Question 1

The Foreign Sovereign Immunities Act specifically provides that a foreign state shall be immune from neither federal nor state court jurisdiction if the suit is based on which of the following?

Accepted Answer

The Foreign Sovereign Immunities Act provides that a foreign state is immune from jurisdiction unless an exception applies. One of the exceptions is when the suit is based on a commercial activity conducted in the United States by the foreign state. Another exception is when the suit is based on an act that the foreign state performed in the United States in connection with a commercial activity it carried on elsewhere. Finally, the foreign state is not immune from jurisdiction if the suit is based on a commercial activity performed outside US borders that directly affects the US. Therefore, all three choices are correct.

Question 2

Define and discuss the doctrine of "sovereign immunity." Discuss how the Foreign Sovereign Immunities Act of 1976 has codified this area of law.Give examples of how the Act works.

Accepted Answer

The answer of Define and discuss the doctrine of "sovereign...

Question 3

The CISG specifically excludes sales of which of the following?

Accepted Answer

All of these options are specifically excluded from the CISG.

Question 4

Discuss how an owner of intellectual property protects those rights in other countries.

Accepted Answer

The answer of Discuss how an owner of intellectual property...

Question 5

The United States belongs to which multinational treaty for patent protection?

Accepted Answer

The United States belongs to the Paris Convention for the Protection of Industrial Property, which provides multinational protection for patents, trademarks, and designs.

Question 6

In international business transactions, a documentary letter of credit:

Accepted Answer

A documentary letter of credit is a method of payment that reduces the seller's risk of non-payment. The buyer's bank provides a guarantee to the seller's bank that payment will be made once the seller presents the required shipping and financial documents. It is not a bill of lading, and the responsibility for breaching the contract lies with the buyer, not the seller.

Question 7

Assume that Denmark, a member of the European Community, is contemplating the enactment of a protective tariff for its fledgling electronics industry due to domestic political and economic pressures.Assume further that the EC has a tariff that it has also enacted for all electronics manufacturers within the EC that is considerably lower than the one that is being proposed in Denmark.The policy behind the lower EC tariff is to promote freer trade even at the risk of destroying some of the weaker manufacturers in that organization.In this situation:

Accepted Answer

As a member of the EC, Denmark is bound by its economic policies, and in case of conflict, the EC law usually prevails. Therefore, if Denmark enacts a protective tariff higher than the EC tariff, it may be illegal according to EC law. While Denmark can petition the United Nations Council of Economic Policy, it is unlikely that the council would override the policy of a regional organization such as the EC. Furthermore, while GATT allows countries to protect their domestic industries, it also encourages the reduction of trade barriers and the promotion of freer trade.

Question 8

The __________ established the MIGA to encourage increased investment in developing nations.

Accepted Answer

The MIGA (Multilateral Investment Guarantee Agency) was established by the World Bank in 1988 with the goal of encouraging foreign investment in developing countries by providing guarantees against political risks. Therefore, option A) is the correct answer. None of the other choices are directly associated with the establishment of MIGA.

Question 9

The international organization which seeks to stabilize currency exchange is the:

Accepted Answer

The International Monetary Fund (IMF) is responsible for stabilizing global currency exchange rates and providing financial assistance to member countries experiencing economic difficulties. The other options listed are not involved in currency exchange stabilization.

Question 10

Which of the following is an objective of the Treaty on European Union?

Accepted Answer

The objective of the Treaty on European Union is to promote economic and social progress by creating an area without internal borders and establishing an economic and monetary union. The treaty does not aim to create cultural diversity or develop individual national autonomy on justice and home affairs.

Question 11

The various forms of MNE include:

Accepted Answer

Wholly owned subsidiaries are one of the various forms of multinational enterprises. NASDAZ and NFTRA are not forms of MNE, and EU is a regional organization, not a form of MNE.

Question 12

The U.N.Convention on Contracts for the International Sales of Goods (CISG) includes provisions relating to which of the following?

