Question 1

A recent rash of antitrust actions brought in the United States against foreign companies has raised concerns that the United States is violating international law as well as the sovereignty of other nations.

Accepted Answer

A) True 
 B)False

Question 2

Harley-Davidson has applied for federal protection of an unusual form of intellectual property; the "soul-pleasing rumble" produced by its motorcycles.What type of protection is Harley-Davidson seeking?

Accepted Answer

A) copyright 
B) trademark 
C) license 
D) patent 
E) trade dress

Question 3

Any Western country doing business in Malaysia or the Middle East should have understanding of:

Accepted Answer

A) the French Civil Code. 
B) Anglo-Saxon common law. 
C) Islamic law. 
D) the Uniform Commercial Code. 
E) Roman law and the Napoleonic Code.

Question 4

Companies cannot purchase insurance to offset potential risks arising from the political environment of a country.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true about revised U.S.patent laws?

Accepted Answer

A) Patents are valid for 17 years after the patent is granted. 
B) Patents are valid for 17 years after the patent is filed. 
C) Patents are valid for 20 years after the patent is granted. 
D) Patents are valid for 20 years after the filing date of the application. 
E) Patents are valid as long as the product is manufactured.

Question 6

In most of the European Union countries, the influence of regulatory agencies is pervasive.What steps will be necessary of a corporation to protect business interest and advance new programs?

Accepted Answer

The answer of In most of the European Union countries,...

Question 7

In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies.Based on this information, which of the following would be correct?

Accepted Answer

A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries 
B) Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries. 
C) In West Africa, Ivory Coast and Senegal are the only common-law countries 
D) All the West African nations mentioned above are likely to be civil-code countries. 
E) All the West African nations mentioned above are likely to be common-law countries

Question 8

After Fidel Castro took power in Cuba in 1959, his government seized control of American property without paying compensation.Coca-Cola, DuPont, Texaco, and dozens of other American companies have filed claims against Cuba seeking financial settlements.Which of the following terms most specifically describes the action Castro took against these companies?

Accepted Answer

A) nationalization 
B) confiscation 
C) expropriation 
D) internationalization 
E) deportation

Question 9

If a foreign country decides to take over banking business from private banks to benefit public and pays adequate payment, then it is referred to as nationalization.

Accepted Answer

A) True 
 B)False

Question 10

The European Court of Justice, based in Luxembourg, is the European Union's highest legal authority.

Accepted Answer

A) True 
 B)False

Question 11

Some foreign companies reduce earnings by making loans to U.S.affiliates rather than using direct investment to finance U.S.activities.This is known as "earnings stripping."

Accepted Answer

A) True 
 B)False

Question 12

"Sharia" and "haram" are important concepts in civil-code laws, which are commonly practiced in Middle Eastern countries.

Accepted Answer

A) True 
 B)False

Question 13

What should a U.S.company do if competitors are willing to offer a bribe for business in a foreign country?

Accepted Answer

The answer of What should a U.S.company do if competitors...

Question 14

A key issue is global patent protection for software.Although copyright law protects the computer code, it does not apply to the idea embodied in the software.

Accepted Answer

A) True 
 B)False

Question 15

In a recent case, Revlon sued United Overseas Limited (UOL)in U.S.District Court for the Southern District of New York for breach of contract.UOL countered by asking the court to dismiss the claim since they are not operating in that area.Revlon cited the presence of a UOL sign above the entrance to the offices of a New York company in which UOL had a 50-percent ownership.The court dismissed UOL's claim.This is an issue related with:

Accepted Answer

A) jurisdiction. 
B) antitrust. 
C) dilution of equity. 
D) bribery and corruption. 
E) intellectual property.

Question 16

What happens if a nation has allowed a case against it to be brought before the ICJ (International Court of Justice?

Accepted Answer

A) American Arbitration Association can be sought for justice. 
B) UN Conference on International Trade Law can be approached. 
C) International Chamber of Commerce will be another source for seeking justice. 
D) European Court of Justice can be approached if the country is in the European Union. 
E) The plaintiff nation can seek recourse through the UN Security Council.

Question 17

Political risk is the possibility of a change in a country's political environment or government policy that would positively affect a company's ability to operate effectively and profitably.

Accepted Answer

A) True 
 B)False

Question 18

Categories of political risk listed by EIU (The Economist Intelligence Unit)includes all of the following except:

Accepted Answer

A) war. 
B) political turmoil. 
C) bureaucracy. 
D) corruption. 
E) crime.

Question 19

The requirement that all restaurants declare that the meat is "halal" is based on Islamic Laws.

Accepted Answer

A) True 
 B)False

Question 20

When a foreign country expropriates an American corporation, the U.S.court can get involved in arbitration.

Accepted Answer

A) True 
 B)False

Exam 5: The Political, Legal, and Regulatory Environments

A recent rash of antitrust actions brought in the United States against foreign companies has raised concerns that the United States is violating international law as well as the sovereignty of other nations.

Harley-Davidson has applied for federal protection of an unusual form of intellectual property; the "soul-pleasing rumble" produced by its motorcycles.What type of protection is Harley-Davidson seeking?

Any Western country doing business in Malaysia or the Middle East should have understanding of:

Companies cannot purchase insurance to offset potential risks arising from the political environment of a country.

Which of the following is true about revised U.S.patent laws?

In most of the European Union countries, the influence of regulatory agencies is pervasive.What steps will be necessary of a corporation to protect business interest and advance new programs?

In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies.Based on this information, which of the following would be correct?

If a foreign country decides to take over banking business from private banks to benefit public and pays adequate payment, then it is referred to as nationalization.

The European Court of Justice, based in Luxembourg, is the European Union's highest legal authority.

Some foreign companies reduce earnings by making loans to U.S.affiliates rather than using direct investment to finance U.S.activities.This is known as "earnings stripping."

"Sharia" and "haram" are important concepts in civil-code laws, which are commonly practiced in Middle Eastern countries.

What should a U.S.company do if competitors are willing to offer a bribe for business in a foreign country?

A key issue is global patent protection for software.Although copyright law protects the computer code, it does not apply to the idea embodied in the software.

What happens if a nation has allowed a case against it to be brought before the ICJ (International Court of Justice?

Political risk is the possibility of a change in a country's political environment or government policy that would positively affect a company's ability to operate effectively and profitably.

Categories of political risk listed by EIU (The Economist Intelligence Unit) includes all of the following except:

The requirement that all restaurants declare that the meat is "halal" is based on Islamic Laws.

When a foreign country expropriates an American corporation, the U.S.court can get involved in arbitration.