CHAPTER EXAM INTERNATIONAL BUSINESS LAW

1. The United States belongs to the Organization for Economic Cooperation and Development.

TRUE

2. Pacta sunt servanda means that every treaty in force is binding upon the parties to it and must be performed by them in good faith.

TRUE

3. According to the Statute of the International Court of Justice, the court shall look to conventions establishing rules expressly recognized by the contesting states.

TRUE

A self-executing treaty is one that automatically creates rights that are enforceable in the courts of a contracting nation, without any further legislative action.

TRUE

Because international law is not dictated by any one legislative body, it is lawmaking by choice and by consent.

TRUE

International business law draws from both public and private law as related to business transactions.

TRUE

Moral conduct is the preeminent concern in Islamic law

TRUE

One reason international business law still retains a "national" character is that national attitudes toward economics affect attitudes toward law and regulation.

TRUE

The purpose of the United Nations Commission on International Trade Law is to promote international trade through the harmonization of trade law among nations.

TRUE

The two classifications of national legal systems are civil law countries and common law countries.

TRUE

Public international law involves: A. relationships between public corporations in different countries as to business terms. B.relationships between nations that are reflected in treaties, conventions, or charters. C. relationships between private individuals in different countries. D. ALL OF THE ABOVE

B.relationships between nations that are reflected in treaties, conventions, or charters.

A code of conduct is a set of principles that guide people's behavior and actions when communicating with others via the Internet and social media

FALSE

A treaty between three countries is said to be trilateral.

FALSE

In a common law system, the judge has the power to control the conduct of the trial and empowered with authority to examine witnesses and demand tangible evidence from the plaintiff and defendant.

FALSE

Many of today's international business law concepts are derived from the law merchant and maritime law, which are the accepted customs and practices of Renaissance-era merchants, traders, bankers, mariners, and ship owners.

FALSE

Once a group of nations has negotiated a convention, other nations cannot adopt the treaty.

FALSE

The International Court of Justice, formed in 1945, is the primary judicial art of the World Trade Organization.

FALSE

The U.N. has recently sponsored a "supranational" set of laws that transcends national boundaries; most industrialized nations have adopted it.

FALSE

The development of international law has a long history that include the customs that have evolved into written statutes recognized by civilized nations.

FALSE

The jurisdiction of the International Court of Justice upon its members in a dispute is compulsory.

FALSE

There is a uniform commercial body of law adopted by the United Nations governing all private international law questions.

FALSE

25. Which of the following is not part of the structure of the United Nations? General Assembly. Security Council. Secretary General. House of Representatives.

House of Representatives.

The forum for public international law disputes is:

International Court of Justice.

The difference between a common law country and a civil law country is:

a common law country relies heavily on precedent established by previous court cases while a civil law country uses a comprehensive code of law.

Islamic law is known as: a. Sharia. b. Koran. c. Sunna. d. Fiqh.

a. Sharia.

What do many legal historians believe led to the development of modern international law? a. The rise of the European nation-state b. Chinese dynastic law c. Roman law d. Trade law in the Middle Ages

a. The rise of the European nation-state

Which three countries are notable because few, if any, treaties have direct effect there, and thus require parliamentary action before they are enforceable by private parties? a. United Kingdom, Canada, and Australia b. United Kingdom, Canada, and the United States c. Canada, Australia, and China d. United Kingdom, France, and Germany

a. United Kingdom, Canada, and Australia

The Organization for Economic Cooperation and Development (OECD) has developed: a. codes of conduct for companies and host countries in an attempt to set ethical standards for both. b. guidelines for interest rates to be charged multinational enterprises. c. codes of conduct for employee practices for multinational corporations. d. none of these are correct.

a. codes of conduct for companies and host countries in an attempt to set ethical standards for both.

The principle that a nation can project its laws beyond its territorial borders is known as: a. extraterritoriality. b. territoriality. c. nationality. d. protective jurisdiction.

a. extraterritoriality.

The Paquette Habana case concerned: a. a question of the applicable method for joining the IMF. b. a question discerning applicable international law. c. a question concerning the law merchant on mercantile law of Cuba. d. a question of which court has jurisdiction over an international case.

b. a question discerning applicable international law.

