Chapter 7

Which of the following indicates the exportability status of the item based on the ECCN? A. Commerce Control List B. Entity List C. Common List D. Priority Export List E. International Trade List

A. Commerce Control List

Jimmy's foods, a popular food company in the United States is trying to resolve a dispute with a local company in New Zealand which has been operating under the same name in their country. All the attempts by the company to settle the issue in a friendly manner have failed. The directors at Jimmy's want to retain their trade name in the country 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 the above situation? A. Conciliation B. Prosecution C. Arbitration D. Coercion E. Litigation

A. Conciliation

Which of the following international conventions was established to recognize intellectual property rights? A. The Paris Convention B. The Munich Agreement C. The Tokyo Convention D. The Eurasian Convention E. The Kyoto Protocol

A. The Paris Convention

In the usual _____ procedure, parties select a disinterested and informed party or parties to serve as a referee to determine the merits of the case and make a judgment that both parties agree to honor under the law. A. arbitration B. informal settlement C. conciliation D. litigation E. coercion

A. arbitration

The World Court can adjudicate disputes between: A. governments. B. a company and a government. C. two companies. D. a citizen and a government. E. trade associations of various countries.

A. governments.

Which of the following forms of law is derived from English law? A. Code law B. Common law C. Religious law D. Civil law E. Universal law

B. Common law

In settling international commercial transaction disputes, which of the following methods accounts for the majority of settlements? A. Criminal suits B. Conciliation C. Arbitration D. Litigation E. Coercion

B. Conciliation

Which of the following methods is considered most effective while resolving disputes with Chinese business partners? A. Arbitration B. Conciliation C. Coercion D. Litigation E. Criminal suits

B. Conciliation

According to Canadian law, what is the standard expected by courts in Canada to determine whether a representation is false or misleading? A. De Novo standard B. Credulous person standard C. Clearly Erroneous standard D. Informed consumer standard E. Discretionary standard

B. Credulous person standard

Which of the following U.S. government agencies oversees antitrust enforcement in international commerce? A. Department of State B. Department of Justice C. Department of Commerce D. Department of Defense E. Department of Home Land Security

B. Department of Justice

Which of the following are the licenses required for products exported from the United States? A. International or bilateral license B. General or a validated license C. Single license D. Exporter or third-party license E. Shipment license or agent license

B. General or a validated license

Which of the following is the most attractive target for pirates because of high development cost and low reproducibility costs? A. Apparels B. Software C. Auto parts D. Books E. Baby formula

B. Software

Which of the following is true with regard to the Internet? A. The Internet is strongly restricted by global and national boundaries. B. The existing cyberlaws incorporate the uniqueness of the Internet successfully. C. The dynamics of cross-border transactions, censorship, and piracy have been curtailed successfully with cyberlaws. D. The individual country laws which may or may not include private protection are used in the absence of uniform and internationally accepted cyberlaws. E. The taxes are collected by the transporting services like Fedex in the case of sale of goods using the Internet site as a platform to consumers in another country.

B. The existing cyberlaws incorporate the uniqueness of the Internet successfully.

Which of the following is usually placed in the arbitration clause that is becoming standard in many international contracts? A. The preferred court or legal body of arbitration. B. The place of arbitration and the language used in the arbitration process. C. The contract stating that the results of the arbitration process are not binding on both parties. D. The judgment of the legal action initiated in the litigation stage. E. The copy of the lawsuit filed by the plaintiff.

B. The place of arbitration and the language used in the arbitration process.

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

B. Trade-Related Aspects of Intellectual Property Rights

A textile manufacturing company is trying to solve a dispute with one of its raw material suppliers over a breach of contract. After the initial attempts to solve the dispute in a friendly informal manner failed, the companies have approached an international commission to appoint an informed party to act as a referee and make a judgment that both parties will honor. Which of the following dispute resolution methods is being used by the companies in the above scenario? A. Litigation B. Arbitration C. Mediation D. Coercion E. Judicial intervention

B. arbitration

Under _____, the legal system is generally divided into three separate codes: commercial, civil, and criminal. A. constitutional law B. code law C. family law D. religious law E. traditional law

B. code law

_____ is considered complete as a result of catchall provisions found in most of this type of law systems. A. Common law B. code law C. Islamic law D. Marxist-socialist tenets E. The English legal tradition

B. code law

The basis for _____ is tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. A. civil law B. common law C. code law D. commercial law E. criminal law

B. common law

Which of the following laws is primarily found in the United States, England, Canada, and other countries once under English influence? A. Code law B. Common law C. Religious law D. Civil law E. Universal law

