International Management Module 6

1. UN Convention against Corruption (UNCAC) 2. United Kingdom Bribery Act 3. Transparency International's Corruption Perception Index

1. Addresses a broader range of corruption, such as general abuse of power and trading in official influence, and recovery of assets from officials accused or convicted of engaging in corruption 2. Includes penalties for corporate failure to prevent bribery 3. Assesses the likelihood that firms from industrialized nations will engage in bribery abroad

1. Utility 2. Design 3. Plant

1. innovative, useful invention or process 2. aesthetic, non-useful creation 3. innovations in growing things

Which clause in a contract specifies the location where the dispute will be settled? Choice-of-forum Choice-of-jurisdiction Choice-of-venue Choice-of-law

Choice-of-forum

Court proceedings are generally less adversarial in ____ (civil/common) law cases.

Civil

The ______ law approach to a legal system is based on a systematic collection of laws designed to cover all areas of concern. religious civil common business

Civil

Which of the three legal systems most widespread system globally? religious law common law civil law criminal law

Civil law

Which approach to law relies on decisions made by judges in previous cases along with statutes and regulations made by legislatures? classic law common law religious law civil law

Common law

What set of uniform rules established by the United Nations governs the formation of international sales contracts and explains the rights and obligations of the buyer and the seller? Convention on the International Sale of Goods Foreign Contract Practices Act Sarbanes-Oxley Act General Agreement on Tariffs and Trade

Convention on the International Sale of Goods

True or false: The Madrid Agreement of 1891 standardized trademark protection, so it is no longer necessary for a company to seek trademark protection in each country it wishes to operate. True False

False

True or false: The Sarbanes-Oxley Act has been primarily criticized for its negative affects on the market and potential investors. True False

False

True or false: The United Nations' International Court of Justice has the power to enforce contracts between parties from different countries. True False

False

True or false: Under a common law system, a civil wrong is rectified by compensation. True False

False

True or false: Worldwide agreement on a body of laws is known as globalization. True False

False

Which act of the U.S. Congress prohibits bribery of foreign officials and sets requirements for transparency of accounting transactions? International Accounting Standards Act Foreign Corrupt Practices Act Fair Labor Standards Act Sarbanes-Oxley Act

Foreign Corrupt Practices Act

According to the World Bank summary of governance indicators, which of the following countries rates highest in rule of law, with a score of 92 out of 100? Malaysia Hong Kong Singapore China

Hong Kong

Which of the following result when a country's legal system is based on the rule of law? (Check all that apply.) Human rights tend to be protected. Investors know their interests are protected. Foreign investment is encouraged. The powerful elite define the rules.

Human rights tend to be protected. Investors know their interests are protected. Foreign investment is encouraged.

What are two characteristics of product liability cases in the United States? The United States allows companies to use developmental risk defenses. In the United States, juries can award actual damages to the plaintiffs. In the United States, juries can award punitive damages. In the United States, product liability cases are heard by judges or juries.

In the United States, juries can award actual damages to the plaintiffs. In the United States, juries can award punitive damages.

What guides the accounting principles of countries in the European Union? (Check all that apply.) International Accounting Standards Board Generally Accepted Accounting Principles International Financial Reporting Standards Securities and Exchange Commission

International Accounting Standards Board International Financial Reporting Standards

Which statements accurately describe a country's legal system? (Check all that apply.) It is a collection of governing principles. Its goal is to provide for the welfare of the country. It is a collection of legislation and regulations. It is a collection of a country's values, norms, and beliefs.

It is a collection of governing principles. Its goal is to provide for the welfare of the country. It is a collection of legislation and regulations.

What are two characteristics of the German civil law tradition? It was based in part on the German Revolution. It is based on the application of general laws to individual cases. It has influenced law in Greece, Japan, and, partially, in China. It incorporates the values of liberty and equality into civil code.

It is based on the application of general laws to individual cases. It has influenced law in Greece, Japan, and, partially, in China.

Which statement is true regarding the protection of trade secrets? All countries must protect production processes as well as the products themselves. It is up to the company to maintain the value of its trade secrets by not allowing them to be publicly known and to ensure that they are not disclosed. There is an expiration date for the legal protection of trade secrets, although it differs for various industries. All countries have standardized the laws regarding the protection of trade secrets.

It is up to the company to maintain the value of its trade secrets by not allowing them to be publicly known and to ensure that they are not disclosed.

