test 3
EAR applies to commercial and "dual use" items defined to be: a. A product which has more than one "commercial use." b. A commercial item that has two prices based on whether intended for military or commercial use. c. A product having a commercial use in two or more countries of export. d. Commercial item that has potential for military, terrorist or "proliferation" uses.
d. Commercial item that has potential for military, terrorist or "proliferation" uses.
Typical state nuisance laws in the United States mandate that a property owner cannot use his or her property in a manner that causes injury to other property owners. This typically results in local compliance regulation about noise, hours of operation, creation of creeks, and other water uses that may impact adjacent owners. This simple state law principle has been applied in a much more complicated international law area, as evidenced by the holding in: a. The first arbitration cases under the Rio Declaration. b. Various ICJ decisions involving interpretation of the Stockholm Declaration. c. The 1941 arbitration opinion award issued in the Trail Smelter dispute between the United States and Canada for transboundary pollution. d. A series of European Court of Justice cases in the early 2000s.
? not b
France and Germany have a dispute about transboundary pollution, regarding air pollution from German factories that drifts into France, impacting aviation and tourism. France complains and demands that the matter be resolved by arbitration. Germany: a. Can reject this demand if there is not an arbitration requirement in an international treaty agreement or a contract it had previously entered into. b. Must accept this demand since both are EU members. c. Must accept this demand under its obligations of the United Nations Charter. d. Can reject this demand and require France instead to litigate this dispute in the ICJ.
? not d
A foreign-based company with US domestic company ownership/investment is covered by Title VII laws. However, the claimants must be a US citizen, and the court will further look to see whether the domestic US company: a. "Controls" the foreign entity. b. Has a non-US citizen as chief executive of the foreign entity. c. Is publicly traded. d. Has an investment of over 10% of equity of foreign company.
a. "Controls" the foreign entity.
Sweaters are made in Mexico. The Mexican manufacturer then imports South African-manufactured buttons into Mexico and sews them into the product for the first time after which they are then exported across the border to a US buyer. Under NAFTA rules, this sweater will be eligible for NAFTA preferential rates if the South African buttons represent at most _______ of the total cost of the sweater. a. 7% b. 49% c. 10% d. $10.00 USD
a. 7%
WTO principles generally allow an exception to free trade obligations by allowing a nation to implement a ban on imports of products that it believes may raise a threat to the health, such as: a. Asbestos products. b. Three-wheeled motor vehicles. c. Cigarettes. d. Over-the-counter drugs.
a. Asbestos products.
In the 1997 Sanders Amendment, Congress banned the import into the US of: a. Goods made by forced child labor. b. Goods made by children (i.e., persons below 18) of any type under any conditions. c. Prescription drugs. d. Goods made by laborers not paid at least 67% of the then current US minimum hourly wage.
a. Goods made by forced child labor.
Brazilian companies export shoes made there to the Mexico and a 4.0% tariff is applied by Mexico. (The US imposes an 8.0% tariff on those same shoes if imported.) A Mexican company then immediately re-exports those shoes to the US and claims they are entitled to a preferential NAFTA tariff rate of 0.0%. The US will claim the applicable tariff rate is: a. 4.0% b. 8.0% c. 6.0% determined by an "averaging of rates" analysis between US rate and Mexican rates. d. 0.0%
b. 8.0%
Under Title VII, an employer can clearly advertise some jobs limiting applicants by gender, or hire persons only of one gender for that position. A lawsuit is filed against a company hiring "Males only" for a job. The likely defense by the defendant company is that the gender criteria were: a. A bona fides occupational qualification (BFOQ) for any position at that company no matter what its duties. b. A bona fides occupational qualification (BFOQ) for that position based on its duties. c. A valid criteria since there was no discriminatory intent to harm anyone. d. A business necessity.
b. A bona fides occupational qualification (BFOQ) for that position based on its duties.
Company A in the United States competes against other US and foreign companies in the making of kitchenware, e.g., cups, plates, etc. It believes a foreign competitor is sending into the US items made by convict labor or forced labor in China. What can it do to prevent this? a. Demand that tariffs on these imported goods be increased. b. Demand that Customs "block" entry of these items into the US under US law. c. Demand the arrest of Chinese prison authorities. d. Reduce prices for their own goods to eliminate imports.
b. Demand that Customs "block" entry of these items into the US under US law.
