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Q:
Arthur creates and distributes file-sharing software that enables users to exchange files over the Internet. The software has commercially significant legal uses. Without Arthur's knowledge, Bob uses the software to exchange copyright-protected music. Arthur has most likely committed
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the above.
Q:
Donna illegally shoots Evan with a handgun made by Firearms Corporation. Evan files a suit against Firearms. With respect to the dangers associated with guns, the court is most likely to rule that Firearms has
a. a duty to warn everyone.
b. a duty to warn potential victims only.
c. a duty to warn users only.
d. no duty to warn.
Q:
Movies, Inc., releases on DVD Nothing to Hide, a film focusing on the lack of privacy in cyberspace. Owen posts online computer code that cracks the DVD's encryption, allowing users to make unauthorized copies. Movies files a suit against Owen. The court is most likely to rule that
a. computer code is a form of "pure speech."
b. the First Amendment completely protects computer code.
c. the First Amendment does not apply to computer code.
d. the First Amendment protects computer code to a lesser extent.
Q:
Chris and his employer, Delta Corporation, are charged with, and convicted for, the violation of a variety of federal laws. After the ruling in United States v. Booker, federal sentencing guidelines still exist for criminal violations of
a. all laws.
b. antitrust, employment, and securities laws.
c. tort and intellectual property laws.
d. no laws.
Q:
Alan posts on the Internet a program with which a user can decrypt the encryption code on a Big Films Corporation DVD and copy the data on the disk. In Big's suit against Alan, Big's best claim is that this is
a. a theft of trade secrets.
b. copyright infringement.
c. patent infringement.
d. trademark infringement.
Q:
Commercial Wholesale, Inc., conducts its operations unethically, which, when revealed, will likely affect its
a. good will only.
b. profits only.
c. reputation only.
d. good will, profits, and reputation.
Q:
Apex Sales Corporation develops its marketing strategies in terms of what its management perceives as its ethical obligations, which represents its
a. legal liability.
b. profitability.
c. standards of right and wrong.
d. unilateral corporate duties.
Q:
Cody files a suit against Delta Corporation and seeks, as part of discovery, certain e-mail messages in Delta's server. According to the court in Zubulake v. UBS Warburg, LLC, shifting the cost to produce electronic evidence as part of a discovery request should be considered
a. under any circumstances.
b. under no circumstances.
c. when the data is easily accessible.
d. when the data is relatively inaccessible.
Q:
In a suit by the International League against Racism and Anti-Semitism against Yahoo!, Inc., a court in France held that the court's exercise of jurisdiction over Yahoo, a U.S.-based company, was
a. improper, because it violated the First Amendment of the U.S. Constitution.
b. improper, because Yahoo was not aware that its Web site was being accessed in France.
c. proper, because materials on Yahoo's U.S.-based servers could be viewed on a Web site accessible in France.
d. proper, because Yahoo's offer for sale via its Web site of Nazi memorabilia was "politically undesirable" speech.
Q:
Mike casts unwarranted doubts on Nina, a co-worker, to gain a job promotion. This is unethical
a. only if Mike is caught.
b. only if Mike gets the promotion.
c. under any circumstances.
d. under no circumstances.
Q:
Ethical behavior on the part of Beta Products Company may be inhibited by
a. clear ethical standards.
b. collective decision making.
c. legislative determinations of what represents society's best interest.
d. managers' dissent to unethical decisions.
Q:
Larry files a suit against Macro Corporation and seeks, as part of discovery, certain e-documents in Macro's computers. Shifting the cost to produce this evidence as part of a discovery request should be considered
a. under any circumstances.
b. under no circumstances.
c. when it imposes an undue expense on the requesting party.
d. when it imposes an undue expense on the responding party.
Q:
In a suit by Yahoo!, Inc., against the International League against Racism and Anti-Semitism, a court in the United States held that the French court's decision in the case mentioned in the previous question was
a. improper, because it violated the First Amendment of the U.S. Constitution.
b. improper, because Yahoo was not aware that its Web site was being accessed in France.
c. proper, because materials on Yahoo's U.S.-based servers could be viewed on a Web site accessible in France.
d. proper, because Yahoo's offer for sale via its Web site of Nazi memorabilia was "politically undesirable" speech.
Q:
Best Cooking Sauces, Inc., a U.S. business firm, makes and sells distinctively flavored cooking sauces. Although the recipes are secret, the ingredients could be revealed and the sauces could be reconstructed with diligent efforts. What can Best do to prevent its products from being "decoded" and pirated abroad?
