Question 1

Code law prohibits the receipt and payment of interest on loans.

Accepted Answer

A) True 
 B)False

Question 2

One of the deterrents to litigation with respect to disputes in the international business arena is the fear of creating a poor image and damaging public relations.

Accepted Answer

A) True 
 B)False

Question 3

Legal ownership in one country does not necessarily mean ownership in other countries.

Accepted Answer

A) True 
 B)False

Question 4

Firms that have been penalized for bribing by the Foreign Corrupt Practices Act (FCPA) can reduce the penalties by helping in investigations.

Accepted Answer

A) True 
 B)False

Question 5

_____ seeks "interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts."

Accepted Answer

A)  Constitutional law 
B)  Family law 
C)  Criminal law 
D)  Civil law 
E)  Common law

Question 6

Common law is based on an all-inclusive system of written rules of law.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following international conventions was established to recognize intellectual property rights?

Accepted Answer

A)  The Paris Convention 
B)  The Munich Agreement 
C)  The Tokyo Convention 
D)  The Eurasian Convention 
E)  The Kyoto Protocol

Question 8

Under the antiboycott law, U.S. companies are forbidden to participate in any unauthorized foreign boycott. Which of the following situations brought about the antiboycott law in the U.S.?

Accepted Answer

A)  The boycott of Cuba by the U.S. 
B)  The boycott of South Africa by the world community 
C)  The boycott of Israel by the Arab League 
D)  The boycott of China by the United States 
E)  The boycott of the U.S. by the U.S.S.R. (the wheat embargo)

Question 9

Which of the following U.S. government agencies oversees antitrust enforcement in international commerce?

Accepted Answer

A)  Department of State 
B)  Department of Justice 
C)  Department of Commerce 
D)  Department of Defense 
E)  Department of Home Land Security

Question 10

The responsibility of determining if a license is required rests with the exporter.

Accepted Answer

A) True 
 B)False

Question 11

The exporter is responsible for selecting the _____ that leads to a description in the Commerce Control List (CCL), which indicates the exportability status of the item.

Accepted Answer

A)  Entity List Number 
B)  Priority Number 
C)  Export License Number 
D)  Trade Regulations Number 
E)  Export Control Classification Number

Question 12

Civil or code law is derived from _____.

Accepted Answer

A)  English law 
B)  Economic law 
C)  Greek law 
D)  Persian law 
E)  Roman law

Question 13

Compare the differences between "prior use" and "registration" ownership of IP rights with an example.

Accepted Answer

The answer of Compare the differences between "prior use" and...

Question 14

Which of the following is the most comprehensive multilateral agreement on intellectual property to date and covers a full range of rights that are embodied in current international agreements?

Accepted Answer

A)  World Intellectual Property Organization Charter 
B)  Trade-Related Aspects of Intellectual Property Rights Agreement 
C)  Inter-American Convention Agreement 
D)  The Madrid Arrangement 
E)  Paris Agreement for the Protection of Industrial Property

Question 15

A certain level of piracy is beneficial for some companies as it provides an unplanned product trial.

Accepted Answer

A) True 
 B)False

Question 16

The question of jurisdiction of U.S. law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law called the:

Accepted Answer

A)  right of imminent domain. 
B)  legal transfer of power. 
C)  rights of foreign powers and citizens. 
D)  objective theory of jurisdiction. 
E)  McNeil principle of international law.

Question 17

The ownership of intellectual property rights in United States, a common-law country, is established by registration rather than by prior use.

Accepted Answer

A) True 
 B)False

Question 18

Laws governing _____ offer the most striking differences between common-law and code-law systems.

Accepted Answer

A)  international trade 
B)  social welfare 
C)  homicide 
D)  intellectual property 
E)  domestic industry

Question 19

Jimmy's foods, a popular food company in the United States, is trying to resolve a dispute with a local company in New Zealand that has been operating under the same name in its country. All attempts made by the U.S. company to settle the issue in a friendly manner have failed. The directors want to retain their trade name in New Zealand and have decided to settle the dispute with the local company by appointing a mediator. They also want the sessions to be private because of the fear of creating a poor public image. Which of the following dispute resolution methods is best suited for this situation?

Accepted Answer

A)  Conciliation 
B)  Prosecution 
C)  Arbitration 
D)  Coercion 
E)  Litigation

Question 20

Arbitration clauses require agreement wherein the concerned parties agree:

Accepted Answer

A)  on who is right and who is wrong. 
B)  on the validity of the litigation issues. 
C)  to abide by the awards resulting from the arbitration. 
D)  to not hire a legal counsel to represent them. 
E)  to not name the arbitrators.

Exam 7: The International Legal Environment: Playing by the Rules

Code law prohibits the receipt and payment of interest on loans.

One of the deterrents to litigation with respect to disputes in the international business arena is the fear of creating a poor image and damaging public relations.

Legal ownership in one country does not necessarily mean ownership in other countries.

Firms that have been penalized for bribing by the Foreign Corrupt Practices Act (FCPA) can reduce the penalties by helping in investigations.

_____ seeks "interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts."

Common law is based on an all-inclusive system of written rules of law.

Which of the following international conventions was established to recognize intellectual property rights?

Under the antiboycott law, U.S. companies are forbidden to participate in any unauthorized foreign boycott. Which of the following situations brought about the antiboycott law in the U.S.?

Which of the following U.S. government agencies oversees antitrust enforcement in international commerce?

The responsibility of determining if a license is required rests with the exporter.

The exporter is responsible for selecting the _____ that leads to a description in the Commerce Control List (CCL) , which indicates the exportability status of the item.

Civil or code law is derived from _____.

Compare the differences between "prior use" and "registration" ownership of IP rights with an example.

Which of the following is the most comprehensive multilateral agreement on intellectual property to date and covers a full range of rights that are embodied in current international agreements?

A certain level of piracy is beneficial for some companies as it provides an unplanned product trial.

The question of jurisdiction of U.S. law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law called the:

The ownership of intellectual property rights in United States, a common-law country, is established by registration rather than by prior use.

Laws governing _____ offer the most striking differences between common-law and code-law systems.

Arbitration clauses require agreement wherein the concerned parties agree: