Question 1

The European Community was formed through a merger between the Common Market, the European Coal and
Steel Community, and the European Atomic Energy Community.

Accepted Answer

A) True 
 B)False

Question 2

What is "dumping"?

Accepted Answer

A)  The disparaging of the products of a competitor in international trade. 
B)  A company's selling of its product cheaper in its home market than in its export market. 
C)  A company's engaging in overproduction in order to flood a market so as to drive down prices. 
D)  A company's selling of its product for less than normal value in a foreign market. 
A)  The disparaging of the products of a competitor in international trade. 
B)  A company's selling of its product cheaper in its home market than in its export market. 
C)  A company's engaging in overproduction in order to flood a market so as to drive down prices. 
D)  A company's selling of its product for less than normal value in a foreign market.

Question 3

A foreign agent is used by multinational enterprises to take title to merchandise and bear the risks connected with international sales.

Accepted Answer

A) True 
 B)False

Question 4

In a foreign distributorship arrangement, the foreign distributorship in the importing country purchases the goods from the manufacturer in the exporting country.

Accepted Answer

A) True 
 B)False

Question 5

Confiscation of property by a foreign government for nonpublic purposes without adequate payment violates generally observed principles of international law.

Accepted Answer

A) True 
 B)False

Question 6

International contracts should specify the contract's official language and define all of the significant legal terms used.

Accepted Answer

A) True 
 B)False

Question 7

The European Community (EC) preceded the European Union (EU) and worked to remove trade barriers between member nations.

Accepted Answer

A) True 
 B)False

Question 8

An objective of the EU is to promote economic and social progress among member states.

Accepted Answer

A) True 
 B)False

Question 9

Kelly has been appointed the manager of a company that has just begun the direct export of its product. What precautions should he take to assure that the company would in fact be paid for its products when the company has never dealt with the buyer before and is new to the international legal environment?

Accepted Answer

The company should have a good working r

Question 10

The European Community was the predecessor to the:

Accepted Answer

A)  ICJ. 
B)  GATT. 
C)  CISG. 
D)  EU. 
A)  ICJ. 
B)  GATT. 
C)  CISG. 
D)  EU.

Question 11

The CISG was developed by the:

Accepted Answer

A)  UNCITRAL. 
B)  National Conference of Commissioners on Uniform State Law. 
C)  EU. 
D)  World Trade Organization. 
A)  UNCITRAL. 
B)  National Conference of Commissioners on Uniform State Law. 
C)  EU. 
D)  World Trade Organization.

Question 12

Under the doctrine of sovereign immunity, domestic courts, in certain circumstances, will exercise jurisdiction over a foreign state or its instrumentalities.

Accepted Answer

A) True 
 B)False

Question 13

Azurapi Corporation plans to start marketing products worldwide. What forms of multinational business enterprise are available? What factors should influence the decision on the form to use?

Accepted Answer

Possibilities include the use of a wholl

Question 14

Assume that Denmark, a member of the European Union, is contemplating the enactment of a protective tariff for its fledgling CD industry due to domestic political and economic pressures. Assume further that the EU has a tariff that it has also enacted for all CD manufacturers within the EU that is considerably lower than the one that is being proposed in Denmark. The policy behind the lower EU tariff is to promote freer trade even at the risk of destroying some of the weaker manufacturers in that organization. In this situation:

Accepted Answer

A)  Denmark could enact the higher tariff since EU members give up no authority to the organization in regulating trade and business practices. 
B)  Generally, when EU economic policies and rules conflict with the laws of member nations, EU law will prevail. Thus, Denmark's tariff may be illegal. 
C)  Denmark could petition the United Nations Council of Economic Policy and if it concurs with Denmark, the EU tariff policy would be overridden. 
D)  Assuming Denmark is a signatory to WTO, it could retain its higher tariff since the purpose of WTO is to protect domestic industries by promoting higher tariffs. 
A)  Denmark could enact the higher tariff since EU members give up no authority to the organization in regulating trade and business practices. 
B)  Generally, when EU economic policies and rules conflict with the laws of member nations, EU law will prevail. Thus, Denmark's tariff may be illegal. 
C)  Denmark could petition the United Nations Council of Economic Policy and if it concurs with Denmark, the EU tariff policy would be overridden. 
D)  Assuming Denmark is a signatory to WTO, it could retain its higher tariff since the purpose of WTO is to protect domestic industries by promoting higher tariffs.

