Question 1

When companies operate abroad in the absence of home-country legal constraints,the best choice for ethical conduct would be:

Accepted Answer

The answer of When companies operate abroad in the absence...

Question 2

Antitrust laws in the United States and other countries are designed to combat restrictive business practices and to discourage competition.

Accepted Answer

Antitrust laws are designed to combat restrictive business practices and to encourage competition, not discourage it.

Question 3

The U.S.Justice Department objected to a recent patent license agreement between S.C.Johnson & Sons and Bayer AG.The antitrust unit at the Justice department objected to:

Accepted Answer

The exclusive nature of the license agreement likely raised concerns about potential anticompetitive effects, such as limiting competition or innovation in the relevant market. Exclusive licenses can sometimes prevent other companies from accessing important technologies or products, which can harm consumers by reducing choices or increasing prices.

Question 4

A key issue is global patent protection for software.Although copyright law protects the computer code,it does not apply to the idea embodied in the software.

Accepted Answer

Copyright law protects the expression of ideas (such as the specific code written for software) but does not protect the ideas, procedures, processes, systems, methods of operation, concepts, principles, or discoveries themselves, which might be covered by patent law if they meet certain criteria.

Question 5

In the United States,the Foreign Corrupt Practices Act (FCPA)is a legacy of the Watergate scandal during Richard Nixon's presidency.Administered by the Department of Justice and the Securities and Exchange Commission,the act is concerned with disclosure and prohibition.What is this law concerned with,and why is it a subject of criticism by many?

Accepted Answer

The answer of In the United States,the Foreign Corrupt Practices...

Question 6

The following criminal penalties may be imposed for violations of the FCPA'S (Foreign Corrupt Practices Act)antibribery provisions except:

Accepted Answer

Fines imposed on individuals under the FCPA's antibribery provisions cannot be paid by their employer or principal. This is designed to ensure that individuals bear personal responsibility for their actions.

Question 7

What are some of the criticisms of the Foreign Corrupt Practices Act (FCPA)? Give examples in support of your answer.

Accepted Answer

The answer of What are some of the criticisms of...

Question 8

The TRIPs agreement requires signatory countries to protect against acquisition,disclosure,or use of trade secrets "in a manner contrary to honest commercial practices."

Accepted Answer

The answer of The TRIPs agreement requires signatory countries to...

Question 9

A recent rash of antitrust actions brought in the United States against foreign companies has raised concerns that the United States is violating international law as well as the sovereignty of other nations.

Accepted Answer

The United States has faced criticism for its extraterritorial application of antitrust laws, which some argue infringes on the sovereignty of other nations and may conflict with international law principles.

Question 10

According to Transparency International's Corruption Perceptions Index scores for 2016,the country which was listed as most corrupt was:

Accepted Answer

Somalia was listed as the most corrupt country according to Transparency International's Corruption Perceptions Index scores for 2016.

Question 11

To establish ownership of a written,recorded,performed,or filmed creative work,it is necessary to apply for and be granted a patent.

Accepted Answer

Copyright automatically protects original works of authorship, including written, recorded, performed, or filmed creative works, without the need for application or registration, unlike patents which protect inventions or discoveries.

Question 12

Trade secrets are confidential information or knowledge that has commercial value,is in the public domain and for which steps have been taken to keep it secret.

Accepted Answer

The answer of Trade secrets are confidential information or knowledge...

Question 13

According to U.S.laws,there is no restriction on remittances of royalties received abroad based on the commercial negotiation between licensor and licensee.

Accepted Answer

U.S. laws generally do not impose restrictions on the remittance of royalties received from abroad, as these transactions are considered part of the private commercial agreements between the licensor and the licensee.

Question 14

Formation of a cartel like OPEC,consisting of oil-producing companies,would most likely be illegal in the United States.

Accepted Answer

In the United States, the formation of cartels is illegal under antitrust laws, such as the Sherman Antitrust Act, because they restrict competition and manipulate markets.

Question 15

Some legal experts believe that the pressures of global competition have resulted in an increased incidence of price-fixing and collusion among companies.

Accepted Answer

Global competition can indeed lead to increased pressures on companies to maintain or increase their market share, sometimes resulting in illegal practices such as price-fixing and collusion as they seek to stabilize prices, reduce competition, or secure their positions in the market. Legal experts note that these practices can be more tempting in highly competitive environments.

Question 16

Which of the following best describes the legal basis for protection of trade secrets,patents,and copyrights in the United States?

Accepted Answer

Trade secrets are primarily protected under state law, often through the Uniform Trade Secrets Act adopted by many states, while patents and copyrights are protected under federal law, specifically by the U.S. Patent and Trademark Office for patents and the Copyright Office for copyrights.

Question 17

Patents and trademarks that are protected in one country are protected in another,so global marketers must ensure that patents and trademarks are registered.

Accepted Answer

Patents and trademarks are territorial, meaning they are only protected in the countries where they are registered. Global marketers must register their patents and trademarks in each country where they seek protection.

Question 18

Nippon Paper Industries was found guilty in a U.S.court of conspiring with other Japanese companies to raise fax paper prices in the United States.

Accepted Answer

Nippon Paper Industries was indeed found guilty in a U.S. court of conspiring with other Japanese companies to raise fax paper prices in the United States, marking a significant case of international antitrust enforcement.

Question 19

The United States has more lawyers than any other country in the world and is arguably the most litigious nation on earth.This is a reflection of:

Accepted Answer

The high number of lawyers and litigious nature in the United States can be attributed to its low-context culture, where communication is explicit, rules and laws are emphasized, and there is a greater reliance on formal legal processes to resolve disputes.

Question 20

What should a U.S.company do if competitors are willing to offer a bribe for business in a foreign country?

Accepted Answer

The answer of What should a U.S.company do if competitors...

Quiz 5: The Political,legal,and Regulatory Environments