International MKT Ch. 7

SNAP (Simplified Network Application Process)

It is one of the changes made by the Department of Commerce to establish an all-digital department and facilitate the licensing process.

Identify a feature of code law.

It is usually divided into three separate codes: commercial, civil, and criminal.

General license

It permits manufacturers to export products that are not subject to EAR restrictions.

Identify the features of the U.S. antiboycott law. (Check all that apply.)

It prohibits U.S. companies from taking part in foreign boycotts not sanctioned by the U.S. government. It requires U.S. companies to report any requests for participation in a boycott.

STELA (System for Tracking Export License Applications)

It provides license status information to applicants 24 hours a day, seven days a week.

First phase

It required manufacturers and distributors to accept and recycle transport packaging.

Second phase

It required manufacturers, distributors, and retailers to accept and recycle secondary packaging.

Identify a wrong assumption made by multinational companies.

The rightful ownership of property can be easily established because their company has established rights in the United States.

U.S. law may conflict with the economic or political aims of a host country when _______.

the U.S. government restricts joint ventures in a foreign country due to concerns over anticompetition laws

Rank the following countries' use of the legal system to settle commercial disputes, based on the number of attorneys per capita in each country. Place the country that relies most heavily on the legal system at the top.

-United States -United Kingdom -Japan -China

Leasing

Ijara

Identify a feature of Islamic law.

Its dominant objective is social justice.

A nonbinding agreement to resolve disputes by way of a third party is known as _______.

conciliation

According to the European Patent Convention (EPC), trademark protection is forfeited if not used within _____ years.

5

Russia, Eastern Europe, and China

A commercial legal system based on the economic, political, and social policies of the state

In international legal disputes, in which ways is jurisdiction is determined? (Check all that apply.)

Based on the country in which the contract was entered into Based on where the obligations of the contract were completed Through contract clauses stipulating jurisdiction

Identify a true statement regarding the application of U.S. laws in host countries.

Businesses that operate outside of their home country are not exempt from home-country laws.

Germany, Japan, and France

Civil law

______ law is built around a comprehensive collection of written rules.

Code

_____ law is based on the previous decisions of higher courts as applied to the same or similar circumstances.

Common

_____ is a legal system that comes from English law and is practiced in England, the United States, and Canada.

Common law

Identify a problem related to the protection of intellectual property.

Counterfeiting

Jack, an IT engineer, registers familiar domain names and known trademarks online and uses them to misdirect consumer traffic from the intended website to the websites of competing companies. Identify the crime committed by Jack.

Cybersquatting

_____ restricts advertising directed at children.

Denmark

_____ allows an exporter to submit online requests for commodity classification to the Bureau of Export administration.

ERIC (Electronic Request for Item Classification)

Which of the following countries has the most rigorous laws regarding the recycling of packaging waste?

Germany

Korea

Everyone should benefit from the thoughts of one person.

The revised set of export regulations published by the Department of Commerce in order to alleviate many of the problems related to exporting and to expedite the export process is known as the _____ ___________ Regulations.

Export Administration

True or false: All socialist countries have the same pattern for the development of a commercial legal system.

False

True or false: Due to the Foreign Corrupt Practices Act (FCPA), U.S. businesses must resort to bribery in order to survive in the most corrupt societies.

False

True or false: It is easy to determine when and where an online sale takes place.

False

True or false: Piracy is always harmful to a company.

False

Identify a difference between common law and code law.

In the context of performance of a contract, code law extends acts of God to include include unforeseeable human acts, whereas common law does not.

The _____ protects established intellectual property rights across most of Latin America and the United States.

Inter-American Convention

Pakistan, Iran, and Saudi Arabia

Islamic law

Which statement is true of Islamic law?

It addresses issues such as property rights and economic decision making.

The _____ protects intellectual property rights across 26 European countries and created the Bureau for International Registration of Trademarks.

Madrid Arrangement

Identify a purpose of antitrust enforcement in international commerce.

It aims to ensure that American businesses are not hampered by unfair restrictions imposed by more powerful competitors.

ERIC (Electronic Request for Item Classification)

It allows exporters to request commodity classifications via the Internet.

Validated license

It authorizes, with limitations, the exportation of goods controlled by the EAR.

A secondary boycott

It bans Arab governments from doing business with companies that engage in trade with with Israel.

A tertiary boycott

It bans Arab governments from doing business with companies that have relationships with companies engaged in trade with with Israel.

A primary boycott

It bans direct trade between Arab states and Israel.

Identify a function of the World Court.

It can settle disputes between governments.

ELAIN (Export License Application and Information Network)

It enables authorized exporters to apply for licenses via the Internet for almost all commodities and destinations.

Identify a true statement about e-commerce

It faces issues regarding the collection of taxes.

Identify a feature of litigation.

It involves lawsuits in public courts.

Which of the following is true of e-commerce?

It is difficult to establish the contractual validity of electronic communications.

Which of the following statements is true?

It is difficult to settle commercial disputes between private citizens due to differing legal systems in each nation involved.

Identify the requirements of the Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement. (Check all that apply.)

It requires participating members to establish procedures for enforcing IP rights. It requires participating members to comply with the minimum intellectual property rights standards by 2006.

Third phase

It requires retailers, distributors, and manufacturers to accept sales packaging for recycling.

Shari'ah law mandates social and economic behavior based on interpretation of the _____________. (Remember to type only one word in the blank.)

Koran

Which statement is true regarding Marxist-socialist tenets?

Law is subordinate to the state's specific economic conditions.

Which of the following laws apply to U.S. businesses regardless of where they operate? (Check all that apply.)

Laws against accepting bribes Laws against trading with the enemy Laws against participating in an unauthorized boycott

Which statement about the arbitration procedure is true?

Most arbitration is conducted by formal arbitration groups dedicated to resolving commercial disputes.

Cost-plus sale

Murabaha

Common law

Ownership is determined by use

Code law

Ownership is established by registration

Identify the nucleus of the Islamic system of law.

Prohibition of the receipt and payment of interest

Identify the remedies available to American companies to combat violations of intellectual property rights.

Register a complaint with the U.S. government and World Trade Organization. Negotiate and pursue alternative methods of resolving disputes. Register IP with appropriate agencies in the host country. Notify the local authorities.

_____ can give exporters authority to export goods with unconditional licenses.

STELA (System for Tracking Export License Applications)

Which statement is true regarding conciliation?

Sessions between the parties and the mediator are private and confidential.

_____ is the Arabic term for Islamic law.

Shari'ah

Japan

Technological advancements should be shared rather than kept confidential.

Identify the decisions to be made by an exporter based on the Commerce Control List (CCL).

The exporter must determine if the product has a dual use. The exporter must decide if the item has end-use restrictions.

Which of the following information is useful to include in an arbitration clause? (Check all that apply.)

The language to be used during arbitration The number of arbitrators The place of arbitration

Identify the deterrents to litigation. (Check all that apply.)

The loss of confidentiality. The fear of creating a negative public image. Excessive loss of money and time.

Identify the agreements required in arbitration clauses. (Check all that apply.)

The parties must agree to abide by the rules of the arbitrating organization. The parties must agree to honor the judgment rendered by the arbitrator.

Which of the following statements is true?

There is no judicial body to address commercial disputes between citizens of different countries.

Identify the true statements regarding export licensing controls. (Check all that apply.)

They apply to re-exports of U.S.-origin commodities and technical data from a foreign destination to another foreign destination. They apply to exports of goods and technical knowledge.

In the context of Islamic law regarding financial transactions, identify the advantages of using cost-plus sales and leasing. (Check all that apply.)

They ensure a fair distribution of wealth. They ensure that profits and losses are shared between borrowers and lenders.

Identify a step that multinational companies must take in order to be successful in the world marketplace.

They need to take adequate steps to legally protect their intellectual property.

The _____ is the most in-depth multilateral agreement on intellectual property so far.

Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement

Identify a feature of the European Patent Convention (EPC).

Trademark protection lasts for 10 years.

True or false: In the context of U.S. national security laws, responsibility regarding the sale of a product extends to the final destination of the product, even if it is transferred through a number of countries along the way.

True

True or false: Multinational companies can be subject to antitrust charges in multiple countries.

True

True or false: The Bureau of Industry and Security (BIS) of the Department of Commerce is responsible for providing export licenses and special permission for exportation.

True

True or false: The number of attorneys per capita can be used to gauge the importance of the legal system in a country.

True

The extraterritoriality of U.S. laws can cause disputes when _______.

U.S. law conflicts with the economic or political interests of a host country

Islamic law prohibits investment in businesses that deal with _____. (Check all that apply.)

alcohol gambling

The use of an independent third party to render a judgment that both disputing parties agree to honor is known as the _________ procedure.

arbitration

Identify a way in which multinationals can make money in developing countries while still protecting their intellectual property rights.

by adjusting their prices based on the comparative income levels in developing countries

An investment in a _____ is prohibited under Islamic law.

casino

The most likely reason for the restriction on advertising directed at children in some countries is _____.

childhood obesity

Tradition and past rulings by the courts form the ______ basis of law.

common

A country considers an individual to be the rightful owner of intellectual property if he or she can prove that he or she was the first person to use it. This country is most likely a _____ country.

common-law

Unlike common law, code law is _____.

considered complete as a result of catchall provisions found in most code-law systems

___________register Web names and descriptive nouns similar to an existing product or business in order to sell them at an inflated price. (Remember to type only one word in the blank.)

cybersquatters

A general or a validated export license is given to products exported from the United States depending on the _____. (Check all that apply.)

destination of the product end user of the product type of product

Intellectual property laws in the United States are designed to _____.

encourage innovation

In the context of common law regarding the performance of a contract, which of the following is considered to be an act of God?

floods

The Commerce Control List (CCL) _____.

indicates whether an item is eligible for export

The most noticeable difference between common-law and code-law systems is found in the laws governing _____.

intellectual property

Unlike code law, common law _____.

is not all-inclusive

Antitrust enforcement protects American consumers by _____.

making sure that they have access to the products and ideas of foreign and domestic competitors

In the context of international dispute resolution, the conciliation process _____.

may not use statements made by the parties as evidence in any other legal proceedings

In the context of international dispute resolution, conciliation is also known as _____.

mediation

Difficulties in arbitration arise when parties refuse to _____. (Check all that apply.)

name arbitrators honor the arbitration awards

The Export Administration Regulations (EAR) focus on a specific set of goods in order to protect U.S. _____.

national security

In Islamic law, profiting from excess interest or usury is known as

riba.

Foreign licensees of U.S. technology are prohibited from selling products to another country if the _____.

sale threatens U.S. national security

In the twentieth century, antitrust laws were either not established or were rarely enforced in most countries except for _____.

the United States

After a dispute arises between parties, the probability of obtaining agreement for arbitration is most likely to increase if _____.

the contract between disputing parties contains a provision for arbitration

In the the context of the Foreign Corrupt Practices Act (FCPA), most experts agree that _____.

the majority of U.S. firms are operating within the law

Cybersquatting abuses, parody sites, protest sites, and hate sites can be difficult to prevent because _____.

the right to free speech is protected