Ch 24: International and Space Law
8 : The Foreign Sovereign Immunities Act spells out what a foreign state includes. A : true B : false
A
2 : Under the principle of comity, all foreign governments are subject to all U.S. laws. A : true B : false
B
10 : The doctrine of sovereign immunity can immunize a foreign nation from the jurisdiction of U.S. courts. A : true B : false
A
12 : According to the Foreign Sovereign Immunities Act, a foreign state that waived its immunity by implication is subject to the jurisdiction of the U.S. courts. A : true B : false
A
13 : The simplest way for a U.S. firm to do business in a foreign market is to export its products directly to that market. A : true B : false
A
14 : A party to a licensing agreement generally agrees to pay royalties on some basis. A : true B : false
A
15 : 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. A : true B : false
A
17 : Franchising is a form of licensing. A : true B : false
A
19 : To restrict or encourage exports, Congress can set quotas on various items, such as grain being sold abroad. A : true B : false
A
3 : International law is a body of law that governs relations among nations. A : true B : false
A
36 : In the global environment of business, the law of a particular nation, such as Germany, China, or the United States, is classified as A : space law. B : global law. C : international law. D : national law.
D
64 : 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 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.
D
20 : Restrictions on imports include tariffs. A : true B : false
A
21 : Restrictions on imports include quotas. A : true B : false
A
23 : The chief aim of the World Trade Organization is to minimize trade barriers among its members. A : true B : false
A
25 : The primary goal of the North American Free Trade Agreement is to eliminate tariffs among the United States, Canada, and Mexico. A : true B : false
A
26 : Few countries guarantee compensation to foreign investors if their property is taken. A : true B : false
A
27 : A choice-of-law clause in an international contract designates the applicable law. A : true B : false
A
29 : A foreign citizen can bring a civil suit in a U.S. court for a violation of an international tort law. A : true B : false
A
30 : U.S. laws that prohibit discrimination in employment apply to U.S. employees working for U.S. firms located abroad. A : true B : false
A
31 : Quotas include limits on the amounts of goods that can be exported. A : true B : false
A
32 : International contracts frequently include arbitration clauses. A : true B : false
A
34 : A nation that launches objects into space is absolutely liable for personal injury and property damage caused by its objects on Earth or in flight. A : true B : false
A
38 : The basis for a foreign country to give effect to the laws and court decisions of the United States within their own country is primarily A : to maintain diplomatic relations. B : fear and intimidation. C : admiration and envy. D : payments of cash and exchanges of property.
A
4 : The act of state doctrine provides that the executive branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory. A : true B : false
A
40 : Minerals 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 A : confiscation. B : defalcation. C : dumping. D : expropriation.
A
41 : Venezuela seizes the assets of World Oil, Inc., a U.S. firm. World Oils recovery from Venezuela in a U.S. court may be prevented by A : the act of state doctrine. B : the World Trade Organization. C : the Central American Free Trade Agreement. D : the principle of comity.
A
43 : Financial Invest Corporation, a U.S. firm, files a suit against Ghana in a U.S. court. Ghana claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act A : the plaintiff must show that Ghana is not entitled to sovereign immunity. B : Ghana must show that it is entitled to sovereign immunity. C : the court must dismiss the suit without any showing. D : the court may hear the suit but its decision will have no effect.
A
47 : Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optimas products in Canada. This is A : a distribution agreement. B : a joint venture. C : direct exporting. D : licensing.
A
49 : Without permission, a Russian firm names itself McDonalds and begins selling hamburgers and French fries in Russia. This is A : piracy. B : a licensing agreement. C : indirect exporting. D : franchising.
A
5 : Confiscation occurs when a government seizes private property for an illegal purpose or without just compensation. A : true B : false
A
50 : Brew Heaven Inc., a U.S. corporation, makes a deal with Celtic Pubs, Ltd., an Irish firm, that allows Celtic to use Brews trade name in Ireland in return for a fee. This is A : a franchise. B : piracy. C : a joint venture. D : direct exporting.
A
51 : 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 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.
A
52 : World Media, Inc., a U.S. firm, expands into international markets through a joint venture. In the venture, World Media shares responsibilities 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.
A
53 : Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are A : encouraged by credit guaranties to lend such funds. B : discouraged by administrative rules to make such loans. C : asked by enforcement agencies to report such requests. D : banned by statute from opening such credit lines.
A
60 : Renew Energy Company, a U.S. firm, and Seawater Petro, a Dutch firm, enter into a contract that includes an arbitration clause. This clause must provide that the arbitrator will be A : any specified third party. B : the American Arbitration Association. C : the Dutch Arbitration Organization. D : the International Chamber of Commerce.
A
63 : Chocolate Delectable, Inc., a U.S. firm, enters into an agreement with Columbiana Cacao, S.A., a South American firm, to fix the price of imported chocolate in the U.S. market. If the agreement is a per se violation of U.S. antitrust laws, a U.S. court could exercise jurisdiction over A : both firms. B : Chocolate Delectable only. C : Columbiana Cacao only. D : neither firm.
A
66 : 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 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.
