Question 1

The U.S.dollar is considered the international currency.

Accepted Answer

A) True 
 B)False

Question 2

Which is a correct statement about arbitration of contractual disputes regarding international trade?

Accepted Answer

A)  It is done in court. 
B)  There is extensive judicial review of the decision. 
C)  Parties frequently arbitrate in neutral countries. 
D)  It is not available in disputes of more than $1 million. 
A)  It is done in court. 
B)  There is extensive judicial review of the decision. 
C)  Parties frequently arbitrate in neutral countries. 
D)  It is not available in disputes of more than $1 million.

Question 3

Under the General Agreement on Tariffs and Trade (GATT),the principle of trade without discrimination is embodied in the most favored nation clause.

Accepted Answer

A) True 
 B)False

Question 4

The use of import quotas represents the most common form of tariff barrier.

Accepted Answer

A) True 
 B)False

Question 5

The Foreign Corrupt Practices Act prohibits improper payments to influence foreign officials.

Accepted Answer

A) True 
 B)False

Question 6

When a U.S.trademark holder licenses a foreign business use of its trademark overseas and a third party imports these goods into the United States to compete against the U.S.manufacturer's goods,the foreign-made goods are called __________ goods.

Accepted Answer

A)  "gray market" 
B)  counterfeit. 
C)  specially-licensed. 
D)  dumped goods. 
A)  "gray market" 
B)  counterfeit. 
C)  specially-licensed. 
D)  dumped goods.

Question 7

Under the act-of-state doctrine,the courts of one country will not sit in judgment of the acts of the government of another country conducted within its own territory.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following actions is not prohibited by The Foreign Corrupt Practices Act?

Accepted Answer

A)  offers of payments to government officials to influence a decision on behalf of the firm making the payment 
B)  payments to government officials to influence a decision on behalf of the firm making the payment 
C)  payments to low-level officials for expediting the performance of routine government services 
D)  all of the above actions are prohibited by The Foreign Corrupt Practices Act 
A)  offers of payments to government officials to influence a decision on behalf of the firm making the payment 
B)  payments to government officials to influence a decision on behalf of the firm making the payment 
C)  payments to low-level officials for expediting the performance of routine government services 
D)  all of the above actions are prohibited by The Foreign Corrupt Practices Act

Question 9

In antidumping cases:

Accepted Answer

A)  The International Trade Administration determines whether foreign goods are being sold in the United States at less than fair value (LTFV). 
B)  The International Trade Commission determines if there is an injury to a U.S.industry as a result of such sales. 
C)  Remedial action will be taken only if findings of both LTFV sales and injury are present. 
D)  All of the above 
A)  The International Trade Administration determines whether foreign goods are being sold in the United States at less than fair value (LTFV). 
B)  The International Trade Commission determines if there is an injury to a U.S.industry as a result of such sales. 
C)  Remedial action will be taken only if findings of both LTFV sales and injury are present. 
D)  All of the above

Question 10

A direct sale by an American firm to a customer abroad,with terms of payment commonly based on an irrevocable letter of credit,is an import sale.

Accepted Answer

A) True 
 B)False

Question 11

Licensing involves the transfer of title of goods to a distributor who bears the financial and commercial risks for the subsequent sale of the goods.

Accepted Answer

A) True 
 B)False

Question 12

United States antitrust laws can protect United States exports.

Accepted Answer

A) True 
 B)False

Question 13

The Securities and Exchange Commission (SEC)is not limited to litigation when a securities law enforcement investigation runs into secrecy or blocking laws.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true regarding the World Trade Organization (WTO)?

Accepted Answer

A)  The WTO has been in place since 1947. 
B)  The WTO coordinates its activities with GATT. 
C)  It provides a dispute settlement body to promote the resolution of trade disputes. 
D)  It has the ability to impose criminal penalties. 
A)  The WTO has been in place since 1947. 
B)  The WTO coordinates its activities with GATT. 
C)  It provides a dispute settlement body to promote the resolution of trade disputes. 
D)  It has the ability to impose criminal penalties.

Question 15

The Alexo Corporation has been charged in a United States court with violation of American antitrust laws in its foreign dealings.The firm has raised the defense that its actions were compelled by the government of its host country.Alexo based its defense on the__________ doctrine.

Accepted Answer

A)  act-of-state 
B)  sovereign compliance 
C)  sovereign immunity 
D)  Treaty of Rome 
A)  act-of-state 
B)  sovereign compliance 
C)  sovereign immunity 
D)  Treaty of Rome

Question 16

Legal restrictions of U.S.firms doing business abroad in regard to payments made to foreign officials for obtaining business are set forth in the:

Accepted Answer

A)  International Corruption Prohibition Act. 
B)  Global Anti-bribery Control Act. 
C)  Foreign Corrupt Practices Act. 
D)  International Graft Prohibition Act. 
A)  International Corruption Prohibition Act. 
B)  Global Anti-bribery Control Act. 
C)  Foreign Corrupt Practices Act. 
D)  International Graft Prohibition Act.

Question 17

The International Monetary Fund (IMF)was formed to shorten the duration and lessen the disequilibrium in the international balance of payments of its members.

Accepted Answer

A) True 
 B)False

Exam 7: The Legal Environment of International Trade

The U.S.dollar is considered the international currency.

Which is a correct statement about arbitration of contractual disputes regarding international trade?

Under the General Agreement on Tariffs and Trade (GATT),the principle of trade without discrimination is embodied in the most favored nation clause.

The use of import quotas represents the most common form of tariff barrier.

The Foreign Corrupt Practices Act prohibits improper payments to influence foreign officials.

When a U.S.trademark holder licenses a foreign business use of its trademark overseas and a third party imports these goods into the United States to compete against the U.S.manufacturer's goods,the foreign-made goods are called __________ goods.

Under the act-of-state doctrine,the courts of one country will not sit in judgment of the acts of the government of another country conducted within its own territory.

Which of the following actions is not prohibited by The Foreign Corrupt Practices Act?

In antidumping cases:

A direct sale by an American firm to a customer abroad,with terms of payment commonly based on an irrevocable letter of credit,is an import sale.

Licensing involves the transfer of title of goods to a distributor who bears the financial and commercial risks for the subsequent sale of the goods.

United States antitrust laws can protect United States exports.

The Securities and Exchange Commission (SEC)is not limited to litigation when a securities law enforcement investigation runs into secrecy or blocking laws.

Which of the following statements is true regarding the World Trade Organization (WTO)?

The Alexo Corporation has been charged in a United States court with violation of American antitrust laws in its foreign dealings.The firm has raised the defense that its actions were compelled by the government of its host country.Alexo based its defense on the__________ doctrine.

Legal restrictions of U.S.firms doing business abroad in regard to payments made to foreign officials for obtaining business are set forth in the:

The International Monetary Fund (IMF)was formed to shorten the duration and lessen the disequilibrium in the international balance of payments of its members.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters