Question 1

The U.S. sanctions against trade with Iran are an example of a unilateral trade sanction.

Accepted Answer

Unilateral trade sanctions are imposed by only one country or party, without the support or agreement of other countries or parties. In this case, the U.S. is imposing sanctions on trade with Iran without the agreement or support of other countries. Therefore, the U.S. sanctions against trade with Iran are an example of a unilateral trade sanction.

Question 2

The contact lens company, Here's Clear Eye, sold thousands of pairs of contact lenses in Kenya. The lenses were defective and resulted in severe eye infections, and in 156 cases, blindness. The purchasers of the lenses who bring suit in Kenya will be entitled to recover their purchase price, attorney fees and medical bills. Kenya does not permit recovery for pain and suffering nor for permanent injury. Several of the purchasers who are blind have brought suit in South Carolina, the home of Here's Clear Eye. South Carolina permits recovery for permanent injury as well as punitive damages. The average recovery in Kenya for the purchasers is $600. A lawyer for the purchasers from Columbia, South Carolina estimates the average verdict will be $600,000. Which of the following statements is true?

Accepted Answer

The answer of The contact lens company, Here's Clear Eye,...

Question 3

The government of Argentina has taken over all the country's banks. No compensation has been paid. Some U.S. citizens and businesses had accounts in the banks. Absent treaty provisions the takeover:

Accepted Answer

The act of state doctrine holds that a U.S. court will not review the validity of actions taken by a foreign government within its own borders, and the takeover of banks by the government of Argentina falls under this doctrine. Therefore, there is no basis for a U.S. federal court or the U.S. State Department to review the takeover, and no compensation is required to be paid to U.S. citizens or businesses who had accounts in the banks.

Question 4

A U.S. luxury liner was attacked by an Iraqi ship in the Persian Gulf. Many passengers were injured and the ship was damaged. The owner of the ship brought suit in federal district court against the government of Iraq. The suit will:

Accepted Answer

The doctrine of sovereign immunity generally protects foreign governments from being sued in the courts of another country. Therefore, the owner of the luxury liner would not be able to bring a lawsuit against the government of Iraq in a U.S. federal district court.

Question 5

GATT is an example of a bilateral trade agreement.

Accepted Answer

GATT (General Agreement on Tariffs and Trade) is a multilateral trade agreement signed by many countries, not a bilateral agreement between two countries. It was replaced by the World Trade Organization (WTO) in 1995.

Question 6

The CISG:

Accepted Answer

The CISG (or the United Nations Convention on Contracts for the International Sale of Goods) was indeed drafted by a commission of the United Nations, the United Nations Commission on International Trade Law (UNCITRAL), and was adopted in 1980. Options A, B, and D are incorrect as the CISG is not exclusive to the EU, is not part of GATT, and although it has been adopted in 94 countries, it has not been universally accepted.

Question 7

Italian manufacturers of leather goods have agreed to charge uniform prices on all sales in the United States in order to better compete with U.S. manufacturers. Which of the following statements is true?

Accepted Answer

The agreement among Italian manufacturers to charge uniform prices in the U.S. violates U.S. antitrust laws, which prohibit price fixing among competitors. As a result, the Italian manufacturers could be subject to prosecution.

Question 8

The act of state doctrine:

Accepted Answer

The act of state doctrine is a legal principle that prohibits one government from interfering in the acts of state of another government. While it is not recognized by all countries, it is recognized by the United States. The doctrine is not explicitly prohibited by the United Nations.

Question 9

EU and countries' antitrust laws do not apply to U.S. companies doing business in the EU.

Accepted Answer

EU and countries' antitrust laws do apply to U.S. companies doing business in the EU, as long as their activities have an impact on the EU market. The EU has fined several U.S. tech companies, such as Google, for violating antitrust laws.

Question 10

Which of the following is not a LESCANT factor?

Accepted Answer

LESCANT is an acronym for Language, Environment, Social Organization, Contexting, Authority, Nonverbal, and Time. Law is not part of the LESCANT factors.

Question 11

U.S. businesses that break laws while operating in foreign countries:

Accepted Answer

U.S. businesses that break laws while operating in foreign countries are subject to full prosecution, fines, and imprisonment. They are not immune under the act of state doctrine and can be prosecuted in those countries.

Question 12

The Doctrine confirms the independence of sovereign nations anf their courts.

Accepted Answer

The Act-of-State Doctrine confirms the independence of sovereign nations and their courts by preventing the judiciary of one country from questioning the validity of public acts committed by a recognized foreign sovereign within its own territory.

Question 13

Which of the following sets limits on removal of profits from a country?

Accepted Answer

Repatriation refers to the process of transferring profits or assets earned in a foreign country back to one's home country. Therefore, it sets limits on the removal of profits from a country. Expropriation refers to the seizure of assets by a government, forum non conveniens refers to the jurisdiction of a legal case, and sovereign immunity refers to the immunity of a government from legal action. None of these set limits on the removal of profits from a country.

Question 14

NAFTA is an example of a bilateral trade agreement.

Accepted Answer

NAFTA (North American Free Trade Agreement) is not a bilateral trade agreement as it involves three countries: Canada, Mexico, and the United States. It is a trilateral trade agreement.

Question 15

There was some resistance to granting China MFN status.

Accepted Answer

In the past, there was resistance to granting China MFN (Most Favored Nation) status, particularly due to concerns over human rights issues and trade imbalances.

Question 16

Which of the following countries base their legal systems on code law?

Accepted Answer

The answer of Which of the following countries base their...

Question 17

The European Union:

Accepted Answer

The European Union eliminated tariff protections for its members in 1992. It is not a trademark registration organization or an international court of justice.

Question 18

Which of the following is a multilateral treaty?

Accepted Answer

A multilateral treaty involves three or more parties. Therefore, option A and B, which involve only two parties, cannot be multilateral. Option C, which involves three parties (England, Japan, and the United States), is a multilateral treaty.

Question 19

Which of the following is not a source of international law?

Accepted Answer

The answer of Which of the following is not a...

Question 20

Nike and Reebok, the number-one and number-two athletic shoe companies in the United States, could combine to do business:

Accepted Answer

Nike and Reebok could combine to do business outside the U.S. under the Export Trading Company Act, which allows companies to join together for the purpose of export activities. However, a merger or acquisition within the U.S. would violate antitrust laws and could lead to charges of monopolization.

Quiz 7: International Law