Question 1

Under U.S. law, the CISG supersedes the UCC whenever either could apply.

Accepted Answer

A) True 
 B)False

Question 2

The legal issues inherent in domestic commercial contracts also arise in international contracts.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is correct with respect to the act of state doctrine?

Accepted Answer

A)  It allows foreign countries to be liable for their torts. 
B)  It allows state governments in the United States to ignore treaties entered into by the United States. 
C)  It provides that the judicial branch of a nation should not question the validity of actions taken by a foreign government within that foreign sovereign's own borders. 
D)  It is a very recent addition to U.S. law. 
A)  It allows foreign countries to be liable for their torts. 
B)  It allows state governments in the United States to ignore treaties entered into by the United States. 
C)  It provides that the judicial branch of a nation should not question the validity of actions taken by a foreign government within that foreign sovereign's own borders. 
D)  It is a very recent addition to U.S. law.

Question 4

The European Community was the predecessor to the:

Accepted Answer

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

Question 5

The Foreign Corrupt Practices Act makes it illegal for an American company to offer or pay money to a foreign official to influence a decision of that official even if the offer is not accepted.

Accepted Answer

A) True 
 B)False

Question 6

How is "sovereign immunity" interpreted under U.S. law today?

Accepted Answer

A)  It gives absolute immunity to a foreign nation from all U.S. laws. 
B)  It gives immunity to foreign governments for commercial activity carried on in the U.S. by the foreign government. 
C)  It exempts the public acts of a foreign government, such as those involving diplomatic activity, from all U.S. laws. 
D)  All of these are a part of the interpretation. 
A)  It gives absolute immunity to a foreign nation from all U.S. laws. 
B)  It gives immunity to foreign governments for commercial activity carried on in the U.S. by the foreign government. 
C)  It exempts the public acts of a foreign government, such as those involving diplomatic activity, from all U.S. laws. 
D)  All of these are a part of the interpretation.

Question 7

Under the Foreign Sovereign Immunities Act a foreign sovereign is:

Accepted Answer

A)  immune from all suits in the United States. 
B)  immune from suits in the United States involving sovereign or public acts, but not private or commercial acts. 
C)  not immune from any type of suit in the United States. 
D)  None of these is correct. 
A)  immune from all suits in the United States. 
B)  immune from suits in the United States involving sovereign or public acts, but not private or commercial acts. 
C)  not immune from any type of suit in the United States. 
D)  None of these is correct.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A foreign company, partially owned by that foreign government, manufactures televisions in the foreign country. The cost to the company for the manufacture of the product is the equivalent of $60 in the U.S. Because of excess production, the firm exports 50,000 sets to the United States where they are sold for $75 each. If the nearest rival U.S.-made set sells for $85, the action of the foreign company:

Accepted Answer

A)  constitutes price-fixing. 
B)  violates the GAAT anti-dumping provisions. 
C)  violates the Sherman Act, because of the involvement of the foreign government in the company. 
D)  appears to be legal. 
A)  constitutes price-fixing. 
B)  violates the GAAT anti-dumping provisions. 
C)  violates the Sherman Act, because of the involvement of the foreign government in the company. 
D)  appears to be legal.

Question 10

Why do governments impose tariffs?

Accepted Answer

A)  To protect domestic industries from foreign competition. 
B)  To raise revenues. 
C)  To attempt to improve their balance of trade. 
D)  Governments impose tariffs for all of the above reasons. 
A)  To protect domestic industries from foreign competition. 
B)  To raise revenues. 
C)  To attempt to improve their balance of trade. 
D)  Governments impose tariffs for all of the above reasons.

Question 11

The Sherman Act:

Accepted Answer

A)  applies to acts committed overseas by U.S. corporations. 
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 a U.S. corporation. 
D)  never applies to acts committed outside the U.S. 
A)  applies to acts committed overseas by U.S. corporations. 
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 a U.S. corporation. 
D)  never applies to acts committed outside the U.S.