China presents one of the most blatant forms of institutional discrimination by requiring the registration of households used to determine eligibility to certain entitlement programs, which is called: a. Yang Xi. b. Hukou. c. Yen Chang. d. La Mordida.
b. Hukou.
The largest trading partner of the US in 2015 in the two-way trade of goods and services was: a. China. b. Mexico. c. Canada. d. United Kingdom.
c. Canada.
In export control regulation, the unlawful transfer, transshipment, rerouting or re-exporting of controlled items or technology is called: a. Drawback. b. Misappropriation. c. Diversion. d. Circumvention.
c. Diversion.
_____ are typically the most effective form of sanctions a. US-imposed sanction b. Multilateral sanctions imposed by a group of countries c. Multilateral sanctions resulting from passage of resolution by UN Security Council d. Unilateral sanctions imposed by any country
c. Multilateral sanctions resulting from passage of resolution by UN Security Council
The process of spreading manufacturing and assembly operations across international borders is called: a. Multi-phase manufacturing. b. Maquiladorization. c. Production sharing. d. Offshoring.
c. Production sharing.
An organized refusal of one or more nations to trade with a certain nation or nations, backed by economic sanctions is called: a. Export management controls. b. Tarriffication. c. Sanctions. d. A boycott.
d. A boycott.
All shipments of goods between the US, Canada and Mexico must contain a written "promise" that the goods originated in North America in order to qualify for preferential treatment under NAFTA. This "promise" is called: a. Certificate of source. b. Express warranty. c. Verification of nationality. d. A certificate of origin.
d. A certificate of origin.
You are the chief official for Saudi Arabia in analyzing alternative energy sources, as your country is very dependent on income generated by oil drilling. Based on the Brazilian experience and the Energy Policy Act of 2005 enacted by the US government, a quickly emerging major potential competitor to oil consumption is: a. Electricity. b. Solar. c. Wind. d. Biofuels.
d. Biofuels.
The significant and lasting change in weather patterns is generally referred to as: a. Biodiversity. b. Ozone change. c. Seasonality. d. Climate change.
d. Climate change.
A number of US labor and employment statutes are specifically stated in the law itself to not apply outside the US. This prevents: a. Their full enforceability inside the US. b. Their extraterritorial application, but not the extraterritorial application of equivalent state employment statutes. c. The award of damages by courts to US-located plaintiffs who are not US citizens. d. Their extraterritorial application.
d. Their extraterritorial application.
ABC Company in Burlingame, California wishes to export from the US a sophisticated ground positioning system (GPS) for use in all motorized vehicles, e.g., cars. ABC has already licensed this to General Motors and Ford. You are outraged when the US government (Commerce Department) insists the GPS system can only be exported under a valid license from BIS. How do you advise them if you are their attorney? a. Prior licenses with major American auto manufacturers prove there is no meaningful application by military users. b. Prior licenses demonstrate this is a "purely" commercial product. c. This item is only on a US Commerce Department list for prohibition and obviously only US Department of Defense has ability to evaluate its military potential use. d. If this item is already viewed as a "dual use" product and listed on the Commerce Control List, it will be very difficult to export legally.
d. If this item is already viewed as a "dual use" product and listed on the Commerce Control List, it will be very difficult to export legally.
Legal responses by governments that make it unlawful for its citizens or companies to participate in a boycott are called: a. "Blacklisting." b. Antiboycott laws. c. Retaliatory tariffs. d. Sanctions.
b. Antiboycott laws.
The first major international treaty addressing environmental concerns was the: a. The Charter of the United Nations. b. The Single European Act adopted in 1985. c. The Stockholm Declaration (SD) on the Human Environment adopted in 1972. d. The SD adopted in 1950.
c. The Stockholm Declaration (SD) on the Human Environment adopted in 1972.
Laws and regulations restricting the sale and licensing of goods and technology exported from the US are generally referred to as: a. Export controls. b. Short supply controls. c. End user controls. d. Illegal diversion.
a. Export controls.
