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Q:
GRM Fast Food Corp., located in New York, grants Truffle Eateries, a chain of restaurants in Paris, permission to produce and sell GRMs famous pizzas. Truffle Eateries will launch GRM in Paris and sell its products. The international business arrangement of GRM Fast Food Corp. is an example of a ______.
A. foreign subsidiary
B. foreign direct investment
C. a turnkey project
D. franchise
E. direct export
Q:
Which of the following is a most likely reason for a firm to enter a licensing agreement?
A. A licensing arrangement allows firms to enter a foreign market without direct foreign investments.
B. For a firm to enter into a licensing agreement, it must have substantial capital.
C. A licensing agreement does not require firms to follow the local laws where they operate.
D. A licensing arrangement is used only if the firms have strong management skills and marketing strategies in the regions where they operate.
E. A licensing agreement is a risk free method for firms to expand in foreign markets.
Q:
Many foreign countries favor joint ventures because they
A. eliminate the need for international arbitration.
B. reduce the legal risk for domestic firms.
C. eliminate the need for a bill of lading and an irrevocable letter of credit in foreign transactions.
D. allow local individuals and firms to participate in the benefits of economic growth.
E. decrease the need for export controls.
Q:
The ______, passed in 1993, provides for a dispute settlement mechanism that makes it easier to resolve trade disputes between the United States, Mexico, and Canada.
A. Convention on the International Sale of Goods
B. North American Free Trade Agreement
C. Central America-Dominican Republic Free Trade Agreement
D. Foreign Corrupt Practices Act
E. General Agreement on Tariffs and Trade
Q:
International sales transactions using ______ involve, in addition to a seller and buyer, an issuing bank in the buyers country.
A. a bill of lading
B. a bill of exchange
C. an irrevocable promissory note
D. a negotiable instrument
E. an irrevocable letter of credit
Q:
In an international sales transaction, a buyer obtains a commitment from the issuing bank to advance a specified amount upon receipt, from a carrier, of a(n) ______.
A. irrevocable letter of credit
B. bill of exchange
C. bill of lading
D. identity note
E. promissory note
Q:
Which of the following statements is true of a bill of lading?
A. It is forwarded by a confirming bank to an issuing bank.
B. It requires a buyer to pay a seller for goods prior to shipment.
C. A buyer has to obtain the bill from an issuing bank in order to be paid by a confirming bank.
D. It has to be provided by a buyer in order to request for a shipment of goods.
E. A seller cannot ship his goods unless he has the bill.
Q:
With respect to the sale of goods, the Convention on the International Sale of Goods (CISG) states that
A. if the parties to a contract are located in countries that have adopted the CISG, then parties are not subject to local laws.
B. all contracts for the sale of goods must be in the oral form.
C. contracts for the sale of goods need not be in writing.
D. the parties to a contract should sign the contract in the presence of attorneys.
E. only contracts concerning sale of goods above $500 must be in writing.
Q:
Which of the following countries is a member of the Central America-Dominican Republic Free Trade Agreement?
A. Canada
B. Costa Rica
C. Mexico
D. Belize
E. Panama
Q:
The World Trade Organization was created by the ______.
A. General Agreement on Tariffs and Trade
B. North American Free Trade Agreement
C. Convention on the International Sale of Goods
D. World Bank
E. International Court of Justice
Q:
Which of the following statements is true of the Commission of the European Union?
A. It coordinates the policies of the member states in a variety of areas from economics to foreign affairs.
B. It is composed of elected representatives from the five most powerful member states.
C. It plays an active role in drafting legislation that has an impact on the daily lives of its citizens.
D. It is the only institution of the EU that has control over the annual budget of the EU.
E. It consists of individuals who represent the will and interests of the entire European Union.
Q:
Which of the following statements is true of the Council of Ministers of the European Union (EU)?
