Question 1

Explain the test that is applied in Canada before the foreign acquisition of a large Canadian business is authorized.

Accepted Answer

Canada applies what is referred to as th

Question 2

What information would you expect to see on the invoice used in an export transaction?

Accepted Answer

The invoice states the names and address

Question 3

A free trade area is one in which customs duties are always imposed.

Accepted Answer

A) True 
 B)False

Question 4

Conditions attached by a host country to a foreign investment are usually referred to as performance requirements.

Accepted Answer

A) True 
 B)False

Question 5

Today,under NAFTA,when a Canadian consumer purchases goods in the United States,he or she is required to pay Canadian customs and excise duties and tax on those goods when bringing them back into Canada.If this is the case,can it be said that such customs and excise duties and taxes make NAFTA something less than a free trade agreement?

Accepted Answer

While tariffs on goods between the membe

Question 6

The forum non conveniens principle allows a court to refuse to hear a proceeding because another jurisdiction is more appropriate or more closely connected to the matter.Factors relevant to determining which of the multiple forums is more appropriate include all of the following EXCEPT

Accepted Answer

A) the convenience,location,and expense for parties and witnesses in each forum. 
B) the avoidance of multiple proceedings-that is,whether a foreign jurisdiction has already assumed jurisdiction. 
C) the law to be applied to the dispute. 
D) whether the plaintiff has been declared a frivolous and vexatious litigant. 
E) the ability to enforce any resulting judgment. 
A) the convenience,location,and expense for parties and witnesses in each forum. 
B) the avoidance of multiple proceedings-that is,whether a foreign jurisdiction has already assumed jurisdiction. 
C) the law to be applied to the dispute. 
D) whether the plaintiff has been declared a frivolous and vexatious litigant. 
E) the ability to enforce any resulting judgment.

Question 7

A buyer in British Columbia purchases equipment from a manufacturer in China.The contract between the parties stipulates that any dispute between the parties arising out of the transaction will be decided by an arbitrator in Switzerland.The buyer is not satisfied with the quality of the equipment and brings the dispute before an arbitrator in Switzerland.What law will the arbitrator apply to resolve the dispute?

Accepted Answer

A) the law of British Columbia 
B) the law of Switzerland 
C) the law that has the closest connection with the contract 
D) the law of China 
E) the law that the parties agree should apply 
A) the law of British Columbia 
B) the law of Switzerland 
C) the law that has the closest connection with the contract 
D) the law of China 
E) the law that the parties agree should apply

Question 8

A,based in Canada,agrees to sell goods to B in Australia.The contract provides that B will manage shipment of the goods and A will deliver the goods to and load them on a carrier designated by B.In this case,A and B have entered into

Accepted Answer

A) a DDP contract. 
B) a CIF contract. 
C) an FOB contract. 
D) an EXW contract. 
E) none of the above 
A) a DDP contract. 
B) a CIF contract. 
C) an FOB contract. 
D) an EXW contract. 
E) none of the above

Question 9

The World Trade Organization provides two procedures for the resolution of disputes between countries.One way is to request the WTO Council to appoint a "panel" to adjudicate the dispute;the other way is

Accepted Answer

A) a consultation and,if necessary,conciliation procedure-essentially a diplomatic solution. 
B) to turn over the matter to the International Mediation Review Board. 
C) by arbitration through an international arbitration panel. 
D) to submit to the International Compensation Board,who will review the matter and publish a report with their recommendations. 
E) to refer the dispute to the Free Trade Commission for settlement. 
A) a consultation and,if necessary,conciliation procedure-essentially a diplomatic solution. 
B) to turn over the matter to the International Mediation Review Board. 
C) by arbitration through an international arbitration panel. 
D) to submit to the International Compensation Board,who will review the matter and publish a report with their recommendations. 
E) to refer the dispute to the Free Trade Commission for settlement.

Question 10

Use the fact situation in Q4 to answer the related question that follows. When the Canadian court cannot determine which law will apply from the intention of the parties,among other things,the court will consider

Accepted Answer

A) the place of business of the parties. 
B) the place of acceptance of the risk. 
C) where the contract was to be performed. 
D) where the contract was made. 
E) all of the above 
A) the place of business of the parties. 
B) the place of acceptance of the risk. 
C) where the contract was to be performed. 
D) where the contract was made. 
E) all of the above

Question 11

Explain the purpose of the GATT and the WTO.

Accepted Answer

The GATT was the principal instrument th

Question 12

Before a court assumes jurisdiction over an international business dispute,the issue must have a connecting factor.

Accepted Answer

A) True 
 B)False

Question 13

A large multinational Canadian manufacturing company has just bought a majority of shares in a similar company located in Spain.This is an example of

Accepted Answer

A) a limited investment in Spain. 
B) a portfolio investment in Spain. 
C) establishing a branch in Spain. 
D) a conditional portfolio investment. 
E) a direct foreign investment in Spain. 
A) a limited investment in Spain. 
B) a portfolio investment in Spain. 
C) establishing a branch in Spain. 
D) a conditional portfolio investment. 
E) a direct foreign investment in Spain.