Company A wishes to institute an export management and compliance program. You are asked to implement such a program for the first time at the company. A key part of such program and an area deserving special emphasis is: a. Hiring more people. b. Asking the president for a big budget. c. Requiring record-keeping for all exports and a mandate for retaining such records for five years. This includes broadly all "records" such as license applications, supporting documents, etc. d. Cooperating with BSI investigations.
c. Requiring record-keeping for all exports and a mandate for retaining such records for five years. This includes broadly all "records" such as license applications, supporting documents, etc.
When two or more countries agree to eliminate or to phase out customs duties and other barriers to trade among member countries this is called a: a. Common Market. b. Customs Union. c. Customs Non-Tariff Zone. d. Free Trade Area.
d. Free Trade Area.
The formal attempted resolution of disputes arising from interpretation of NAFTA is conducted by: a. World Trade Organization. b. NAFTA Fair Trade Commission. c. NAFTA Trade Court. d. US-Mexico-Canada Claims Tribunal.
b. NAFTA Fair Trade Commission.
A US company has its assets seized in Mexico for failure to obtain a business permit. The US company is outraged and wants to know if NAFTA allows this. You advise that NAFTA protects alien investors from expropriation by: a. Allowing expropriation only if made for a public purpose and investor is later paid fair compensation. b. Requiring the NAFTA Fair Trade Commission must authorize any expropriation in advance. c. Making expropriation a crime in member states. d. Mandating that investors be paid then-current, local fair market value for assets taken.
a. Allowing expropriation only if made for a public purpose and investor is later paid fair compensation.
US law regulates the use of pesticides inside the United States, but exports to foreign nations with few/no use restrictions may allow the unsafe use of those pesticides, as well as export of contaminated agricultural goods back to the United States. This is called the: a. Circle of Poison. b. "Gray market." c. Black Market. d. "Legal Re-entry of Contaminated Products" or regulations of WTO.
a. Circle of Poison.
The US government has the exclusive power to regulate trade among states and with foreign nations. This power is derived from: a. Commerce Clause of US Constitution. b. World Trade Organization. c. United Nations. d. Federal statutes.
a. Commerce Clause of US Constitution.
In a ______, there is free trade in all goods that comes into the group through any of the members, even for original, tariffed imports from outside the group which are then re-exported. a. Customs union. b. Foreign trade zone. c. Customs Non-Tariff Zone. d. Free trade area.
a. Customs union.
American Resorts, Inc. (AR) has a hotel/casino in Honduras operating as its branch in that country. It operates a small, upscale casino in a hotel, where it hires only attractive females to work as "exotic dancers" and "casino cocktail waitresses." Guillermo applies for a job there as an "exotic dancer" and claims that this female-only job criteria is discriminatory against males and violates applicable Title VII laws. How would you (as president of IR) respond to him? a. Femaleness is a bona fides occupational qualification (BFOQ) for these jobs, but not for other jobs he can apply for. b. Title VII does not apply outside the US. c. This is not a case of intentional discrimination against men because these are uniquely "female" jobs in that Latin American culture, so this overrules Title VII. d. Femaleness is BFOQ for these positions and all others job with any visibility to patrons in hotel or casino.
a. Femaleness is a bona fides occupational qualification (BFOQ) for these jobs, but not for other jobs he can apply for.
Treaties between the United States and other signatories often state companies in any signatory state to choose their executives of their own nationality without regard to local anti-discrimination laws, e.g., national origin. These are called: a. Friendship Commerce and Navigation Treaties. b. Often struck down by US courts as being unconstitutional. c. Often ruled as invalid when in conflict with state anti-discrimination laws, e.g., California law. d. Allowed Discrimination Treaties.
a. Friendship Commerce and Navigation Treaties.
Company A in the US is opening a factory in Italy to manufacture its products, e.g., radio transmitters. These products made by Company A for special use are generally controlled by EAR when being exported. It wishes to send over to Italy certain quality assurance software programs and testing equipment for use in its Italian facility to assist in the manufacturing process. Must it obtain an export license form BIS if EAR-covered? a. No, these are "tools of the trade" and can be temporarily exported without a license so long as remain under control of Company A and secured. b. Yes, but only if items exported returned to US location within 6 months after export. c. No, if value of items being exported are "tools of the trade" and exceed $1,000,00 annually. d. Yes.
a. No, these are "tools of the trade" and can be temporarily exported without a license so long as remain under control of Company A and secured.
