, franchising, or exporting may be simpler and less costly.

Quiz 9: International Law in a Global Economy