Q:
The management of Sport Shoes Corporation, a U.S. firm, wants to expand into foreign investment and employment markets. They are considering either opening their own production facility in a foreign country or entering into a licensing agreement with a foreign firm. What are the advantages and disadvantages of each of these courses of action?
Q:
Kris is a judge in the United States, Lorca is a judge in Spain, and Mahmoud is a judge in Jordan. The primary function of these judges in their countries, and of the judges in virtually all countries, is
a. the blocking of litigation.
b. the initiation of litigation.
c. the resolution of litigation.
d. the sustaining of litigation.
Q:
Australia has a common law system. Unlike most civil law nations, common law countries have developed
a. court-made laws that apply to certain areas.
b. national laws that apply commonly across national borders.
c. rules that apply commonly to all social classes.
d. statutory codes that apply as the only sources of law.
Q:
The Council of Ministers and the Court of Justice are among the governing authorities of an international trading organization known as
a. the European Union.
b. the North American Free Trade Agreement.
c. the United Nations.
d. the World Trade Organization.
Q:
The United States and other members of a certain organization agree to bestow normal trade relations status on each other with regard to imports and exports. This organization is
a. the Convention on Contracts for the International Sale of Goods.
b. the International Export-Import Bank.
c. the United Nations.
d. the World Trade Organization.
Q:
Exotic Pets, Inc., exports goods from the United States in violation of export laws. Fine Products Corporation makes its goods in the United States, where Fine sometimes sells them for less than cost. Antidumping duties may be imposed on
a. Exotic's exports and Fine's products.
b. Exotic's exports only.
c. Fine's products only.
d. neither Exotic's exports nor Fine's products.
Q:
Canada sets a limit on the amount of beef that can be imported from the United States. This is
a. a dumping duty.
b. an antidumping duty.
c. a quota.
d. a tariff.
Q:
Serving in Congress, Don proposes a new tax on exports and imports. The tax that would be constitutional is the proposed tax on
a. exports and imports.
b. exports only.
c. imports only.
d. neither exports nor imports.
Q:
Wong, Ltd., makes its products outside the United States and imports them into the United States for sale at less than fair value. XL Sales Company exports goods from the United States to other nations where XL sells them for more than fair value. Antidumping duties may be imposed on
a. neither Wong's imports nor XL's exports.
b. Wong's imports and XL's exports.
c. Wong's imports only.
d. XL's exports only.
Q:
Eagle, Inc., a U.S. firm, contracts with Fong, Ltd., a Hong Kong firm, allowing Fong to use and profit from Eagle's patented products. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Q:
Alpha Company, a U.S. firm, expands into international markets through a joint venture. In this situation, Alpha owns
a. all of the operation.
b. as much of the operation as Alpha wants.
c. none of the operation.
d. part of the operation.
Q:
Innovative Manufacturing Company, a U.S. firm, signs a contract with Librador Corporacion, a Columbian firm, to give Librador the right to use Innovative's production processes. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Q:
Expansive Sales Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Germany. In this situation, Expansive retains
a. control over the operation and ownership of the foreign facility.
b. control over the operation, but not ownership of the foreign facility.
c. neither control over the operation nor ownership of the foreign facility.
d. ownership of the foreign facility, but not control over the operation.
Q:
Beta Communications Corporation, a U.S. firm, signs a contract with Computadores, Ltd., an Argentinean firm, for a shipment and payment for Beta's goods. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Q:
Hemisphere Financial Corporation, a U.S. firm, files a suit against Italy in a U.S. court. Italy claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act, this claim is determined by
a. a neutral third-party court.
b. an international law court.
c. an Italian court.
d. the U.S. court in which the suit is filed.
Q:
Egypt hires Faraway Marketing, Ltd., a British advertising agency, to promote tourism from Europe but fails to pay for the services. Faraway files a suit against Egypt in a U.S. court. Egypt will likely be exempt from the court's jurisdiction under
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the Foreign Corrupt Practices Act.
d. the principle of comity.
Q:
Pakistan giving effect to the laws and court decisions of the United States is an application of
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the principle of comity.
d. the World Trade Organization.