Nations that express their willingness to join a treaty are called: a. ratifiers. b. signatories. c. contracting parties. d. abrogators.

b. signatories.

Which of the following is NOT one of the reasons that International Business Law has become more uniform? a. The forces of free trade, economic integration, and the globalization of business have accelerated the need for greater uniformity in IBL. b. Nations have had to cooperate in their legal responses to global issues, common problems, and technologies. c. All nations have agreed to practice and enforce the codes and legislation set down by the World Trade Organization. d. Private industry and trade organizations have encouraged the growth of uniform IBL.

c. All nations have agreed to practice and enforce the codes and legislation set down by the World Trade Organization.

Which of the following is NOT one of the objectives of the International Labour Organization? a. To help promote the rights of workers b. To eliminate child labor c. To provide health care for all workers d. To create decent and beneficial employment opportunities

c. To provide health care for all workers

Which convention calls for contracting parties to criminalize bribery of public officials and money laundering? a. UN Convention Against Crime b. UN Convention of Extraterritoriality c. UN Convention Against Corruption d. None of these are correct

c. UN Convention Against Corruption

A treaty between two countries is said to be _____, and a treaty between three or more countries is said to be _____. a. bitreaty; tritreaty b. bitreaty; multitreaty c. bilateral; multilateral d. biratified; multiratified

c. bilateral; multilateral

The UN's Guiding Principles for Business on Human Rights Article 23 states all of the following except: a. businesses should comply with all applicable laws and respect internationally recognized human rights, wherever they operate. b. businesses should seek ways to honor the principles of internationally recognized human rights when faced with conflicting requirements. c. businesses should seek to comply with the laws of their home country before considering internationally recognized human rights. d. businesses should treat the risk of causing or contributing to gross human rights abuses as a legal compliance issues wherever they operate.

c. businesses should seek to comply with the laws of their home country before considering internationally recognized human rights.

All of the following are principles established by the codes of conduct promulgated by the Organization for Economic Cooperation and Development (OECD) except: a. to take into account the policies and objectives of the country with which a corporation operates. b. nondiscrimination in hiring. c. mandatory wage scales for countries in which each corporation operates. d. utilizing "reasonable terms" when transferring technology.

c. mandatory wage scales for countries in which each corporation operates.

If a country is willing to join a treaty but has an exception to the terms of the treaty, the exception is called a(n): a. ratification. b. signatory. c. reservation. d. abrogation.

c. reservation.

The OECD Guidelines for Multinational Enterprises encourages responsible conduct in which of the following areas? a. Employment b. Bribery c. Environment d. Both bribery and environment

d. Both bribery and environment

Which of the following is NOT one of the crimes generally covered by the universal principle of jurisdiction? a. Piracy b. War crimes c. Slavery d. Money laundering

d. Money laundering

Foreign investment laws might include: a. protection against state intervention and the ability to repatriate profits. b. repatriation of profits and the ability to have 100% foreign ownership. c. governmental approval of technology transfer agreements. d. all of these are correct.

d. all of these are correct.

In 1625, Hugo Grotius wrote a landmark book on international law called On the Law of War and Peace. In it, he stated that the law of nations: a. was divinely given. b. arose by common agreement and by the accepted practice of nations. c. recognized that all states are equal. d. all of these are correct.

d. all of these are correct.

Doing business internationally requires an understanding of all of the following except: a. international law. b. national law. c. different international organizations. d. availability of legal counsel in each country

d. availability of legal counsel in each country

The United States has, in part, accepted the jurisdiction of the International Court of Justice. The U.S. acceptance does not apply to: a. disputes the parties have entrusted to other tribunals. b. disputes that the United States decided are essentially domestic. c. disputes arising under a multilateral treaty unless all parties affected are before the court or the U.S. specially agrees to jurisdiction. d. disputes the parties have entrusted to other tribunals and disputes that the United States decided are essentially domestic only. e. all of these are correct.

e. all of these are correct.

In a socialist country, the legal system:

exhibits no need for commercial law because such disputes are settled politically.