A. It coordinates the policies of the member states in a variety of areas from economics to foreign affairs.
B. It is composed of elected representatives from the six most powerful European countries.
C. It decides the nature and parameters of EU law.
D. It is the only institution of the EU that has control over the annual budget of the EU.
E. It plays an active role in drafting legislation that has an impact on the daily lives of its citizens.
Q:
______, one of the major institutions of the European Union (EU), decides the nature and parameters of EU law.
A. The Parliament
B. The Commission
C. The Court of Justice
D. The Council of Intervention
E. The Council of Ministers
Q:
Which of the following is one of the major institutions of the European Union?
A. The Secretary Council
B. The International Court of Justice
C. The United Nations
D. The House of Representatives
E. The Council of Ministers
Q:
Which of the following statements is true of the Convention on the International Sale of Goods?
A. It does not resolve all areas of contract law.
B. It encourages international trade by maintaining stable foreign exchange rates.
C. It promotes economic development in poor countries by making loans to finance necessary development projects and programs.
D. It applies to consumer sales for personal, family, and household use.
E. It implements export controls on trade goods.
Q:
The ______ encourages international trade by maintaining stable foreign exchange rates and works closely with commercial banks to promote orderly exchange policies with members.
A. World Bank
B. World Trade Organization
C. United Nations Commission on International Trade Law
D. International Monetary Fund
E. Convention on International Sale of Goods
Q:
The ______ promotes economic development in poor countries by making loans to finance necessary development projects and programs.
A. World Bank
B. World Trade Organization
C. United Nations Commission on International Trade Law
D. International Monetary Fund
E. Convention on International Sale of Goods
Q:
Which of the following statements is true of the World Trade Organization?
A. It is administered by the International Court of Justice.
B. It is authorized by the Security Council.
C. It has the authority to regulate world trade in any manner it desires.
D. It restricts tariffs on textiles, apparel, and forest products.
E. It funds the International Monetary fund.
Q:
Which of the following General Agreement on Tariffs and Trade principles refers to reducing tariffs and other restrictions in foreign products?
A. Elimination of trade barriers
B. National treatment
C. Nondiscrimination
D. Extradition
E. Expropriation of burdens
Q:
Which of the following General Agreement on Tariffs and Trade principles refers to countries not favoring their domestic products over imported products?
A. Elimination of trade barriers
B. National treatment
C. Nondiscrimination
D. Extradition
E. Expropriation of burdens
Q:
The Charter of the United Nations sets forth as its primary goal to
A. combat corruption and corrupt practices in all countries.
B. save succeeding generations from the scourge of war.
C. ensure that justice is delivered at all levels in all member countries.
D. implement a just and fair international law that guides international commercial transactions.
E. minimize all forms of trade disputes.
Q:
Most international contracts contain choice of law and forum provisions to
A. eliminate the uncertainty in determining which nations court may hear a case if there is a contract dispute.
B. avoid prosecution by the World Court.
C. abide by the new amendments of the Foreign Corrupt Practices Act.
D. eliminate the possibility of being inspected by the United Nations Commission on International Trade Law.
E. reduce the possibility of a contract breach due to international trade disputes.
Q:
The International Court of Justice
A. is made up of seven judges representing the most developed countries of the world.
B. allows all nations to initiate a case before it.
C. renders, on average, seventy contested decisions per year.
D. has no enforcement authority against countries that breach international law.
E. has been a major force in settling disputes since it began functioning.
Q:
Which of the following statements is true of the Security Council?
A. It does not have the power to authorize military action.
B. It has the power to sever diplomatic relations with other nations.
C. It is composed of every nation represented in the United Nations.
D. It was solely created to develop standardized commercial practices and agreements.
E. It does not have any real power in the United Nations.
Q:
Generally, international law is classified as ______.
A. public international law or private international law
B. criminal international law or civil international law
C. international common law or international tort law
D. international tort law or international contract law
E. international business law or international property law
Q:
Which of the following statements is true of sources of international law?
A. Public international law uses rules that are binding only on specific countries in the international community.
B. Public international law examines relationships between nations.
C. Private international law examines relationships between private individuals.
D. Private international law utilizes U.S. law to resolve international business disputes.
E. Public international law determines the type of goods sold in every country.
Q:
Which of the following statements is true of private international law?
