Question 1

The International Monetary Fund was established in 1945 to promote international monetary cooperation and now has approximately 50 member countries.

Accepted Answer

A) True 
 B)False

Question 2

The Convention on Contracts for the International Sales of Goods (CISG) includes which of the following provisions?

Accepted Answer

A)  Interpretation and trade usage 
B)  Intellectual property rights 
C)  Obligations and remedies of sellers, but not buyers 
D)  Profitability 
A)  Interpretation and trade usage 
B)  Intellectual property rights 
C)  Obligations and remedies of sellers, but not buyers 
D)  Profitability

Question 3

Businesses which wish to safeguard their technology while doing business in the international sector would not want to consider the use of wholly owned subsidiaries.

Accepted Answer

A) True 
 B)False

Question 4

International law is derived from the Code of Federal Regulations and international legal tribunals.

Accepted Answer

A) True 
 B)False

Question 5

How does a distributor differ from an agent?

Accepted Answer

A)  The agent pays royalties to the multinational enterprise. 
B)  The distributorship shares profits with the multinational enterprise. 
C)  The distributor takes title to the merchandise it receives and thereby bears many of the risks connected with commercial sales. 
D)  The distributor has the power to enter into contracts on the principal's behalf, but the agent does not. 
A)  The agent pays royalties to the multinational enterprise. 
B)  The distributorship shares profits with the multinational enterprise. 
C)  The distributor takes title to the merchandise it receives and thereby bears many of the risks connected with commercial sales. 
D)  The distributor has the power to enter into contracts on the principal's behalf, but the agent does not.

Question 6

The Foreign Corrupt Practices Act of 1977 (FCPA):

Accepted Answer

A)  makes it unlawful for an American company to pay money gifts to a foreign official for the purpose of influencing the official's acts or decisions. 
B)  requires that American companies in foreign countries adhere to the same health and safety standards in that country as they do in the U.S. 
C)  outlaws American business from engaging in business in countries, which, as determined by the Department, have governments "repugnant to American law and social values." 
D)  None of these. 
A)  makes it unlawful for an American company to pay money gifts to a foreign official for the purpose of influencing the official's acts or decisions. 
B)  requires that American companies in foreign countries adhere to the same health and safety standards in that country as they do in the U.S. 
C)  outlaws American business from engaging in business in countries, which, as determined by the Department, have governments "repugnant to American law and social values." 
D)  None of these.

Question 7

Which of the following is true with regard to securities regulation?

Accepted Answer

A)  Foreign issuers who issue securities in the United States are exempt from the registration requirements of the 1933 Act. 
B)  Some foreign issuers may avoid registration under the 1934 Act by providing the SEC with copies of all information material to investors that they have made public in their home country. 
C)  Antifraud provisions of U.S. securities laws do not apply to securities sold in foreign commerce if the courts have found either conduct or effects in the U.S. relating to a violation of securities law. 
D)  U.S. securities laws have no application to foreign issuers. 
A)  Foreign issuers who issue securities in the United States are exempt from the registration requirements of the 1933 Act. 
B)  Some foreign issuers may avoid registration under the 1934 Act by providing the SEC with copies of all information material to investors that they have made public in their home country. 
C)  Antifraud provisions of U.S. securities laws do not apply to securities sold in foreign commerce if the courts have found either conduct or effects in the U.S. relating to a violation of securities law. 
D)  U.S. securities laws have no application to foreign issuers.

Question 8

Americana Printing wishes to sell its products in a foreign country. However, it also wishes to retain some input over its operation in that country for quality control reasons. Which of the following forms of business would be the best for Americana?

Accepted Answer

A)  A foreign distributorship 
B)  Direct sales 
C)  A licensing agreement 
D)  Creating a subsidiary in the foreign country 
A)  A foreign distributorship 
B)  Direct sales 
C)  A licensing agreement 
D)  Creating a subsidiary in the foreign country

Question 9

Which of the following statements is true?

Accepted Answer

A)  The International Court of Justice renders binding decisions and advisory opinions to the many nations that submit their disputes to it. 
B)  The International Court of Justice is the judiciary branch of the United Nations, and its judges are elected by a majority of both the U.N. General Assembly and the U.N. Security Council. 
C)  The International Court of Justice was formed as the judiciary branch of the EC. 
D)  The International Court of Justice is very useful, in part because nations as well as private individuals and corporations may be parties to an action before the court. 
A)  The International Court of Justice renders binding decisions and advisory opinions to the many nations that submit their disputes to it. 
B)  The International Court of Justice is the judiciary branch of the United Nations, and its judges are elected by a majority of both the U.N. General Assembly and the U.N. Security Council. 
C)  The International Court of Justice was formed as the judiciary branch of the EC. 
D)  The International Court of Justice is very useful, in part because nations as well as private individuals and corporations may be parties to an action before the court.