Question 14

A large Korean car manufacturer has just built a new model car which it is going to sell in Canada.In Korea the car will be sold for the Canadian equivalent of $25 000.00 but to get into the market in Canada the car will be sold for $15 900.00 Canadian.In this case,the company has engaged in

Accepted Answer

A) anti-dumping. 
B) normal business practices. 
C) export subsidization. 
D) dumping. 
E) a conspiracy. 
A) anti-dumping. 
B) normal business practices. 
C) export subsidization. 
D) dumping. 
E) a conspiracy.

Question 15

The WTO promotes the principle of "non-discrimination." What is the principle of non-discrimination? How does that principle affect "most-favoured nation treatment"? How does it affect quotas?

Accepted Answer

The principle of non-discrimination says

Question 16

When we speak of foreign presence,we mean that

Accepted Answer

A) a business invests in a foreign-owned company. 
B) a business moves from one country to a foreign country. 
C) a business establishes trade relations with a foreign country. 
D) a foreign company buys out a local business. 
E) a business establishes an agent or representative office in a foreign country. 
A) a business invests in a foreign-owned company. 
B) a business moves from one country to a foreign country. 
C) a business establishes trade relations with a foreign country. 
D) a foreign company buys out a local business. 
E) a business establishes an agent or representative office in a foreign country.

Question 17

In a countertrade,the seller agrees to accept payment in the form of goods procured or produced by the buyer.

Accepted Answer

A) True 
 B)False

Question 18

The best means of establishing the proper law for an international contract is

Accepted Answer

A) to accept the same country where the contract would be submitted for arbitration. 
B) for the parties themselves to make express provision. 
C) for the parties to leave it by default to the country of signing. 
D) for the parties to leave it up to the rules of the court of jurisdiction. 
E) for the parties to make it subject to a "neutral" law. 
A) to accept the same country where the contract would be submitted for arbitration. 
B) for the parties themselves to make express provision. 
C) for the parties to leave it by default to the country of signing. 
D) for the parties to leave it up to the rules of the court of jurisdiction. 
E) for the parties to make it subject to a "neutral" law.

Question 19

Use the fact situation in Q4 to answer the related question that follows. In the event that the Canadian court cannot determine which law will apply from the intention of the parties,it will

Accepted Answer

A) impose Canadian law on the parties. 
B) impose international law on the parties. 
C) impose the law of France on the parties. 
D) impose the law of the country most connected to the contract. 
E) nullify the contract as being too uncertain. 
A) impose Canadian law on the parties. 
B) impose international law on the parties. 
C) impose the law of France on the parties. 
D) impose the law of the country most connected to the contract. 
E) nullify the contract as being too uncertain.

Question 20

In the exporting of services,one area of considerable risk is the transfer of technology and the sale or use of intellectual property.Explain,and give examples of how this is true.

Accepted Answer

In the transfer of such property,the hos

Exam 30: International Business Transactions

Explain the test that is applied in Canada before the foreign acquisition of a large Canadian business is authorized.

What information would you expect to see on the invoice used in an export transaction?

A free trade area is one in which customs duties are always imposed.

Conditions attached by a host country to a foreign investment are usually referred to as performance requirements.

The forum non conveniens principle allows a court to refuse to hear a proceeding because another jurisdiction is more appropriate or more closely connected to the matter.Factors relevant to determining which of the multiple forums is more appropriate include all of the following EXCEPT

A,based in Canada,agrees to sell goods to B in Australia.The contract provides that B will manage shipment of the goods and A will deliver the goods to and load them on a carrier designated by B.In this case,A and B have entered into

The World Trade Organization provides two procedures for the resolution of disputes between countries.One way is to request the WTO Council to appoint a "panel" to adjudicate the dispute;the other way is

Use the fact situation in Q4 to answer the related question that follows. When the Canadian court cannot determine which law will apply from the intention of the parties,among other things,the court will consider

Explain the purpose of the GATT and the WTO.

Before a court assumes jurisdiction over an international business dispute,the issue must have a connecting factor.

A large multinational Canadian manufacturing company has just bought a majority of shares in a similar company located in Spain.This is an example of

A large Korean car manufacturer has just built a new model car which it is going to sell in Canada.In Korea the car will be sold for the Canadian equivalent of $25 000.00 but to get into the market in Canada the car will be sold for $15 900.00 Canadian.In this case,the company has engaged in

The WTO promotes the principle of "non-discrimination." What is the principle of non-discrimination? How does that principle affect "most-favoured nation treatment"? How does it affect quotas?

When we speak of foreign presence,we mean that

In a countertrade,the seller agrees to accept payment in the form of goods procured or produced by the buyer.

The best means of establishing the proper law for an international contract is

Use the fact situation in Q4 to answer the related question that follows. In the event that the Canadian court cannot determine which law will apply from the intention of the parties,it will

In the exporting of services,one area of considerable risk is the transfer of technology and the sale or use of intellectual property.Explain,and give examples of how this is true.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

Electronic Commerce

Privacy

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