MGMT346 chapter2

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

ANSWER: a

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

ANSWER: a

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

ANSWER: a

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

ANSWER: a

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

ANSWER: a

21. Public international law involves: a. relationships between public corporations in different countries as to business terms. b. relationships between nations that are reflected in treaties, conventions, or charters. c. relationships between private individuals in different countries. d. all of these are correct

ANSWER: b

22. The forum for public international law disputes is: a. The World Forum. b. International Court of Justice. c. The League of Nations. d. The Hague.

ANSWER: b

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

ANSWER: b

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

ANSWER: b

24. In a socialist country, the legal system: a. reflects the private ownership of property. b. is similar to the English common law system. c. exhibits no need for commercial law because such disputes are settled politically. d. none of these are correct.

ANSWER: c

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

ANSWER: c

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

ANSWER: c

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

ANSWER: c

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

ANSWER: c

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

ANSWER: c

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

ANSWER: c

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

ANSWER: c

23. The difference between a common law country and a civil law country is: a. civil law is handled by the government while common law is handled by the people. b. a common law country bases its laws on statutes while a civil law country uses court cases. c. a common law country has similar laws throughout its regions while a civil law country is divided into areas. d. a common law country relies heavily on precedent established by previous court cases while a civil law country uses a comprehensive code of law.

ANSWER: d

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

ANSWER: d

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

ANSWER: d

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

ANSWER: d

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

ANSWER: d

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

ANSWER: d

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

ANSWER: d

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

ANSWER: e

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

False

14. A treaty between three countries is said to be trilateral.

False

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

False

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

False

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

False

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

False

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

False

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

False

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

False

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

False

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

True

10. Moral conduct is the preeminent concern in Islamic law.

True

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

True

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

True

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

True

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

True

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

True

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

True

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

True

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

True