A. It is often predictable and certain.
B. It examines relationships between nations.
C. It examines relationships created by noncommercial transactions.
D. It utilizes international agreements to resolve business disputes.
E. It restricts the types of businesses that individuals can conduct.
Q:
The International Court of Justice is also called the ______.
A. World Court
B. Peace Court
C. World Chancery Court
D. Court of International Acclaim
E. World Trade Court
Q:
Which of the following statements is true of the International Court of Justice?
A. Private parties and corporations that have access to the court may directly present their claims.
B. Using legal devices, firms and individuals can compel the U.S. government to press claims on their behalf before the Court.
C. Only countries that have submitted to the Courts jurisdiction may be parties.
D. The Court has enforcement authority and does not rely on diplomacy or economic sanctions against countries.
E. It is compulsory for all countries to accept the Courts jurisdiction, whether or not the use of the Court suits their interests.
Q:
The Wassenaar Arrangement, an organization supported by 33 countries, has come into existence to help control
A. monetary value fluctuations encountered by nations when conducting international trade.
B. the spread of military and dual-use technology to unstable areas of the world.
C. and regulate the quality of food being traded between nations with different individual quality control regulations.
D. price gouging by dominant countries when dealing with smaller or weaker countries.
E. the impact of corruption on international trade, investments, and business policies.
Q:
According to the U.S. Export Control and Related Border Security Assistance Program, which of the following should be considered a red flag by exporters?
A. a customer who is willing to pay cash for high-value shipments
B. a customer who has extensive background in the relevant business
C. shipments that are directed to entities that are connected to a buyer
D. shipments that contain spare parts
E. an end-user purchasing goods for domestic use
Q:
Usually in expropriation, the expropriating government also assumes ownership of a property, so the process includes ______ as well.
A. nationalization
B. immunity
C. rescission
D. restitution
E. exclusion
Q:
Which of the following is a risk associated with the sale of U.S. strategic products and technology abroad?
A. import controls
B. material controls
C. export controls
D. sales controls
E. transaction controls
Q:
Which of the following statements is true of export controls?
A. They are widely popular among developed nations.
B. They make successful business deals more difficult.
C. They involve the confiscation of foreign-owned property by a government.
D. They are imposed by the International Court of Justice on all the developed nations.
E. They are designed to restrict the power of eminent domain.
Q:
Which of the following statements is true of the criminal penalties imposed for violations of the Foreign Corrupt Practices Act?
A. They are only imposed on foreign officials.
B. They are only imposed on foreign companies.
C. Fines imposed on individuals may not be paid by their employer.
D. Fines imposed on individuals do not exceed $10,000.
E. If corrupt payments are made through intermediaries, only the intermediaries are fined.
Q:
An expropriation is also considered to be a confiscation of property when
A. the owner of property is not fairly compensated.
B. a property owned by a foreign company is seized by the U.S. government.
C. a property is purchased through corrupt payments.
D. a property is seized under the Racketeer Influenced and Corrupt Organizations Act.
E. the owner of the property is charged under the Foreign Corrupt Practices Act.
Q:
Corporations and other business entities that violate the Foreign Corrupt Practices Act are subject to a fine of up to ______.
A. $2,000,000
B. $5,000,000
C. $100,000
D. $500,000
E. $10,000,000
Q:
______, as used in the context of international law, is the seizure of foreign-owned property by a government.
A. Nationalization
B. Possession
C. Mandatory arbitration
D. Export control
E. Expropriation
Q:
In the United States, the counterpart of expropriation is called the ______.
A. procedural due process
B. due process clause
C. power of eminent domain
D. power of judicial restraint
E. establishment clause
Q:
Which of the following statements is true of the Foreign Corrupt Practices Act of 1977?
A. It prosecutes any foreign official body that bribes American officials.
B. It is designed to restrict excessive import of goods.
C. It prohibits American citizens from doing business with countries that have a high level of corruption.
D. It is designed to stop bribery of foreign officials.
E. It governs the corrupt practices of foreign companies.
Q:
Parties involved in an international business can agree on a neutral third party to act as an arbitrator even before a dispute arises.
Q:
The arbitration process is less streamlined and harder for the parties to understand than litigating the dispute in a foreign court.
