Legal - Quiz 10 - International Law

The United States is a member of more than (.....) multilateral and bilateral organizations.

100

9. Othman is an Arab prisoner held in a U.S. prison. Another prisoner, Habib, attacks and seriously injures Othman. Othman's family in Saudi Arabia files a lawsuit against the U.S. corporation operating the prison. Othman's family may file this lawsuit that alleges a violation of a U.S. treaty and that treaty is the:

Alien Tort Claims Act

13. The provision of the U.S. Constitution that provides that "No Tax or Duty shall be laid on Articles exported from any State" is found in:

Article I, Section 9

10. Currencies from different nations are easily exchanged because of the:

Foreign exchange market .

Assume that Ping decided that he wanted to sue Quality Dragon (which is a U.S. corporation) for which he works for being slapped by his supervisor. Decide: He could not use the Alien Tort Claims Act since it only creates an administrative complaint procedure for employees who report violations of federal laws relating to fraud against foreign citizens. He could not use the Alien Tort Claims Act since the slapping incident did not happen in the US. He could not use the Alien Tort Claims Act to sue in the United States since it only allows for a US citizen to bring civil suits in U.S. courts for injuries caused by violations of international law or a treaty of the United States.

He could not use the Alien Tort Claims Act to sue in the United States since it only allows for a US citizen to bring civil suits in U.S. courts for injuries caused by violations of international law or a treaty of the United States.

6. Which section of which act provides for the extraterritorial effect of U.S. antitrust laws? a. Section 1 of the Sherman Act b. Section 2 of the Sherman Act c. Section 1 of the Clayton Act

a. Section 1 of the Sherman Act

Electronic Imports, a U.S. company enters into a contract with E Manufacturing, a company based in China. The companies signed an agreement with an arbitration provision, that in the event of any disputes, the matter will be arbitrated in the United States. An issue arises that causes E Manufacturing to breach its agreement with Electronic Imports, and E Manufacturing files suit in a court in China. Electronic Imports would rely on which of the following to enforce its arbitration provision in the agreement? a. The New York Convention. b. The North American Free Trade Agreement. c. Section 1 of the Sherman Act. d. The Alien Tort Claims Act.

a. The New York Convention.

1. International law can be defined as a body of law, formed as a result of international customs, treaties, and organizations, that governs relations among or between nations. a. True b. False

a. True

10. Foreign companies, such as Sony and Nissan, have established U.S. plants to avoid import duties that are imposed on Japanese products entering this country. a. True b. False

a. True

12. A U.S. firm can expand into international markets through a joint venture. a. True b. False

a. True

2. By means of arbitration clauses in international contracts, the parties agree in advance to be bound by the decision of a specified third party in the event of a dispute. a. True b. False

a. True

Wytex, Inc., a U.S. firm, and Findora Commercial, a Nigerian firm, are parties to a contract that specifies that the official language of the contract is English. This is​ a. a choice-of-language clause. b. a choice-of-law clause. c. an arbitration clause. d. a choice-of-forum clause.

a. a choice-of-language clause.

Yummy Donuts, an American company, signs a contract with Olivia to use its secret recipes to produce and sell doughnuts in Romania. Olivia is required to protect the secrecy of the recipe and to pay Yummy Donuts a percentage of the income generated by the Romanian company. The type of business arrangement Olivia and Yummy Donuts have is most likely a. a license. b. a manufacturing plant. c. a subsidiary. d. an international partnership.

a. a license.

Sam, or any U.S. citizen, can bring a civil suit in a U.S. court against a foreign entity for​ a. a tort allegedly committed in the United States or overseas. b. a tort allegedly committed overseas only. c. no purpose. d. a tort allegedly committed in the United States only.

a. a tort allegedly committed in the United States or overseas.

