Question 1

International law is formed as result of international customs, treaties, agreements, and organizations.

Accepted Answer

International law is indeed formed through various sources including international customs (practices generally accepted as law), treaties and agreements between states, and the principles and decisions of international organizations.

Question 2

When a foreign government acts as a "private party" in the market, its actions qualify as commercial activity for purposes of the Foreign Sovereign Immunities Act.

Accepted Answer

Under the Foreign Sovereign Immunities Act (FSIA), when a foreign government engages in actions that are typical of a private party within the market, such as buying or selling goods or services, these actions are considered commercial activities. The FSIA provides that foreign states are not immune from the jurisdiction of U.S. courts when they engage in commercial activities that have a direct effect in the United States.

Question 3

In an action by a domestic business to attach a foreign nation's property, the plaintiff must prove that the defendant is not entitled to sovereign immunity.

Accepted Answer

In cases involving a domestic business attempting to attach a foreign nation's property, the plaintiff (the domestic business) bears the burden of proving that the defendant (the foreign nation) is not entitled to sovereign immunity under the Foreign Sovereign Immunities Act (FSIA) or other applicable laws, which generally protect foreign states from being sued in U.S. courts unless specific exceptions apply.

Question 4

A U.S. court will likely uphold a contract created in the United Kingdom because the U.K.'s laws are generally compatible with those of the United States.

Accepted Answer

U.S. courts often recognize and uphold contracts created under foreign laws, including those from the U.K., as long as the contract adheres to general principles of contract law and does not violate public policy.

Question 5

Under the principle of comity, a domestic court will not examine the validity of any act committed by a foreign government within the court's jurisdiction.

Accepted Answer

The principle of comity refers to a practice where courts of one jurisdiction may give effect to the laws and judicial decisions of another jurisdiction, not as a matter of obligation but out of respect and mutual convenience. However, this principle does not prevent a domestic court from examining the validity of acts committed by a foreign government within its jurisdiction if those acts are relevant to the case at hand and potentially violate domestic law or international norms.

Question 6

A company can export indirectly and thereby limit its involvement in an international market by making use of agency relationships.

Accepted Answer

By using agency relationships, a company can export its products indirectly, allowing the agent to handle the complexities of the international market, thus limiting the company's direct involvement.

Question 7

Under the act of state doctrine, a U.S. court can rule on the validity of a foreign government's acts within its own territory.

Accepted Answer

The act of state doctrine holds that a U.S. court will not question the validity of public acts done by a recognized foreign sovereign government within its own territory, out of respect for the sovereignty of that government.

Question 8

By means of an arbitration clause , the parties to an international business contract agree in advance to resolve any dispute without involving a third party.

Accepted Answer

An arbitration clause in an international business contract does indeed involve a third party, the arbitrator or arbitration panel, to resolve disputes rather than resolving them through traditional court litigation.

Question 9

In a case alleging that a foreign government wrongfully confiscated a domestic firm's property, the foreign government must prove the taking was an expropriation.

Accepted Answer

In a case alleging that a foreign government wrongfully confiscated a domestic firm's property, the domestic firm must prove the taking was an expropriation.

Question 10

Nations impose laws to restrict or facilitate international business because business activities can affect national interests.

Accepted Answer

Nations impose laws on international business to protect or promote their national interests, such as economic security, public health, and environmental conservation, as well as to regulate trade and investment.

Question 11

The parties to an international contract can indicate what court, jurisdiction, or tribunal will decide any disputes arising under the contract.

Accepted Answer

Parties to an international contract can specify in their agreement the choice of court, jurisdiction, or arbitration tribunal that will have authority to resolve any disputes arising from the contract, a principle known as "choice of forum" or "forum selection."

Question 12

Sovereign nations agree to be governed by International law to facilitate trade, commerce, and civilized discourse.

Accepted Answer

Sovereign nations agree to be governed by international law to facilitate trade, commerce, and civilized discourse among nations, ensuring a framework for international cooperation and legal standards.

Question 13

Because exchanges of goods on a global level are routine, students of business law do not need to be familiar with laws pertaining to international business transactions.

Accepted Answer

Understanding laws related to international business transactions is crucial for students of business law due to the complexity and diversity of regulations across different countries, which can significantly impact global trade and business operations.

Question 14

When a foreign country represents a substantial market for a U.S. manufacturer, the firm may enter into an agreement for the distribution of its products in that market by a foreign distributor.

Accepted Answer

Entering into an agreement with a foreign distributor allows a U.S. manufacturer to access a substantial market in a foreign country, leveraging the distributor's local market knowledge and networks for product distribution.

Question 15

When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up ownership, authority, and control of over all phases of the operation in the foreign country.

Accepted Answer

When a parent company establishes a wholly owned subsidiary in a foreign country, the parent company retains ownership, authority, and control over the subsidiary, rather than giving it up.

Question 16

In direct exporting, a U.S. company sets up a specialized marketing organization in a foreign market by appointing a foreign agent.

Accepted Answer

In direct exporting, a U.S. company sells its products directly to buyers in a foreign market without necessarily setting up a specialized marketing organization there; appointing a foreign agent is a form of indirect exporting.

Question 17

A foreign state is immune from the jurisdiction of a U.S. court when the state has engaged in commercial activity only outside the United States.

Accepted Answer

Under the Foreign Sovereign Immunities Act (FSIA), a foreign state is not immune from the jurisdiction of U.S. courts when it engages in commercial activity that has a direct effect in the United States, even if the activity itself is conducted outside the U.S.

Question 18

A U.S. court can assert jurisdiction over a foreign government in a case involving the control of natural resources within that government's territory.

Accepted Answer

Under the principle of sovereign immunity, a U.S. court generally cannot assert jurisdiction over a foreign government in matters that pertain to the sovereign acts of that government, such as the control of natural resources within its own territory.

Question 19

National laws-involving taxes, for example-do not become international law until they are applied beyond a nation's borders.

Accepted Answer

National laws, including those involving taxes, remain under the jurisdiction of the issuing country and do not automatically become international law when applied to entities or individuals beyond its borders. International law is created through treaties, conventions, and agreements between countries or by customary practices that nations follow as a matter of course.

Question 20

A foreign state is not immune from the jurisdiction of a U.S. court when it has engaged in commercial activity within the United States.

Accepted Answer

Under the Foreign Sovereign Immunities Act (FSIA) of 1976, a foreign state is not immune from the jurisdiction of U.S. courts if it engages in commercial activity that has a direct effect in the United States.

Quiz 24: International and Space Law