Question 1

NAFTA establishes a free trade area between the United States, Mexico, and Canada.

Accepted Answer

A) True 
 B)False

Question 2

A multinational enterprise wishing to exploit a patent may choose to sell a foreign company the right to use the property rather than entering the foreign market itself. The sale of such rights is licensing.

Accepted Answer

A) True 
 B)False

Question 3

Section 1 of the Sherman Act provides that U.S. antitrust laws shall have a narrow reach.

Accepted Answer

A) True 
 B)False

Question 4

In international business transactions, a documentary letter of credit:

Accepted Answer

A)  is a method of payment for goods that reduces the seller's risk from the possibility that the goods will be shipped, but not paid for. 
B)  is a type of bill of lading. 
C)  is a guarantee by the seller's bank that it will pay the price of the exported goods if the seller breaches the contract. 
D)  All of these. 
A)  is a method of payment for goods that reduces the seller's risk from the possibility that the goods will be shipped, but not paid for. 
B)  is a type of bill of lading. 
C)  is a guarantee by the seller's bank that it will pay the price of the exported goods if the seller breaches the contract. 
D)  All of these.

Question 5

A number of countries have joined together in Europe, Asia, Africa, and Latin America to coordinate their regional economies. Which of the following has NOT been an objective of such cooperation?

Accepted Answer

A)  Creation of "regional" legislatures with actual powers. 
B)  Lowering of tariffs or removing other trade barriers. 
C)  Providing adequate and effective enforcement of intellectual property rights. 
D)  Establishing an economic and monetary union. 
A)  Creation of "regional" legislatures with actual powers. 
B)  Lowering of tariffs or removing other trade barriers. 
C)  Providing adequate and effective enforcement of intellectual property rights. 
D)  Establishing an economic and monetary union.

Question 6

The Foreign Corrupt Practices Act of 1977 (FCPA):

Accepted Answer

A)  makes it unlawful for an American company or its agents to offer or give anything of value 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 is correct. 
A)  makes it unlawful for an American company or its agents to offer or give anything of value 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 is correct.

Question 7

Assume that Denmark, a member of the European Community, is contemplating the enactment of a protective tariff for its fledgling electronics industry due to domestic political and economic pressures. Assume further that the EC has a tariff that it has also enacted for all electronics manufacturers within the EC that is considerably lower than the one that is being proposed in Denmark. The policy behind the lower EC 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 EC members give up no authority to the organization in regulating trade and business practices. 
B)  Generally, when EC economic policies conflict with the laws of member nations, EC 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 EC tariff policy would be overridden. 
D)  Assuming Denmark is a signatory to GATT, the General Agreement on Tariffs and Trade, it could retain its higher tariff since the purpose of GATT is to protect domestic industries by promoting higher tariffs. 
A)  Denmark could enact the higher tariff since EC members give up no authority to the organization in regulating trade and business practices. 
B)  Generally, when EC economic policies conflict with the laws of member nations, EC 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 EC tariff policy would be overridden. 
D)  Assuming Denmark is a signatory to GATT, the General Agreement on Tariffs and Trade, it could retain its higher tariff since the purpose of GATT is to protect domestic industries by promoting higher tariffs.

Question 8

The act-of-state doctrine provides that to maintain international relations and trade, a host country must refrain from imposing its laws on a foreign sovereign nation present within its borders.

Accepted Answer

A) True 
 B)False

Question 9

Discuss how an owner of intellectual property protects those rights in other countries.

Accepted Answer

U.S. laws protecting intellectual proper

Question 10

Define and discuss the doctrine of "sovereign immunity." Discuss how the Foreign Sovereign Immunities Act of 1976 has codified this area of law. Give examples of how the Act works.

Accepted Answer

In order to maintain international relat

Question 11

Governments can use nontariff barriers to give local industries a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 12

The World Bank established the MIGA to eliminate the practice of dumping.

Accepted Answer

A) True 
 B)False

Question 13

Regional trade communities exist in Europe, North America, Central America, Africa, and Asia.

Accepted Answer

A) True 
 B)False

Question 14

Lawsuits based on the commercial activities of a foreign state conducted in the U.S. are subject to the jurisdiction of state or federal courts in the U.S.

Accepted Answer

A) True 
 B)False

Question 15

The World Bank established the Multilateral Investment Guarantee Agency to encourage increased investment in developing nations.

Accepted Answer

A) True 
 B)False

Question 16

The judicial branch of the United Nations is called the World Court.

Accepted Answer

A) True 
 B)False

Question 17

There is an International Organization of Securities Commissions made up of approximately 100 national securities agencies and exchanges which regulates about half of the world's securities markets.

Accepted Answer

A) True 
 B)False

Question 18

Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act apply to U.S. citizens employed abroad by U.S. employers or by foreign companies controlled by U.S. employers.

Accepted Answer

A) True 
 B)False

Question 19

Mercer, an American exporter, sells artificial stone slabs to a Japanese importer, using a documentary letter of credit. Typically in this situation, the correspondent bank will be in Japan.

Accepted Answer

A) True 
 B)False

Question 20

What is the basic purpose of the World Trade Organization (WTO)?

Accepted Answer

The basic purpose of the World Trade Org

Exam 46: International Business Law

NAFTA establishes a free trade area between the United States, Mexico, and Canada.

A multinational enterprise wishing to exploit a patent may choose to sell a foreign company the right to use the property rather than entering the foreign market itself. The sale of such rights is licensing.

Section 1 of the Sherman Act provides that U.S. antitrust laws shall have a narrow reach.

In international business transactions, a documentary letter of credit:

A number of countries have joined together in Europe, Asia, Africa, and Latin America to coordinate their regional economies. Which of the following has NOT been an objective of such cooperation?

The Foreign Corrupt Practices Act of 1977 (FCPA):

The act-of-state doctrine provides that to maintain international relations and trade, a host country must refrain from imposing its laws on a foreign sovereign nation present within its borders.

Discuss how an owner of intellectual property protects those rights in other countries.

Define and discuss the doctrine of "sovereign immunity." Discuss how the Foreign Sovereign Immunities Act of 1976 has codified this area of law. Give examples of how the Act works.

Governments can use nontariff barriers to give local industries a competitive advantage.

The World Bank established the MIGA to eliminate the practice of dumping.

Regional trade communities exist in Europe, North America, Central America, Africa, and Asia.

Lawsuits based on the commercial activities of a foreign state conducted in the U.S. are subject to the jurisdiction of state or federal courts in the U.S.

The World Bank established the Multilateral Investment Guarantee Agency to encourage increased investment in developing nations.

The judicial branch of the United Nations is called the World Court.

There is an International Organization of Securities Commissions made up of approximately 100 national securities agencies and exchanges which regulates about half of the world's securities markets.

Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act apply to U.S. citizens employed abroad by U.S. employers or by foreign companies controlled by U.S. employers.

Mercer, an American exporter, sells artificial stone slabs to a Japanese importer, using a documentary letter of credit. Typically in this situation, the correspondent bank will be in Japan.

What is the basic purpose of the World Trade Organization (WTO)?

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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