Which of the following are aspects of the Japanese Fair Trade Commission? (Check all that apply.) It targets small, foreign, or weak industries. It is responsible for enforcing antitrust laws. It is viewed as one the strongest bodies in Japanese government. It operates separately from the Japanese court system.

It targets small, foreign, or weak industries. It is responsible for enforcing antitrust laws. It operates separately from the Japanese court system.

What are three characteristics of Napoleonic law? It was drafted in post-revolutionary France in 1804. It incorporated the values of liberty and equality. It is based on the application of general laws to individual cases. It incorporated the values of the American Revolution. It has influenced the approach to law of Spain and Italy.

It was drafted in post-revolutionary France in 1804. It incorporated the values of liberty and equality. It has influenced the approach to law of Spain and Italy.

It is more common in _____(US/Japan) for antitrust action to be brought only if the FTC (Fair Trade Commission) has investigated the case first.

Japan

What three countries follow religious law? Libya South Africa Morocco Canada Iran

Libya Morocco Iran

Which agreement covers most of the world's trademark protection? Madrid Agreement of 1891 General Agreement on Tariffs and Trade General Inter-American Convention for Trademark and Commercial Protection for the Western Hemisphere Office of Harmonization in the Internal Market

Madrid Agreement of 1891

In many majority _____ (Christian/Muslim/Buddhist) nations, alcohol is strictly forbidden.

Muslim

United States patent law European Union patent law

Patent goes to the first inventor. Definition of novelty is more broad. Patent goes to the first person to register an invention. Definition of novelty is more narrow.

Which of the following are examples of local laws in other countries and their associated penalties? (Check all that apply.) An Australian writer was sentenced in the United States to three years in jail for writing a novel that insulted the President. Saudi Arabia enforces sanctions against wearing revealing clothing. A British subject with a history of serious mental illness was executed in China for carrying heroin. A foreigner in Japan was arrested for taking out his garbage without having his alien registration card.

Saudi Arabia enforces sanctions against wearing revealing clothing. A British subject with a history of serious mental illness was executed in China for carrying heroin. A foreigner in Japan was arrested for taking out his garbage without having his alien registration card.

U.S. accounting practice is guided by which of the following organizations? (Check all that apply.) Securities and Exchange Commission International Monetary Fund Financial Accounting Standards Board International Financial Reporting Standards

Securities and Exchange Commission Financial Accounting Standards Board

According to the World Bank's "Doing Business" survey, which Asian city ranks highest for investor protection? Singapore Hong Kong Taipei Beijing

Singapore

What two U.S. agencies engage in a sweeping process when a company is reported to have engaged in corruption to see if the problem is occurring in other companies in that industry or related industries? The Department of Justice The Federal Trade Commission The Federal Bureau of Investigation The Securities and Exchange Commission

The Department of Justice The Securities and Exchange Commission

Which statement accurately describes the differences between EU and US patent law? In the EU a patent goes to the first inventor, while in the U.S. the patent goes to the first person to register. The EU definition of novelty is much narrower than the U.S. definition. In the U.S., an innovation must be absolutely novel, while in the EU an innovation may be made available to the public in any form.

The EU definition of novelty is much narrower than the U.S. definition

Which of the following are principles of common law systems? (Check all that apply.) The defendant is presumed innocent until proven guilty. The rights of the state supersede the individual. Case law develops through precedents. Civil wrongs are rectified by compensation. Case law co-exists with statute law.

The defendant is presumed innocent until proven guilty. Case law develops through precedents. Civil wrongs are rectified by compensation. Case law co-exists with statute law.

Which of the following are principles of common law systems? (Check all that apply.) The defendant is presumed innocent until proven guilty. Civil wrongs are rectified by compensation. The rights of the state supersede the individual. Case law develops through precedents. Case law co-exists with statute law.

The defendant is presumed innocent until proven guilty. Civil wrongs are rectified by compensation. Case law develops through precedents. Case law co-exists with statute law.

What are the advantages of trade secrets? (Check all that apply.) They do not require the use of a lawyer for the administrative process. They are less costly than initiating a patent. They require the innovation to be shared with the government. They do not require any registration process.

They do not require the use of a lawyer for the administrative process. They are less costly than initiating a patent. They do not require any registration process.

Smaller nations have been pushing for shortening the protection periods on patents from the current 15-20 years down to 5 years or less. What are two reasons why multinational companies resist this change? They will not be able to recoup their costs. It will increase the number of patent trolls. It will remove the incentive to develop new technology. It will create an unfair competitive market.