European Union regulations require that a pregnant employee in a covered company who is out of the office on maternity leave for delivery of her child must be: a. Offered 14 weeks or more of leave and a salary of at least 75% of the regular amount. b. Given at least 4 weeks of unpaid leave, which can be extended at option by the employee for an added 4 weeks. c. Given up to 12 weeks of allowed leave without salary. d. Given up to 16 weeks of leave with a net salary of 25% of regular salary.
a. Offered 14 weeks or more of leave and a salary of at least 75% of the regular amount.
Saudi Arabia refuses to do business with Israel or companies located there. You are a French citizen owning a cable manufacturing firm in Paris that does much business with the Israeli government. What advice do you give the president of the French company if he also wants to do business in Saudi Arabia? a. Saudi Arabia may have placed his company on a "blacklist" since it has sold goods to Israel in the past. b. Selling goods to Israel is considered de minimis and not a problem if gross value of Israeli sales is less than $100,000,000. c. The boycott by Arab countries against Israel never would extend to non-Saudi companies doing business with Israel, only to Saudi government and companies. d. Doing business with Israel is not illegal in France so no issues will arise.
a. Saudi Arabia may have placed his company on a "blacklist" since it has sold goods to Israel in the past.
The Basel Convention is a successful, multilateral treaty in which nations work together to address: a. Setting commons standards for the movement of hazardous waste across borders and its disposal. b. Setting common standards for "clean water." c. Setting of international standards for the disposal of nuclear waste. d. Transboundary "acid rain" disputes.
a. Setting commons standards for the movement of hazardous waste across borders and its disposal.
NAFTA mandates that written notice with a comment-period opportunity be given to all members if a nation wishes to change the: a. Technical regulations and standards for a product imported into the notifying country. b. Number of its staff at the border making tariff determinations. c. Technical regulations and standards for a product exported from the notifying country. d. Number of domestic importers (buyers) of a given product. Hide Feedback
a. Technical regulations and standards for a product imported into the notifying country.
AT&T and other US companies benefitted in 2004 immensely when NAFTA eliminated all tariffs on: a. Telephones, cellular phones, and trade in telecommunications equipment. b. Construction services for telecommunications facilities built by foreign contractors. c. Agricultural products. d. Consulting services provided by telecommunications experts.
a. Telephones, cellular phones, and trade in telecommunications equipment.
You are the owner of a US manufacturing company. You know all about the Kyoto Protocol and its effort to reduce worldwide carbon dioxide emissions. A potential foreign customer asks if your company supports the US government in its compliance efforts with the Protocol. Your best answer is: a. The Protocol was not ratified by the United States. b. You have never been to Kyoto and do not know what this is. c. We participate in a US private emissions trading system. d. No.
a. The Protocol was not ratified by the United States.
In general, US companies wanting to export pesticides to a foreign buyer must obtain: a. The advance "prior informed consent" (PIC) of the buyer. b. A permit to do so from the US federal agencies regulating use/manufacture of the product in US. c. A bond securing payment for any spills of the goods when used abroad. d. Permission from the government of the foreign nation where the export is intended to go.
a. The advance "prior informed consent" (PIC) of the buyer.
The policy reasons to support the control and licensing of certain exports include all of the following excerpt: a. To promote price stability and affordability of certain products. b. To promote US foreign policy. c. To protect national security. d. To prevent the short supply of essential domestic materials.
a. To promote price stability and affordability of certain products.
German law mandates substantial employee participation on a corporate board of directors by requiring: a. At least 40% of the board members must be members of a labor union at company. b. A two-tiered system with a supervisory board with employee members and a management board running company on its day-to-day operations. c. The chairman of the Board in alternating years must be a union member. d. All companies must contribute 1.0% of revenues to union administration costs.
b. A two-tiered system with a supervisory board with employee members and a management board running company on its day-to-day operations.