Q:
The parties to an arbitration conducted by the China International Economic and Trade Arbitration Commission cannot stipulate the location of the arbitration.
Q:
The World Intellectual Property Organization Arbitration and Mediation Center hears cases involving corporations and not individuals.
Q:
The New York convention of 1958 discourages the use of arbitration in commercial agreements made by companies in the signatory countries.
Q:
The Hague Service Convention is a treaty designed to provide a simpler way to serve process abroad when suing foreign businesses.
Q:
The China International Economic and Trade Arbitration Commission allows parties to an arbitration to choose the nationality of the arbitrators.
Q:
An essential aspect of a successful claim under the Alien Tort Statute is to demonstrate that the acts committed violate the law of nations.
Q:
By using a letter of credit, a buyer need not pay a seller for goods prior to shipment and the seller can obtain payment for the goods immediately upon shipment.
Q:
In the context of foreign sales, there is no room in documentary transactions for substantial performance.
Q:
Most countries will permit a foreign firm to conduct business only if a national of the foreign country is designated as its legal representative.
Q:
Many of the developing countries require that the local partner of a joint venture has minority equity control of the venture.
Q:
Creation of a foreign subsidiary eliminates the risk to a domestic parent firm.
Q:
The notion of sovereign immunity has always been, and continues to be, absolute in its application.
Q:
The Convention on the International Sale of Goods resolves all areas of contract law.
Q:
If a buyer from United States enters into a trade deal with a seller from Costa Rica, and an irrevocable letter of credit is involved, the issuing bank will be located in Costa Rica.
Q:
In an international sales transaction, an issuing banks commitment to pay is given to the seller directly in the case of a letter of credit.
Q:
The use of irrevocable letters of credit does not have any effect on reducing uncertainties in international transactions.
Q:
The Convention on the International Sale of Goods makes it harder to disclaim warranties on goods than under traditional U.S. law.
Q:
Under the Convention on the International Sale of Goods (CISG), parties are not allowed to negotiate contract terms and cannot opt out of the CISG.
Q:
The Central America-Dominican Republic Free Trade Agreement is designed to eliminate the barriers on products trades between its member countries.
Q:
If a commercial seller in the United States contracts for the sale of goods with a company from a country that has adopted the Convention on the International Sale of Goods, then the parties are not subject to local laws and customs.
Q:
The Convention on the International Sale of Goods provides that in contract negotiations an acceptance that contains new provisions that materially alter the terms of the offer becomes part of a contract.
Q:
The World Trade Organization does not have the power to hear disputes involving member states.
Q:
The World Trade Organization is the only global international trade organization dealing with the rules of trade between nations.
Q:
The European Union is solely a political partnership among 28 democratic European countries.
Q:
Public international law examines relationships created by commercial transactions.
Q:
The power of a government to take private property, the power of eminent domain, is not subject to any restraint.
Q:
Under U.S. law, a firm or individual can compel the U.S. government to press a claim on its behalf before the International Court of Justice.
Q:
A country may choose to accept the International Court of Justices jurisdiction only when the use of the Court may suit its own interests.
Q:
The International Court of Justice has been a major force in settling disputes since it began functioning in 1946.
Q:
The World Trade Organization requires countries to downgrade their intellectual property laws to protect patents and copyrights.
Q:
How does the law deal with cases where people attempt to register domain names containing well-known trademarks that do not belong to them?
Q:
The conduct that violates the antibribery provisions of the Foreign Corrupt Practices Act may also give rise to a private cause of action for treble damages under the Racketeer Influenced and Corrupt Organizations Act.
Q:
The U.S. export control system currently is regulated by the Department of State and the Department of Commerce under authority provided by the Export Administration Act and the Arms Export Control Act.
Q:
Discuss the Federal Trademark Dilution Act.
Q:
Discuss distinctiveness as a function of a trademark.
Q:
What is a trade dress?
Q:
What is an infringement?
Q:
Coca-Cola Co. has restricted employees at soda fountains from giving other colas when a customer asks for a "Coke." What is the reason for this decision?