Exam 52: International Law in a Global Economy

Savory Cooking Sauces, Inc., a U.S. business firm, makes and sells distinc?tively flavored cooking sauces. Although the recipes are secret, the ingre?di?ents could be revealed and the sauces could be reconstructed with dili?gent efforts. What can Savory do to prevent its products from being "decoded" and pirated abroad?

Quotas are limits on the amounts of goods that can be imported.

Under the principle of comity, a foreign business that deals with a U.S. business may be subject to U.S. law.

A treaty is a contract or other agreement between two or more nations that must be ratified by the United Nations to take effect.

A party to a licensing agreement agrees to keep certain information confidential.

Antidumping duties are the responsibilities of international environmental polluters.

Fact Pattern 52-1B Sociedad Guarantia , a Mexican firm, borrows $1 million from Tri-national Bank, a U.S. firm. Later, SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of certain payments on the loan. Tri-national files a suit against SG in a U.S. court, arguing that the funds do not belong to SG. -Refer to Fact Pattern 52-1B. The U.S. court in Tri-national's suit is most likely to apply the principle of comity because

International law attempts to reconcile the authority of each nation over its own affairs with its desire to benefit from trade and harmonious relations.

UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela seizes the property, UniOil asks a U.S. court to order the property's return. The court rules that Venezuela is exempt from the court's jurisdiction. This is

WiFi Corporation, a U.S. firm, signs a contract with Bueno Computadores, Ltd., an Argentinean firm, for a shipment and payment for WiFi's goods. This is

Mexico has a civil law system. In theory, in this system, the courts

The doctrine of sover?eign immu?nity can immunize a foreign nation from the jurisdiction of U.S. courts.

Restrictions on exports may include tariffs.

World Trading Company imports products made in South America to North America, including the United States. Restrictions on these imports may include

In a common law system, the courts independently develop the rules governing certain areas of the law.

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is

Japan and other countries agree to abide by tariff reduc?tions and other pro?visions of the World Trade Organization (WTO). What might be the chief advan?tage to these coun?tries of cooperating with the WTO?

A party to a licensing agreement generally agrees to pay royalties on some basis.

Precision Motors Corporation (PMC), a U.S. firm, expands into international markets through a joint venture. In this situation, PMC owns

Dumping is the exporting of environmentally polluting goods to a foreign market