Question 1

Which of the following countries has enacted the most stringent green marketing laws that regulate the management and recycling of packaging waste?

Accepted Answer

Germany has passed the most stringent green marketing laws that regulate the management and recycling of packaging waste.

Question 2

According to Canadian law, what is the standard expected by courts in Canada to determine whether a representation is false or misleading?

Accepted Answer

Courts have been directed by Canadian law to take into account, in determining whether a representation is false or misleading, the "general impression" conveyed by the representation as well as its literal meaning. The courts are expected to apply the "credulous person standard," which means that if any reasonable person could possibly misunderstand the representation, the representation is misleading.

Question 3

The _____ is a multicountry agreement that has established a regional patent system that allows any nationality to file a single international application for a European patent.

Accepted Answer

Two multicountry patent arrangements have streamlined patent procedures in Europe. The first, the Patent Cooperation Treaty (PCT), facilitates the process for application for patents among its member countries. The second, the European Patent Convention (EPC), established a regional patent system allowing any nationality to file a single international application for a European patent.

Question 4

Which of the following is the most attractive target for pirates because of high development cost and low reproducibility costs?

Accepted Answer

Software, music, and movies are especially attractive targets for pirates because they are costly to develop but cheap to reproduce and distribute over the Internet. Pirated music sales are estimated to exceed $5 billion annually and are growing at 6 percent per year. And unauthorized U.S. software that sells for $500 in this country can be purchased for less than $10 in East Asia.

Question 5

The _____ of the United States makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties.

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties. Stiff penalties can be assessed against company officials, directors, employees, or agents found guilty of paying a bribe or of knowingly participating in or authorizing the payment of a bribe.

Question 6

Which of the following poses a major challenge to international marketers while dealing with counterfeiting?

Accepted Answer

The collusion between the contract manufacturer and illegitimate sellers poses a great difficulty for law enforcement authorities trying to tackle the problem of counterfeiting and piracy.

Question 7

In which of the following countries is the ownership of IP rights established by prior use?

Accepted Answer

In the United States, a common-law country, ownership of IP rights is established by prior use-whoever can establish first use is typically considered the rightful owner. In many code-law countries, however, ownership is established by registration rather than by prior use-the first to register a trademark or other property right is considered the rightful owner.

Question 8

Which of the following is an effective approach to prevent Chinese consumers from creatively copying foreign intellectual property?

Accepted Answer

The author suggests an excellent way for IP-rich firms to make money in China currently and in the near future, using the oldest pricing strategy of all: Charge what the market will bear. Even with the reluctant help of the Chinese authorities in enforcing the WTO/TRIPs agreement, Chinese consumers will continue the creative copying of foreign intellectual property until they are charged what they perceive as "reasonable" prices.

Question 9

Which of the following commonly counterfeited products has the potential for doing the greatest harm to the consuming public?

Accepted Answer

Although counterfeit CDs, toys, and similar products cost companies billions of dollars in lost revenue and have the potential of damaging the product's brand image, the counterfeiting of pharmaceuticals can do serious physical harm. In Colombia, investigators found an illegal operation making more than 20,000 counterfeit tablets a day of the flu drug Dristan, a generic aspirin known as Dolex, and Ponstan 500, a popular painkiller made by Pfizer.

Question 10

Which of the following is the most comprehensive multilateral agreement on intellectual property to date and covers a full range of rights that are embodied in current international agreements?

Accepted Answer

The Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement, a major provision of the World Trade Organization, is the most comprehensive multilateral agreement on intellectual property to date. TRIPs sets standards of protection for a full range of intellectual property rights that are embodied in current international agreements.

Question 11

Which of the following international conventions was established to recognize intellectual property rights?

Accepted Answer

One of the three major international conventions is The Paris Convention for the Protection of Industrial Property, commonly referred to as the Paris Convention, which includes the United States and 100 other countries. In addition, the World Intellectual Property Organization (WIPO) of the United Nations is responsible for the promotion of the protection of intellectual property and for the administration of the various multilateral treaties through cooperation among its member states.

Question 12

Which of the following should ideally be the first step in the settlement of a dispute?

Accepted Answer

One authority suggests that the settlement of every dispute should follow four steps: first, try to placate the injured party; if this does not work, conciliate, arbitrate, and finally, litigate. The final step is typically taken only when all other methods fail.

Question 13

_____ buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price.

Accepted Answer

Cybersquatters buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price. For example, a cybersquatter sold "www.themortgage.com" for $500,000; the record price paid so far is $7.5 million for the domain name "www.business.com."

Question 14

Which of the following acts developed by the European Union erases legal and trade differences that have existed for decades between the member nations?

Accepted Answer

In a recent decision, the European Court ruled that a French cosmetics company could sell its wares by mail in Germany and advertise them at a markdown from their original prices, a direct contradiction of German law. As the Single European Market Act is implemented, many of the legal and trade differences that have existed for decades will vanish.

Question 15

In the United States, ownership of intellectual property rights is established by "prior use versus registration" which implies that to claim the ownership of a trademark, an individual must:

Accepted Answer

In the United States, a common-law country, ownership of IP rights is established by prior use-whoever can establish first use is typically considered the rightful owner. In many code-law countries, however, ownership is established by registration rather than by prior use-the first to register a trademark or other property right is considered the rightful owner.

Question 16

Which of the following conventions is responsible for the promotion of the protection of intellectual property rights among all the member countries of the UN?

Accepted Answer

The World Intellectual Property Organization (WIPO) of the United Nations is responsible for the promotion of the protection of intellectual property and for the administration of the various multilateral treaties through cooperation among its member states.

Question 17

The question of jurisdiction of U.S. law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law called the:

Accepted Answer

The question of jurisdiction of U.S. law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law, the "objective theory of jurisdiction."

Question 18

Which of the following is true with regard to the Internet?

Accepted Answer

The European Union, the United States, and many other countries are drafting legislation to address the myriad legal questions not clearly addressed by current law. Until uniform international laws apply worldwide, companies will have to rely on individual-country laws, which may or may not provide protection.

Question 19

Which of the following is the final step in an international commercial dispute when all the other methods have failed?

Accepted Answer

When all else fails, the final step to solve a dispute is litigation.

Question 20

Arbitration clauses require agreement wherein the concerned parties agree:

Accepted Answer

Arbitration clauses require agreement on two counts: (1) The parties agree to arbitrate in the case of a dispute according to the rules and procedures of some arbitration tribunal and (2) they agree to abide by the awards resulting from the arbitration.

Quiz 7: The International Legal Environment: Playing by the Rules