Question 1

The WTO administers trade agreements but does not get involved with dispute resolution.

Accepted Answer

The WTO does have a dispute resolution process known as the Dispute Settlement Body (DSB) which helps member countries resolve trade disputes.

Question 2

Lawsuits based on the commercial activities of a foreign state conducted in the U.S.are subject to the jurisdiction of state or federal courts in the U.S.

Accepted Answer

This is known as the "commercial activity exception" to foreign sovereign immunity and is codified in the Foreign Sovereign Immunities Act. It allows lawsuits to be brought against foreign states for their commercial activities in the United States.

Question 3

An expropriation, or nationalization, occurs when a government seizes foreign-owned property or assets for a public purpose and pays the owner just compensation for what is taken.

Accepted Answer

This is a correct definition of expropriation or nationalization.

Question 4

Assume the U.S.has granted "most-favored nation" status to Holland.This means that the tariff on Dutch imported tobacco must be at least as low as that charged on tobacco from any other nation.

Accepted Answer

"Most-favored nation" status means that a country will receive the same tariff treatment as the country with the lowest tariff rates in the importing country. This means that the tariff on Dutch imported tobacco must be at least as low as that charged on tobacco from any other nation.

Question 5

Under U.S.law, the CISG supersedes the UCC whenever either could apply.

Accepted Answer

This is because the CISG is an international treaty adopted by the United States, while the UCC is a domestic law. Therefore, the CISG takes precedence over the UCC in cases where both could apply.

Question 6

There is an International Organization of Securities Commissions made up of approximately 100 national securities agencies and exchanges which regulates about half of the world's securities markets.

Accepted Answer

The answer of There is an International Organization of Securities...

Question 7

The World Bank established the MIGA to eliminate the practice of dumping.

Accepted Answer

The World Bank established the Multilateral Investment Guarantee Agency (MIGA) in 1988 to promote foreign direct investment into developing countries by offering political risk insurance and credit enhancement guarantees, not to eliminate the practice of dumping.

Question 8

Regional trade communities exist in Europe, North America, Central America, Africa, and Asia.

Accepted Answer

Regional trade communities or agreements such as the European Union, NAFTA, CARICOM, AU, and ASEAN exist in different regions of the world.

Question 9

Expropriation of property by a foreign government for a public purpose with the payment of just compensation, but without the consent of the owner, violates generally observed principles of international law.

Accepted Answer

Expropriation of property by a foreign government for a public purpose, with the payment of just compensation, and without the consent of the owner, is generally considered consistent with international law, provided it is done in a non-discriminatory manner and in accordance with due process.

Question 10

The U.S.Constitution provides that all valid treaties, which are agreements among independent nations, have the force of federal statutes.

Accepted Answer

The Supremacy Clause of the U.S. Constitution establishes that treaties are part of the supreme law of the land, with the same legal force as federal statutes.

Question 11

The act-of-state doctrine provides that to maintain international relations and trade, a host country must refrain from imposing its laws on a foreign sovereign nation present within its borders.

Accepted Answer

The act-of-state doctrine actually holds that a nation is sovereign within its own borders and its domestic actions may not be questioned in the courts of another nation, rather than concerning the imposition of laws on foreign sovereigns present within a host country's borders.

Question 12

Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act apply to U.S.citizens employed abroad by U.S.employers or by foreign companies controlled by U.S.employers.

Accepted Answer

These laws apply to U.S. citizens regardless of where they are working as long as they are employed by a U.S. employer or a foreign company controlled by a U.S. employer.

Question 13

Businesses which wish to safeguard their technology while doing business in the international sector would not want to consider the use of wholly owned subsidiaries.

Accepted Answer

Wholly owned subsidiaries can provide greater control over technology and intellectual property, making it a viable option for businesses wishing to safeguard their technology while operating internationally.

Question 14

Sovereign immunity is absolute immunity from the courts of a host country.

Accepted Answer

Sovereign immunity is an absolute immunity granted to a foreign sovereign against the jurisdiction of the courts of a host country.

Question 15

The United States and Germany may request an advisory opinion from the ICJ to settle a dispute over a trade issue.

Accepted Answer

Only countries can request advisory opinions from the International Court of Justice (ICJ) on legal questions, but they cannot use this process to settle disputes between them. Dispute resolution between countries at the ICJ requires mutual consent to the court's jurisdiction and typically involves contentious cases, not advisory opinions.

Question 16

Under the act of state doctrine, the United States reserves some areas of jurisdiction over the internal actions of sovereign states.

Accepted Answer

The act of state doctrine actually restricts the ability of U.S. courts to question or adjudicate the validity of public acts committed by a recognized foreign sovereign within its own territory, effectively limiting U.S. jurisdiction over these actions.

Question 17

NAFTA establishes a free trade area between the United States, Mexico, and Canada.

Accepted Answer

NAFTA (North American Free Trade Agreement) is a trilateral free trade agreement between the United States, Mexico, and Canada.

Question 18

The World Bank established the Multilateral Investment Guarantee Agency to encourage increased investment in developing nations.

Accepted Answer

The statement is true. The Multilateral Investment Guarantee Agency (MIGA) was established by the World Bank in 1988 to promote foreign direct investment (FDI) in developing countries by providing political risk insurance and other guarantees to investors.

Question 19

A specialized U.N.agency or a U.N.organ may seek an advisory opinion from the International Court of Justice, but an individual or a sovereign state may not.

Accepted Answer

This is correct according to Article 96 of the UN Charter, which states that only certain UN organs and specialized agencies may request advisory opinions from the International Court of Justice. Individuals and sovereign states are not eligible to make such a request.

Question 20

Like domestic law, international law can be easily enforced, because international courts have compulsory jurisdiction.

Accepted Answer

International law is not easily enforced because international courts do not have compulsory jurisdiction over countries and their governments. Compliance with international law is often voluntary and relies on cooperation between states.

Quiz 46: International Business Lawpart X: Property