Question 15

The U.S. belongs to multinational treaties that try to coordinate the application of member nations' intellectual property laws. A principal treaty protecting intellectual property is:

Accepted Answer

A)  the Berne Convention for the Protection of Literary and Artistic Works. 
B)  the Vienna Patent Treaty. 
C)  the Paris Convention for the Protection of Copyrighted Works. 
D)  the Paris Trademark Registration Treaty. 
A)  the Berne Convention for the Protection of Literary and Artistic Works. 
B)  the Vienna Patent Treaty. 
C)  the Paris Convention for the Protection of Copyrighted Works. 
D)  the Paris Trademark Registration Treaty.

Question 16

The CISG specifically excludes sales of which of the following?

Accepted Answer

A)  Goods bought for personal, family, or household use 
B)  Ships or aircraft 
C)  Electricity 
D)  All of these 
A)  Goods bought for personal, family, or household use 
B)  Ships or aircraft 
C)  Electricity 
D)  All of these

Question 17

The Overseas Private Investment Corporation (OPIC):

Accepted Answer

A)  is a private company that analyzes and monitors the political climate of countries in which American companies do business. 
B)  offers insurance to American companies to diminish the risks of expropriation of their property in the countries in which they do business. 
C)  was successful in lobbying Congress to repeal the Foreign Sovereign Immunities Act which had, in the past, prevented American companies from seeking relief from countries which had expropriated their property. 
D)  None of these. 
A)  is a private company that analyzes and monitors the political climate of countries in which American companies do business. 
B)  offers insurance to American companies to diminish the risks of expropriation of their property in the countries in which they do business. 
C)  was successful in lobbying Congress to repeal the Foreign Sovereign Immunities Act which had, in the past, prevented American companies from seeking relief from countries which had expropriated their property. 
D)  None of these.

Question 18

A frequently used device to protect domestic business and achieve other social and political goals is the tariff, which is a duty imposed on goods moving into or out of a country.

Accepted Answer

A) True 
 B)False

Question 19

The General Agreement on Tariffs and Trade is now called the WTO.

Accepted Answer

A) True 
 B)False

Question 20

Although under GATT's most-favored nation provision all signatories must treat each other as favorably as they treat any other country, nations may give preferential treatment to developing nations and may enter into free trade areas.

Accepted Answer

A) True 
 B)False

Exam 46: International Business Law

The European Community was formed through a merger between the Common Market, the European Coal and Steel Community, and the European Atomic Energy Community.

What is "dumping"?

A foreign agent is used by multinational enterprises to take title to merchandise and bear the risks connected with international sales.

In a foreign distributorship arrangement, the foreign distributorship in the importing country purchases the goods from the manufacturer in the exporting country.

Confiscation of property by a foreign government for nonpublic purposes without adequate payment violates generally observed principles of international law.

International contracts should specify the contract's official language and define all of the significant legal terms used.

The European Community (EC) preceded the European Union (EU) and worked to remove trade barriers between member nations.

An objective of the EU is to promote economic and social progress among member states.

The European Community was the predecessor to the:

The CISG was developed by the:

Under the doctrine of sovereign immunity, domestic courts, in certain circumstances, will exercise jurisdiction over a foreign state or its instrumentalities.

Azurapi Corporation plans to start marketing products worldwide. What forms of multinational business enterprise are available? What factors should influence the decision on the form to use?

The U.S. belongs to multinational treaties that try to coordinate the application of member nations' intellectual property laws. A principal treaty protecting intellectual property is:

The CISG specifically excludes sales of which of the following?

The Overseas Private Investment Corporation (OPIC):

A frequently used device to protect domestic business and achieve other social and political goals is the tariff, which is a duty imposed on goods moving into or out of a country.

The General Agreement on Tariffs and Trade is now called the WTO.

Although under GATT's most-favored nation provision all signatories must treat each other as favorably as they treat any other country, nations may give preferential treatment to developing nations and may enter into free trade areas.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

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