B. common law

The first objective of these laws is to protect American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors. _____ are being discussed in this scenario. A. Incorporation laws B. Intellectual property laws C. Antitrust laws D. Indemnification laws E. Insurance laws

C. Antitrust laws

Ralph Richards has been attempting to solve a problem that his company has with a contract default by the Dutch government. He has tried conciliation but the two parties could never find any common ground on which they could begin a fruitful negotiation for settlement. Which of the following is likely to be the course of action that both the parties will try next? A. Mediation B. Informal settlement C. Arbitration D. Litigation E. Coercion

C. Arbitration

Which of the following is an effective approach to prevent Chinese consumers from creatively copying foreign intellectual property? A. Boycotting all trade activities with China. B. Placing embargoes on trade with China. C. Charging what the market will bear. D. Disengaging local representation in sales. E. Pursuing dispute resolution at the World Court.

C. Charging what the market will bear.

The _____ of the United States makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties. A. Taft-Hartley Act B. Informed Consumer Standard C. Foreign Corrupt Practices Act D. Best Practices Act E. International Codes of Law

C. Foreign Corrupt Practices Act

Which of the following countries has enacted the most stringent green marketing laws that regulate the management and recycling of packaging waste? A. South Korea B. China C. Germany D. United States E. India

C. Germany

The basis for _____ is the interpretation of the Koran. A. common law B. code law C. Islamic law D. Marxist-socialist tenets E. legal tradition

C. Islamic law

Which of the following commonly counterfeited products has the potential for doing the greatest harm to the consuming public? A. Toys B. CDs C. Pharmaceuticals D. Software E. Clothing

C. Pharmaceuticals

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.? 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).

C. The boycott of Israel by the Arab League.

Code law is based upon _____. A. the interpretation through the past decisions of higher courts B. the established and customary principles of law and their legal precedence C. an all-inclusive system of written rules of law D. the interpretation of the Koran E. the codes of English law that apply in all countries under English influence

C. an all-inclusive system of written rules of law

The responsibility of determining if a license is required rests with the _____. A. Department of Commerce of the exporting nation B. The regulatory body of the industry C. exporter D. U.S. Customs department E. Importing country's authorities

C. exporter

The Islamic law prohibits the payment of _____. A. taxes B. profits C. interest D. equity E. accounting fees

C. interest

In a common-law country, ownership of intellectual property rights is established by "prior use versus registration" which implies that to claim the ownership of a trademark, an individual: A. must be ratified by the United Nations trademark protection agency. B. must pay for the right to own a trademark. C. must establish first use of a trademark. D. must prove the ownership of a trademark in a court of law. E. must register a trademark only in his home country.

C. must establish first use of a trademark.

Arbitration clauses require agreement wherein the concerned parties agree: 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 each of the parties involved. E. to not name the arbitrators.

C. to abide by the awards resulting from the arbitration.

Which of the following poses a major challenge to international marketers while dealing with counterfeiting? A. The ease with which consumers can tell the difference between real and counterfeit products. B. The theft of products by pirates during shipping. C. Government regulations legitimizing counterfeiting. D. Collusion between contract manufacturers and illegitimate sellers. E. The widespread availability of duplication software.

D. Collusion between contract manufacturers and illegitimate sellers.

_____ is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences. A. Litigation B. Prosecution C. Arbitration D. Conciliation E. Coercion

D. Conciliation

_____ buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price. A. Patent trolls B. Server farms C. Domain name registries D. Cybersquatters E. Universal resource locators

D. Cybersquatters

Under _____, the legal system is subordinate to prevailing economic conditions. A. common law B. code law C. Islamic law D. Marxist-socialist tenets E. legal tradition

D. Marxist-socialist tenets

Which of the following should ideally be the first step in the settlement of a dispute? A. Using the strategy of conciliation. B. Engaging in arbitration. C. Coercing the other party. D. Placating the injured party. E. Initiating a litigation.

D. Placating the injured party.

Because of political changes in the late twentieth century, which of the following countries has had to build from scratch an entire commercial legal system? A. France B. Germany C. Taiwan D. Russia E. Saudi Arabia

D. Russia

Islamic law is also known as the _____. A. Ulema B. Umrah C. Zakkath D. Shari'ah E. Barakah

D. Shari'ah

Which of the following acts developed by the European Union erases legal and trade differences that have existed for decades between the member nations? A. European Sanctity Act B. European Indemnification Act C. European Unification Act D. Single European Market Act E. Foreign Corrupt Practices Act

D. Single European Market Act

Which of the following is true of code-law systems? A. They represent a legal system that is not all-inclusive. B. They establish ownership of intellectual property by prior use rather than registration. C. They originate from tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings. D. They sometimes fail to consider agreements to be enforceable unless properly notarized or registered. E. They fail to consider unforeseeable human acts such as riots as acts of nature.

