Question 1

Under the Foreign Sovereign Immunities Act, a foreign state can be a political subdivision of a foreign state.

Accepted Answer

A) True 
 B)False  True

Question 2

Tropic Foods Corporation, a U.S. firm, owns property in Ecuador. When the Ecuadoran government seizes the property, Tropic Foods asks a U.S. court to order the property's return. The court rules that Ecuador is exempt from the court's jurisdiction. This is

Accepted Answer

A)   ​a travesty of justice.
B)   ​the act of state doctrine.
C)   ​the doctrine of sovereign immunity.
D)   ​the principle of comity. C

Question 3

Brew Heaven Inc., a U.S. corporation, makes a deal with Celtic Pubs, Ltd., an Irish firm, that allows Celtic to use Brew's trade name in Ireland in return for a fee. This is

Accepted Answer

A)   ​a franchise.
B)   ​piracy.
C)   ​a joint venture.
D)   ​direct exporting. A

Question 4

A foreign citizen can bring a civil suit in a U.S. court for a violation of an international tort law.

Accepted Answer

A) True 
 B)False

Question 5

Firms overseas have almost total legal protection against government acts in the countries in which they operate, under the act of state doctrine.

Accepted Answer

A) True 
 B)False

Question 6

World Media, Inc., a U.S. firm, expands into international markets through a joint venture. In the venture, World Media shares responsibilities

Accepted Answer

A)   ​both the profits and liabilities.
B)   ​none of the profits or liabilities.
C)   ​the profits, but not the liabilities.
D)   ​the liabilities, but not the profits.

Question 7

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 World Trade Organization.

Question 8

In the global environment of business, the law of a particular nation, such as Germany, China, or the United States, is classified as

Accepted Answer

A)   ​space law.
B)   ​global law.
C)   ​international law.
D)   ​national law.

Question 9

To obtain a contract with the Chinese government, Road & Bridge Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

Accepted Answer

A)   ​the act of state doctrine.
B)   ​the doctrine of sovereign immunity.
C)   ​the Foreign Corrupt Practices Act.
D)   ​the principle of comity.

Question 10

World Sports Corporation is a U.S. firm with a facility in Spain. Generally, World Sports must abide by U.S. anti-discrimination laws in Spain

Accepted Answer

A)   ​under any circumstances.
B)   ​under no circumstances.
C)   ​unless to do so would contravene the cultural norms of Spain.
D)   ​unless to do so would violate the law of Spain.

Question 11

Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in

Accepted Answer

A)   ​the European market.
B)   ​France.
C)   ​the United States.
D)   ​the world market.

Question 12

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 13

A choice-of-law clause in an international contract designates the applicable law.

Accepted Answer

A) True 
 B)False

Question 14

​In a joint venture, the parent company in the United States retains complete ownership and authority over all phases of the operation.

Accepted Answer

A) True 
 B)False

Question 15

Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would constitute, in the United States, violations of U.S. antitrust laws. These laws apply

Accepted Answer

A)   ​extraterritorially.
B)   ​only to signatories of the North American Free Trade Agreement.
C)   ​only to members of the World Trade Organization.
D)   ​only within U.S. borders.

Question 16

The Foreign Sovereign Immunities Act spells out what a "foreign state" includes.

Accepted Answer

A) True 
 B)False

Question 17

Global Enterprise Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Global Enterprise empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Global Enterprise's behalf. This is

Accepted Answer

A)   ​a distribution agreement.
B)   ​an agency relationship.
C)   ​indirect exporting.
D)   ​licensing.

Question 18

​The government of Korea sets a limit on the amount of rice that can be imported from the United States. This is

Accepted Answer

A)   ​a dumping duty.
B)   ​an antidumping duty.
C)   ​a quota.
D)   ​a tariff.

Question 19

Business Universal Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Brazil. In this situation, Business Universal retains complete control and authority over

Accepted Answer

A)   ​all of the operation.
B)   ​only the part of the operation in the United States.
C)   ​none of the operation.
D)   ​about half of the operation.

Question 20

In direct exporting, a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment of goods.

Accepted Answer

A) True 
 B)False

Exam 24: International and Space Law

Under the Foreign Sovereign Immunities Act, a foreign state can be a political subdivision of a foreign state.

Tropic Foods Corporation, a U.S. firm, owns property in Ecuador. When the Ecuadoran government seizes the property, Tropic Foods asks a U.S. court to order the property's return. The court rules that Ecuador is exempt from the court's jurisdiction. This is

Brew Heaven Inc., a U.S. corporation, makes a deal with Celtic Pubs, Ltd., an Irish firm, that allows Celtic to use Brew's trade name in Ireland in return for a fee. This is

A foreign citizen can bring a civil suit in a U.S. court for a violation of an international tort law.

Firms overseas have almost total legal protection against government acts in the countries in which they operate, under the act of state doctrine.

World Media, Inc., a U.S. firm, expands into international markets through a joint venture. In the venture, World Media shares responsibilities

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 the global environment of business, the law of a particular nation, such as Germany, China, or the United States, is classified as

To obtain a contract with the Chinese government, Road & Bridge Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

World Sports Corporation is a U.S. firm with a facility in Spain. Generally, World Sports must abide by U.S. anti-discrimination laws in Spain

Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in

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

A choice-of-law clause in an international contract designates the applicable law.

​In a joint venture, the parent company in the United States retains complete ownership and authority over all phases of the operation.

Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would constitute, in the United States, violations of U.S. antitrust laws. These laws apply

The Foreign Sovereign Immunities Act spells out what a "foreign state" includes.

Global Enterprise Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Global Enterprise empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Global Enterprise's behalf. This is

​The government of Korea sets a limit on the amount of rice that can be imported from the United States. This is

Business Universal Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Brazil. In this situation, Business Universal retains complete control and authority over

In direct exporting, a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment of goods.

In a joint venture, the parent company in the United States retains complete ownership and authority over all phases of the operation.

The government of Korea sets a limit on the amount of rice that can be imported from the United States. This is