Question 12

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 13

A country may issue to foreign citizens visas that permit them to enter the country for identified purposes or for specific periods of time.

Accepted Answer

A) True 
 B)False

Question 14

The U.S. and the government of San Sebastian broke off diplomatic relations in a dispute over fishing rights. The U.S. blocked exports to San Sebastian. San Sebastian in turn seized and expropriated the assets of several U.S. companies located within the country. One of the companies, Continental Coffee, sued the U.S. government and the government of San Sebastian charging violation of the U.S. Constitution on the grounds of deprivation of property without due process of law. How will the company fare in its case against the U.S.? against San Sebastian? Explain your answer, providing reasons for your decision.

Accepted Answer

Continental Coffee does not have a case

Question 15

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

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)  Provide adequate and effective enforcement of all types of property rights. 
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)  Provide adequate and effective enforcement of all types of property rights.

Question 16

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 17

The General Agreement on Tariffs and Trade (GATT):

Accepted Answer

A)  attempts to limit the practice of "dumping." 
B)  is a general international antitrust agreement. 
C)  seeks to prohibit discrimination on import regulations and prevent export fees and export quotas through the mechanism of the "most-favored nations" status. 
D)  has successfully rid international trade of tariffs. 
A)  attempts to limit the practice of "dumping." 
B)  is a general international antitrust agreement. 
C)  seeks to prohibit discrimination on import regulations and prevent export fees and export quotas through the mechanism of the "most-favored nations" status. 
D)  has successfully rid international trade of tariffs.

Question 18

Under a distributorship:

Accepted Answer

A)  the distributor, like an agent, does not take title to the merchandise it receives. 
B)  the producer bears many of the risks connected with commercial sales. 
C)  both the producer and the distributor must take special care to ensure that the arrangement does not violate the antitrust laws of their respective governments. 
D)  multinational enterprises wishing to exploit an intellectual property right sell to a foreign company the right to use such property. 
A)  the distributor, like an agent, does not take title to the merchandise it receives. 
B)  the producer bears many of the risks connected with commercial sales. 
C)  both the producer and the distributor must take special care to ensure that the arrangement does not violate the antitrust laws of their respective governments. 
D)  multinational enterprises wishing to exploit an intellectual property right sell to a foreign company the right to use such property.

Question 19

The ICJ is:

Accepted Answer

A)  the Internal Court of Jurisdiction of the U.N. to deal with disputes within the United Nations organization. 
B)  a U.S. court created specifically to deal with international contracts. 
C)  the judicial branch of the United Nations, which has advisory jurisdiction if requested by a U.N. organ or specialized U.N. agency. 
D)  one of the many regional trade communities. 
A)  the Internal Court of Jurisdiction of the U.N. to deal with disputes within the United Nations organization. 
B)  a U.S. court created specifically to deal with international contracts. 
C)  the judicial branch of the United Nations, which has advisory jurisdiction if requested by a U.N. organ or specialized U.N. agency. 
D)  one of the many regional trade communities.

Question 20

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.

Exam 46: International Business Law

Under U.S. law, the CISG supersedes the UCC whenever either could apply.

The legal issues inherent in domestic commercial contracts also arise in international contracts.

Which of the following is correct with respect to the act of state doctrine?

The European Community was the predecessor to the:

The Foreign Corrupt Practices Act makes it illegal for an American company to offer or pay money to a foreign official to influence a decision of that official even if the offer is not accepted.

How is "sovereign immunity" interpreted under U.S. law today?

Under the Foreign Sovereign Immunities Act a foreign sovereign is:

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

Why do governments impose tariffs?

The Sherman Act:

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.

A country may issue to foreign citizens visas that permit them to enter the country for identified purposes or for specific periods of time.

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

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 General Agreement on Tariffs and Trade (GATT):

Under a distributorship:

The ICJ is:

In international business transactions, a documentary letter of credit:

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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