Chapter 3 international law

The Foreign Sovereign Immunities Act of 1976 generally prohibits jurisdiction by US courts to hear lawsuits filed against a foreign state unless an exception exists to that principle such as: a. The foreign state defendant allows US companies to be sued in that foreign state. b. Act of state. c. Universal jurisdiction. d. Commercial activity.

d. Commercial activity.

Diversity Jurisdictioon

A form of subject-matter jurisdiction where the district court has the authority to hear cases of parties who are diverse in citizenship

trade preference

Aids in favorable trade towards developing countries to help their economy

President power

- power to make treaties -

US trade representative

Cabinet-level position that reports directly to the president, principle advisor on trade principles, carries on all bilateral and multilateral trade negotiations on behalf of the US

Full faith and credit clause

Constitution's requirement that each state accept the public acts, records, and judicial proceedings of every other state

Choices of law clauses

Contract provisions that stipulate the country or jurisdiction whose law will apply in interpreting the contract or enforcing its terms

Trade Promotion Authority

Formerly known as "fast-track" authority, a measure that strengthens the executive branch's ability to conclude trade agreements with other governments by restricting the time allotted for the consideration of such agreements in Congress.

TBT - technical barriers to trade

Harmonization, equivalence, and mutual recognition

reciprocal trade agreements

In 1934, Congress enacted a plan that would reduce tariffs for nations that reciprocated with comparable reductions for U.S. imports.

international agreement

Primary instrument for implementing foreign and political and economic affairs -Treaties -Executive agreements

least restrictive trade

WTO member countries, in setting otherwise valid restrictions on trade, shall make them no more onerous than necessary to achieve the goals for which they were imposed

tariff concession

an agreement to reduce a tariff to a specified level

US court of international trade

consist of 9 judges who hear cases arising from trade or tariff laws of the US

embargo

most severe form of trade barrier

Import-export clause

that no state can tax both imports and exports

subject matter jurisdiction

the courts authority to hear a certain type of legal matter (tort cases, breach of contract)

Commerce clause

vests the federal government with exclusive control over foreign commerce

Legislative power

- regulate commerce with foreign nations - senate 2/3 rule

Presidents powers from what two sources

1) powers delegated by congress 2) inherent powers set by article 2

Most favorable nation trade

a country agreeing to accord items imported from that country as the most favorable treatment or lowest tariff rates that it gives to like products imported from other MNF trading stations

GATT

commitment to multilateral trade negotiations, tariff bindings, transparency, nondiscrimination, unconditional MFN trade, national treatment, and the elimination of quotas and other non-tariff barriers

Alternative Dispute Resolution

offers faster, cheaper and more efficient alternative to resolving international commercial disputes than litigation

Executive order

official legal binding regulation such as New Deal

Territorial jurisdiction

power of criminal court to hear cases involving crimes committed within their territory

in rem jurisdiction

refers to a courts power over property within its geographical boundaries

forum non conveniens

refers to the discretionary power of a court to refuse to hear a case, even though jurisdiction and venue are otherwise proper, because a court in another jurisdiction or location would be more convenient and justice would be better served

Due Process Clauses

require obtaining service of process on a defendant in a case and having jurisdiction over them

forum shopping

a practice whereby the plaintiff chooses a court in which to sue because he or she believes the court will rule in the plaintiff's favor

Country A imposes an import tax on fungible goods such as oil, wheat, or timber that enter specially from country B. This is likely called a: a. Percentage of value (ad valorem tariff). b. Specific or flat tariff. c. Unitary tariff. d. Global tariff.

b. Specific or flat tariff.