Q:
Fact Pattern 52-1
Sociedad Guarantia (SG), a Mexican firm, borrows $1 million from Tri-national Bank, a U.S. firm. Later, SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of certain payments on the loan. Tri-national files a suit against SG in a U.S. court, arguing that the funds do not belong to SG.
Refer to Fact Pattern 52-1. Under the principle of comity, the U.S. court in Tri-national's suit is most likely to
a. ask the Mexican court to drop SG's petition.
b. ask Tri-national to drop its suit.
c. dismiss Tri-national's suit.
d. order the Mexican court to deny SG's request.
Q:
Fact Pattern 52-1
Sociedad Guarantia (SG), a Mexican firm, borrows $1 million from Tri-national Bank, a U.S. firm. Later, SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of certain payments on the loan. Tri-national files a suit against SG in a U.S. court, arguing that the funds do not belong to SG.
Refer to Fact Pattern 52-1. The U.S. court in Tri-national's suit is most likely to apply the principle of comity because
a. the actions of foreign nations "taken in connection with commercial activities" are exempt from the jurisdiction of U.S. courts.
b. the bankruptcy proceedings in the Mexican court appear to be fundamentally fair and not in violation of U.S. public policy.
c. the courts of one country will not review the validity of acts by the courts of another country within their own jurisdiction.
d. the nations of the world are constitutionally bound to honor the actions of each others' courts.
Q:
Global Properties, Inc. (GPI), a U.S. firm, owns property in Hong Kong. The government in Hong Kong takes GPI's property without paying for it. A U.S. court will probably not examine the validity of this act committed by China within its own territory, under
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the principle of comity.
d. the World Trade Organization .
Q:
Tom is a citizen of the United States, which enters into international treaties. These treaties govern relations among
a. the United States and other nations.
b. Tom and other citizens of the United States.
c. Tom and the United States only.
d. Tom only.
Q:
U.S. citizens cannot file international tort actions in U.S. courts.
Q:
Under the Alien Tort Claims Act of 1789, foreign citizens can bring civil suits in U.S. courts for violations of a treaty of the U.S.
Q:
U.S. judges, but not foreign judges, actively participate in trials.
Q:
In both common law and civil law systems, the primary function of judges is the resolution of litigation.
Q:
Common law and civil law systems are wholly distinct.
Q:
In a common law system, the only official source of law is a statutory code.
Q:
The judges in different common law countries have produced differing common law principles.
Q:
The primary aim of the North American Free Trade Agreement is to eliminate tariffs among Mexico, the United States, and Canada.
Q:
Dumping is the sale of imported goods at "more than fair value."
Q:
Congress cannot impose taxes on imports.
Q:
Quotas are limits on the amounts of goods that can be imported.
Q:
Franchising is a form of licensing.
Q:
A party to a licensing agreement agrees to keep certain information confidential.
Q:
A foreign state is immune from the jurisdiction of U.S. courts even if the state is involved in commercial activity within the United States.
Q:
The Foreign Sovereign Immunities Act spells out the particulars of what constitutes a commercial activity.
Q:
Under the act of state doctrine, a firm whose assets a foreign government has expropriated may not recover compensatory damages in a U.S. court.
Q:
Expropriation occurs when a government seizes private property for an illegal purpose and awards just compensation.
Q:
The act of state doctrine provides that only a head of state can make treaties with another nation.
Q:
The principle of comity is based primarily on international treaties.
Q:
The principle of comity allows one country to give effect to the laws of another country if the laws of that country are consistent with its own laws.
Q:
Japan and other countries agree to abide by tariff reductions and other provisions of the World Trade Organization (WTO). What might be the chief advantage to these countries of cooperating with the WTO?
Q:
Standard International Diversified Corporation owns assets in Tagistan, a new country in Asia. The government of Tagistan wants to nationalize all assets owned by foreign firms and investors. What can Standard do? Can it at least obtain payment for the assets?
Q:
John, or any U.S. citizen, can file an international tort action in a U.S. court
a. for a violation of a treaty of the United States only.
b. for a violation of a treaty of the United States or of the law of nations.
c. for a violation of the law of nations only.
d. under no circumstances.
Q:
Under the Alien Tort Claims Act of 1789, Marco, or any foreign citizen, can bring a civil suit in a U.S. court
a. for a violation of a treaty of the United States only.
b. for a violation of a treaty of the United States or of the law of nations.
c. for a violation of the law of nations only.
d. under no circumstances.
