Question 1

A foreign state is immune from the jurisdiction of a U.S. court when the state has engaged in commercial activity only outside the United States.

Accepted Answer

A) True 
 B)False

Question 2

Sugar Company, a U.S. firm, owns property in Trinidad and Tobago. When the foreign government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Trinidad and Tobago is exempt from the court's jurisdiction. This is an application of

Accepted Answer

A) a coercive action. 
B) the act of state doctrine. 
C) the doctrine of sovereign immunity. 
D) the principle of comity.

Question 3

Wei Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is

Accepted Answer

A) confiscation. 
B) a trade barrier. 
C) dumping. 
D) normal trade relations.

Question 4

When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up ownership, authority, and control of over all phases of the operation in the foreign country.

Accepted Answer

A) True 
 B)False

Question 5

Countries restrict exports to protect national security, further foreign policy objectives, and conserve resources.

Accepted Answer

A) True 
 B)False

Question 6

A body of law-formed as a result of international customs, treaties, and organizations-that governs relations among or between nations is

Accepted Answer

A) space law. 
B) universal law. 
C) international law. 
D) national law.

Question 7

Opti-Med Inc., a U.S. firm, signs a contract with Pharma Ltd., a Canadian firm, to give Pharma the right to sell Opti-Med's products in Canada. This is

Accepted Answer

A) a distribution agreement. 
B) indirect exporting. 
C) direct exporting. 
D) licensing.

Question 8

Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

Accepted Answer

A) confiscation. 
B) the act of state doctrine. 
C) the doctrine of sovereign immunity. 
D) expropriation.

Question 9

As part of a deal for power-generating equipment, Solar Wind Company and Thermal Gen Ltd. enter into a written contract that includes a clause providing for the arbitration of any dispute in the United States. Under the New York Convention, if a dispute arises, a court will compel arbitration if both parties are

Accepted Answer

A) not U.S. citizens. 
B) U)S. citizens. 
C) citizens of non-signatory countries. 
D) citizens of countries that are members of the World Trade Organization.

Question 10

In a case alleging that a foreign government wrongfully confiscated a domestic firm's property, the foreign government must prove the taking was an expropriation.

Accepted Answer

A) True 
 B)False

Question 11

Under the Export Trading Company Act, U.S. banks are

Accepted Answer

A) encouraged to invest in export trading companies. 
B) discouraged from granting credit to export trading companies. 
C) required to report financial transactions with export trading companies. 
D) prohibited from lending funds to export trading companies.

Question 12

Sufficient business develops in France for Graphic Comics Inc., a U.S. firm, to appoint Comics Graphique Ltd., a French firm, to act as the U.S. firm's marketing representative in France. This is

Accepted Answer

A) direct exporting. 
B) franchising. 
C) indirect exporting. 
D) licensing.

Question 13

Under the principle of comity, a domestic court will not examine the validity of any act committed by a foreign government within the court's jurisdiction.

Accepted Answer

A) True 
 B)False

Question 14

Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of

Accepted Answer

A) the act of state doctrine. 
B) the doctrine of sovereign immunity. 
C) the principle of comity. 
D) the Foreign Sovereign Immunities Act.

Question 15

In direct exporting, a U.S. company sets up a specialized marketing organization in a foreign market by appointing a foreign agent.

Accepted Answer

A) True 
 B)False

Question 16

Sovereign nations agree to be governed by International law to facilitate trade, commerce, and civilized discourse.

Accepted Answer

A) True 
 B)False

Question 17

The U.S. government does not generally regulate private spaceports and the launch and reentry of private spacecraft.

Accepted Answer

A) True 
 B)False

Question 18

Mexico is likely to defer and give effect to the laws and judicial decrees of the United States as long as

Accepted Answer

A) the laws and decrees are consistent with Mexican law and public policy. 
B) smaller countries fear and are intimidated by more powerful nations. 
C) poorer countries admire and envy richer nations. 
D) all of the choices.

Question 19

Regional trade agreements and associations help to minimize trade barriers among nations.

Accepted Answer

A) True 
 B)False

Question 20

To prevent the sale of imported goods at less than fair value, an extra tariff-known as an antidumping duty-may be assessed on the imports.

Accepted Answer

A) True 
 B)False

Exam 24: International and Space Law

A foreign state is immune from the jurisdiction of a U.S. court when the state has engaged in commercial activity only outside the United States.

Sugar Company, a U.S. firm, owns property in Trinidad and Tobago. When the foreign government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Trinidad and Tobago is exempt from the court's jurisdiction. This is an application of

Wei Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is

When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up ownership, authority, and control of over all phases of the operation in the foreign country.

Countries restrict exports to protect national security, further foreign policy objectives, and conserve resources.

A body of law-formed as a result of international customs, treaties, and organizations-that governs relations among or between nations is

Opti-Med Inc., a U.S. firm, signs a contract with Pharma Ltd., a Canadian firm, to give Pharma the right to sell Opti-Med's products in Canada. This is

Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

In a case alleging that a foreign government wrongfully confiscated a domestic firm's property, the foreign government must prove the taking was an expropriation.

Under the Export Trading Company Act, U.S. banks are

Sufficient business develops in France for Graphic Comics Inc., a U.S. firm, to appoint Comics Graphique Ltd., a French firm, to act as the U.S. firm's marketing representative in France. This is

Under the principle of comity, a domestic court will not examine the validity of any act committed by a foreign government within the court's jurisdiction.

Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of

In direct exporting, a U.S. company sets up a specialized marketing organization in a foreign market by appointing a foreign agent.

Sovereign nations agree to be governed by International law to facilitate trade, commerce, and civilized discourse.

The U.S. government does not generally regulate private spaceports and the launch and reentry of private spacecraft.

Mexico is likely to defer and give effect to the laws and judicial decrees of the United States as long as

Regional trade agreements and associations help to minimize trade barriers among nations.

To prevent the sale of imported goods at less than fair value, an extra tariff-known as an antidumping duty-may be assessed on the imports.