D. They sometimes fail to consider agreements to be enforceable unless properly notarized or registered.

Code law is also known as _____. A. business law. B. common law. C. religious law. D. civil law. E. universal law.

D. civil law

Laws governing _____ offer the most striking differences between common-law and code-law systems. A. international trade B. social welfare C. homicide D. intellectual property E. domestic industry

D. intellectual property

When all else fails in an international commercial dispute, the final step is: A. conciliation. B. to encourage one's government to force the other party to comply. C. to restart the arbitration process. D. litigation. E. coercion.

D. litigation.

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: 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.

D. objective theory of jurisdiction.

In code-law countries, the ownership of intellectual property is determined by _____. A. heredity B. nature of use C. duration of usage D. registration E. indemnification

D. registration

The Export License Application and Information Network is an electronic service that enables exporters to: A. ship their goods for those licenses approved without conditions. B. check the status of their license and classification applications. C. submit commodity classification requests via the Internet to the Bureau of Export Administration. D. submit license applications via the Internet for all commodities except supercomputers to all free-world destinations. E. submit the export and re-export applications and high-performance computer notices via the Internet.

D. submit license applications via the Internet for all commodities except supercomputers to all free-world destinations.

In the case of arbitration: A. lawsuits are initiated between the conflicting parties. B. the preliminary step of conciliation is often bypassed. C. the International Chamber of Commerce has been weak and ineffective. D. the plaintiff and the defendant select a person each to present their case. E. the ICC Court does not appoint any member to regulate the private affairs of the two parties.

D. the plaintiff and the defendant select a person each to present their case.

_____ 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." A. Constitutional law B. Family law C. Criminal law D. Civil law E. Common law

E. Common law

The _____ is a multicountry agreement that has established a regional patent system that allows any nationality to file a single international application for a European patent. A. Madrid Arrangement B. Paris Convention C. TRIPs Agreement D. Basel Convention E. European Patent Convention

E. European Patent Convention

The revised set of export regulations published by the Department Of Commerce to alleviate many of the problems and confusions of exporting and to expedite the process is called _____. A. Agreement on International Trade and Negotiations B. Export-Import Manual C. International Trade Regulations D. Export Charter E. Export Administration Regulations

E. Export Administration Regulations

The exporter is responsible for selecting the _____ which leads to a description in the Commerce Control List (CCL), which indicates the exportability status of the item. A. Entity List Number B. Priority Number C. Export License Number D. Trade Regulations Number E. Export Control Classification Number

E. Export Control Classification Number

Civil or code law was derived from the _____. A. English law B. Economic law C. Greek law D. Persian law E. Roman law

E. Roman law

Which of the following conventions is responsible for the promotion of the protection of intellectual property rights among all the member countries of the UN? A. The Basel Convention B. The Madrid Arrangement C. The Tokyo Agreement D. The Eurasian Convention E. The World Intellectual Property Organization

E. The World Intellectual Property Organization

In which of the following countries is the ownership of IP rights established by prior use? A. Japan B. Brazil C. Saudi Arabia D. Jordan E. United States

E. United States

When formal arbitration organizations receive requests for arbitration, they initially attempt to resolve the issue by: A. coercion. B. prosecution. C. direct legal intervention. D. litigation. E. conciliation.

E. conciliation.

Apart from intellectual property laws, another illustration of how fundamental differences in the common and code systems can cause difficulty is in the performance of a contract. A. conducting civil trials. B. determining laws governing export and import. C. deciding heredity laws. D. determining criminal laws. E. evaluating the performance of a contract.

E. evaluating the performance of a contract.

U.S. firms, their foreign subsidiaries, or foreign firms that are licensees of U.S. technology cannot sell a product to a country in which the sale is considered by the U.S. government to affect: A. the competitive balance of world trade. B. the competitive balance of free competition inside the U.S. C. the relationship of the US with the world community. D. the overall balance of payments of the United States. E. the national security of the United States.

E. the national security of the United States.

Under common law, the ownership of intellectual property is established by _____. A. title deeds B. use C. tradition D. patent E. registration

b. use