Question 1

Australian immigration policy encourages immigration by highly educated people.

Accepted Answer

A) True 
 B)False

Question 2

When a complaint is made to the World Trade Organization about a dumping tariff, the WTO:

Accepted Answer

A)  has the power to force the nation to change the restriction 
B)  does not have the power to force the nation to change the restriction 
C)  can fine the nation 
D)  can block all trade with the nation 
E)  none of the other choices are correct

Question 3

Under the Foreign Corrupt Practices Act it is illegal for an agent of a business to bribe a foreign government official.

Accepted Answer

A) True 
 B)False

Question 4

The primary focus of the GATT and WTO negotiations has been:

Accepted Answer

A)  to reduce exchange rate fluctuations 
B)  to increase anti-competitive behaviors 
C)  to promote the use non-tariff barriers 
D)  to develop world-wide rules on human rights 
E)  none of the other choices

Question 5

The ____ in international contracts selects the court or place of arbitration in which disputes must be resolved.

Accepted Answer

A)  payment clause 
B)  communication clause 
C)  choice of language clause 
D)  force majeure clause 
E)  none of the other choices of correct

Question 6

Which of the following is a way to regulate imports:

Accepted Answer

A)  import licensing procedures 
B)  quotas 
C)  testing requirements 
D)  all the other specific choices are correct 
E)  none of the other specific choices are correct

Question 7

Willfully violating the Export Administration Act could result in:

Accepted Answer

A)  up to 50 years in prison 
B)  loss of citizenship 
C)  a lifetime prison sentence 
D)  deportation 
E)  none of the other choices are correct

Question 8

There is a well-developed system of international courts used to settle international commercial disputes.

Accepted Answer

A) True 
 B)False

Question 9

To respond to claims of dumping in U.S. markets, or foreign government subsidies for production, the International Trade Commission (ITC) may:

Accepted Answer

A)  increase import tariffs on products that are being "dumped" in Third World markets 
B)  exempt products from customs duties if the country of origin is attempting to decrease pollution 
C)  allow "experimental" imports to enter duty-free until a market in the U.S. has been established 
D)  impose a tariff on goods coming into the U.S. to eliminate the value of the subsidy 
E)  impose import restrictions at the sole discretion of the ITC chairman

Question 10

A place of entry in a country that does not assess duties or tariffs on products is called:

Accepted Answer

A)  foreign trade zone 
B)  countervailing duty zone 
C)  duty-free port 
D)  trade-enhancement zone 
E)  none of the other choices

Question 11

One area in which the U.S. was not successful in gaining trading concessions from its WTO partners to reduce trade barriers was in:

Accepted Answer

A)  construction equipment 
B)  film and television programming 
C)  civil aviation 
D)  agriculture 
E)  steel

Question 12

Under the Foreign Sovereign Immunities Act of 1976, a foreign sovereign may not be immune from the jurisdiction of another nation's courts if the acts of the sovereign that form the basis of the suit are commercial in nature.

Accepted Answer

A) True 
 B)False

Question 13

The United States, Japan, Canada, countries of the European Union, and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

Accepted Answer

A)  furniture 
B)  medical equipment 
C)  paper 
D)  pharmaceuticals 
E)  all of the other specific choices are correct

Question 14

Products made from endangered species are prohibited from being imported into the U.S. for sale.

Accepted Answer

A) True 
 B)False

Question 15

Fact Pattern 22-1
Naida Baronowski is an American fashion designer who has a design firm in Chicago. Naida has been successful in the U.S. and wants to expand her operation overseas. She hopes to open shops in Paris, Milan, Madrid, Rome, Vienna, and Moscow in the next several years.
Naida is unfamiliar with foreign operations. She comes to you, her attorney, for advice about how she should pursue her goal of becoming an international fashion company.
-Refer to Fact Pattern 22-1. Suppose instead of shipping clothing overseas, Naida wanted to ship a sophisticated piece of guided missile software. Naida would probably be subject to the limitations imposed by which piece of U.S. legislation?

Accepted Answer

A)  the Export Administration Act 
B)  the Smoot-Hawley Act 
C)  the Tariff Import Act 
D)  the Advanced Technologies Act 
E)  all of the other choices pieces of legislation would apply

Question 16

In Japan business cards are:

Accepted Answer

A)  exchanged formerly at first meeting and treated with respect 
B)  exchanged only after months of relationship building 
C)  rarely used 
D)  glanced at and then discarded 
E)  restricted to very rich people

Question 17

The United States, Japan, Canada, countries of the European Union, and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

Accepted Answer

A)  steel 
B)  toys 
C)  paper 
D)  all of the other specific choices are correct 
E)  none of the other specific choices are correct

Question 18

In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:

Accepted Answer

A)  the case should be reevaluated in the Court of Appeals using the Skidmore standard 
B)  the case should be thrown out for lack of evidence 
C)  all rulings by Customs are equivalent to federal law so Mead had no case 
D)  Mead should pay a 2% tariff as a compromise 
E)  the change in classification was unjustified so Mead did not owe any tariffs

Question 19

An "ad valorem tariff" is based on a percentage price of a product.

Accepted Answer

A) True 
 B)False

Question 20

The United Nations is the main source of international trade law used in global commerce.

Accepted Answer

A) True 
 B)False

Exam 22: The International Legal Environment of Business

Australian immigration policy encourages immigration by highly educated people.

When a complaint is made to the World Trade Organization about a dumping tariff, the WTO:

Under the Foreign Corrupt Practices Act it is illegal for an agent of a business to bribe a foreign government official.

The primary focus of the GATT and WTO negotiations has been:

The ____ in international contracts selects the court or place of arbitration in which disputes must be resolved.

Which of the following is a way to regulate imports:

Willfully violating the Export Administration Act could result in:

There is a well-developed system of international courts used to settle international commercial disputes.

To respond to claims of dumping in U.S. markets, or foreign government subsidies for production, the International Trade Commission (ITC) may:

A place of entry in a country that does not assess duties or tariffs on products is called:

One area in which the U.S. was not successful in gaining trading concessions from its WTO partners to reduce trade barriers was in:

Under the Foreign Sovereign Immunities Act of 1976, a foreign sovereign may not be immune from the jurisdiction of another nation's courts if the acts of the sovereign that form the basis of the suit are commercial in nature.

The United States, Japan, Canada, countries of the European Union, and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

Products made from endangered species are prohibited from being imported into the U.S. for sale.

In Japan business cards are:

The United States, Japan, Canada, countries of the European Union, and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

In United States v. Mead Corporation, where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff, the Supreme Court held that:

An "ad valorem tariff" is based on a percentage price of a product.

The United Nations is the main source of international trade law used in global commerce.