Question 1

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 2

The Overseas Private Investment Corporation (OPIC):

Accepted Answer

A) is a private company that analyzes and monitors the political climate of countries in which American companies do business. 
B) offers insurance to American companies to diminish the risks of expropriation of their property in the countries in which they do business. 
C) was successful in lobbying Congress to repeal the Foreign Sovereign Immunities Act which had, in the past, prevented American companies from seeking relief from countries which had expropriated their property. 
D) None of these.

Question 3

Azurapi Corporation plans to start marketing products worldwide.What forms of multinational business enterprise are available? What factors should influence the decision on the form to use?

Accepted Answer

The answer of Azurapi Corporation plans to start marketing products...

Question 4

The European Community was the predecessor to the:

Accepted Answer

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

Question 5

The U.S.and the government of Mystic broke off diplomatic relations in a dispute over fishing rights.The U.S.blocked exports to Mystic.Mystic 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 Mystic 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 Mystic? Explain your answer in detail, providing reasons for your decision.

Accepted Answer

The answer of The U.S.and the government of Mystic broke...

Question 6

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 7

Assume a foreign nation has seized all of the property of an American corporation.The foreign nation has assumed ownership of the property for a public purpose and has paid the American corporation what it believes to be fair compensation.Under these facts, the seizure of property is best described as:

Accepted Answer

A) expropriation. 
B) confiscation. 
C) force majeure. 
D) eminent domain.

Question 8

Like domestic law, international law can be easily enforced, because international courts have compulsory jurisdiction.

Accepted Answer

A) True 
 B)False

Question 9

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.

Question 10

In a foreign distributorship arrangement, the foreign distributorship in the importing country purchases the goods from the manufacturer in the exporting country.

Accepted Answer

A) True 
 B)False

Question 11

The Foreign Sovereign Immunities Act specifically provides that a foreign state shall be immune from neither federal nor state court jurisdiction in certain circumstances.The circumstances include that the suit is based on:

Accepted Answer

A) a commercial activity conducted in the United States by the foreign state. 
B) an act that the foreign state performed in the United States in connection with a commercial activity it carried on elsewhere. 
C) a commercial activity performed outside U.S.borders that directly affects the United States. 
D) All of these.

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.

Question 13

The General Agreement on Tariffs and Trade is now called the WTO.

Accepted Answer

A) True 
 B)False

Question 14

Parties to an international sales contract may expressly exclude CISG governance from their contract.

Accepted Answer

A) True 
 B)False

Question 15

The ICJ is:

Accepted Answer

A) the Internal Court of Justice 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, having voluntary jurisdiction over nations. 
D) one of the many Regional Trade Communities.

Question 16

A(n) is a clause apportioning the liability and responsibilities of the parties in the event of an unforeseeable and
Unavoidable occurrence, such as a typhoon, tornado, or other disaster.

Accepted Answer

A) act of state 
B) OPIC 
C) letter of credit 
D) force majeure

Question 17

The act of state doctrine:

Accepted Answer

A) allows foreign countries to be liable for their torts. 
B) allows state governments in the United States to ignore treaties entered into by the United States. 
C) 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) is a very recent addition to U.S.law.

Question 18

Under U.S.law, the CISG does supersede the UCC whenever the CISG applies.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

International courts have compulsory jurisdiction to resolve international disputes, and they have the authority to resolve an international dispute even if the parties to the dispute do not specifically accept the court's jurisdiction over the matter.

Accepted Answer

A) True 
 B)False

Exam 46: International Business Law

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 Overseas Private Investment Corporation (OPIC) :

Azurapi Corporation plans to start marketing products worldwide.What forms of multinational business enterprise are available? What factors should influence the decision on the form to use?

The European Community was the predecessor to the:

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

Like domestic law, international law can be easily enforced, because international courts have compulsory jurisdiction.

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

In a foreign distributorship arrangement, the foreign distributorship in the importing country purchases the goods from the manufacturer in the exporting country.

The Foreign Sovereign Immunities Act specifically provides that a foreign state shall be immune from neither federal nor state court jurisdiction in certain circumstances.The circumstances include that the suit is based on:

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

The General Agreement on Tariffs and Trade is now called the WTO.

Parties to an international sales contract may expressly exclude CISG governance from their contract.

The ICJ is:

A(n) is a clause apportioning the liability and responsibilities of the parties in the event of an unforeseeable and Unavoidable occurrence, such as a typhoon, tornado, or other disaster.

The act of state doctrine:

Under U.S.law, the CISG does supersede the UCC whenever the CISG applies.

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?

International courts have compulsory jurisdiction to resolve international disputes, and they have the authority to resolve an international dispute even if the parties to the dispute do not specifically accept the court's jurisdiction over the matter.