John is an "evangelical Christian" who proudly (and often) professes his religious beliefs to all around him while trying to convert them. He is outspoken at his job, and his boss fires him one day, stating, "We have to fire you for being such a religious person." John is angry but has no legal recourse for this clear religious discrimination. In which country is he likely working as a citizen? a. United States. b. Cuba. c. Canada. d. Mexico, 2013.
b. Cuba.
Kenya, which adjoins Uganda, seeks to protect a species of African elephants that tends to travel in groups across borders. The elephants are at risk of extinction because of poaching. The best tactic to protect this species would be for Kenya to: a. Litigate this matter at the ICJ. b. Have this species placed on the "endangered list" of the Convention on International Trade in Endangered Species (CITES). c. Increase the monetary penalties for poaching in that country. d. Confine all elephants of that species in zoos all across the world.
b. Have this species placed on the "endangered list" of the Convention on International Trade in Endangered Species (CITES)
In the best interests of their public, nations often attempt to "re-route" rivers or engage in entirely legal domestic activities upstream that may have a negative impact on a neighboring state's uses of that river (or a downstream state suffering a negative consequence, e.g., environmental changes, irrigation of crops, etc.). What is an increasingly used forum an injured state may use to resolve these disputes and seek a remedy? a. WTO Court of Justice. b. International Court of Justice of the UN. c. Highest-ranking court in the judiciary of the affected state. d. US Supreme court.
b. International Court of Justice of the UN
A famous multilateral treaty calling for a reduction of substances feared to damage the Earth's ozone layer by production and consumption restrictions is known as the: a. United Nations Agreement on Ozone Protection. b. Montreal Protocol on Substances that Deplete the Ozone Layer. c. Warsaw Convention. d. Ozone Treaty.
b. Montreal Protocol on Substances that Deplete the Ozone Layer.
United States and Canadian banks and other companies offering financial services wish to open offices in Mexico to obtain customers there. Does NAFTA restrict this? a. Yes, but annual revenues for each foreign-institution cannot exceed a pre-determined amount set in advance by Mexico. b. No, NAFTA has allowed financial service companies to locate in Mexico, acquire 100% of local institutions (including insurance companies) and mandates nondiscriminatory treatment. c. No, but does mandates that Mexico must allow such local services be paid for in US or Canadian currency. d. Yes, by allowing Mexico to impose an internal sales tax of less than 5.0% on such foreign-provided services, so long as not called a tariff.
b. No, NAFTA has allowed financial service companies to locate in Mexico, acquire 100% of local institutions (including insurance companies) and mandates nondiscriminatory treatment.
In 2016, the United States and approximately 190 other nations agreed to implement standards to restrict "global warming" to an increase of less than 2 °C in the: a. Centigrade Reduction Treaty. b. Paris Agreement. c. Kyoto Protocol. d. REACH.
b. Paris Agreement.
If goods are produced or assembled in more than one country, the country of origin must be determined to determine preferential tariff treatment under NAFTA. This determination is typically made by application of: a. The "national treatment principle." b. The "substantial transformation test." c. The "non-tariff barrier test." d. Equalization user fees.
b. The "substantial transformation test."
One of the main areas of scrutiny and review by the government for license applications to export controlled items or technology is for applicants to specify in detail in the application: a. Country of origin of the exported items. b. The person or entity receiving the item or "end user." c. Size of exporter in revenues from international sales in past three fiscal years. d. Date of application since first-in time- applications are processed first.
b. The person or entity receiving the item or "end user."
Several nations share access to the Mediterranean Sea. Your company is in the commercial fishing business and notices that catches in the Sea for certain fish are becoming smaller and smaller over time, suggesting depopulation of those species. A good place to seek a remedy for this would be to facilitate the involvement of the: a. European Union. b. UN's International Maritime Organization (IMO). c. International Court of Justice. d. World Trade Organization.
b. UN's International Maritime Organization (IMO).
A US company operating in a foreign country may be allowed flexibility in not complying with US employment law when to do so may result in a breach of local government law. This is called: a. "Good faith defense." b. "Foreign operations exception" to Title VII compliance. c. "Foreign compulsion defense." d. Aufsichtsrat.
c. "Foreign compulsion defense."
