BusiLaw 240 Ch 6

Four Sources of Int'l Law (Article 38)

- customs - int'l agreements - general principles of law recognized by legal systems throughout the world - secondary sources (decisions of Int'l CT of Justice, resolutions of UN, scholarly writings)

Customary Int'l Law

- for a custom, it must be a general pracitce and consistent among states - states must accept general and consistent practice as binding law

Licensing agreement

- foreign company (licensor) grants permission to company in targeted market (licensee) to use property, consisting of patents, trademarks, copyrights or trade secrets

Doing Business Internationally

- foreign sales representative: agent who distributes, represents, or sells goods on behalf of a foreign seller and forwards orders directly to the company - distributors: purchase goods from a seller for resale in a foreign market (takes titles to good and assumes risk of being unable to sell them at a profit) - franchise agreement: contract where company (franchiser) grants permission (license) to a foreign entity (franchisee) to utilize the name, trademark or copyright in operation of business and associated sale of goods in a foreign state

Foreign subsidiary/ affiliate

- business enterprise located in one state directly or indirectly owned and controlled by a company located in another state

Ethical Consideration

- consumption and location - foreign corrupt practices act (FCPA): prohibits US companies from offering or paying bribes to foreign government officials, political parties, and candidates for office for the purpose of obtaining and retaining business = requires that firms maintain records to fairly and accurately reflect transactions and the disposition of assets

International Law

- governs conduct of states and international organizations and their relationships with one another and with natural juridical persons - state: entity possessing territory, a permanent population, a government and the legal capacity to engage in diplomatic relations - international orgs: UN, WTO, Int'l Monetary Fund - natural and juridical persons: individuals as well as org - comparative law: study of legal systems of different states = examine national sources of law embodied in Constitutions, legislative enactments, admin rules and regulations, and decisions of judicial bodies

Joint venture

- parties share profits and management responsibilities for specific project

Int'l Agreement

- written agreement made between states governed by int'l law that relates to int'l manner - bilateral= between 2 states - multilateral= 3 or more states

The arrangement between the United States, Canada, and Mexico to reduce and gradually eliminate tariffs and other trade barriers is an example of a(n) _____. a) multilateral free trade agreement b) customs union c) labor union d) equity alliance

a) multilateral free trade agreement

Which of the following is a similarity between the Uniform Commercial Code (UCC) and Convention on the International Sale of Goods (CISG)? a) Both ask for notice of nonconforming goods. b) Both recognize express warranties and implied warranties of merchantability. c) Both require that all the parties to a sales transaction be residents of the United States. d) Both require that contracts for the sale of goods in excess of $500 be in writing.

b) Both recognize express warranties and implied warranties of merchantability.

Which of the following statements is true of the common law system? a) In the common law system, the judge is responsible for gathering any evidence. b) Unlike the civil law system, juries are not used in the common law system. c) In the common law system, judges have opportunities to make law through their decisions. d) Unlike the civil law system, judges are trained and tested rather than being appointed or elected.

c) In the common law system, judges have opportunities to make law through their decisions.

Which of the following is an example of an actionable subsidy? a) Expenditures incurred on research and development b) Monetary aid provided to underdeveloped regions within a state c) Subsidies paid to encourage firms to use domestic rather than imported inputs d) Subsidies paid to firms to foster compliance with environmental standards

c) Subsidies paid to encourage firms to use domestic rather than imported inputs

According to the New York Convention, _____. a) an arbitrator's decision will serve as precedent in further cases b) each member state will have to recognize verbal arbitration agreements as legally binding c) each member state will have to recognize arbitration awards as enforceable in its national courts d) an arbitrator will have the sole power to select the forum and preside over a case proceeding

c) each member state will have to recognize arbitration awards as enforceable in its national courts

Due to certain political conflicts, United Cadvia decided to place a ban on all industrial imports from Frensland. This is an example of a(n) _____. a) quota b) excise duty c) embargo d) lockout

c) embargo

The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies from: a) locating their manufacturing units in less developed foreign countries. b) merging or entering into joint ventures with other foreign companies. c) paying bribes to foreign government officials for the purpose of obtaining business. d) transferring their intellectual property to other developed countries.

c) paying bribes to foreign government officials for the purpose of obtaining business.

Which of the following statements is true of civil law systems? a) Precedent is the most important official source of civil law. b) The judicial branch can create its own law. c) The legislative branch has ultimate authority. d) Juries are used as fact finders.

c) the legislative branch has ultimate authority

_____ is best described as the practice wherein an exporter sells products in a foreign state for less than the price charged for the same or comparable goods in the exporter's home market. a) Share discounting b) Subsidizing c) Crowd sourcing d) Dumping

d) dumping

The employment-at-will doctrine that governs the employment relationship in the United States: a) prohibits employees from engaging in collective bargaining. b) restricts firms from engaging in mass layoffs in the event of bankruptcy. c) mandates firms to pay 30 percent above the minimum wages fixed by the federal government. d) prohibits termination of employment for whistle-blowing.

d) prohibits termination of employment for whistle-blowing