They will not be able to recoup their costs. It will remove the incentive to develop new technology.

True or false: A trade obstacle, such as a tariff, may provide revenue for the issuing government, but it can also be a barrier to certain imports. True False

True

Which of the following is an example of a worldwide court? International Supreme Court WTO Court of Litigation World Supreme Court U.N. International Court of Justice

U.N. International Court of Justice

Which of the following statements characterize antitrust laws in the United States and the European Union? (Check all that apply.) Multiple select question. U.S. antitrust law focuses on the impact on the consumer. European Union antitrust law does not benefit the consumer. U.S. antitrust law adopts the per se concept. European Union antitrust law allows for market dominance. European Union antitrust law focuses on the industry's competitive structure.

U.S. antitrust law focuses on the impact on the consumer. U.S. antitrust law adopts the per se concept. European Union antitrust law allows for market dominance. European Union antitrust law focuses on the industry's competitive structure.

Which measure taken to combat bribery addresses a broader range of corruption, such as general abuse of power and trading in official influence, as well as the recovery of assets from officials accused or convicted of engaging in corruption? United Kingdom Bribery Act Chinese Anti-Bribery Act UN Convention against Corruption Sarbanes-Oxley Act

UN Convention against Corruption

Japanese antitrust legislation got its start when the ______ introduced it during its occupation of Japan after World War II. United States European Union

United States

When comparing the United States views on antitrust laws to the European Union's, the ______ tends to look at the consumer first instead of focusing on the rivals' objections. European Union United States

United States

What are two issues that arise in cross border litigation? Which jurisdiction's law should apply? Which country should the arbitrator come from? Where should the litigation occur? How much time should be given for discovery?

Which jurisdiction's law should apply? Where should the litigation occur?

Which most important source of international law is an agreement between countries often reached as a result of the efforts of international organizations such as the United Nations and the World Trade Organization? a binding contract a union a treaty a tariff

a treaty

The Sarbanes-Oxley Act had a direct effect on standards in the U.S. ______ industry. agriculture pharmaceutical banking accounting

accounting

The U.S. government imposing taxes on a U.S. citizen living in France is an example of ______. a corrupt foreign practice a compact between the U.S. and France an extraterritorial application of the laws a legal use of Napoleonic law

an extraterritorial application of the laws

If there was only one automobile manufacturer in the United States and it was impossible for another company to enter the industry, the government or the company trying to enter the market might try to enforce a competition or ______ law. merger copyright antitrust patent

antitrust

What four areas areas have been affected by the extraterritorial application of laws by the United States? criminal law antitrust law corporate law human rights law environmental law employment law

antitrust law human rights law environmental law employment law

What type of laws are intended to prevent inappropriately large concentrations of economic power and its abuse through price fixing, market sharing, and monopolies? liability laws antitrust laws tort laws discrimination laws

antitrust/competition laws

Instead of taking their dispute to court, two companies agree that bringing in a neutral third party to resolve the issue will be less costly and faster. These two companies have agreed to use ______. litigation extraterritoriality conventions arbitration

arbitration

What method of dispute resolution involves one person or body making a binding decision in lieu of going to court? mediation litigation arbitration resolution

arbitration

The Foreign Corrupt Practices Act is relevant in an international business situation that involves ______. copyright infringement product liability tax evasion bribery

bribery

Principles of a ______ law system include the use of precedents, case law co-existing with statue laws, and the notion that the defendant is presumed innocent until proven guilty. common central religious civil

common

The United Nations developed CISG as a way to solve jurisdictional problems related to _____. contract performance domestic imports tax evasion consumer franchise disputes

contract performance

When musicians legally challenged the music-sharing site Napster, the basis for the artists' argument was their ______ in the songs they had written and recorded. patent copyright trademark tariff

copyright

Which form of intellectual property protection gives authors, composers, and creators the exclusive right to publish and dispose of their work? copyrights patents trademarks trade names

copyrights

Agreements between countries can be called ______. (Check all that apply.) covenants treaties tariffs compacts protocols conventions

covenants treaties compacts protocols conventions

Customary international law is derived from ______. import custom regulations standards of common courtesy big businesses that wish to market to new customers customs that have been used for centuries

customs that have been used for centuries

What are two examples of customary international law? Multiple select question. regulation of antitrust law diplomatic immunity prohibition against price fixing prohibition against genocide