Company A in US is asked by "Francois de Nationale" in Marseilles to sell it 1,000 gallons of arsenic, a poison. The price offered is above the market price. Without asking any questions, Company A obtains the required license and exports this item. The BIS seizes the goods in transport and says that there is on the Company since the end user is a terrorist organization front. What is BIS' basis of this alleged liability? Is it valid? What are best defenses by Company A? a. BIS will successfully argue export of arsenic and any dangerous chemicals is illegal. b. Company will argue that it has an export compliance program in place and this eliminates all liability as it acted in "good faith" in export process. c. BIS will assert Company A staff did no due diligence investigation of end user and displayed "conscious avoidance" by not seeking to ascertain truth. Payment of above market price was a "red flag." d. Clearly BIS allegations are invalid if license was legally obtained and in place prior to export.
c. BIS will assert Company A staff did no due diligence investigation of end user and displayed "conscious avoidance" by not seeking to ascertain truth. Payment of above market price was a "red flag."
Title VII of the US Civil Rights Act of 1964 and the Age Discrimination in Employment Act do not apply: a. To any employees outside the US. b. To non-US citizens of foreign companies employed in the US, but they do apply to US citizens. c. To non-US citizens employed outside the US. d. To operations of foreign companies in the US.
c. To non-US citizens employed outside the US.
Export Administration Regulations (EAR) promulgated under original authority of Export administration Act of 1979 are administered by:(choose all that apply) a. US Department of State. b. US Department of Defense. c. US Department of Treasury. d. US Department of Commerce.
c. US Department of Treasury. d. US Department of Commerce.
Company A in the United States has a unionized workforce of 250 employees at its facility in rural Georgia. It is a money-losing facility, and senior company executives decide to close the facility. Which statement best describes the obligations of Company A to "bring in others" or notify others of their intent to do so? a. Company A must advise the National Labor relations Board of its decision in advance. b. Company A must bargain with the union and employees about this in advance and obtain their agreement to do so. c. Company A must obtain the permission of the Georgia Department of Labor to close down the plant. d. Company A must post at least 60-day prior notice in writing of its intent.
d. Company A must post at least 60-day prior notice in writing of its intent.
Large exporting firms typically wish to minimize legal risks of violating export control regulations and all export laws in general. A best strategy for doing this is: a. Constant reporting of suspected employee violations to BIS. b. Surveillance of suspected violators of laws. c. Coordination with FBI in any event of suspected employee criminal noncompliance. d. Establishment of an export management and compliance program.
d. Establishment of an export management and compliance program.
Countries A, B, C and D enter into a customs union for free trade (i.e., 0.0 % tariff) for goods crossing the border within the group. Widgets from Country E are imported into Country A and a 6.0% ad valorem tariff rate is applied on each imported widget. When A exports the widgets into B, C, or D, those nations will apply a tariff rate of: a. 6.0% b. More than 6.0% c. Less than 6.0% d. No tariff (0.0%)
d. No tariff (0.0%)
Ross Perot was an independent candidate for President in 1990s who opposed the US entering into the North American Free Trade Agreement (NAFTA.) His famous comment that after entering into NAFTA there would be as a result a "giant sucking sound" referred to: a. Mexican population would decrease as more Mexican immigrated to the US for jobs. b. His belief that unemployment would arise in all NAFTA countries as jobs would be "sucked away" to Asia. c. His belief that Canadian unemployment would increase as the US would do more business with Mexico and Canadian jobs would be "sucked away" into Mexico and US. d. US jobs leaving the US for lower wages in Mexico would create a "giant sucking sound."
d. US jobs leaving the US for lower wages in Mexico would create a "giant sucking sound."
Bell Helicopters located in Fort Worth, Texas owns much proprietary technology about the software needed to operate military helicopters safely. The export of this technology abroad is controlled by various US laws and regulations, and cannot be exported to China. A Chinese national in the US on a spousal visa works at Bell's facility in Euless, Texas. Are there any export restrictions on his access to that technology? a. No, because there is no "export" outside the US when he works entirely in the US. b. No, because he is lawfully inside the US. c. Yes, because he is a foreign national. d. Yes, because he is a national of a state to whom exporting of the technology is prohibited.
d. Yes, because he is a national of a state to whom exporting of the technology is prohibited.