Personam Jurisdiction

courts ability to have power of certain individuals or corporations

sovereign immunity

states that the courts of one country cannot hear cases brought against the government of another country and that courts cannot involve themselves in the internal affairs of a foreign country

Venue

the geographical location of a court of competent jurisdiction where a case can be heard

Act of state doctrine

a principle of domestic law that prohibits the courts of one country from inquiring into the validity of the legislative or executive acts of another country

forum selection clause

a provision in a contract that fixes in advance the jurisdiction in which any disputes will be arbitrated or litigated

One of the main principles of the GATT system was a commitment by nations to: a. Conduct of regular multilateral trade negotiations. b. Eliminate indirect non-tariff barriers to trade. c. Create the World Trade Organization. d. Stabilize tariff rates at then current levels and achieve greater stability in foreign commerce

a. Conduct of regular multilateral trade negotiations.

In 1944, the allied nations met at the Breton Woods Conference and out of concern with the "post-war" economies of the nations of the world created: a. International Monetary Fund and World Bank. b. World Bank and International Trade Organization. c. United Nations and World Trade Organization. d. General Agreement on Trade and tariffs and United Nations.

a. International Monetary Fund and World Bank.

Personal jurisdiction can be obtained by: a. Lawful service of process on defendant. b. Subject matter jurisdiction alone. c. Arbitration under rules of American Arbitration Association. d. Lawful service of process on plaintiff.

a. Lawful service of process on defendant.

A plaintiff in a lawsuit in a state court must prove that an individual or corporate defendant sued in the lawsuit has ______ in order to obtain personal jurisdiction over that defendant. a. Minimum contacts with the forum state. b. Derives at least $100,000 or more in revenues (or another amount set by state law) from operating in that state. c. Owns property in that state. d. An intent to do business in the forum

a. Minimum contacts with the forum state.

Minimum contact

an amount of contact that a defendant must have with a state in order for that state's courts to have jurisdiction over that person or business

emergency powers

broad powers exercised by the president during times of national crisis

The Full Faith and Credit Clause of the US Constitution requires: a. Service of process by the enforcing court. b. Universal jurisdiction for the subject claim or dispute. c. US courts to recognize the public acts, records and judgments of other US states. d. US courts to recognize the public acts, records and judgments of other US states and well as foreign countries.

c. US courts to recognize the public acts, records and judgments of other US states.

Litigation

final alternative for resolving a dispute - used mostly in the US

Import licensing scheme

form of non-tariff barrier to trade that is often hidden to administrative and regulations

Nullified or Impaired

happens when a WTO member nation acts contrary to its commitments in a WTO agreement

US Subject matter example

have jurisdiction over cases involving federal statutes and federal government agencies, constitutional issues, etc.

Smoot-Hawley Tariff Act

high tariff law that contributed to a global economic downturn in the 1930s --> great depression

International trade commission

independent agency created by Contress, conduct investigation and prepare extensive reports on matters related to international economics and trade for congress

Congressional-executive agreement

international agreements between the president and a foreign country "creature of compromise" meaning not written into law

Dispute Settlement Body

means, provided by the World Trade Organization, for member countries to resolve trade disputes rather than engage in unilateral trade sanctions or a trade war.

Mediation

voluntary, non-binding, conciliation process. - no public records - have a mediator

A means to prevent multiple taxations by a state or a multinational corporation is to offer the taxpayer a: a. Trade preference. b. Special tariff treatment for its products as an offset to reduce tax costs. c. Conditional MFN trade status for goods delivered to ports in that state. d. "Water's edge election."

d. "Water's edge election."

_____ is not a non-tariff trade barrier. a. Special licenses for importing. b. Bureaucratic "red tape" in the customs or import process. c. Quotas on imported products. d. Unconditional MFN trade.

d. Unconditional MFN trade.

transparency

the extent to which government regulations are made readily available to the public

trade consultations

the first step in dealing with a potential nullification/impairment of a WTO member nation (pre-WTO dispute settlement)

Arbitration

the formal process of having an outside person, chosen by both sides to a disagreement, end the disagreement: - cant withdraw - used to level playing fields

Jurisdiction

the power of a court to hear and decide a case

Comity

the willingness of one court or department of government to respect the rules or decisions of another or to grant it some privilege or favor