Habib is an Arab prisoner being held in a U.S. prison. Another prisoner, Aham, attacks and seriously injures Habib. Habib's family in Saudi Arabia wants to file a lawsuit in a U.S. court against the American company that operates the prison for negligently allowing Habib to be injured. If Habib's family wishes to file a lawsuit alleging a violation of a U.S. treaty they may a. be able to bring a lawsuit under the Alien Tort Claims Act. b. be able to bring a lawsuit under the laws of sharia c. not be able to bring a lawsuit because foreign citizens are exempt from the jurisdiction of U.S. courts d. not be able to bring a lawsuit because Saudi Arabia does not have a common law legal system

a. be able to bring a lawsuit under the Alien Tort Claims Act.

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 within U.S. borders. d. only to members of the World Trade Organization.

a. extraterritorially.

Miranda is a U.S. citizen working in Europe for Tourist Vacations, Inc., a U.S. travel agency. Tourist fires Miranda for reasons that she believes violate U.S. antidiscrimination laws. Those laws apply​ a. extraterritorially. b. only to members of the World Trade Organization. c. only within U.S. borders. d. only to signatories of the North American Free Trade Agreement.

a. extraterritorially.

Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by a. the act of state doctrine. b. the doctrine of sovereign immunity. c. the principle of comity. d. the Foreign Corrupt Practices Act.

a. the act of state doctrine.

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Total World Sports, a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if​ a. the price fixing has a substantial effect on U.S. commerce. b. the agreement was made in Switzerland. c. the agreement was made in the United States. d. the Swiss government agrees to be sued in the United States.

a. the price fixing has a substantial effect on U.S. commerce.

Premier Clothing, Inc., a U.S. firm, obtains a judgment in a U.S. court against Quang Tri, Ltd., a Vietnamese business. Whether the court's judgment will be enforced by a court in Vietnam depends on the Vietnamese court's application of​ a. the principle of comity. b. the act of state doctrine. c. the doctrine of sovereign immunity. d. the World Trade Organization.

a. the principle of comity.

6. When a U.S. firm wishes to limit its involvement in an international market, it may establish a(n) (.......) relationship with a foreign firm.

agency

13. Letters of credit are outdated and no longer of any help for businesses. a. True b. False

b. False

5. When an international sales contract does not have an arbitration clause, but does have a forum-selection clause and a choice-of-law clause, the law suit will always be heard by a court in the country where the plaintiff resides. a. True b. False

b. False

7. Under the Sherman Act, foreign governments cannot be sued for violations. a. True b. False

b. False

3. A major international convention (treaty) that assists in the enforcement of arbitration clauses is the: a. Pennsylvania Convention. b. New York Convention. c. Rome Convention. d. Paris Convention

b. New York Convention.

Vieux Carré 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​ a. Vieux Carré's goods on the world market. b. Vieux Carré's goods in France. c. comparable goods in a select "basket" of other countries. d. Vieux Carré's goods in the United States.

b. Vieux Carré's goods in France.

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is​ a. licensing. b. a distribution agreement. c. a joint venture. d. direct exporting.

b. a distribution agreement.

The United States taxes each barrel of imported oil at a flat rate. This is​ a. an antidumping duty. b. a tariff. c. a dumping duty. d. a quota.

b. a tariff

Two Japanese firms—Mikato, Ltd., and Shuzushi, Ltd.—enter into a joint venture in an attempt to increase their market share of the U.S. auto market. If the joint venture is not a per se violation of U.S. antitrust laws, a U.S. court could exercise jurisdiction over the firms​ a. if the joint venture has any effect on U.S. commerce. b. if the joint venture has a substantial effect on U.S. commerce. c. under no circumstances. d. if the joint venture was entered into in the United States.

b. if the joint venture has a substantial effect on U.S. commerce.

14. Landers, Inc., an American company, agrees to sell copper electric cables to a state-owned company in Ecuador. Landers was given specific manufacturing requirements and had to invest in new machinery to meet them. Once the order was processed, the Ecuadorian electric company repudiated the contract, claiming immunity under the Foreign Sovereign Immunities Act (FSIA). Nonetheless, Landers might prevail in court because: a. the contract included a comity provision. b. of the exception to the FSIA concerning national governments engaging in strictly commercial activities. c. the government of Ecuador cannot defend itself without having a subsidiary of its electric company based in the United States.

b. of the exception to the FSIA concerning national governments engaging in strictly commercial activities

Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure owns a. none of the operation, and none of its profits and liabilities. b. part of the operation, and shares its profits and liabilities. c. all of the operation, and none of its profits and liabilities. d. all of the operation, and its profits and liabilities.

b. part of the operation, and shares its profits and liabilities.