Accepted Answer

The CISG includes provisions on interpretation and trade usage, which help to clarify the terms of international sales contracts. It does not cover intellectual property rights, obligations and remedies of sellers and buyers are covered, and sharing of profits is not addressed.

Question 13

Why do governments impose tariffs?

Accepted Answer

Governments impose tariffs for all of the above reasons, including protecting domestic industries from foreign competition, raising revenues, and attempting to improve their balance of trade.

Question 14

"Normal value" is the price that would be charged for the same or a similar product in the ordinary course of trade for domestic consumption in the exporting country, under the World Trade Organization's:

Accepted Answer

Normal value is defined in the Antidumping Code of the World Trade Organization as the price that would be charged for the same or a similar product in the ordinary course of trade for domestic consumption in the exporting country.

Question 15

Which of the following is true with regard to securities regulation in foreign markets?

Accepted Answer

Anti-fraud provisions of U.S. securities laws apply extraterritorially to foreign securities transactions where there is conduct in the U.S. that contributes to the violation. In contrast, foreign issuers who issue securities may only register them in the U.S. if they meet certain criteria or exemptions, and there is no act of state doctrine that prohibits specific regulations from being applied in foreign markets.

Question 16

Which of the following is an objective of the North American Free Trade Agreement (NAFTA)?

Accepted Answer

The objective of NAFTA is to promote conditions of fair competition in the free trade area. NAFTA aims to eliminate trade barriers and promote free movement of goods and services across the borders of Canada, Mexico, and the United States. Additionally, NAFTA seeks to create an environment of fair competition by ensuring that laws and regulations related to trade are applied consistently and fairly. The agreement also sets up a system for resolving disputes and provides protections for intellectual property rights. Therefore, option B is the correct answer.

Question 17

Assume a foreign nation has seized all of the property of an American corporation.The nation has assumed ownership of the property for a public purpose and has paid the American corporation what it believes to be fair compensation.Under these facts, the seizure of property is best described as:

Accepted Answer

Expropriation is the lawful or compulsory taking of property by a government for a public purpose. In the given scenario, the foreign nation has seized the property of an American corporation, but it has paid the corporation what it considers to be fair compensation. This implies that the action was taken for a public purpose and in compliance with legal procedures. Confiscation, on the other hand, implies an illegal or arbitrary seizure of property without compensation. Force majeure is an unforeseeable and uncontrollable event that can excuse a party from fulfilling its contractual obligations. Eminent domain is a legal concept that allows a government to take private property for public use in exchange for just compensation. However, since the seizure described in the scenario was carried out by a foreign government and not the American government, eminent domain does not apply.

Question 18

A foreign company, partially owned by that foreign government, manufactures televisions in the foreign country.The cost to the company for the manufacture of the product is the equivalent of $60 in the U.S.Because of excess production, the firm exports 50,000 sets to the United States where they are sold for $75 each.If the nearest rival U.S.-made set sells for $85, the action of the foreign company:

Accepted Answer

The action of the foreign company appears to be legal because there is no evidence of price-fixing or violation of the Sherman Act. Also, there is no indication that the TVs are being sold at a price lower than their cost of production (anti-dumping provisions violation). The fact that the company is partially owned by a foreign government does not automatically make it illegal, as long as the company operates independently and follows market-based principles.

Question 19

The Dodd-Frank Act:

Accepted Answer

The answer of The Dodd-Frank Act:
...

Question 20

The United States and a Latin American country signed a treaty whereby the United States agreed to assist the Latin American country in controlling drug traffic.The United States, following the treaty, seized 100 square meters of land and bulldozed it, because it was a suspected haven of drug smuggling.The land in question was in Latin America, but belonged to an American citizen.Which of the following is correct?

Accepted Answer

Constitutional rights are the supreme law of the land and cannot be overridden by a treaty or any other agreements. Therefore, the American citizen whose land was seized has the right to challenge this action in court based on their constitutional rights, such as the right to due process and protection against unreasonable seizures.

Quiz 46: International Business Lawpart X: Property