Question 1

In most cases,it is best for parties to a contract to include a provision in the agreement to have any disputes between them arbitrated,usually using one of the international arbitration services available for that purpose.

Accepted Answer

Including an arbitration provision in a contract can help parties avoid costly and time-consuming litigation, and international arbitration services can provide a neutral and efficient forum for resolving disputes.

Question 2

Discuss the international court with respect to international business transactions.

Accepted Answer

The answer of Discuss the international court with respect to...

Question 3

International business contracts may also include specialty contracts such as a bill of lading,letters of credit,or insurance.

Accepted Answer

Specialty contracts such as a bill of lading, letters of credit, or insurance are often included in international business contracts.

Question 4

Discuss various forms of specialty contracts that may be involved in international business transactions.

Accepted Answer

The answer of Discuss various forms of specialty contracts that...

Question 5

In which of the following ways can Canadian businesses become involved with businesses in different countries?

Accepted Answer

All of the options listed are ways in which Canadian businesses can become involved with businesses in different countries. Joint ventures, importing and exporting goods, licensing agreements, and acquiring or providing services are all methods businesses can use to expand their reach globally.

Question 6

Discuss the advantages of arbitration in international business.

Accepted Answer

The answer of Discuss the advantages of arbitration in international...

Question 7

Which of the following provided rules to guide international bodies handling arbitrations?

Accepted Answer

The United Nations Commission on International Trade Law provides rules to guide international bodies handling arbitrations. The other options also provide arbitration services but do not have the authority to create rules for international arbitration.

Question 8

An international court to litigate private disputes between businesses doing business between jurisdictions exists within the World Trade Organization.

Accepted Answer

The World Trade Organization has a dispute settlement process for member countries, but it does not have an international court for private business disputes. Private businesses must use alternative dispute resolution methods, such as arbitration or mediation, to resolve their conflicts.

Question 9

Alternate dispute resolution generally consists of negotiation,mediation,and/or arbitration.When dealing with international disputes,arbitration is particularly appropriate due to the potential expense and delay associated with litigation in a foreign court.The best way to avoid the risks of dealing with foreign courts involving international disputes is to:

Accepted Answer

Including a provision in the contract requiring disputes to be submitted to arbitration is the best way to avoid the risks associated with foreign courts. This ensures that any disputes will be resolved in a private and timely manner without the expense and delay of litigation in a foreign court.

Question 10

Explain how Canadian businesses can become involved in business in different countries.

Accepted Answer

The answer of Explain how Canadian businesses can become involved...

Question 11

Helen is the owner of a Japanese company that manufacturers car audio parts.Several months ago she received a favourable award in an arbitration in Japan against a Canadian car manufacturer for unpaid bills.The Canadian manufacturer has several assets in Canada,but none in Japan.Which of the following statements is true?

Accepted Answer

Arbitration awards, especially those from countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, can generally be enforced in other countries, including Canada. This means that Helen can seek enforcement of the Japanese arbitration award through Canadian courts, targeting the Canadian manufacturer's assets located in Canada.

Question 12

E & J Mining will be involved in several large mining projects in a number of developing countries.One of these countries is suffering from some political instability,and the company is concerned about potential expropriation or political violence that could disrupt its operations.Which of the following resources would most likely be able to offer insurance to E & J,given the nature of the risks it could face?

Accepted Answer

The Export Development Bank (EDB) is a Canadian financial institution that provides insurance and risk management services to Canadian companies that are operating internationally. As such, it would be the most likely resource to offer insurance to E & J Mining given the risks it faces in the developing country with political instability. The International Chamber of Commerce, Foreign Affairs and International Trade Canada, and the Organisation for Economic Co-operation and Development do not typically provide insurance services, and the RCMP is a Canadian law enforcement agency that would not be involved in providing insurance to a private company.

Question 13

When comparing international contracts with domestic contracts,which of the following statements is true?

Accepted Answer

International contracts often do not have a designated international court to litigate private disputes, while domestic contracts have access to the judicial system of the relevant country. Options B, C, D, and E are all incorrect as they make inaccurate or false statements about international and/or domestic contracts.

Question 14

Canadian courts do not provide for the enforcement of international arbitration awards pursuant to international treaties.

Accepted Answer

Canadian courts do provide for the enforcement of international arbitration awards pursuant to international treaties, such as the New York Convention.

Question 15

Mandu lives in Toronto and would like to take advantage of a business opportunity to import goods from a company in China.In order to avoid the possibility of a dispute between himself and the foreign company,he should:

Accepted Answer

The answer of Mandu lives in Toronto and would like...

Question 16

Mr.Smith and Sr.Zarza are negotiating an international contract for the sale of wicker furniture.They have agreed that,while they hope there will be no disputes,they want to include terms in the contract that would ensure that any disputes would be resolved favourably with limited time delay and minimal expense.Which of the following set of terms should they include in their contract?

Accepted Answer

Limited liability and insurance are reasonable terms to include in the contract, but arbitration of disputes is the best option for resolving conflicts quickly and cost-effectively. Mediation is also a possible solution, but it may not be as binding as arbitration. Payment terms are important, but they do not necessarily affect dispute resolution. Therefore, choice E is the best set of terms for Mr.Smith and Sr.Zarza to include in their contract.

Question 17

Tony is a resident of Ontario,and Singh is a resident of England.They contract to sell Tony's car to Singh,who is emigrating to Canada.The contract contains a provision stating that the contract is "subject to the laws of the Province of Ontario." Which of the following statements is accurate?

Accepted Answer

The provision stating that the contract is "subject to the laws of the Province of Ontario" means that Ontario laws will govern the transaction. It does not specify jurisdiction or give exclusive jurisdiction to any particular court.

Question 18

Discuss the role of governments when companies engage in large projects abroad.

Accepted Answer

The answer of Discuss the role of governments when companies...

Question 19

When dealing with international business transactions,knowing and complying with both local and Canadian policies and laws is an important consideration.This generally will include all of the following except:

Accepted Answer

Ensuring that foreign officials who can impact on the success of the business are appropriately taken care of could imply unethical practices, such as bribery, which is not a legal or recommended approach in international business transactions. Compliance with laws and ethical standards is crucial, and this option does not align with those principles.

Question 20

Bilateral investment treaties (BITs)and foreign investment and promotion agreements (FIPAs)are government initiatives designed to stabilize the investment environment for corporations doing business abroad,especially for those involved in mining and natural resource extraction in countries where the political climate is unstable.

Accepted Answer

Bilateral investment treaties and foreign investment and promotion agreements are indeed government initiatives aimed at providing stability to corporations investing in countries with uncertain political climates, especially in natural resource sectors such as mining.

Quiz 10: Electronic Commerce and International Trade