Ch 11

Consolidated Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Consolidated empowers Doha Ltd., an Egyptian firm, to enter into contracts in certain countries on behalf of Consolidated. This is a. an agency relationship. b. a distribution agreement. c. direct exporting. d. indirect exporting.

a. an agency relationship.

Habitat Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays the firm just compensation. This is a. expropriation. b. the act of state doctrine. c. confiscation. d. the doctrine of sovereign immunity.

a. expropriation.

A body of law—formed as a result of international customs, treaties, and organizations—that governs relations among or between nations is a. international law. b. national law. c. universal law. d. space law.

a. international law.

Lunchies Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use the Lunchies trademark in restaurants in France. This is a. licensing. b. indirect exporting. c. a distribution agreement. d. direct exporting.

a. licensing.

Fiscal Corporation, a U.S. firm, files a suit against Ghana in a U.S. court. Under the Foreign Sovereign Immunities Act, Ghana is immune from the jurisdiction of the court if Ghana has a. none of the choices. b. committed a tort in the United States. c. engaged in commercial activity outside the United States that has a direct effect in the United States. d. engaged in commercial activity within the United States.

a. none of the choices.

Space Corporation launches exploratory space flights to the moon and Mars. The purpose is to discover and retrieve minerals and other resources. Under U.S. law, the corporate explorer a. owns what it retrieves in space. b. cannot profit from resources retrieved in space. c. cannot legally retrieve resources in space. d. must share with all interested parties what it retrieves in space.

a. owns what it retrieves in space.

Global Project, a U.S. firm, owns property in Hong Kong. The government of China seizes the property. The firm claims that this is confiscation. The government claims that it is expropriation. The difference concerns a. the purpose of the seizure and the payment of compensation. b. none of the choices. c. the location of the seizure and the nature of its government. d. the business of the firm and the citizenship of its owners.

a. the purpose of the seizure and the payment of compensation.

The United States taxes most goods imported from China at a flat rate. This is a. a dumping duty. b. a tariff. c. a quota. d. an antidumping duty.

b. a tariff.

Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is a. expropriation. b. confiscation. c. the doctrine of sovereign immunity. d. the act of state doctrine.

b. confiscation.

Airbud Corporation, a U.S. firm, signs a contract with Bueno Computadores Ltd., an Argentinean firm, for a shipment and payment for Airbud's goods. This is a. a distribution agreement. b. direct exporting. c. licensing. d. indirect exporting.

b. direct exporting.

Sugar Company, a U.S. firm, owns property in Trinidad and Tobago. When the foreign government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Trinidad and Tobago is exempt from the court's jurisdiction. This is an application of a. the act of state doctrine. b. the doctrine of sovereign immunity. c. a coercive action. d. the principle of comity.

b. the doctrine of sovereign immunity.

Burger Bistros, a U.S. firm, makes a deal with a Canadian firm, Donny's Diners, that allows Donny's to use Burger's trade name in Canada in return for a fee. This is a. a distribution agreement. b. direct exporting. c. a license. d. a subsidiary.

c. a license.

Market Maven Inc., a U.S. firm, can license a foreign manufacturing company to use its a. trade secrets. b. trademarked brand. c. any of the choices. d. patented intellectual property.

c. any of the choices.

Star Flights Inc. launches commercial space flights from its base in the United States. In the event of a collision with other space objects, under the Outer Space Treaty, liability for injury or damage a. is strict liability—that is, liability without fault. b. is to be assumed by all involved parties equitably c. is subject to a determination of fault. d. does not exist.

c. is subject to a determination of fault.

Under the Outer Space Treaty, a moon, a planet, an asteroid, or any other celestial body is subject to the appropriation of a. the first nation to explore it. b. the first nation to exploit it. c. no single nation. d. the first nation to claim title to it.

c. no single nation.

As part of a deal for power-generating equipment, Solar Wind Company and Thermal Gen Ltd. enter into a written contract that includes a clause providing for the arbitration of any dispute in the United States. Under the New York Convention, if a dispute arises, a court will compel arbitration if both parties are a. U.S. citizens. b. citizens of non-signatory countries. c. not U.S. citizens. d. citizens of countries that are members of the World Trade Organization.

c. not U.S. citizens.

Comida de Chile S.A., an export company in Chile, and Deli Source Inc., an import form in the United States, enter into a contract. When Deli breaches the contract, Comida obtains an award of damages in a Chilean court. Comida then asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Chilean court's decree. This is an application of a. the doctrine of sovereign immunity. b. none of the choices. c. the principle of comity. d. the act of state doctrine.

c. the principle of comity.

The government of Japan sets a limit on the amount of beef that can be imported from the United States. This is a. a tariff. b. an antidumping duty. c. a dumping duty. d. a quota.

d. a quota.

Resort Hotel Corporation, a U.S. firm, establishes a wholly owned subsidiary in Singapore. As a parent corporation, with respect to the subsidiary, Resort retains complete ownership of a. no more than half of the facilities in Singapore b. more than half, but less than all, of the facilities in Singapore. c. none of the facilities in Singapore. d. all of the facilities in Singapore.

d. all of the facilities in Singapore.

Venezuela seizes the assets of World Oil Inc., a U.S. firm. World Oil's recovery from Venezuela in a U.S. court may be prevented by a. a court in Venezuela. b. the principle of comity. c. the doctrine of sovereign immunity. d. the act of state doctrine.

d. the act of state doctrine.