Question 10

One of the objectives of NAFTA is to promote conditions of fair competition in the United States, Canada, and
Mexico.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an objective of the North American Free Trade Agreement?

Accepted Answer

A)  Create trade barriers to the movement of goods and services across the borders. 
B)  Promote conditions of fair competition in the free trade area. 
C)  Decrease investment opportunities in the area. 
D)  Immediately eliminate all tariffs between the three countries covered by the agreement. 
A)  Create trade barriers to the movement of goods and services across the borders. 
B)  Promote conditions of fair competition in the free trade area. 
C)  Decrease investment opportunities in the area. 
D)  Immediately eliminate all tariffs between the three countries covered by the agreement.

Question 12

Which of the following is true about the European Union (EU)?

Accepted Answer

A)  The EU is the predecessor to the European Community. 
B)  An objective of the EU is to promote economic and social progress and to establish an economic and monetary union among member nations. 
C)  The EU has officially admitted Japan to full membership. 
D)  The EU has ten full member nations and almost forty million citizens. 
A)  The EU is the predecessor to the European Community. 
B)  An objective of the EU is to promote economic and social progress and to establish an economic and monetary union among member nations. 
C)  The EU has officially admitted Japan to full membership. 
D)  The EU has ten full member nations and almost forty million citizens.

Question 13

The choice-of-forum clause in an international business transaction will dictate what country's law the forum will apply should a legal dispute arise.

Accepted Answer

A) True 
 B)False

Question 14

The Sherman Act:

Accepted Answer

A)  protects U.S. exports from privately imposed restrictions seeking to exclude U.S. competitors from foreign markets. 
B)  would not apply to an act committed in the United States by a foreign corporation. 
C)  would not apply to an act overseas by a 100 percent-owned foreign subsidiary of an U.S. corporation. 
D)  never applies to acts committed outside the U.S. 
A)  protects U.S. exports from privately imposed restrictions seeking to exclude U.S. competitors from foreign markets. 
B)  would not apply to an act committed in the United States by a foreign corporation. 
C)  would not apply to an act overseas by a 100 percent-owned foreign subsidiary of an U.S. corporation. 
D)  never applies to acts committed outside the U.S.

Question 15

The World Bank established the to encourage increased investment in developing nations.

Accepted Answer

A)  Overseas Private Investment Corporation 
B)  World Trade Organization 
C)  Multilateral Investment Guarantee Agency 
D)  Commission on International Trade 
A)  Overseas Private Investment Corporation 
B)  World Trade Organization 
C)  Multilateral Investment Guarantee Agency 
D)  Commission on International Trade

Question 16

NAFTA established a free trade area for the United States, Mexico, and Central America.

Accepted Answer

A) True 
 B)False

Exam 46: International Business Law

The International Monetary Fund was established in 1945 to promote international monetary cooperation and now has approximately 50 member countries.

The Convention on Contracts for the International Sales of Goods (CISG) includes which of the following provisions?

Businesses which wish to safeguard their technology while doing business in the international sector would not want to consider the use of wholly owned subsidiaries.

International law is derived from the Code of Federal Regulations and international legal tribunals.

How does a distributor differ from an agent?

The Foreign Corrupt Practices Act of 1977 (FCPA):

Which of the following is true with regard to securities regulation?

Americana Printing wishes to sell its products in a foreign country. However, it also wishes to retain some input over its operation in that country for quality control reasons. Which of the following forms of business would be the best for Americana?

Which of the following statements is true?

One of the objectives of NAFTA is to promote conditions of fair competition in the United States, Canada, and Mexico.

Which of the following is an objective of the North American Free Trade Agreement?

Which of the following is true about the European Union (EU)?

The choice-of-forum clause in an international business transaction will dictate what country's law the forum will apply should a legal dispute arise.

The Sherman Act:

The World Bank established the to encourage increased investment in developing nations.

NAFTA established a free trade area for the United States, Mexico, and Central America.

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

Filters