Question 1

Under the Export Trading Company Act, U.S. banks are

Accepted Answer

The Export Trading Company Act encourages U.S. banks to invest in export trading companies by allowing them to own shares in these companies, thereby promoting U.S. exports.

Question 2

Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Global Mining Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can

Accepted Answer

The Alien Tort Claims Act allows foreign citizens to bring civil suits in U.S. courts for certain violations of international law, including cases involving environmental destruction by companies.

Question 3

Under the Outer Space Treaty, with respect to a space object and the personnel aboard it, the launching state

Accepted Answer

The Outer Space Treaty stipulates that the launching state retains complete jurisdiction and control over its space objects and the personnel aboard them, similar to the way a country has jurisdiction over its own vessels in international waters.

Question 4

Under the Outer Space Treaty, a moon, a planet, an asteroid, or any other celestial body is subject to the appropriation of

Accepted Answer

The Outer Space Treaty, formally known as the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, prohibits any country from claiming sovereignty over the Moon or any other celestial body. This means that no single nation can appropriate a moon, planet, asteroid, or any other celestial body.

Question 5

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price-fixing agreement with Total World Sports, a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if

Accepted Answer

U.S. courts will apply U.S. antitrust laws to foreign and domestic entities if their actions have a substantial effect on U.S. commerce, regardless of where the agreement was made or the involvement of foreign governments.

Question 6

Space Corporation launches exploratory space flights to the moon and Mars. The purpose is to discover and retrieve minerals and other resources. Under U.S. law, the corporate explorer

Accepted Answer

Under U.S. law, entities that retrieve resources from space, such as minerals from the moon or Mars, have the right to own, transport, use, and sell those resources. This is in line with the U.S. Commercial Space Launch Competitiveness Act of 2015, which explicitly allows U.S. citizens and corporations to engage in the commercial exploration and exploitation of 'space resources' including water and minerals.

Question 7

The Outer Space Treaty provides that a nation retains jurisdiction over objects on its space registry that are launched into space. The treaty also prohibits interference with space activities. In effect, these provisions

Accepted Answer

The Outer Space Treaty ensures that nations retain jurisdiction over their space objects, which indirectly supports property rights for private space activities by preventing interference.

Question 8

Equity International Inc., a U.S. firm, and Finance Invest Ltd., a firm in Great Britain, are parties to a contract with a forum-selection clause. The forum specified in the clause must be within the geographic boundaries of

Accepted Answer

The forum specified in a forum-selection clause can be anywhere mutually agreed upon by the parties, not limited to the geographic boundaries of their respective countries.

Question 9

Global Industries Corporation owns assets in Kazakhstan, a country in Asia. The government of Kazakhstan wants to nationalize all assets owned by foreign firms and investors. What can Global Industries do? Can it at least obtain payment for the assets?

Accepted Answer

The answer of Global Industries Corporation owns assets in Kazakhstan,...

Question 10

As part of a deal for power-generating equipment, Solar Wind Company and Thermal Gen Ltd. enter into a written contract that includes a clause providing for the arbitration of any dispute in the United States. Under the New York Convention, if a dispute arises, a court will compel arbitration if both parties are

Accepted Answer

Under the New York Convention, for an arbitration agreement to be internationally recognized and enforced, it is not necessary for both parties to be U.S. citizens. The key factor is that the parties are from different countries that are signatories to the convention. The option suggesting that both parties are not U.S. citizens aligns with the convention's applicability to international commercial agreements and disputes.

Question 11

Star Flights Inc. launches commercial space flights from its base in the United States. In the event of a collision with other space objects, under the Outer Space Treaty, liability for injury or damage

Accepted Answer

The Outer Space Treaty establishes strict liability for damage caused by space objects, regardless of fault.

Question 12

The management of Sport Shoes Corporation, a U.S. firm, wants to expand into foreign investment and employment markets. They are considering either opening their own production facility in a foreign country or entering into a licensing agreement with a foreign firm. What are the advantages and disadvantages of each of these courses of action?

Accepted Answer

The answer of The management of Sport Shoes Corporation, a...

Quiz 24: International and Space Law