MGMT 346 Exam 1 Study Guide

Which statement below is true?

An arbitrator makes a final and binding award between the parties.

John owns a small tractor. He "loans it out" to Fred who will use it for plowing his farm on basis he will return it to John when done. John and Fred are in order:

Bailor and bailee.

The price charged to transport cargo is called:

Freight

COGSA exempts carriers from liability from:

Perils of the sea

Many attorneys encourage their clients to exclude application of CISG law in an international contract by:

Placing a choice of law clause in the contract specifying a national law to be applied.

Company A owns intellectual property (IP) and agrees in writing to let Company B use that property for a specified purpose only. Company A and Company B are (in order):

a. Licensor and licensee

The primary source of customary international law rules for interpretation of treaties is:

d. Defined in the Vienna Convention on the Law of Treaties.

In an export/import transaction the most common concern of the seller (particularly when not sure of the buyer's organization statutes and stability) is:

d. Payment or credit risk

The Montreal Convention is best described as an example of:

A self-executing treaty.

A(n) ________ is a relationship separating ownership and possession of personal property.

Bailment

The fastest growing mode of ocean transport is called:`

Containerized ocean cargo.

If a bank under an LOC rejects a presentation this is called:

Dishonor

A clause contained in a commercial contract excusing a party from performance if specified circumstances occur is often included, generally for the benefit of a seller. The clause is called:

Force majeure clause

Personal jurisdiction can be obtained by:

Lawful service of process on defendant.

Both the UCC and the CISG allow a seller to cure a ____ within a reasonable time.

Nonconforming shipment.

The CISG does not incorporate the:

Parol evidence rule.

In a standard letter of credit transaction, the seller is identified as:

The beneficiary.

The Convention on Contracts for the International Sale of Goods (CISG) general applies:

To contracts for the international sale of goods (excluding consumer items).

______ is the primary body for commercial law covering domestic transactions in the US.

Uniform Commercial Code (UCC)

Which term below is a type of currency risk related to fluctuations in relative value of two currencies when buyer and seller are in different countries?

a. Exchange rate risk

Currency controls in a host state may restrict or prohibit the foreign investor from:

c. Repatriating profits to home state.

Admiralty jurisdiction applies to the operation and management of vessels while engaged in navigation on:

"Navigable waters" used or capable of being used for commercial activity.

As of January 2017, the maximum carrier liability from passenger death or bodily injury is in US dollars approximately:

$153,000

The COGSA per-package liability limitation for carriers is ________ per package or customary freight unit.

$500

If you are asked which nations below are NOT a signatory to the Rome Statute of the International Criminal Court, which is your best response?

None of these three states are signatories.

The Montreal Convention provides that an international carrier must pay an amount computed on the value of:

Special drawing rights.

In the legal systems of the United Kingdom and United States, the reasoned decisions of judges become the law controlling the case, and the precedent of similar cases is binding on future cases. This is called:

The common law system.

The CISG governs:

The formation of an international contract and obligations of the parties under the contract.

Which item below gives federal courts in the United States jurisdiction over civil claims for damages brought by non-US citizens for torts committed against them by other non-citizens outside the US?

b. US Alien Tort Statute.

Examples of negotiable instruments include

Check and promissory note.

A contract between buyer and seller calling for seller to deliver the goods to buyer's specified location (e.g., buyer's factory) is called a:

Destination contract.

Venezuela provides a recent example of a host state attempting to restructure its economy by transferring foreign investor assets to itself. This is called:

Nationalization

The transfer of an instrument from one party to another so that the transferee (holder) takes rights in the instrument is called:

Negotiation

Computation of maximum carrier liability is often difficult in damage claims because of the lack of clarity defining the term:

Package

In a _____, the seller passes the risk of loss or damage to the buyer when the goods are given to the first carrier.

Shipment contract.

The New York Convention is signed by 150 nations. It relates to:

The recognition and enforcement by courts of foreign arbitration awards.

A complying presentation is when:

The seller timely presents all documents required under the LOC and there are no discrepancies.

A document prepared by a manufacturer or exporter/shipper attesting to the geographic place (i.e., nation) where goods were made is called a:

Certificate of origin

Nations that agree in writing in advance to submit certain cases to the ICJ are said to have submitted to ______.