A
7 : Expropriation occurs when a government seizes private property for a proper public purpose and awards just compensation. A : true B : false
A
9 : Under the Foreign Sovereign Immunities Act, a foreign state can be a political subdivision of a foreign state. A : true B : false
A
1 : A treaty is a contract or other agreement between two or more nations that must be ratified by the United Nations to take effect. A : true B : false
B
11 : A foreign state is immune from the jurisdiction of U.S. courts as long as the state is involved in commercial activity in the United States. A : true B : false
B
16 : When a U.S. firm wishes to increase its involvement in an international market, it may do so by establishing an agency relationship with a foreign firm. A : true B : false
B
18 : In a joint venture, the parent company in the United States retains complete ownership and authority over all phases of the operation. A : true B : false
B
22 : Dumping is the exporting of environmentally polluting goods to a foreign market. A : true B : false
B
24 : The chief aim of the European Union is to maximize trade barriers among its members. A : true B : false
B
28 : A foreign government can never sue under U.S. antitrust laws in U.S. courts. A : true B : false
B
33 : The Outer Space Treaty declares that internationally recognized political boundaries extend from Earth into the farthest reaches of space. A : true B : false
B
35 : The U.S. government does not generally regulate private spaceports and the launch and reentry of private spacecraft. A : true B : false
B
44 : 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 Enterprises behalf. This is A : a distribution agreement. B : an agency relationship. C : indirect exporting. D : licensing.
B
54 : 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 Blancs goods in A : the European market. B : France. C : the United States. D : the world market.
B
58 : Global Fashion, Inc., a U.S. firm, and Haute Couture, a Haitian firm, are parties to a contract that specifies the official language of the contract is English. This is A : a choice-of-forum clause. B : a choice-of-language clause. C : a choice-of-law clause. D : an arbitration clause.
B
6 : Firms overseas have almost total legal protection against government acts in the countries in which they operate, under the act of state doctrine. A : true B : false
B
65 : Jackson, or any U.S. citizen, can bring a civil suit in a U.S. court against a foreign entity for a tort allegedly committed in A : the United States only. B : the United States or overseas. C : overseas only. D : none of the choices.
B
67 : Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Deep Mining Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can A : subject the private company to the provisions of the Sherman Act. B : bring civil suits under the Alien Tort Claims Act. C : file criminal complaints under Title VII of the Civil Rights Act. D : do nothing.
B
69 : The Outer Space Treaty provides that a nation retains jurisdiction over objects on its space registry that are launched into space. The treaty also prohibits interference with space activities. In effect, these provisions A : ban the national appropriation of territory in space. B : protect property rights with respect to private space activities. C : assert sovereignty over celestial bodies. D : declare exclusive international jurisdiction over space locations.
B
39 : Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the courts judgment will be enforced by a court in Japan depends on the Japanese courts application of A : the act of state doctrine. B : the doctrine of sovereign immunity. C : the principle of comity. D : the World Trade Organization.
C
42 : 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 propertys return. The court rules that Ecuador is exempt from the courts jurisdiction. This is A : a travesty of justice. B : the act of state doctrine. C : the doctrine of sovereign immunity. D : the principle of comity.
C
45 : Significant business develops in Spain for Graphic Comix, Inc., a U.S. firm. Graphic Comix appoints Comicas Graphico, Ltd., a Spanish firm, to act as Graphic Comixs marketing representative in Spain. This is A : a joint venture. B : franchising. C : indirect exporting. D : licensing.
C
46 : Alpha WiFi Corporation, a U.S. firm, signs a contract with Bueno Computadores, Ltd., an Argentinean firm, for a shipment and payment for Alphas goods. This is A : a distribution agreement. B : a joint venture. C : direct exporting. D : licensing.
C
55 : Hong Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at less than fair value. This is A : confiscation. B : defalcation. C : dumping. D : expropriation.
C
57 : The government of Korea sets a limit on the amount of rice that can be imported from the United States. This is A : a dumping duty. B : an antidumping duty. C : a quota. D : a tariff.
C
59 : Telfonix Corporation, a U.S. firm, and Adex, Inc., a British firm, are parties to a contract with a forum selection clause. The forum specified in the clause must be within the geographic boundaries of A : the United States. B : Britain. C : neither the United States nor Britain. D : either the United States or Britain.
C
61 : Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Team Sports, a U.S. wholesaler of Suisses products. U.S. courts will apply U.S. antitrust laws if A : the agreement was made in Switzerland. B : the agreement was made in the United States. C : the price fixing has a substantial effect on U.S. commerce. D : the Swiss government agrees to be sued in the United States.
C
62 : 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 A : the act of state doctrine. B : the doctrine of sovereign immunity. C : the Foreign Corrupt Practices Act. D : the principle of comity.
C
68 : Star Flights Inc. launches exploratory and commercial space flights from its base in the United States. In the event of a collision with other space objects, under the Outer Space Treaty, liability for injury or damage A : is to be assumed by all involved parties equitably B : is strict liabilitythat is, liability without fault. C : is subject to a determination of fault. D : does not exist.
C
37 : Sofia, a citizen of Chile, and Trent, a citizen of the United States, enter into a contract. When Trent breaches the contract, Sofia obtains an award of damages in a Chilean court. She asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Chilean courts decree. This is A : a travesty of justice. B : the act of state doctrine. C : the doctrine of sovereign immunity. D : the principle of comity.
D
48 : Munchies Bistro Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use Munchiess trademark in restaurants in France. This is A : a distribution agreement. B : a joint venture. C : direct exporting. D : licensing.
D
56 : The United States taxes each barrel of imported oil at a flat rate. This is A : an antidumping duty. B : a dumping duty. C : a quota. D : a tariff.
D
70 : Blue Space Corporation launches exploratory space flights to the moon and Mars. The purpose is to discover and retrieve minerals and other resources. Under U.S. Law, Blue Space A : cannot profit from resources retrieved in space. B : cannot legally retrieve resources in space. C : must share with all interested parties what it retrieves in space. D : owns what it retrieves in space.
D