BLE Test 3.12.19, Law exam

1.bilateral 2.two 3.relationships

A 1._________ agreement is an agreement formed by 2. _________ nations to govern their 3.__________.

Stored-Value Card

A card bearing a magnetic strip that holds magnetically encoded data providing access to stored funds

choice of law

A clause that sets out which statutes, constitutions and regulations will be used to interpret provisions of the contract.

$100 or more than $1000 $500,000

A customer may recover actual damages, as well as punitive damages of not less then __ or more than___. In a class action suit, the punitive damages limit is the lesser of __.

orally or in writing

A customer may stop a transfer by notifying the institution __ or __ up to 3 business days before the scheduled date to transfer

one year

A customer must report a forged signature within __ year of the date of the statement and cancelled checks were available.

reduced

A customer's liability may be __ by a bank's negligence (if it substantially contributed to the loss).

Joint venture

An agreement with a foreign company where the U.S. firm owns part of the operation

Scott presents an instrument that states "pay to the order of Scott" to Town Bank for payment. This instrument is the most common type of negotiable instrument, which is a. a commercial wire transfer. b. a check. c. a note. d. a substitute check.

B

Each bank in a collection chain must pass a check on before noon of the day of its receipt.

F

If proceeds of a foreclosure sale cover the costs and the mortgage debt, any surplus is a windfall to the creditor.

False

be able to bring a lawsuit under the Alien Tort Claims Act (ATCA).

Habib is an Arab prisoner being held in a U.S. prison. Another prisoner, Aham, attacks and seriously injures Habib. Habib's family in Saudi Arabia wants to file a lawsuit in a U.S. court against the American company that operates the prison, for negligently allowing Habib to be injured. If Habib's family wishes to file a lawsuit alleging a violation of a U.S. treaty, they may:

False

Just like international law deals with interactions between two nations, space law deals with interactions between our world and other worlds.

Digital Cash

Prepaid funds stored on microchips in laptops, smartphones, tablets, and other devices

Which section of which act provides for the extraterritorial effect of U.S. antitrust laws?

Section 1 of the Sherman Act

An oral stop payment order is valid for fourteen days.

T

Law that pertains to a particular nation is: a. national law. b. interstate law. c. international law. d. none of these choices.

a. national law.

A set limit on the amount of goods that can be imported is called a(n): a. quota. b. tariff. c. import limit. d. none of these choices.

a. quota.

A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems is referred to as: a. Regulation H. b. Regulation E. c. Regulation G. d. Regulation F.

b. Regulation E.

A _____ agreement is an agreement formed by _____ nations to govern their _____.

bilateral, two, relationships

Thomas wants to start an export business in his home country of Jamaica. He has prepared a detailed business plan, including all costs and taxes he can anticipate, but he is worried about export taxes which might be imposed by Congress. His research came up blank in that area, and he is worried. What can you tell him about this? a. Congress can impose export taxes. b. Congress cannot impose any import taxes. c. Congress cannot impose any export taxes. d. Congress can impose import taxes.

c. Congress cannot impose any export taxes.

Qi Quan, a Chinese citizen, wishes to sue BG Mining Corp., a Russian firm, which has operated a mine in Cambodia for many years. Mr. Quan alleges he was the victim of human rights abuses at the mine. Which court could exercise jurisdiction under the Alien Tort Statute? a. Only a Russian court b. Only a Cambodian court c. Only a U.S. court d. Either a Russian, Cambodian or U.S. court

c. Only a U.S. court

A check drawn by a bank on itself is referred to as a: a. check. b. certified check. c. cashier's check. d. traveler's check.

c. cashier's check.

A transfer of funds with the use of an electronic terminal, a telephone, a computer, or magnetic tape is called a(n): a. commercial electronic funds transfer. b. fund transfer. c. electronic fund transfer. d. electronic transfer.

c. electronic fund transfer.

When a bank pays a check with a forged signature, the general rule is that the bank: a. None of these choices. b. cannot be held liable. c. must recredit the customer's account. d. can demand that the customer repay the bank for the amount of the check.

c. must recredit the customer's account.

A card bearing a magnetic strip that holds magnetically encoded data, providing access to stored funds is called a: a. debit card. b. credit card. c. stored-value card. d. smart card.

c. stored-value card.

The international organization charged with the responsibility for eliminating trade barriers, including tariffs, is: a. UNICEF. b. the WWF. c. the WTO. d. UNESCO.

c. the WTO.

Exporting may take one of two forms: a. conditional and unconditional. b. subsidized and unsubsidized. c. internal and external. d. direct and indirect.

d. direct and indirect.

When a wholly owned subsidiary firm is established in a foreign country, the parent company: a. loses control over all phases of the operation. b. must allow citizens of the host country the opportunity to invest in the firm. c. shares ownership with locals in the foreign country, who also take part in the operation's day-to-day activities. d. retains complete ownership of all the facilities in the foreign country.

d. retains complete ownership of all the facilities in the foreign country.

When a foreign country becomes a big market, the U.S. firm may wish to appoint a ( ) located in that country.

distributor

The act of state doctrine is frequently employed in

expropriation cases

Geo Sox, an American company, agreed to sell copper electric cables to a state-owned company in Nigeria. Geo Sox was given very specific manufacturing requirements and had to invest in new machinery to meet the requirements. Once the order was processed, the Nigerian electric company repudiated the contract, claiming immunity under the Foreign Sovereign Immunities Act (FSIA). However, Geo Sox might prevail in court because

of the exception to the FSIA concerning national governments engaging in strictly commercial activities.

1.Congress 2.quotas 3.technologically advance 4.data 5.incentives 6.subsidies

1._________ can set export 2.________ on various items being sold abroad, to limit the amount that can leave the United States. Under the Export Administration Act of 1979, Congress also can limit the flow of 3.____________ products and technical 4.________. Alternatively, Congress can use 5._________ and financial 6._________ to encourage exporting.

Elmo pays First National Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is a. a cashier's check. b. an overdraft. c. a stale check. d. a stop-payment order.

A

Jackie inserts a debit card issued by her bank into a machine and keys in her personal identification number. She is then able to withdraw $500 in cash. Jackie is using a. an automated teller machine. b. a point-of-sale system. c. a direct deposit system. d. an Internet payment system.

A

Jon writes a check to LocoMotion, Inc., as payment for a golf cart but soon discovers the cart is broken. He goes to Fairway Bank, the drawee, and orally authorizes Lolly, a bank officer, to stop payment on the check. This order is valid for a. fourteen days. b. fourteen months. c. fourteen attempts to cash it. d. fourteen subsequent "on-us" items.

A

Luc writes a check for $1,000 drawn on Ridgetop Bank and presents it to Bianca. Bianca presents the check for payment to Ridgetop Bank, which dis-hon¬ors it for insufficient funds. The party most likely liable to Bianca is a. Luc in a civil suit. b. Luc in a criminal prosecution. c. Ridgetop Bank in an administrative proceeding. d. neither Luc nor Ridgetop Bank.

A

forged signature

A __ on a check has no legal effect as the signature of the drawer. If the bank pays, it must recredit the account.

Cashier's Check

A check drawn by a bank on itself

1.waived 2.commercial 3.a direct 4.tort 5.international

A foreign nation will not be immune from a lawsuit in a U.S. court if that government has 1._______ immunity explicitly or by implication, when it has engaged in 2.________ activity within the United States or activity that is outside the United States but has 3._______ effect in the United States, or when the foreign government has committed a 4.______ or violated certain 5._______ laws.

Regulation E

A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems

A doctrine that provides that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.

Act of State Doctrine

International organization

Agreement between several nations who agree to certain principles and rules of behavior

Treaty

Agreement formed between two or more nations that is formally approved and authorized by the governments of those nations

Othman is an Arab prisoner held in a U.S. prison. Another prisoner, Habib, attacks and seriously injures Othman. Othman's family in Saudi Arabia files a lawsuit against the U.S. corporation operating the prison. Othman's family may file this lawsuit that alleges a violation of a U.S. treaty and that treaty is the .

Alien Tort Claims Act

Licensing

An agreement to allow foreign manufacturers to use one's intellectual property to produce and sell goods in their countries.

Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order. Refer to Fact Pattern 19-1. Capital Bank a. is liable to Fix-It for the amount of the check. b. must stop payment if Capital has a reasonable time to act. c. need not stop payment unless Echo had a valid reason to act. d. need not follow Echo's order unless the check was certified.

B

Fact Pattern 19-2 (Questions 30-31 apply) Tom draws a check, on his account in State Bank in New York, payable to Digital Media, Inc., in San Francisco. Digital deposits the check in its ac¬count at First National Bank. Refer to Fact Pattern 19-2. Digital's bank is a. the cashing bank. b. the depositary bank. c. the intermediary bank. d. the payor bank.

B

Jen signs a check "pay to the order of Key" drawn on Jen's account in Little Bank to buy Key's car. If there are insufficient funds in Jen's account to cover the amount of the check, but the bank pays it, this creates a. a cashier's check. b. an overdraft. c. a stale check. d. a stop-payment order.

B

Roald writes a check for $700 to Savannah. Savannah indorses the check in blank and transfers it to Twitchell, who alters the check to read $7,000 and presents it to Union Bank, the drawee, for payment. The bank cashes it. Roald discovers the alter¬ation and files a suit against the bank. Roald can recover a. $7,000. b. $6,300. c. $700. d. 0.

B

Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delta Bank to pay for his current semester's textbooks. The bookstore deposits the check in its account in Eagle Bank. Like most checks, this check is a. a one-party instrument. b. a nonnegotiable instrument. c. a special type of draft. d. not a substitute for cash.

C

Ellen pays State Bank $500 plus a service fee to draw a check on itself payable to Paul's Plumbing. Which of the following parties is responsible for paying the check? a. Only Ellen b. Both Ellen and State Bank c. Only State Bank d. None of the parties

C

Jacob writes Phillip an uncertified check for $500 on January 1. Seven months later, Phillip presents the check at the bank. The bank pays the check in good faith without consulting Jacob. The bank a. does not have the right to charge Jacob's account for $500. b. only has the right to charge Jacob's account for $250. c. has the right to charge Jacob's account for $500. d. can be held liable for breach of contract.

C

Valley Bank retains the cancelled checks of its customers. Valley must be able to provide customers with legible copies of checks paid for a. one year. b. five years. c. seven years. d. nine years.