Compulsory jurisdiction.

Credit risk of seller is completely eliminated by the seller:

Demanding payment prior to shipment.

A written and binding agreement between three or more countries given effect under international law is best described as a(n):

Multilateral treaty

The _______ states that a court may not consider evidence or oral statements made prior to or at the time of contracting that vary or contradict the clear, unambiguous terms in a written contract.

Parol evidence rule

The prevailing standard established by the courts for examining documents at presentation is called:

Rule of strict compliance.

The independence principle:

States that the bank's obligations under the LOC are separate from any issues arising between buyer and seller, e.g., warranty claims.

Rules determining the geographic location of a court of competent jurisdiction to hear a case are called ____________________.

Venue

Seller's bank (A) may agree to purchase documents and honor drafts on the same terms as the issuing bank (B) has in the LOC. . By doing so, A has provided:

A confirmed letter of credit

When one party to a contract fails to perform, the contract does not end automatically but the other party may as a result declare ______ of the contract

An avoidance

In the famous case involving the Union Carbide plant explosion in Bhopal, India the US federal declined to assert continuing jurisdiction to hear many Indian victims' claims for personal injury or death on the basis of: In the famous case involving the Union Carbide plant explosion in Bhopal, India the US federal declined to assert continuing jurisdiction to hear many Indian victims' claims for personal injury or death on the basis of:

Applying the doctrine of forum non conveniens

The Foreign Sovereign Immunities Act of 1976 generally prohibits jurisdiction by US courts to hear lawsuits filed against a foreign state unless an exception exists to that principle such as:

Commercial activity.

The case of Liechtenstein v. Guatemala decided by the UCJ in 1955 focused on the concept of:

Diplomatic protection.

The shipment of goods out of country and the rendering of services to a buyer located in a foreign country is called:

Exporting

Choice of law clauses in international business contracts are often used in conjunction with _____________________.

Forum selection clauses.

The Carriage of Goods by Sea Act (COGSA) does not apply to bills of lading:

Issued for shipments between San Francisco and Los Angeles.

In a standard LOC arrangement, the buyer's bank is the:

Issuing bank.

A formal request for service of process through diplomatic channels to be accomplished through a foreign court on a defendant in that foreign jurisdiction is called:

Letter rogatory

A plaintiff in a lawsuit in a state court must prove that an individual or corporate defendant sued in the lawsuit has ______ in order to obtain personal jurisdiction over that defendant.

Minimum contacts with the forum state.

A US citizen (individual or company) owes a duty to pay income taxes no matter where the income was earned. Which is the basis for exercise of this power to collect such tax by the United States?

Nationality jurisdiction.

Examples of a discrepancy under terms of an LOC and presented documentation which a bank official may find does not include:

Price per contract is "unconscionable" and may be too far above a reasonable price for same goods as per law in the nation where bank is located.

A nation has clear power over all persons (citizens and non-citizens), places and power within its geographical area, airspace or defined waters. This states the principle of:

Territorial jurisdiction.

The Full Faith and Credit Clause of the US Constitution requires:

US courts to recognize the public acts, records and judgments of other US states.

The most important international IP organization fostering government cooperation in developing IP policies and laws and assisting in the resolution of disputes via arbitration is:

b. World Intellectual Property Organization

A foreign entity organized under the laws of the host state but owned and controlled by the parent corporation in the home country of the investor is a:

d. Foreign subsidiary

An example of a treaty automatically creating legal rights in the courts of a signatory state includes:

Montreal Convention for the Unification of Certain Rules for International Carriage by Air.

The CISG permits recovery by an injured party of a monetary amount called:

Consequential damages if proved to be "reasonably foreseeable" as a consequence of the breach.

Non-tariff barriers to foreign trade include _______, which are used to quantitatively restrict the number of defined items that can enter into a country:

quotas

A ____ represents ownership of the goods specified.

Document of title.

In the case of a check written by a party, the bank account holder writing the check is the ________ and they order the bank who is the _______ to pay the indicated amount. The blanks are in order:

drawer...drawee

A bill of lading does not accomplish which role below?

Acts as a receipt of goods and is issued by shipper.

A _________ is a document issued by a carrier to the shipper upon receiving possession of goods for transport.

Bill of lading.