Q:
Haruo is a judge in Japan, which has a civil law system. Peter is a judge in New Zealand, which has a common law system. In both of these countries, as in most nations, the primary function of judges is to
a. advocate their clients' interests.
b. encourage foreign business investment.
c. issue rulings contrary to the views of the head of state.
d. resolve litigation.
Q:
Mexico has a civil law system. In theory, in this system, the courts
a. are obligated to follow the doctrine of stare decisis.
b. may not develop their own laws.
c. must create new rules of law.
d. must develop legal concepts by case law.
Q:
The United States is a member of the World Trade Organization, which, among its members,
a. does not affect trade barriers.
b. maximizes trade barriers.
c. minimizes trade barriers.
d. outlaws trade barriers.
Q:
The United States taxes each barrel of imported oil at a flat rate. This is
a. an antidumping duty.
b. a dumping duty.
c. a quota.
d. a tariff.
Q:
North Korea confiscates the property of foreign investors. Oman expropriates foreign investors' property. Generally observed legal principles of international law are violated by
a. neither North Korea's confiscation nor Oman's expropriation.
b. North Korea's confiscation and Oman's expropriation.
c. North Korea's confiscation only.
d. Oman's expropriation only.
Q:
World Trading Company imports products made in South America. Restrictions on these imports may include
a. neither quotas nor tariffs.
b. quotas only.
c. quotas or tariffs.
d. tariffs only.
Q:
Gamma Global Trading Corporation imports goods into the United States and exports goods to other countries. Under the U.S. Constitution, Congress can
a. not tax exports, but can tax imports.
b. not tax exports or imports.
c. not tax imports, but can tax exports.
d. tax exports and imports.
Q:
Beta Company, a U.S. firm, expands into international markets through a joint venture. In this situation, Beta owns
a. all of the operation, and its profits and liabilities.
b. all of the operation, and none of its profits and liabilities.
c. none of the operation, and none of its profits and liabilities.
d. part of the operation, and shares its profits and liabilities.
Q:
Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Q:
Macro Corporation, a U.S. firm, signs a contract with Micro, Ltd., a Canadian firm, to give Micro the right to sell Macro's products in Canada. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Q:
Venezuela seizes the property of World Oil Company, a private business, for a proper public purpose and pays the owners just compensation. This is
a. a confiscation.
b. a dumping.
c. a licensing.
d. an expropriation.
Q:
Sudan confiscates the assets of Top Medical Supplies, Inc., a U.S. business. Top's recovery from Sudan in a U.S. court may be prevented by
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the Foreign Corrupt Practices Act.
d. the principle of comity.
Q:
An Israeli court awards an Israeli corporation damages against a U.S. firm. A U.S. court will defer and give effect to this award, as long as it is consistent with the laws and public policy of the United States, under
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the principle of comity.
d. the World Trade Organization .
Q:
Business Abroad, Inc., a U.S. firm, obtains a judgment in a U.S. court against Quang Tri, Ltd., a Vietnamese business. Whether the court's judgment will be enforced by a court in Vietnam depends on the Vietnamese court's application of
a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the principle of comity.
d. the World Trade Organization .
Q:
Yoko, Ltd., and Zeno, S.A., transact an international sale of goods. For these parties, and other international buyers and sellers, the United Nations Convention on Contracts for the International Sale of Goods spells out the duties that apply
a. if Article 2 of the Uniform Commercial Code does not apply.
b. if a dispute is submitted to the International Court of Justice.
c. if the parties have not agreed otherwise in their contracts.
d. under all circumstances.
Q:
China and India form an agreement to govern their commercial exchanges with one another. This is
a. a bilateral agreement.
b. a lateral agreement.
c. a multilateral agreement.
d. a unilateral agreement.
Q:
The Association of Southeast Asian Nations is a regional trade association that was created through
a. a bilateral agreement.
b. a lateral agreement.
c. a multilateral agreement.
d. a unilateral agreement.
Q:
Overseas Trading Corporation is a U.S. firm that does business here and abroad. International law establishes standards for
a. nations and private transactions that cross national borders.
b. nations only.
c. neither nations nor private transactions that cross national borders.
d. private transactions that cross national borders only.
Q:
Under the Alien Tort Claims Act of 1789, foreign citizens can bring civil suits in U.S. courts for violations of the law of nations.
Q:
Legal systems around the world are generally divided into common law and civil law systems.
Q:
Over one hundred of the world's nations abide by the requirements of the World Trade Organization.