C

Dhani signs a check "pay to the order of Etan" drawn on Dhani's account in First State Bank and dates the check "May 1." Etan presents the check to the bank for payment on December 15. This is a. a cashier's check. b. an overdraft. c. a certified check. d. a stale check.

D

Fact Pattern 19-2 (Questions 30-31 apply) Tom draws a check, on his account in State Bank in New York, payable to Digital Media, Inc., in San Francisco. Digital deposits the check in its ac¬count at First National Bank. Refer to Fact Pattern 19-2. Tom's bank is a. the cashing bank. b. the depositary bank. c. the intermediary bank. d. the payor bank.

D

Automated Teller Machines (ATMs)

EFT; Connected to online bank computers, accept deposits, dispense funds from accounts, make credit-card advances and receive payments.

midnight

Each bank in the collection chain must pass a check on before __ of the next banking day.

reversal

Except for preauthorized transfers, the EFTA does not provide for the __ of an electronic transfer of funds.

A bank is not responsible for determining whether a signature on a customer's check is genuine.

F

A bank may not pay any checks on a customer's account after the date of the customer's death.

F

A bank that pays a customer's check with a forged drawer's signature can generally pass the loss onto the customer.

F

A certified check is a check that has been signed by a notary public.

F

A check is not a substitute for cash.

F

A forged signature is effective as the signature of a drawer to the extent that is resembles the drawer's actual signature.

F

A written stop payment order is valid for only thirty days.

F

If a customer does not have sufficient funds to pay a check available in his or her checking account and the bank dishonors the check, the bank is liable to the customer.

F

A bank cannot recover from a holder who cashes a check bearing a forged indorsement once the bank has accepted and paid the item

False

A bank is subject to a civil suit if its customer writes a bad check

False

A bank that encodes information on an item after its issue warrants to any subsequent bank that the information is correct.

False

A bank's duty to honor its customer's check is subject to the stipulation that the account has sufficient funds to pay the check.

False

A customer has two days to discover and notify the bank of any error on the monthly statement involving an electronic transfer of funds.

False

A forged signature is effective as the signature of a drawer to the extent that is resembles the drawer's actual signature

False

Each bank in a collection chain must pass a check on before midnight of the day of its receipt

False

Each bank in a collection chain must pass a check on before midnight of the day of its receipt.

False

If a customer's debit card is lost or stolen, the customer will not be liable for any unauthorized use of the card.

False

If assets in a debtor's estate in bankruptcy are insufficient to pay fully all creditors, the debtor is liable for the difference

False

The Age Discrimination in Employment Act of 1967 prohibits employment discrimination on the basis of age against persons over eighteen.

False

The Check Clearing in the 21st Century Act (Check 21) applies only in about 75 percent of the states

False

The Uniform Commercial Code regulates checks.

False

The United States is one of the nations with a legal system based on civil law.

False

The concept of a floating lien does not apply to a shifting stock of goods

False

The death of a customer immediately revokes a bank's authority to pay an item

False

The principal duty of a trustee is to liquidate and close up the debtor's estate as quickly as possible.

False

The state office in which a financing statement should be filed depends on the creditor's location

False

Under the Sherman Act, foreign governments cannot be sued for violations.

False

When a bank pays a check on which the drawer's signature is forged, generally the customer suffers the loss.

False

When a customer deposits cash into a checking account, he or she becomes a debtor for the amount deposited.

False

When an international sales contract does not have an arbitration clause, but does have a forum-selection clause and a choice-of-law clause, the law suit will always be heard by a court in the country where the plaintiff resides.

False

to qualify as a commercially reasonable sale, a secured party's sale of collateral, after default and repossession, must be public

False

Dru signs a check "pay to the order of Eppie" drawn on Dru's account in First Federal Bank. Greta forges Eppie's indorsement. First Federal pays the check. Most likely

First Federal will have to recredit Dru's account

True

Foreign companies have established plants in the United States to avoid import duties that are imposed on products entering the United States from their countries.

National law

Government rules and regulations that are enforceable by that government within certain boundaries

liable

If the bank fails to detect and alteration, it is __ to its customer for the loss.

In International law, a term that generally refers to an organization composed mainly of nations and usually established by treaty

International Organizations

True

International law can be defined as a body of law formed as a result of international customs, treaties, and organizations, that governs relations among or between nations.

1.standards 2.uniform rules

International organizations can adopt 1.__________ in the form of resolutions or declarations that require member nations to behave in certain ways. They also may create 2.__________ to be adopted by the member nations.

loses the case because Title VII has a "foreign law" exception.

Kristine works for Treeteeth, a U.S. company doing business in several countries around the world. She applies for a management position but is not given the promotion because the country in which she works has a law that forbids women from supervising men. She sues for gender discrimination under Title VII of the Civil Rights Act of 1964. Kristine:

they come from a country designated an enemy of the United States

No goods may be imported to the United States if___________.

E-Money

Prepaid funds stored on microchips in laptops, smartphones, tablets, and other devices

A customer who writes a bad check may be subject to criminal prosecution.

T

The first bank to receive a check for payment is the depositary bank.

T

The rights and duties of a bank and its customer are contractual.

T

Electronic Imports, a U.S. company enters into a contract with E Manufacturing, a company based in China. Both companies have a sign agreement with an arbitration provision, that in the event of any disputes, the matter will be arbitrated in the United States. An issue arises that causes E Manufacturing to breach its agreement with Electronic Imports, and E Manufacturing files suit in a court in China. Electronic Imports would rely on which of the following to enforce its arbitration provision in the agreement?

The New York Convention.

1.private entity 2.a government 3.liability 4.peaceful

The Outer Space Treaty declares that any private entity must receive authorization from a government . Each nation has liability for any harm caused by its space objects and all space objects may only be used for peaceful purposes.

1.president 2.Senate 3.treaties 4.Senators

The U.S. Constitution gives the 1._________ the power "by and with the Advice and Consent of the 2._________ , to make 3.__________ , provided two-thirds of the 4.____________ present concur."

Sovereign immunity

The U.S. courts will not hear a case against the government of another nation with limited exceptions

1.substantial 2.can

The U.S. government can bring an action for any conspiracy to harm competition that has a 1._______ effect on U.S. commerce. Foreign governments 2.______ be sued for violations.

is a legally permitted tariff.

The U.S. government decides to assess a tariff of $1.50 on every DVD player that is imported into the country. This policy:

Act of state doctrine

The judicial branch of one nation will not evaluate the validity of another nation's government

When an international sales contract does not specify a forum-selection and choice-of-law, what usually does NOT occur:

The litigations will typically face lower legal costs

they can reduce costs.

The main reason that U.S. firms establish manufacturing plants abroad is that:

that national law can be enforced by the nation's government, while international law cannot be enforced by any government.

The major difference between national law and international law is:

eliminate tariffs among the United States, Canada, and Mexico.

The primary purpose of the North American Free Trade Agreement (NAFTA) North America Free Trade Agreement is to:

establishing a foundation of custom as a source of international law between their nations.

The secretary of commerce for the United States and the minister of commerce and industry for India are not authorized to sign treaties on behalf of their nations. Even so, the two officials work together to identify and articulate historic and current commercial practices that are common to both countries and that are routinely accepted by companies in both countries. In doing this, the two officials are:

a constitutional import quota.

To ensure that American farmers can make enough money to support their families, and to ensure that the American economy is stable, Congress passes a law that states that no more than 3 billion pounds of raw sugar may be brought into the United States in any given year. This is:

An agreement formed between two or more independent nations.

Treaty

A U.S. firm can expand into international markets through a joint venture.

True

A buyer in the ordinary course of business has priority over any security interest created by the seller

True

A certified check is a check that has been accepted by the bank on which it is drawn

True

A check is a special type of draft

True

A customer can escape liability for failing to notify the bank of forged or altered checks when the customer can prove that the bank was negligent.

True

A customer can stop payment on a check that has been certified or accepted by a bank.

True

A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors

True

A customer must examine a bank statement and report any discovered forged signature to recover from the bank for the forgery

True

A drawer is liable to the holder of a check in a civil suit if the check is dishonored for insufficient funds.

True

A financing statement is effective for only five months from the date of filing.

True

A purchase-money security interest in consumer goods is perfected automatically at the time of a credit sale

True

A substitute check is a paper reproduction of the front and back of an original check that contains all the same information required on checks for automated processing

True

By means of arbitration clauses in international contracts, the parties agree in advance to be bound by the decision of a specified third party in the event of a dispute.

True

Foreign companies, such as Sony and Nissan, have established U.S. plants to avoid import duties that are imposed on Japanese products entering this country.

True

In most states, state law determines the amount of a debtor's property that is exempt from distribution on bankruptcy

True

International law can be defined as a body of law, formed as a result of international customs, treaties, and organizations, that governs relations among or between nations.

True

Most employees can continue the group health benefits provided by their employers for a limited period of time after the loss of employment

True

Only a customer or a person authorized to draw on an account can order a bank not to pay a check when it is presented for payment.

True

Only state law governs drug test of private-sector employees.

True

Smart cards carry and process security programming.

True

Stored-value cards can be used to buy goods and services offered by the cards' issuer

True

The Federal Reserve System acts as a clearinghouse where banks exchange checks.

True

The first bank to receive a check for payment is the depository bank

True

The incompetence of a customer revokes a bank's authority to pay an item.

True

The rights and duties of a bank and its customer are contractual

True

Under the Americans with Disabilities Act of 1990, a person with a physical impairment that "substantially limits" everyday activities is disabled

True

When a bank draws a check on itself, the check is called a cashier's check

True

When a check "bounces", its holder can resubmit the check later, hoping that sufficient funds will be available.

True

$50 $500 unlimited amounts

Under the EFTA: if a debit card is lost or stolen, a customer is liable for 1. If notifies the bank within 2 business days: 2. If he/she does not tell bank until after the second day: 3. If notice doesn't occur within 60 days after the transfer appears on the customer

may have antidumping duties imposed on its imported goods

Wai-tung, a Chinese firm, manufactures automobiles. In order to get a foothold in the American market, Wai-tung sells its cars for several thousand dollars below what it charges in China. Wai-tung:

a confiscation

When a country's government seizes privately owned property of foreign investors without paying just compensation, it is known as ___________ .

30 days

When there is a series of forgeries by the same wrongdoer, in order to recover all items, the customer must report the first forgery to the bank within ___ calendar days of receiving the statement and cancelled checks.

The Alien Life Form Examination Agreement

Which of the following agreements is not a major international agreement related to space?

only a customer authorized to draw on the account in a timely manner

Who can order a stop payment and when it must be received?

a license.

Yummy Donuts, an American company, signs a contract with Olivia who will use Yummy's secret recipes to produce and sell doughnuts in Romania. Olivia is required to protect the secrecy of the recipe and to pay Yummy Donuts a percentage of the income generated by the Romanian company. The type of business arrangement Olivia and Yummy Donuts have is most likely:

Quotient Financial Corporation is a secured party with a security interest in property owned by Retail Sales Company. Perfection of this security interest may not protect Quotient Financial against the claim of

a buyer in the ordinary course of business

When a country's government seizes privately owned property of foreign investors without paying just compensation, it is known as _____.

a confiscation

customer

a creditor of the bank (and the bank is a debtor of the customer) when the customer deposits funds in his or her account.

Ian buys a cell phone in Jiffy Mart, using the means that accounts for more retail payments than any other. This means of payment is.

a debit card

teller's check

a draft drawn by a bank on another bank. or if drawn on a nonbank, payable at or through a bank

One of the major EXCEPTIONS to the doctrine of sovereign immunity is made when

a nation takes actions in connection with the commercial activity in the U.S. or that have a direct effect in the U.S.

Dhani signs a check "payable to the order of Etan" drawn on Dhani's account in First State Bank and dates the check "May 1", Etan presents the check to the bank for payment on December 15. This is

a stale check

Germany finds a new planet and appropriates it for Germany. How would this appropriation be characterized? a. As illegal because countries are not allowed to appropriate territory in outer space. b. As legal because if a country finds a new planet, they may appropriate that territory in outer space. c. As legal because Germany is a member of the United Nations. d. As illegal because a country can only appropriate territory in outer space that the country has sent spacecraft to land on.

a. As illegal because countries are not allowed to appropriate territory in outer space.

Bill Owens, owner of Zenith Construction Co., hired a new office manager (Sarah) who came with high recommendations. Her duties included writing checks to pay bills for the firm, although all checks required Bill's signature. Unknown to Bill, Sarah began to write checks to herself for $100 or $200 at a time, forging his signature to do it. Bill discovered this 7 months after the first forgery, and calculated that altogether, she had embezzled $4,200. Upon his discovery of Sarah's forgeries, Bill fired Sarah, and demanded that the bank redeposit this amount paid to Sarah through her forgery. Will he win? Why or why not? a. No, he will lose because he has been negligent in not checking his bank statements within 30 days, as required, and also for not supervising his employee adequately. b. Yes, he will win. The checks were a forged, which the bank would have known if it had compared the signatures on the checks to the signature on the signature card. c. No, he will lose because he has been negligent in his hiring of Sarah. d. Yes, he will win because the checks were forged.

a. No, he will lose because he has been negligent in not checking his bank statements within 30 days, as required, and also for not supervising his employee adequately.

Which of the below statements about international business transactions is true? a. Some U.S. laws could apply to firms shipping products to the United States. b. No nation's laws may affect a firm located in the United States. c. U.S. antitrust laws apply only to businesses physically located with the United States. d. No U.S. law may apply extraterritorially.

a. Some U.S. laws could apply to firms shipping products to the United States.

Joseph Smith, a U.S. citizen, wishes to sue XY Mining Corp., a Mexican company, which has operated a mine in Colombia for many years. Mr. Smith alleges he was the victim of human rights abuses at the mine. Which of the below is a viable strategy for Mr. Smith? a. Sue under ATS in U.S. court b. Sue under ATCS in a Colombian court c. Sue under ATS in a Mexican court d. None of these strategies are viable

a. Sue under ATS in U.S. court

NASA operates space shuttles here in the United States. Because of this, NASA must comply with which law(s)? a. U.S. law and international treaties. b. U.S. law only. c. International treaties only. d. NASA is not bound by any laws because it is a governmental agency.

a. U.S. law and international treaties.

A foreign firm enters into contracts in a foreign location on behalf of a U.S. company. This is called a(n): a. agency relationship. b. importer. c. distributorship. d. fair exchange.

a. agency relationship.

A system or place where banks exchange checks and drafts drawn on each other and settle daily balances is referred to as a(n): a. clearinghouse. b. counting house. c. intermediary. d. Federal Reserve Bank.

a. clearinghouse.

Janstar, Inc., a U.S. firm, wants to sell goods and services to buyers located in other countries. This is called: a. exporting. b. bartering. c. warehousing. d. importing.

a. exporting.

The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation is known as: a. expropriation. b. confiscation. c. eminent domain. d. none of these choices.

a. expropriation.

The major difference between international and national law is: a. that government authorities enforce national law. b. the time difference. c. the dissimilarity in types of currency used. d. the decreased use of bills of lading.

a. that government authorities enforce national law.

A foreign firm that engages in dumping in the U.S. probably hopes to: a. undersell American businesses in order to obtain a larger share of the U.S. market. b. obtain business contracts and other favors from U.S. officials. c. keep its factories open to prevent laying off employees. d. limit the amount of goods that competing U.S. businesses will import.

a. undersell American businesses in order to obtain a larger share of the U.S. market.

All of the following are services typically used by online banking customers except: a. withdrawing funds. b. bill consolidation and payment. c. applying for loans. d. transferring funds among accounts.

a. withdrawing funds.

Restrictions on technology exports. Under the Export Administration Act of 1979, the flow of technology products and data can be restricted.

advanced technical

Treaty

agreement formed between two or more nations that is formally approved and authorized by the governments of those nations

Flem is an employee of Glo Goods, Inc. Flem reports to state officials that Glo is illegally shipping unsafe goods to unsuspecting customers. When Glo learns of Flem's report, Glo fires him. He successfully sues Glo for wrongful discharge. With respect to the employment-at-will doctrine, this is

an exception based on public policy

intermediary bank

any bank (except payor and depositary banks) involved in the collection process

The provision of the U.S. Constitution that provides that "No Tax or Duty" shall be laid on Articles exported from any State" is found in: a. the supremacy clause. b. Article I, Section 9. c. Article I, Section 8. d. the Fourth Amendment.

b. Article I, Section 9.

The United States, after years of experimentation and billions of dollars, develops technology that enables people to live on Mars for short periods of time. Because only the United States has this technology, the United States declares Mars a United States territory and places weapons on Mars to defend this claim. Which of the following statements would be true in such a situation? a. Because the United States invested time and money into this technology, the United States is permitted to claim Mars as United States territory. b. Because planets are not subject to the appropriation of any single nation, the United States is not permitted to claim Mars as United States territory. c. Because people can only live on Mars for short periods of time, the United States is not permitted to claim Mars as United States territory. d. Because only the United States has this technology, the United States is permitted to claim Mars as United States territory.

b. Because planets are not subject to the appropriation of any single nation, the United States is not permitted to claim Mars as United States territory.

China is a member of the Outer Space Treaty. China registers its space station on its space registry before launching it into space. A German billionaire develops a spacecraft that can travel into space and she docks her spacecraft on the now-abandoned Chinese space station. China says that the German billionaire cannot do this, but Germany says she can. Who is correct? a. Germany is correct because the space station was abandoned. b. China is correct because China still owns their space station. c. Germany is correct because China cannot "own" a space station in outer space. d. China is correct because Germany cannot claim ownership when the spacecraft was developed with private and not governmental funds.

b. China is correct because China still owns their space station.

A private billion-dollar company in France builds a rocket ship capable of space travel and begins selling tickets to take people to the moon for short periods of time. France tells the company they do not want the company to do this and so, the company cannot and the company says they can and proceeds with the space travel. Who is correct—France or the company? a. The company is correct. b. France is correct. c. Neither is correct because the United Nations supervises space travel. d. Both are correct because they must work together in ensuring that space travel occurs.

b. France is correct.

Cassie had loaned Jules money, which Jules paid back by writing a check. When Cassie deposited it in her bank, it was returned by Jules bank for insufficient funds. If Jules bank had honored Jules check even though Jules account had insufficient funds, it would be referred to as a(n): a. stale check. b. draft. c. check. d. overdraft.

b. Jason becomes a creditor, and the bank a debtor, for the amount deposited.

Jason made a cash deposit into his checking account at First National Bank. As a result: a. Jason and the bank both become debtors for the amount deposited. b. Jason becomes a creditor, and the bank a debtor, for the amount deposited. c. Jason and the bank both become creditors for the amount deposited. d. Jason becomes a debtor, and the bank a creditor, for the amount deposited.

b. Jason becomes a creditor, and the bank a debtor, for the amount deposited.

Jess Co., a Taiwanese company with a manufacturing plant in Taiwan, ships products to the United States occasionally. It is potentially subject to which of the below laws? a. All U.S. laws b. Sherman Act c. U.S. antidiscrimination laws d. Both the Sherman Act and U.S. discrimination laws, but no other laws

b. Sherman Act

The United States has a manned space station in outer space. France also has a manned space station in outer space. When the United States and France have a disagreement on Earth, the French astronauts decide to sabotage the operations of the United States manned space station by denying them requested aid. Does this violate any laws or treaties? a. Yes, it violates French law. b. Yes, it violates the Outer Space Treaty. c. Yes, it violates United States law. d. No, there are no laws in place that cover this situation because it is occurring in outer space.

b. Yes, it violates the Outer Space Treaty.

Suppose that the U.S. government charges $1.50 to import each and every DVD player made in Taiwan. This tax is: a. a probate tax. b. a tariff. c. an export incentive. d. a quota.

b. a tariff.

When a customer writes a check on his or her account: a. All of these choices. b. an agency relationship is established. c. a lessor-lessee relationship is established. d. a buyer-seller relationship is established.

b. an agency relationship is established.

A check that has been accepted in writing by the bank on which it is drawn is referred to as a: a. traveler's check. b. certified check. c. check. d. cashier's check.

b. certified check.

A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation is: a. expropriation. b. confiscation. c. eminent domain. d. none of these choices.

b. confiscation.

The first bank to receive a check for payment is the: a. intermediary bank. b. depositary bank. c. collecting bank. d. payor bank.

b. depositary bank.

To certify a check, the bank writes or stamps the word certified on the face of the check and typically writes the amount that it will: a. deliver. b. pay. c. accept. d. hold.

b. pay.

A tax on imported goods is called a(n): a. quota. b. tariff. c. import limit. d. none of these choices.

b. tariff.

payor bank

bank on which a check is drawn in the collection process.

Habib is an Arab prisoner being held in a U.S. prison. Another prisoner, Aham, attacks and seriously injures Habib. Habib's family in Saudi Arabia wants to file a lawsuit in a U.S. court against the American company that operates the prison for negligently allowing Habib to be injured. If Habib's family wishes to file a lawsuit alleging a violation of a U.S. treaty they may

be able to bring a lawsuit under the Alien Tort Claims Act

The United States launches a space shuttle into space. Which statement is accurate regarding this situation? a. The United States must register this space shuttle because other nations might want to use this space shuttle for their space programs. b. The United States is allowed to launch a space shuttle into space without notification because the United States is a sovereign nation. c. The United States must register this space shuttle because it was launched into outer space. d. The United States is not allowed to launch a space shuttle into space because such launches are now extremely limited.

c. The United States must register this space shuttle because it was launched into outer space.

An asteroid crashes into a corn field in Iowa owned by the Smith family. The Smiths retrieve a chunk of this asteroid. May they keep it? a. No, because the United Nations owns all objects that come from outer space into Earth's atmosphere. b. No, because the government owns all objects that come from outer space into Earth's atmosphere. c. Yes, because private citizens may now claim property rights over asteroid resources obtained from space. d. Yes, because the asteroid was found on their land, they can claim ownership under basic property law.

c. Yes, because private citizens may now claim property rights over asteroid resources obtained from space.

A sales contract between parties in different countries may contain: a. a choice-of-law clause, but not a forum-selection clause. b. a forum-selection clause, but not a choice-of-law clause. c. both a forum-selection clause and a choice-of-law clause. d. neither a forum-selection clause nor a choice of law clause.

c. both a forum-selection clause and a choice-of-law clause.

Cashier's checks are sometimes used in the business community as nearly the equivalent of: a. traveler's checks. b. a credit card. c. cash. d. a debit card.

c. cash.

Janstar, Inc. wants to hire someone to sell its products overseas, and will enter into a contract with this person, setting out the terms and conditions under which this person can distribute the products. Such an agreement is known as a(n): a. franchise agreement. b. joint venture. c. distribution agreement. d. agency relationship.

c. distribution agreement.

The primary purpose of the North American Free Trade Agreement (NAFTA) is to: a. decrease the level of environmental and labor protection in Mexico and Canada. b. incorporate Mexico into the U.S. federal government system. c. eliminate tariffs among the United States, Canada, and Mexico over a fifteen- to twenty-year period. d. eliminate expropriations in Canada.

c. eliminate tariffs among the United States, Canada, and Mexico over a fifteen- to twenty-year period.

The law that governs relations among nations is: a. national law. b. interstate law. c. international law. d. none of these choices.

c. international law.

Genevieve owns a U.S. business and is interested in investing in property in a foreign nation. Because she is worried that the other nation may take her property once she has invested, she could do all of the following except: a. invest in a country that has promised payment for takings in a formal treaty with the United States. b. purchase insurance from an American company to protect against unpaid takings in a foreign nation. c. invest in a country that is part of the World Trade Organization. d. invest in a country that has passed laws to guarantee payment for takings from citizens and non-citizens.

c. invest in a country that is part of the World Trade Organization.

A bank can expressly agree with a customer to accept overdrafts through what is sometimes called a(n): a. wrongful dishonor protection plan. b. customer protection agreement. c. overdraft protection agreement. d. draft protection plan.

c. overdraft protection agreement.

Sabbatino, an American, contracted with a Mauritius corporation to buy Mauritius sugar. When the Mauritius government expropriated the corporation's property and rights in retaliation against a U.S. reduction of the Mauritius sugar quota, Sabbatino entered into a new contract to make payment for the sugar to Banque National, a government-owned Mauritius bank. Sabbatino refused to make the promised payment, and Banque filed an action in a U.S. district court seeking to recover payment for the sugar. Banque claimed that the Mauritius government's actions were presumed valid under the act of state doctrine and that regardless of whether Sabbatino obtained the sugar, Banque was entitled to payment. The court most likely: a. did not require Sabbatino to pay, because under the principle of comity, Mauritius is to give full force and effect to the laws of the United States. b. did not require Sabbatino to pay, because the act of state doctrine does not allow nations to engage in illegal activities. c. required Sabbatino to pay, because the act of state doctrine does not allow a U.S. court to examine the public acts of a recognized foreign power. d. required Sabbatino to pay, because he was being harmed by the quotas imposed by his own country and was required to pursue reimbursement from the U.S. government.

c. required Sabbatino to pay, because the act of state doctrine does not allow a U.S. court to examine the public acts of a recognized foreign power.

One of the major exceptions to the doctrine of sovereign immunity is made when a nation: a. engages in an action to protect the health of its citizens. b. engages in a military action. c. takes actions in connection with a commercial activity in the United States or those actions have a direct effect in the United States. d. passes laws that prevent immigration from specific nations.

c. takes actions in connection with a commercial activity in the United States or those actions have a direct effect in the United States.

A doctrine which provides that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory is called: a. brevity. b. comity. c. the act of state doctrine. d. sovereign immunity.

c. the act of state doctrine.

The term comity means: a. a judicial doctrine stating that expropriations are always illegal under U.S. law. b. that lawyers recognize the legal decrees of other states. c. the deference one nation shows for the laws and judicial decrees of another nation. d. the confiscation of foreign-owned property.

c. the deference one nation shows for the laws and judicial decrees of another nation.

HyperRain, Inc., a U.S. firm, has given a Chinese company the right to manufacture its cola using its highly guarded, valuable recipe. The recipe is likely a licensed: a. venture. b. export. c. trade secret. d. indirect agency.

c. trade secret.

The International Trade Administration (ITA) of the U.S. Department of Commerce imposed an antidumping tariff on ICC Industries, Inc., an importer of the chemical potassium permanganate from China. ICC sold the chemical to manufacturers in the United States for 22 percent less than the price charged in the United States by other foreign companies and nearly 40 percent less than the price ICC charged in China. ICC filed a lawsuit protesting the tariff. ICC claimed that it was impossible to determine whether it was selling the chemical at less than its fair value because China was a nonmarket economy and therefore the home market price of potassium was meaningless and could not be used as a basis for imposing the tax. ITA contended that fair value could be based on several different factors, including the home-market price of the product for other foreign producers. The court most likely: a. overturned the antidumping tariff, because the price ICC was charging was not substantially below that of its competitors. b. upheld the antidumping tariff, because the determinations of administrative agencies are allowed to stand absent an abuse of discretion. c. upheld the antidumping tariff, because the law does not require fair market value to be based only on the price of the goods in the home market and ICC should have known it was selling below fair value. d. overturned the antidumping tariff, because the importers had no way to know that the goods were being sold below market value.

c. upheld the antidumping tariff, because the law does not require fair market value to be based only on the price of the goods in the home market and ICC should have known it was selling below fair value.

Jon is about to travel to Turkey to visit a former classmate who studied in the U.S. at the university where Jon studied. To have money on the trip which is protected from theft, Jon purchases traveler's checks at the bank, and signs them while the teller watches. Jon will have to sign them again at the time they are: a. completed. b. offered. c. used. d. paid.

c. used.

E-money

can replace physical cash in the form of electronic impulses or digital cash.

One party to the agreement is not a U.S. cititzen. In other words both parties be U.S. citizens

cannot

The agreement arises out of a legal relationship

commercial

A government's taking of privately owned business or personal property without a proper public purpose or an award of just compensation

confiscation

When a country's government seizes privately owned property of foreign investors without paying just compensation, it is knows as

confiscation

Export quotas sets export quotas on various items, such as grain being sold abroad.

congress

smart cards

contain microchips that hold more information than a magnetic stripe. less prone to error and carry and process security programming (digital signature). **debits and credits are automatic and immediate.

Which of the below parties could potentially be prosecuted for violating the Sherman Act? a. The Republic of Austria b. A Vietnamese firm c. A U.S. firm doing business in Mexico d. All of these choices

d. All of these choices

A United States company transfers space technology to Germany. How would the United States characterize this transfer? a. As a legal transfer because the United States and Germany are both members of the United Nations. b. As an illegal transfer because space technology cannot be transferred due to privacy concerns. c. As a legal transfer because different countries should share space technology. d. As an illegal transfer because all spacecraft and space technology are classified as defense articles.

d. As an illegal transfer because all spacecraft and space technology are classified as defense articles.

Joss Co., a U.S. firm, exports computer software and hardware designed to control missiles. Which of the below is false about how U.S. law potentially applies to his business? a. The Export Administration Act may restrict whether the hardware can be exported. b. The Trading With the Enemy Act prohibits importing component parts from nations designated as enemies of the United States. c. The Export Administration Act may restrict whether the software can be exported. d. Because the software is intended for export, the business need not comply with domestic law.

d. Because the software is intended for export, the business need not comply with domestic law.

Under the New York Convention, which of the following is not required for a court to compel the parties to arbitrate their dispute? a. There is a written (or recorded) agreement to arbitrate the matter. b. The agreement provides for arbitration in a convention signatory nation. c. One party to the agreement is not a U.S. citizen. d. Both parties to the agreement are U.S. citizens.

d. Both parties to the agreement are U.S. citizens.

Robert, an American astronaut, cannot repair his space station and issues a distress signal. A number of nations—Russia, China and Great Britain—are aware of Robert's distress signal. China has a space station close to Robert's and is in the best position to help Robert. Which statement is correct in this situation? a. China does not need to help Robert because other countries are also aware of Robert's distress signal. b. China must help Robert and bring him to China. c. China does not need to help Robert because he is an American astronaut. d. China must help Robert and return him to the United States.

d. China must help Robert and return him to the United States.

Ali Corp. is a U.S. company with a manufacturing plant in Mexico. Jose is a Mexican citizen, engineer and employee of Ali Corp. Jose was passed over for a promotion for which he is qualified because Ali Corp. said the position was open only to an American citizen. Is Ali Corp. liable to Jose under Title VII of the Civil Rights Act? a. No, because Ali Corp.'s Mexican plant is not covered by Title VII. b. Yes, because any U.S. company's discrimination has effects in the United States. c. Yes, because Mexico certainly has anti-discrimination laws, too. d. No, because Jose is not covered by Title VII.

d. No, because Jose is not covered by Title VII.

Activities conducted in outer space and the benefits derived from those activities should improve what? a. The environment of our world by reducing climate change impact. b. The welfare of the nation engaging in the outer space exploration. c. The ability to detect extraterrestrial life. d. The welfare of all nations and all humanity.

d. The welfare of all nations and all humanity.

A U.S. domestic firm can engage in international business transactions by: a. exporting its goods and services to markets abroad. b. establishing foreign production facilities. c. licensing its technology to an existing foreign company. d. all of these choices.

d. all of these choices.

Licensing is possible as to a company's: a. copyrights. b. patents. c. trademarks. d. all of these choices.

d. all of these choices.

Any bank handling an item for collection, except the payor bank is referred to as the: a. None of these choices. b. intermediary bank. c. depositary bank. d. collecting bank.

d. collecting bank.

When a country's government seizes privately owned property of foreign investors without paying just compensation, it is known as: a. a sovereign act. b. a taking. c. expropriation. d. confiscation.

d. confiscation.

Starr Fireworks, Inc., an American company, purchased $100,000 worth of fireworks from Hangkee Company, Ltd., a fireworks manufacturer based in Hong Kong. Starr failed to pay for the shipment, and Hangkee filed an action against it in the High Court of the Hong Kong Special Administrative Region, Court of First Instance. The dispute arose while Hong Kong was a sovereign under the British crown, but the lawsuit was filed after it had reverted to communist rule by the People's Republic of China. Starr hired counsel and fully participated in its own defense at the trial, including giving testimony and submitting evidence. Hangkee produced invoices and other proof of the delinquent account, and the Hong Kong tribunal entered a judgment in Hangkee's favor. Starr did not appeal or pay the judgment, and Hangkee filed an action in a South Dakota state court to enforce the Hong Kong judgment on the basis of the principle of comity. Starr contended that the U.S. government could not enforce the judgments of a communist country because the actions and policies of communist countries are not consistent with U.S. policies. The South Dakota court most likely: a. enforced the judgment, because the doctrine of sovereign immunity does not extend to private companies. b. refused to enforce the judgment, because the judgments of a communist country, by definition, contravene the policies of the United States. c. refused to enforce the judgment, because only the federal government, not the individual states, can extend comity to the judgments and laws of foreign countries. d. enforced the judgment, because an order requiring payment of a delinquent account does not contravene U.S. public policy when the order was obtained fairly after notice and a hearing.

d. enforced the judgment, because an order requiring payment of a delinquent account does not contravene U.S. public policy when the order was obtained fairly after notice and a hearing.

The tiny island nation of Seychelles joined the World Trade Organization in April, 2015. Upon being admitted to the WTO, member nations may have had to change their treatment of imports from and exports to the Seychelles to treat that nation as well as any other member nation. This is called: a. most friendly commercial status. b. friendly neighbor trader status. c. best treatment status. d. normal trade relations status.

d. normal trade relations status.

Unity, Inc., receives a percentage of profits from sunglasses a foreign entity produces in South Korea bearing the Unity trademark. Unity is receiving a(n): a. venture. b. indirect export. c. agency distribution. d. royalty.

d. royalty.

A card containing a microprocessor that permits storage of funds via security programming, can communicate with other computers, and does not require online authorization for fund transfers is called a: a. debit card. b. stored-value card. c. credit card. d. smart card.

d. smart card.

A check, other than a certified check, that is presented for payment more than six months after its date is referred to as a(n): a. certified check. b. stop-payment order. c. overdraft. d. stale check.

d. stale check.

In ( ) exporting, a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment for the goods.

direct

Microlex, Inc., a U.S. corporation, signs a sales contract with Freres, S.A., a French corporation, in which Microlex agrees to sell Freres $100,000 worth of Microlex products. This is an example of

direct exporting

A contract between a seller and a distributer of the seller's products setting out the terms and conditions of the distributorship

distribution agreement

The act of state doctrine is frequently employed in importing cases.

false

subject of the Electronic Fund Transfer Act (EFTA)

financial institutions that offer electronic fund transfers (EFTs) involving customer asset accounts

Dunkin Donuts, an American company, licenses Olivia to use its trademark, trade name, and recipes to produce and sell doughnuts in Romania. Payment will include a rather large set-up fee plus a small royalty on all revenues generated by the Romanian company. The type of business arrangement Olivia and Dunkin Donuts have is most likely

franchise

A distribution agreement sets out the terms and conditions of the distributorship, such as price, currency of payment, and ( )of payment.

method

Research Statistics Corporation uses a merit system to pay its employees according to their job performance. Suki, a female, and Troy, a male are research employees with comparable jobs. Due to superior performance, Suki is paid more than Troy. This is

not discrimination

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is

not effective

Venezuela passes a law stating that no dollars are allowed to enter the country, such that Americans traveling to Venezuela have to exchange their dollars for Venezuelan's domestic currency at any border crossing. Natalie, a U.S. citizen, files a lawsuit against Venezuela in a U.S. court challenging the legality of this law. Natalie will most likely

not prevail because of the act of state doctrine

The payment of Nero's debt to Olly is guaranteed by Nero's personal property. Nero is located in Pennsylvania. Olly communicates to the appropriate state official a security agreement that uses only Quality Engineering, the trade name of Nero's business. To perfect Olly's interest, this is

not sufficient

Landers, Inc., an American company, agrees to sell copper electric cables to a state-owned company in Ecuador. Landers was given specific manufacturing requirements and had to invest in new machinery to meet them. Once the order was processed, the Ecuadorian electric company repudiated the contract, claiming immunity under the Foreign Sovereign Immunities Act (FSIA). Nonetheless, Landers might prevail in court because

of the exception to the FSIA concerning national governments engaging in strictly commercial activities

International organizations can adopt _____ in the form of resolutions or declarations that require member nations to behave in certain ways. They also may create _____ to be adopted by the member nations.

standards, uniform rules

The payment of Yves's debt to Zach is guaranteed by Yves's personal property. Their agreement describes Yves's subject property by serial number. To establish Zach's interest, this is

sufficient if it accurately describes the parties' agreement

A major difference between international law and national law is

that government authorities enforce national law

The major difference between national law and international law is:

that national law can be enforced by the nation's government, while international law cannot be enforced by any government

Unity Production Company is suspected of employing illegal immigrants. The government conducts random compliance audits and other enforcement measures against those who might violate immigration laws through

the ICE

The international organization charged with the responsibility for eliminating trade barriers including tariffs is

the WTO

Region Bank wants to perfect its security interest in timber owned by Superior Lumber, Inc. Most likely, a financing statement should be filed with

the county clerk

Act of state doctrine

the judicial branch of one nation will not evaluate the validity of another nation's government

Jill believe that she should file a plan for a chapter 13 discharge in bankruptcy. A chapter 13 bankruptcy plan must provide for

the surrender of all collateral to the creditors

Expropriation

the taking of privately held property for a public purpose and with just compensation

Gramm Leach Bliley Act

this act proscribes the disclosure of financial institutions' customers data without notice and an opt-out opportunity

When the foreign state has ___ its immunity either ___ or by implication.

waived explicitly

A foreign nation will not be immune from a lawsuit in a U.S. court if that government has _____ immunity explicitly or by implication, when it has engaged in _____ activity within the United States or activity that is outside the United States but has _____ effect in the United States, or when the foreign government has committed a or violated certain _____ laws.

waived, commercial, a direct, tort, international

Quotas

A limit on quantity of goods that can be imported

New York Convention.

A major international convention, or treaty, that assists in the enforcement of arbitration clauses is the:

The U.S. Constitution gives the ( ) the power "by and with the advice and consent of the ( ) , to make Treaties, provided two-thirds of the Senators present ( ).

1. president 2. senate 3. concur

A bilateral agreement is an agreement formed by ( ) nations to govern their ( ) exchanges.

1. two 2. commercial

The United States is a member of more than ( ) multilateral and bilateral treaties.

100

The United States is a member of more than how many multilateral and bilateral organizations?

100

violated Article VIII of the Outer Space Treaty.

2TheMoon is a private company interested in a lunar tourist route. With all proper disclosures and registrations, 2TheMoon launches an exploratory mission to the moon with the company's management on board. On its way to the moon, the group sees several defunct-looking Russian satellites that have some very expensive-looking components. On its way back to earth, they link up with several of those satellites, remove the desired components, and release the satellites back into space. The management of 2TheMoon has:

True

A U.S. firm can expand internationally through a joint venture.

6 months amount

A bank is not obligated to pay an uncertified check presented for payment more than __ after its date. If a bank pays in good faith, it can charge the customers account for the __.

in writing: the minimum to open an interest-bearing account, interest, and other fees

A bank must tell a new interest-bearing account customer:

Stale Check

A check, other than a certified check, that is presented for payment more than six months after its date

1.license 2.royalties

A company may choose to allow a foreign company to produce its goods. In doing so, the U.S. company will 1.________ its intellectual property and/or technology to the foreign company to use in making the product, and the foreign company will pay the U.S. company 2.________ .

Clearinghouse

A system or place where banks exchange checks and drafts drawn on each other and settle daily balances

Tariffs

A tax on goods that are imported

Electronic Fund Transfer

A transfer of funds through the use of an electronic terminal, a telephone, a computer, or magnetic tape

a joint venture.

Alpha Corporation is interested in expanding its operations to South Africa. Alpha finds a South African company that is in a similar industry and partners with it to do business. Alpha owns part of the operation and the South African company owns most of it. The two share in profits and liabilities in proportion to their ownership. This is most likely:

Albert buys a surround sound system from his neighbor George at George's garage sale. Albert writes George a check for $250 for the sound system. George is a. the certifier. b. the drawee. c. the drawer. d. the payee.

D

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is a. effective if an innocent third party accepts the check. b. effective to the degree that it matches Caleb's genuine signature. c. effective to the extent that Downtown Bank debits Caleb's account. d. not effective.

D

Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order. 19. Refer to Fact Pattern 19-1. Capital Bank pays the check. Capital a. can sue Echo for a wrongful stop-payment order. b. can sue Fix-It for breach of contract. c. can sue no one because it paid a check that was not properly payable. d. is liable for Echo's loss due to the wrongful payment.

D

Finance Bank receives a check drawn on the account of Get-Rich Industries, Inc., one of the bank's customers, at 3 P.M. Friday. Hildy, the pre¬senter of the check, is not one of the bank's customers. The bank uses de¬ferred posting with a 2 P.M. cutoff hour. If it decides to dis¬honor the check, it must do so by midnight a. Saturday. b. Sunday. c. Monday. d. Tuesday.

D

Little Local Bank wrongfully fails to honor a check signed by its customer Andrea. Little Local Bank is a. not liable to Andrea for damages resulting from its refusal to pay. b. only liable to Andrea for damages resulting from its refusal to pay if Andrea takes action against the bank within one business day of the failure to honor the check. c. only liable to Andrea for one half of the damages resulting from its refusal to pay. d. liable to Andrea for damages resulting from its refusal to pay.

D

Shakira issues a check drawn on Thrifty Bank to Ranch & Farm Supply to pay for a rototiller. Later, Shakira discovers a defect in the device and orders Thrifty to stop payment on the check. Shakira does not renew the order, and the bank clears the check eight months later. The bank a. must recredit Shakira's account. b. must obtain funds from Ranch & Farm to cover the check. c. must substitute acceptable goods. d. need not recredit Shakira's account.

D

Trudy forges Uma's signature on a check "payable to the order of Trudy" drawn on Uma's account in Verity Bank. Most likely, if the bank pays the check a. the Federal Reserve will reimburse all parties for their costs. b. the loss will be apportioned among all of Verity's customers. c. Uma will be liable for the amount. d. Verity will have to recredit Uma's account.

D

When processing a check, Superior Bank encodes information, such as the amount of the check, on the item. Superior thereby warrants to any subsequent bank or payor a.the item has been returned to the drawer. b.nothing. c.the check has been processed manually. d.the encoded information is correct.

D

"On-us item" Paid

An item payable by a depositary bank that is also the payor bank is an __. If the bank does not dishonor it by the second day it is considered t o be __.

Stop-Payment Order

An order by a bank customer to his or her bank not to pay or certify a certain check

Collecting Bank

Any bank handling an item for collection, except the payor bank

Intermediary Bank

Any bank to which an item is transferred in the course of collection, except the depositary or payor bank

The provision of the U.S. Constitution that provides that "No Tax or Duty shall be laid on Articles exported from any State" is found in

Article 1, Section 9

the federal reserve board

As check-processing speeds up, the __ will revise availability schedule for funds from deposited checks to correspond to reductions in processing time.

Daria writes a check for $100 drawn on Village Bank and presents it to Fast Cash, Inc., for payment. If the check is not backed by sufficient funds, Daria may be prosecuted for a. forgery. b. fraud. c. negligence. d. nothing.

B

Elton presents an uncertified check for payment more than six months after its date. The check was drawn by Dakota on her account in First Community Bank. The usual banking practice in such a case is to a. cash the check. b. consult the customer. c. refuse to cash the check. d. ask the payee what he or she would prefer.

B

Ian buys a cell phone in Jiffy Mart, using the means that accounts for more retail payments than any other. This means of payment is a. a commercial check. b. a debit card. c. a personal check. d. a cash.

B

Julia opens a checking account with Washington Bank and deposits funds into the account. Julia and Washington Bank a. do not have a contractual relationship. b. have a creditor-debtor relationship in which Julia is the creditor and Washington Bank is the debtor. c. have a creditor-debtor relationship in which Washington Bank is the creditor and Julia bank is the debtor. d. do not have a creditor-debtor relationship.

B

Kris presents an instrument that states "pay to the order of Kris" to Metro Bank for payment. This is a special type of draft drawn on a bank, ordering the bank to pay a fixed amount of money on demand. This is a. a commercial wire transfer. b. a check. c. a debit card transaction receipt. d. a cash transaction

B

Martha has a checking account with Homeplace Bank. Martha signs a check "payable to Phillipa" drawn on Martha's account. Homeplace Bank is a. the payer. b. the drawee. c. the drawer. d. the payee.

B

Mary writes a check drawn on County Bank for $400 "payable to Bill" on May 1. Mary dies on May 3. Bill presents the check to County Bank on May 5. County Bank a. may not pay the check. b. may pay the check. c. must consult with Mary's heirs before paying the check. d. must read Mary's will before paying the check.

B

1.written agreement 2.signatory 3.commercial 4.cannot

Before a court will compel arbitration, there must be a(n) 1.________ to arbitrate that provides for the arbitration to take place in a convention 2.________ nation. The agreement must arise out of a 3.________l relationship and at least one party 4._______ be a U.S. citizen.

Clyde issues a check payable to Discount Mart. Elle, Discount's cashier, forges the store's indorsement and deposits the check in her bank ac¬count. Clyde's bank, Main Street Bank, pays the check. Clyde can recover from a. Elle, but not Main Street Bank. b. Main Street Bank, which cannot recover from Elle. c. Main Street Bank, which can recover from Elle. d. no one.

C

Dru signs a check "pay to the order of Eppie" drawn on Dru's account in Bayside Bank. Greta forges Eppie's indorsement. Bayside pays the check. Most likely a. Dru will be liable for the amount. b. Eppie will have to pay Dru for the amount. c. Bayside will have to recredit Dru's account. d. the Federal Reserve will reimburse all parties for their costs.

C

On Monday, Michelle deposits in her account at Fiscal Bank a local check for $500. After 5:00 P.M. on Friday, from these funds, Michelle can withdraw no more than a. $100. b. $400. c. $500. d. $600.

C

Rikki signs a check "pay to the order of Scholar University" drawn on Rikki's account in Town Bank to pay her tuition. Rikki is a. the certifier. b. the drawee. c. the drawer. d. the payee.

C

Simon signs a check "pay to the order of Tilly" drawn on Simon's account in United Bank. Vela forges Tilly's indorsement, First Federal Bank cashes the check, and Vela disappears. United pays First Federal and debits Simon's account. Most likely, the ultimate loss will fall on a. Simon. b. Trudy. c. United Bank. d. First Federal Bank.

C

Socrates Software Corporation want to hire Tomas, a noncitizen. To hire Tomas, Socrates must petition

Citizenship and Immigration Services

A system of law derived from that of the Roman Empire and based on a code rather than case law.

Civil Law System

Cody believes that Delta Corporation has discriminated against him on the basis of gender. Cody files a suit against Delta under title VII. To establish a prima facie case of employment discrimination, Cody must show that

Cody is a member of a protected class

that one nation will show deference for the laws and decrees of another nation.

Comity means:

$10,000 and imprisonment up to 10 years

Criminal Sanctions: unauthorized use of an EFT system across device is a federal felony, subject to fines up to __ and __.

60 days, 10 days

Customers have __ days to report an error and the bank has __ to respond or return any disputed amounts.

The New York Convention.

Electronic Imports, a U.S. company, enters into a contract with E Manufacturing, a company based in China. The companies signed an agreement with an arbitration provision, stating that in the event of any disputes the matter will be arbitrated in the United States. An issue arises that causes E Manufacturing to breach its agreement with Electronic Imports, and E Manufacturing files suit in a court in China. Electronic Imports would rely on which of the following to enforce its arbitration provision in the agreement?

same day as the check is deposited.

Electronic check presentment can be done ___.

A bank cannot recover from a party who cashes a check bearing a forged drawer's signature once the bank has accepted and paid the item.

F

A bank has no right to charge a customer's account for the amount of a stale check

F

Financial institutions that exchange digital images of checks must also send the original paper checks

False

Gender can be a determining factor in an employer's decision to fire, or promote an employee

False

The first bank to receive a check for payment is the intermediary bank.

False

The last security interest to be perfected is the first in priority over any other perfected security interest

False

Today, most checks are processed manually

False

the next business day

Funds must be available ___ for cash deposits, wire transfers, government checks, and cashiers checks, the first $100 of a days check deposit, cashiers check, certified checks.

-funds in new accounts -deposits over $5000 -accounts with many overdrafts -checks of unquestionability

Funds that can be held for 8 days: funds that can be held for four days:

all nonlocal checks and nonpropriertary atm deposits (cash)

Funds that must be available within 5 business days:

Nigeria engaged in strictly commercial activities.

Geo Sox, an American company, agreed to sell copper electric cables to a state owned company in Nigeria. Geo Sox was given very specific manufacturing requirements and had to invest in new machinery to meet the requirements. Once the order was processed, the Nigerian electric company repudiated the contract and then claimed immunity under the Foreign Sovereign Immunities Act (FSIA). However, Geo Sox might prevail in court because:

payee or holder

In a civil suit, the customer is liable to the __ of the check.

a. The (CAFTA-DR) Central America-Dominican Republic-US Free Trade Agreement d. The (KORUS FTA) Korea-US Free Trade Agreement

In addition to NAFTA, select two (2) other important regional trade agreements. a. The CAFTA-DR b. The UNICEF c. The UN d. The KORUS FTA e. The SUN TA

direct exporting.

Micrylex Corp. (a U.S. corporation) signs a sales contract with Freiers, S.A. (a French company) in which Micrylex agrees to sell Freiers $15,000 worth of Micrylex products. This is an example of:

Law that pertains to a particular nation (as opposed to international law)

National Law

A major international convention (treaty) that assists in the enforcement of arbitration clauses is the:

New York Convention

wrongful dishonor

Once a bank agrees to accept overdrafts, refusal to honor checks on an overdrawn account is ___.

judges in civil systems often actively question witnesses.

One of the basic differences between a common law and a civil law legal system is that:

a nation engages in commercial activity within the United States.

One of the major exceptions to the doctrine of sovereign immunity is when:

True

Parties to an international contract can agree in advance to allow a third party to resolve any contract dispute through an arbitration clause.

every month; electronic transfer

Periodic statements requires a monthly statement for every __ in which there is an __.

orally: 14 days writing: effective for 6 months

How a stop payment can be given and how long is it effective for? **must notify the bank ahead of time to renew it at the end of the period

Federal Aviation Administration (FAA).

If 2TheMoon, a U.S. company, wants to start a business taking tourists to the moon, the federal agency that is responsible for developing the rules and regulations about private, commercial space flight is the:

no liability

If a bank dishonors a check for insufficient funds, it has ___.

recredit

If a bank pays over an order it must ___ the customer's account for any loss, including damages for the dishonor of subsequent items.

reduced (unless it was negligent)

If a bank traces its loss to the customer's negligence or, on successive altered checks, to the customer's failure to discover the first alteration, its liability is __.

notify any indorsers

If a check "bounces", a holder can resubmit it but must first ___ of the first dishonor (or they are discharged).

recredit, for a portion of the loss

If the bank fails to exercise ordinary care ("reasonable commercial standards"), it may have to ___ the customer's account for __.

liable

If the bank has notice from a customer about a postdated check, the bank is __. *they have the right to refuse to accept if the date is wrong.

reaccredit the account (or be held liable for breach of contract)

If the bank pays a check with a forged indorsement, it must __.

not obligated to recredit the amount

If the customer's negligence substantially contributed to the forgery, the bank is __ the amount.

dishonor

If there are insufficient funds in a customer's account, the bank can pay an item drawn on the account or ___ it.

1. direct 2.indirect 3.agency 4.distributorship

In 1._______ exporting, a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment of goods. Alternatively, a U. S. company may establish a specialized marketing organization in a foreign country and engage in 2._________ exporting. This may be done through a(n) 3.________ relationship, which limits the company's involvement in the international market, or through a(n) 4.___________ , which is more often used when the foreign market grows to a substantial size.

Article VI of the Outer Space Treaty.

SPACE US is a private U. S. company with a mission of exploring and colonizing space. Without any conversation or disclosures to the government, SPACE US builds a rocket which it sends up into space to plant a satellite that will scan the skies for an appropriate location for SPACE US's first colony. At this point SPACE US has violated:

Dumping

Sale of goods in a foreign country at less than fair value

$5000 and 1 year

Sanctions included subjecting an institution or its officials to fines of up to __ and imprisonment up to __ year.

1. one (1) 2.Sherman

Section 1._________ of the 2.________ Act provides that U.S. antitrust laws can be applied to situations that occur outside the United States

a. Exporting their goods c. Establishing foreign production facilities e. Licensing technology to existing foreign companies g. Establishing overseas subsidiaries

Select four (4) ways in which U.S. domestic firms can engage in international business transactions. a. Exporting their goods b. Developing distributorship agreements with other U.S. firms c. Establishing foreign production facilities d. Expanding production facilities to other states e. Licensing technology to existing foreign companies f. Hiring more employees g. Establishing overseas subsidiaries

a. International customs c. Treaties and agreements e. International organizations

Select the three basic sources of international law from the list. a. International customs b. The Berne Convention c. Treaties and agreements d. The Uniform Commercial Code e. International organizations f. The United Nations' Recognition and Enforcement of Arbitral Awards

Exporting

Selling goods made in the United States to customers in other countries

A bank may contractually shift to the customer the risk of forged checks created by the use of facsimile or other nonmanual signatures.

T

A check can be retained at its place of deposit and only its image can be presented for payment under an electronic presentment agreement.

T

A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors.

T

A customer must examine a bank statement and report any discovered forged signature to recover from the bank for the forgery.

T

A forged indorsement does not transfer title.

T

A point-of-sale system is a type of electronic fund transfer system.

T

Gaining unauthorized access to an electronic fund transfer system is a felony.

T

Stored-value cards are a form of digital cash

T

The Uniform Commercial Code governs checks.

T

Under the Check Clearing in the 21st Century Act, a bank has to credit a customer's account as soon as the bank receives the funds.

T

1.simplest 2.export

The 1._________ way for a U.S. firm to do business internationally is to 2.________ .

Expropriation

The taking of privately held property for a public purpose and with just compensation

Confiscation

The taking of privately held property without a proper public purpose AND/OR without just compensation

A bank is not obligated to pay an uncertified check presented less than six months from its date.

True

A bank that pays a customer's check bearing a forged indorsement is obligated to recredit the customer's account

True

Commercial banking practices consider a check that has been outstanding for three months to be a stale check.

True

Employers who provide pension plans for retired workers must comply with certain standards in managing the plans

True

Financial institutions that exchange digital images of checks do not have to exchange the original paper checks

True

to obtain a security interest in property, the Secured parties must give value

True

The Alien Tort Claims Act

U.S. citizens, and even foreign citizens, can sue for injuries caused by violations of certain international laws or treaties in U.S. courts under which law?

substitute check

Under the Check Clearing in the 21st Century Act, a ___ (a paper copy of a check) can be created from a digital image and the originals can be destroyed.

False

Under the Outer Space Treaty, the first nation to declare an intent to explore another planet or other celestial body is entitled to one year to complete preparations and launch, and during that time no other nation or private entity may attempt to explore that declared space.

not liable

Until a bank knows of a death situation or incompetence of a customer, it is __ for paying items.

Trudy forges Uma's signature on a check. "Payable to the order of Trudy" drawn on Uma's account in Verity Bank. Most likely, if the bank pays the check

Verity will have to recredit Uma's account

interest earned, any fees that were charged, how the fees were calculated, and the number of days the statement covers.

What must be included in a monthly statement for interest-bearing accounts?

remains in the United States

When a U.S. firm establishes a wholly owned subsidiary in a foreign country, the parent company usually ______________ .

full balance of a customers account each day

When must a bank pay interest? (according to the Truth-In-Savings Act of 1991 and regulation D

General Packaging Corporation, a U.S employer, may hire Hilo, a noncitizen, if Hilo is

a lawful permanent resident of the United States

One of the major exceptions to the doctrine of sovereign immunity is when:

a nation engages in commercial activity within the united states

unauthorized transfer

a transfer is initiated by a person who has no actual authority to initiate the transfer. The consumer receives no benefit from it, and the consumer did not furnish the person with the card, code, or other means of access to his or her account.

Baxter, Inc., a U.S. firm, plans to manufacture cellphones in China. What type of arrangement would not work? a. Exporting b. Subsidiary c. Licensing d. Joint venture

a. Exporting

Great Britain has a space station located in outer space. The station bumps into space debris and suffers $100,000 in damages and also ricochets off a Russian space station causing $200,000 in damages to the Russian space station. Which of the following statements is true in this situation? a. Great Britain is liable for the damages to its own space station and the damages to the Russian space station. b. Great Britain is liable for the damages to its own space station, but Russia is liable for the damage to its space station. c. Russia is liable for the damage to the British space station as well as the damage to its own space station. d. Neither country is liable for the damage to either space station because the United Nations is liable for all damage incurred in outer space.

a. Great Britain is liable for the damages to its own space station and the damages to the Russian space station.

International organization

agreement between several nations who agree to certain principles and rules of behavior

Right to Financial Privacy Act

an issuer of e-money may be subject to this act if the issuer is deemed to be a bank by virtue of its holding cutover funds or an entity that issues a physical card similar to a credit or debit card.

HyperRain, Inc., a U.S. firm, has a highly visible trademark for a profitable line of watches. What type of arrangement is it not likely to consider to expand its business into the United Kingdom? a. Joint venture b. Importing c. Franchising d. Exporting

b. Importing

Which of the following is not a source of international law? a. International organizations and conferences b. International common law c. International customs d. Treaties and international agreements

b. International common law

The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation is referred to as: a. privilege. b. comity. c. deference. d. none of these choices.

b. comity.

Funds contained on computer software, in the form of secure programs stored on microchips and on other computer devices, is called: a. digital drafts. b. digital cash. c. physical cash. d. computer currency.

b. digital cash.

A well-known form of licensing is called: a. subsidizing. b. franchising. c. distributing. d. trademarking.

b. franchising.

collecting bank

bank (except payor bank) that handles a check for collection

The Alien Tort Statute: a. provides for the extraterritorial effect of U.S. antitrust laws. b. creates an administrative complaint procedure for employees who report violations of federal laws relating to fraud against foreign citizens. c. allows even foreign citizens to bring civil suits in U.S. courts for injuries caused by violations of international law or a treaty of the United States. d. none of these choices.

c. allows even foreign citizens to bring civil suits in U.S. courts for injuries caused by violations of international law or a treaty of the United States.

The Expedited Funds Availability Act of 1987 and Regulation CC require that any local check deposited must be available for withdrawal by: a. check or as cash within three business days from the date of deposit. b. check within one business day from the date of deposit. c. check or as cash within one business day from the date of deposit. d. cash within one business day from the date of deposit.

c. check or as cash within one business day from the date of deposit.

U.S. employers with operations in foreign countries must abide by U.S. discrimination laws: a. under all circumstances. b. only if the foreign employees agree to be subject to such laws. c. unless to do so would violate the laws of the country where their workplaces are located. d. unless doing so would provide a "significant financial burden" for the employer.

c. unless to do so would violate the laws of the country where their workplaces are located.

The act of state doctrine is frequently employed in: a. importing cases. b. cases involving franchise agreements. c. exporting cases. d. expropriation cases.

d. expropriation cases.

The time between when a check is written and when the amount is actually deducted from an account is called: a. drift. b. hang time. c. the interval. d. float.

d. float.

A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations is called: a. national trade relations status. b. favored trade relations status. c. privileged trade relations status. d. normal trade relations status.

d. normal trade relations status.

Bank of Jamaica, which is wholly owned by the government of Jamaica, contracted with Chisholm & Co. Under the agreement, Chisholm was to arrange for lines of credit from various U.S. banks and obtain $50 million in credit insurance from the Export-Import Bank of the United States. Chisholm did so, but the Bank of Jamaica refused the deals that he had arranged. The bank had decided to do its own negotiating while Chisholm was also working on the deals. The bank then refused to pay Chisholm for its services. Chisholm brought an action to obtain relief for the bank's breach of the implied contract. Bank of Jamaica claimed that it was immune from the jurisdiction of U.S. courts because it was an arm of the Jamaican government and was going to use the funds for a government purpose. The court most likely held that the bank was: a. not immune from Chisholm's lawsuit, because under the principle of comity, Jamaica is required to give full effect to the laws of the United States. b. immune from Chisholm's lawsuit, because the activities of a government-owned bank are considered noncommercial. c. immune from Chisholm's lawsuit, because its activities had no impact on the United States. d. not immune from Chisholm's lawsuit, because it was engaging in commerce, which is an exception to sovereign immunity under the Foreign Sovereign Immunities Act (FSIA).

d. not immune from Chisholm's lawsuit, because it was engaging in commerce, which is an exception to sovereign immunity under the Foreign Sovereign Immunities Act (FSIA).

The bank on which the check is drawn is the: a. intermediary bank. b. depository bank. c. collecting bank. d. payor bank.

d. payor bank.

A type of EFT system that allows consumers to transfer funds to merchants to pay for purchases using a debit card is called a(n): a. internet payment system. b. direct deposit. c. automated teller machine. d. point-of-sale system.

d. point-of-sale system.

The primary purpose of the North American Free Trade Agreement (NAFTA) is to:

eliminate tariffs amoung the US, Canada, and Mexico

Brick's debt to Conry is past due. Conry berings legal action aganist Brick to collect the debt. To ensure that a judgement in Conry's favor will be collectible, Conry asks the court to order the seizure of Brick's property. Exempt from such an order in most states is

equipment that Brick uses in a business up to a specified amount

Firms investing in foreign nations run all of the following risks EXCEPT:

excessive profits

To sell products to buyers located in their countries

export

The seizure by a government of privately owned business or personal property for a proper public purpose and with just compensation.

expropriation

John writes a check to Kay as payment for a DVD player but soon discovers the player is broken. He goes to the drawee bank and orally authorizes Larry, a bank officer, to stop payment. This order is valid for

fourteen days

Dunkin Donuts licenses Nadia to use its trademark, trade name, and recipes to produce and sell donuts in Romania. Payment by Nadia will include a set-up fee, plus a small royalty on all revenues generated in Romania. This type of business arrangement is most likely a(n)

franchise

National law

government rules and regulations that are enforceable by that government within certain boundaries

Ethan is seventeen years old. Under the Fair Labor Standards Act, Ethan cannot work

in a hazardous occupation

The main reason that U.S. firms establish manufacturing plants abroad is that

in so doing they reduce costs.

Incentives and subsidies. The United States (and other nations) also use () and subsidies to () exports and thereby aid domestic business.

incentives stimulate

Mineral Mining Corporation is a U.S employer. Mineral, and other U.S employers, must perform I-9 verifications for new hires working under the employer's direct supervision

including contractors and day workers

A U.S. company may establish a specialized marketing organization in a foreign country by appointing a foreign agent or a foreign distributor and this is called( ) exporting.

indirect

check

is a DRAFT drawn on a bank, ordering the bank to pay a fixed amount of money on demand.

certified check

is a check accepted by the bank on which it is drawn is a certified check. *when a bank certifies a check, it immediately charges the drawer's account and transfers those funds to its account. The effect of certification is to discharge the drawer and prior indorsers.

travelers check

is a check on which a financial institution is both drawer and drawee.

The U.S. government decides to charge $10.25 on every Blu-ray player that is imported. This policy:

is a legally permitted tariff

One of the basic differences between a common law and a civil law legal system is that:

judges in civil systems often actively question witnesses

One of the basic difference between a common law and a civil law legal system is that

judges in civil systems often actively question witnesses.

When a U.S. firm wishes to limit its involvement in an international market, it may establish a(n) ( ) relationship with a foreign firm.

limited

Wai-tung, a Chinese firm, manufactures automobiles. In order to get a foothold in the American market, Wai-tung sells its cars for several thousand dollars below what it charges in China. Wai-tung

may have antidumping duties imposed on its imported goods.

bank

person engaged in the business of banking, including a savings bank, savings and loan association, credit union or trust company. Rights and duties of bank and customer are contractual.

stored-value cards

plastic cards embossed with magnetic stripes containing encoded data. Used to buy specific goods and services

The U.S. Constitution gives the _____ the power "by and with the Advice and Consent of the _____, to make _____, provided two-thirds of the _____ present concur."

president, senate, treaties, senators

When a U.S. firm establishes a wholly owned subsidiary in a foreign country, the parent company usually

remains in the US

A multilateral agreement is formed by ( ) nations.

several

The agreement provides for arbitration in a convention (treaty) nation

signatory

A doctrine that immunized foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.

sovereign immunity

Samantha wrote a check to pay for a DVD player she purchased at an electronics store. However, when she got it home, she discovered that it would not play Blu-Ray DVDs, which was the kind she asked for. Immediately, she called her bank and ordered a(n): a. stale-check order. b. due-course payment order. c. overdraft order. d. stop-payment order.

stop-payment order.

Before U.S. courts will exercise jurisdiction and apply antitrust laws, it must be shown that the alleged violation had a on U.S. commerce.

substantal effect

Comity means:

that one nation will show deference for the laws and decrees of another nation

Paris knowingly divulges to Media Exposure Magazine information about Randy's e-money payments to City Bank. The payments were in transmission to City Bank when Paris, without consent of Randy or City Bank, discovered and revealed them. This may be a violation of

the Electronic Communications Privacy Act

float

the __ is the time between when a check is written and when the account is deducted from an account.

Electroinc Communication Privacy Act of 1986

the act prohibits any person from knowing divulging the contents of an electronic communication while that communication is in transmission.

The term comity means

the deference one nation shows for the laws and judicial decrees of another nation.

Confiscation

the taking of privately held property without a proper public purpose and/or without just compensation

Sovereign immunity

the u.s. courts will not hear a case against the government of another nation with limited exceptions

1.establish criteria 2.private companies 3.defense articles

The Federal Aviation Administration is working to 1._______ for private spacecraft. Federal law has given 2._________ the ownership of any minerals or other resources retrieved from space locations. Unfortunately, the classification of any spacecrafts in the United States as 3._________ makes it difficult for private companies to compete in the space market.

Over a forty-year period, Ewa worked in a variety of jobs. She was also occasionally unemployed, briefly hospitalized, and suffered a temporary disability. She retired last year. The key law on all of these subjects is

The Social Security Act

True

The United Nations has issued guidelines that require nations to remove space objects that are no longer in operation so long as this can be done safely and in a controlled manner.

100

The United States is a member of more than how many multilateral and bilateral organizations?

False

The act of state doctrine is frequently employed in importing cases.

cannot

The bank __ recover from a "person who took the instrument in good faith and for value in reliance on the payment or acceptance."

first party

The bank can recover for breach of warranty from the bank that cashed the check and loss falls on __ usually.

the forger and the customer or collecting bank who cashed the check

The bank can recover from ___ or __ when dealing with a forged signature.

transferor

The bank can recover from the __ with altered checks for breach of warranty. **exceptons: cashier's checks, tellers checks and certified checks

drawee, debtor, agent

The bank is the__ of a check. The bank is the depositor's __ as the amount on the depositor's account. The bank is the depositor's __ in the handling of the account and in the collection process.

Payor Bankk

The bank on which a check is drawn

Article I, Section 9 of the U.S. Constitution

The provision of the U.S. Constitution that provides that, "No Tax or Duty shall be laid on Articles exported from any State," is found in _____________.

International law can be defined as a body of law formed as a result of international customs, treaties, and organizations, that governs relations among or between nations.

true

There is a (or recorded) agreement to arbitrate the matter

written

drawer, creditor, principal

A depositor is the __ of a check. The depositor is the bank's __ as the amount on deposit in the depositor's account. The depositor is the bank's __ in the deposit contract.

Certified Check

A check that has been accepted in writing by the bank on which it is drawn. By certifying the check, the bank promises to pay the check at the time it is presented

A customer has a right to stop payment on a check that has been certified or accepted by a bank.

F

Overdraft

A check that is paid by a bank when the checking account on which the check is written contains insufficient funds to cover the check

Traveler's Check

A check that is payable on demand, drawn on or payable through a financial institution, and designated as a traveler's check

choice of forum

A clause that sets out which country or location will be used to hear disputes about the contract

A written stop payment order is only valid for thirty days.

False

All security interests are protected no matter what!

False

Any failure of a bank to honor a check because it would create an overdraft is a wrongful dishonor.

False

Any local check deposited must be available for withdrawal by check or as cash within one business day from the date of deposit.

False

A check that is presented for payment more than six months from its date is a stale check.

True

An agency relationship arises between the customer and the bank when the customer writes a check on his or her account.

True

the United Nations Committee on the Peaceful Uses of Outer Space (COPUS)

The major space law treaties were concluded by ________.

Which of the below entities could be sued under Title VII of the Civil Rights Act? a. The government of Costa Rica b. A U.S. firm doing business in Costa Rica employing a Costa Rican citizen c. A Costa Rican firm employing a U.S. citizen d. None of these entities can be sued under Title VII

d. None of these entities can be sued under Title VII

Funderson and Company is a German-based company that for years conspired with competitors in an international price-fixing agreement. The United States can prosecute Funderson under the law that provides for extraterritorial application of U.S. antitrust law, which is: a. the Alien Tort Statute (ATS). b. Section 2 of the Sherman Act. c. Title VII of the Civil Rights Act. d. Section 1 of the Sherman Act.

d. Section 1 of the Sherman Act.

Clothing, Inc., a U.S. company, plans to construct a manufacturing plant in Guatemala. Which of the following U.S. laws might apply to its operations there? a. The Alien Tort Statute b. Title VII of the Civil Rights Act c. The Sherman Act d. The Alien Tort Statute, U.S. antitrust Laws and Title VII of the Civil Rights Act all may apply

d. The Alien Tort Statute, U.S. antitrust Laws and Title VII of the Civil Rights Act all may apply

If a bank is unaware that a customer who wrote a check has been declared incompetent or has died, the bank: a. will not incur liability. b. will incur liability. c. cannot pay the item without incurring liability. d. can pay the item without incurring liability.

d. can pay the item without incurring liability.

A draft drawn by a drawer ordering the drawee bank or financial institution to pay a fixed amount of money to the holder on demand is a: a. traveler's check. b. draft. c. cashier's check. d. check.

d. check.

Select the three basic sources of international law from the list.

(1) international customs (2) treaties and agreements (3) international organizations

Point of Scale Systmes

(EFT); connected to online bank computers, allow consumers to transfer funds to pay merchants.

pay-by-internet systems

(EFT); these systems provide access to a financial institutions computer system over the internet to direct a transfer of funds.

Direct Deposit and Withdraws

(EFT); through a terminal, a deposit may be made directly a customer's account. Can also make payments electronically to a third party

Federal Reserve System

A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the U.S. have Federal Reserve accounts

3 years

The customer must examine the bank statement and canceled checks and report forged indorsements promptly. Failure to do so within __ relieves the bank of liability.

$100 of any check, next $400 of a local check

The first ___ of any deposit must be available on the opening of the next business day. The next ___ of a local check must be available y no later than 5 pm the next business day.

depositary bank

The first bank involved in the collection process to receive a check for payment

Depositary Bank

The first bank to receive a check for payment

not prevail because of the act of state doctrine.

The government of Thailand passes a law stating that no U.S. dollars are allowed to enter the country. Americans traveling to Thailand therefore may not bring dollars with them. All dollars have to be exchanged for the Thailand domestic currency (Thai Baht) at any border crossing, airport, or train station. Laura, a U.S. citizen, files a lawsuit against Thailand in a U.S. court challenging the legality of this law. Laura will most likely:

the (WTO) World Trade Organization

The international organization charged with the responsibility for eliminating trade barriers including tariffs is ________.

cashiers check

a check drawn by a bank on itself; negotiable on issue

Computer World (CW), after repossessing a multimedia system from Dave, a consumer, decides to keep the system instead of reselling it. CW sends written notice to Dave. CW can now keep the system

unless Dave objects