In some cases, foreign states are not immune from the jurisdiction of U.S. courts. These circumstances are governed by​ a. the North American Free Trade Agreement. b. the Foreign Sovereign Immunities Act. c. the Uniform Commercial Code. d. the European Union.

b. the Foreign Sovereign Immunities Act.

Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Irish court's decree. This is​ a. a travesty of justice. b. the principle of comity. c. the act of state doctrine. d. the doctrine of sovereign immunity.

b. the principle of comity.

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is a. confiscation. b. dumping. c. expropriation.​ d. defalcation.

c. expropriation

9. The main reason that U.S. firms establish manufacturing plants abroad is that: a. in so doing they better manage their marketing campaigns. b. in so doing they increase their shipping costs. c. in so doing they reduce costs.

c. in so doing they reduce costs.

Wrugged Woolens, Inc., a U.S. corporation, sets up a specialized marketing organization in Scotland by appointing a foreign agent. This is called​ a. a joint venture. b. direct exporting. c. indirect exporting. d. piracy.

c. indirect exporting.

Wai-tung, a Chinese firm, manufactures automobiles. In order to get a foothold in the American market, Wai-tung sells its cars for several thousand dollars below what it charges in China. Wai-tung a. is subject to the quotas imposed by the United State on goods sold below market value. b. is subject to American antitrust laws. c. may have antidumping duties imposed on its imported goods. d. may continue to sell its cars at the discounted price for six months, after which a tariff may be imposed.

c. may have antidumping duties imposed on its imported goods

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​ a. must be within the geographic boundaries of either the United States or Britain. b. must be within the geographic boundaries of the United States. c. need not be within the geographic boundaries of either party. d. must be within the geographic boundaries of Britain.

c. need not be within the geographic boundaries of either party.

The government of Bolivia passes a law stating that no U.S. dollars are allowed to enter the country. Americans traveling to Bolivia therefore may not bring dollars with them, nor may anyone else bring dollars into the country. All dollars have to be exchanged for the Bolivian domestic currency at any border crossing, airport, or train station. Laura, a U.S. citizen, files a lawsuit against Bolivia in a U.S. court challenging the legality of this law. Laura will most likely a. prevail because of the doctrine of comity. b. not prevail because Laura has sovereign immunity. c. not prevail because of the act of state doctrine. d. prevail because the law clearly violates the U.S. Constitution

c. not prevail because of the act of state doctrine.

3. A major difference between international law and national law is: a. the dissimilarity in types of currency used. b. a time difference. c. that government authorities enforce national law. d. the decreased use of bills of lading.

c. that government authorities enforce national law.

Metallic Metals, Inc., a U.S. firm, files a suit against a Venezuela government agency. The agency has committed a tort in the United States. Under the Foreign Sovereign Immunities Act​ a. the Venezuelan government agency is immune from the jurisdiction of the U.S. courts. b. Metallic Metals cannot bring a suit against the Venezuelan agency. c. the Venezuelan government agency is not immune from the jurisdiction of the U.S. courts. d. Metallic Metals must file suit in Venezuela.

c. the Venezuelan government agency is not immune from the jurisdiction of the U.S. courts.

Kozak, a U.S. company, has a contract with Kopirka, a Czech company, where Kozak will buy ink supplies from Kopirka for its photocopying business. Kozak does business using U.S. dollars. Kopirka does business using Czech koruna. The exchange rate for dollars and koruna is set by a. a specific treaty between the two nations. b. the United Nations. c. the forces of supply and demand. d. the major banks in the two nations.

c. the forces of supply and demand.

US Cars, a U.S. firm, owns property in Argentina. The government of Argentina seizes the property. US Cars claims that this is confiscation. The government of Argentina claims that it is expropriation. The burden of proof lies with​ a. the U.S. government. b. US Cars. c. the government of Argentina. d. the U.S. Supreme Court.

c. the government of Argentina.

