BLAW 3430 - Chapter 46 - International Business Law

The U.S. Customs and Border Protection Service imposes tariffs on imported goods at the port of entry. What is the purpose of a tariff? a. To attempt to improve their balance of trade. b. To raise revenues. c. To protect domestic industries from foreign competition. d. All of these are correct.

d. All of these are correct.

Many countries in Europe have jointed the European Union. Which of the following has NOT been an objective of such cooperation? a. Lowering of tariffs or removing other trade barriers. b. Establishing an economic and monetary union. c. Promoting common trade policies among members. d. Creation of "regional" legislatures with actual powers.

d. Creation of "regional" legislatures with actual powers.

Every sovereign is bound to respect the independence of every other sovereign state. Which of the following describes the act of state doctrine? a. It is a very recent addition to U.S. law. b. It allows state governments in the United States to ignore treaties entered into by the United States. c. It allows foreign countries to be liable for their torts. d. It provides that the judicial branch of a nation should not question the validity of actions taken by a foreign government within that foreign sovereign's own borders.

d. It provides that the judicial branch of a nation should not question the validity of actions taken by a foreign government within that foreign sovereign's own borders.

The __________ was the predecessor to the European Union: a. European Community b. The International Court of Justice c. The North American Free Trade Agreement d. The World Bank

a. European Community

When the Court ruled on Bulova Watch Company, Inc. v. K. Hattori & Co. what issue did the Court decide? a. The Court examined whether a parent company that exercises control over a wholly owned subsidiary gives support to jurisdiction for U.S. courts over the parent? b. The Court examined whether the foreign parent company was immune from suit under the Foreign Sovereign Immunities Act? c. The Court whether the service of process was perfected on the parties from a foreign country. d. The Court reviewed whether a company recruiting and hiring away all the marketing personnel of another company was illegal?

a. The Court examined whether a parent company that exercises control over a wholly owned subsidiary gives support to jurisdiction for U.S. courts over the parent?

What issue did the Court consider in F. Hoffman-La Roche Ltd. v. Empagran S.A.? a. Whether the U.S. preempts the right to hear price fixing cases from all around the world. b. Can Sherman Act claims be heard under the Foreign Trade Antitrust Improvements Act if those pricing schemes do not have domestic effects. c. Whether U.S. vitamin prices are affected by competition from other countries. d. Whether U.S. vitamin customers are significantly impacted by foreign vitamin prices.

b. Can Sherman Act claims be heard under the Foreign Trade Antitrust Improvements Act if those pricing schemes do not have domestic effects.

The Foreign Corrupt Practices Act of 1977 put in place which of the following? a. It applies only to corporations whose securities are registered under the Securities Act of 1934. b. The Act makes it illegal to bribe foreign officials to obtain business. c. It applies only to corporations engaged in foreign commerce. d. All of these are correct.

b. The Act makes it illegal to bribe foreign officials to obtain business.

There are a number of forms of doing business abroad. One form is a distributorship. In a distributorship: a. the distributor, like an agent, does not take title to the merchandise it receives. b. both the producer and the distributor must take special care to ensure that the arrangement does not violate the antitrust laws of their respective governments. c. the producer bears many of the risks connected with commercial sales. d. multinational enterprises wishing to exploit an intellectual property right sell to a foreign company the right to use such property.

b. both the producer and the distributor must take special care to ensure that the arrangement does not violate the antitrust laws of their respective governments.

Probably the most important multilateral trade treaty is the General Agreement on Tariffs and Trade (GATT), which: a. is a general international antitrust agreement. b. facilitates the flow of trade by establishing agreements on potential trade barriers. c. has successfully rid international trade of tariffs. d. provides no technical assistance or training for developing countries.

b. facilitates the flow of trade by establishing agreements on potential trade barriers.

The sovereign immunity doctrine states that a foreign sovereign cannot be sued unless an exception to the Foreign Sovereign Immunities Act of 1976 applies. A sovereign is: a. not immune from any type of suit in the United States. b. not immune from suits in the United States involving commercial acts. c. immune from all suits in the United States. d. None of these are correct.

b. not immune from suits in the United States involving commercial acts.

In 1995, the __________ took over responsibility for policing the objectives of the GATT organization. a. World Bank b. Foreign Sovereign Immunities Act c. WTO d. None of these are correct.

c. WTO

In 1994 NAFTA took effect with objectives to: a. create trade barriers between the U.S., Mexico, and Canada. b. enforce real property rights. c. increase investment opportunities. d. All of these are correct.

c. increase investment opportunities.

In 1977, Congress enacted the Foreign Corrupt Practices Act (FCPA), which: a. requires that American companies in foreign countries adhere to the same health and safety standards in that country as they do in the U.S. b. outlaws American business from engaging in business in countries, which, as determined by the Department, have governments "repugnant to American law and social values." c. makes it unlawful for an American company or its agents to offer or give anything of value to a foreign official for the purpose of influencing the official's acts or decisions. d. None of these are correct.

c. makes it unlawful for an American company or its agents to offer or give anything of value to a foreign official for the purpose of influencing the official's acts or decisions.