12. Exchange can be made even easier by working with a bank that has a (........) in another nation.

correspondent bank

Geo Sox, an American company, agreed to sell copper electric cables to a state-owned company in Nigeria. Geo Sox was given very specific manufacturing requirements and had to invest in new machinery to meet the requirements. Once the order was processed, the Nigerian electric company repudiated the contract, and then claimed immunity under the Foreign Sovereign Immunities Act (FSIA). However, Geo Sox might prevail in court because a. the government of Nigeria cannot defend itself without having a subsidiary of its electrical company based in the United States. b. NAFTA prohibits application of the FSIA to African nations. c. the contract included a comity provision. d. Nigeria engaged in strictly commercial activities.

d. Nigeria engaged in strictly commercial activities.

Venus, Inc., a U.S. shoe manufacturing company, has a signed contract with Schoen, Inc., a Dutch company, where Schoen will provide certain raw materials to Venus. If a major dispute arises between the U.S. government and the Dutch government so that the U.S. government forbids the import of any Dutch goods, what provision in the contract will excuse Venus from performing its duties under the contract? a. a choice-of-law clause. b. a forum-selection clause. c. a choice-of-language clause. d. a force majeure clause.

d. a force majeure clause.

Micrylex Corp. (a U.S. corporation) signs a sales contract with Freiers, S.A. (a French company) in which Micrylex agrees to sell Freiers $15,000 worth of Micrylex products. This is an example of a. technology licensing. b. manufacturing abroad. c. franchising. d. direct exporting.

d. direct exporting.

The U.S. government decides to charge $1.50 on every DVD player that is imported into the country. This policy a. could lead to the imposition of quotas on Taiwanese products. b. is barred by Article I, Section 9, of the Constitution. c. is an incentive for American manufacturers to export more electronic equipment. d. is a legally permitted tariff.

d. is a legally permitted tariff.

3. Microlex, Inc., a U.S. corporation, signs a sales contract with Freres, S.A., a French corporation, in which Microlex agrees to sell Freres $100,000 worth of Microlex products. This is an example of:

direct exporting

4. (.....), a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment for the goods.

direct exporting

7. When a foreign country becomes a big market, the U.S. firm may wish to appoint a (........) located in that country.

distributor

17. The primary purpose of the North American Free Trade Agreement (NAFTA) is to:

eliminate tariffs among the U.S., Canada, and Mexico

Suppose that the government of Ping's hears of the working conditions and the country seizes the Quality Dragon plant in which Ping works, giving just compensation to the owner, in order to allow it to be run by a local owner with better working conditions. This is: confiscation. expropriation. the result of exercising the principle of comity. sovereign immunity.

expropriation.

5. A U.S. company may establish a specialized marketing organization in a foreign country by appointing a foreign agent or a foreign distributor and this is called (....) exporting.

indirect

18. The U.S. government decides to charge $10.25 on every Blu-ray player that is imported. This policy:

is a legally permitted tariff

8. A distribution agreement sets out the terms and conditions of the distributorship, such as price, currency of payment, and (.....) of payment.

method

Assume that Ping works in a country that is a member country of the World Trade Organization. The United States would have to grant that county: normal trade relations status. preferred trade relations status. free-trade-nation status. most-favored-nation status.

normal trade relations status

When a U.S. firm establishes a wholly owned subsidiary in a foreign country, the parent company usually:

remains in the U.S

Assume that Quality Dragon is partially owned by the government of the country in which it is operating. There is a dispute between it and a U.S. citizen. What doctrine immunizes foreign nationals from the jurisdiction of U.S. courts, when certain conditions are met is: expropriation. the result of exercising the principle of comity. confiscation. sovereign immunity.

sovereign immunity.

8. Before U.S. courts will exercise jurisdiction and apply antitrust laws, it must be shown that the alleged violation had a:

substantial effect on U.S. commerce.

11. Exchange rates are set by:

supply and demand

16. The international organization charged with the responsibility for eliminating trade barriers including tariffs is:

the WTO