diplomatic immunity prohibition against genocide

Within the litigation process, pretrial activities include finding the facts that are relevant to the case. This process is called

discovery

A judge presiding over a case applies common law. This means the judge will rely on ______. common sense established precedents the decision of an arbitrator administrative regulations

established precedents

As a result of what is viewed as hostile dolphin/tuna harvesting practices, the United States has banned the import of tuna from certain countries. This is an example of the ______ application of laws. unification extraterritorial harmonization transnational

extraterritorial

When a country attempts to enforce its domestic laws in a foreign country, it is practicing ______. tax evasion extraterritoriality arbitration globalization

extraterritoriality

If the United States formed a grand jury to indict foreign-owned manufacturers because they dumped production waste without getting approval from a U.S. commission, then the United States would be trying to enforce its antitrust laws ______. exponentially divisively transnationally extraterritorially

extraterritorially

Worldwide agreement on a body of laws is known as ______. emancipation harmonization collaboration globalization

harmonization

An invention that is protected by a patent is known as _____ property

intellectual

A treaty is a source of _____ law that is used when making agreements among nations.

international

Extraterritoriality is more of a concern for _______(international/domestic) businesses.

international

The set of rules established in ____ law help set the context for stable relationships among nations.

international

Which type of law refers to the set of rules that nations have agreed to follow? international civil traditional common

international

Foreign investment is encouraged when a country's legal system is based on the rule of ______. a powerful elite law a dictatorship corporate charters religion

law

When Kenneth's U.S.-based company was going through a dispute with an affiliate in Germany, the case was tried on German law, as the two parties had agreed to in their original contract. This example demonstrates the choice-of- _____(law/forum) provision.

law

Product _____ laws hold a company and its officers and directors liable and possibly subject to fines or imprisonment when its product causes injury, damage, or death.

liability

What is the legal proceeding conducted to determine and enforce legal rights? discovery arbitration litigation harmonization

litigation

Which of the following areas of the law are of special concern to international businesses? (Check all that apply.) litigation in an international setting extraterritoriality immunity from prosecution of visiting foreign heads of state performance of contracts in an international setting

litigation in an international setting extraterritoriality performance of contracts in an international setting

Which form of intellectual property protection grants inventors the exclusive right to exploit, use, and sell their invention? patent trademark copyright trade name

patent

A(n) _____ grants the inventor of a product the exclusive right to manufacture and sell that product.

patents

The Japanese law on product liability requires that the ______ (plaintiff/defendant) prove design or manufacturing negligence.

plaintiff

A contract between businesses in two different countries falls under ______ international law, while disputes between two countries over trade subsidies falls under ______ international law. public; private common; civil civil; common private; public

private; public

A manufacturer of coffee makes recalled all of its products after learning that nearly 50 people had been injured after the glass carafes shattered when hot coffee was allowed to sit in it. These people planned to bring a lawsuit against the manufacturer. That lawsuit would be based on ______. product liability trade secrets copyright laws Incoterms

product liability

What form of international law governs the legal relationship between governments? civil international law private international law public international law common international law

public international law

The Qur'an is an example of a document that is used as the basis for a legal system based on ______ law. religious classic common civil

religious

What are the three distinct approaches found in a legal system? religious law civil law cyber law criminal law common law

religious law civil law common law

A trade _____ includes formulas, processes, patterns, or designs that a business wants to keep confidential.

secret

Under the standard of _____ liability, the manufacturer or designer is liable for damages caused by a product without the plaintiff needing to prove negligence by the manufacturer of the product.

strict

What standard does not require a plaintiff to prove negligence in the product's design or manufacture? design liability consumer liability product liability strict liability

strict liability

When a company is reported to have engaged in corruption, the Department of Justice and the Securities and Exchange Commission will look closely at it and at other companies in the industry and related industries, and the travel and expense claims of their agents. This process is called ______. sweeping discovery purging scrutiny

sweeping

The final say regarding cross border disputes lies with ______. the court that is being asked to hear the case both countries coming to an agreement an outside, neutral third party such as the UN or WTO the country that is bringing the dispute for resolution

the court that is being asked to hear the case

What are some purposes of a trade name? (Check all that apply.) to focus the customer on a product line to distance the company from negative publicity to do business in multiple geographic areas with one legal corporation to protect formulas, process, and patterns

to focus the customer on a product line to distance the company from negative publicity to do business in multiple geographic areas with one legal corporation

What is the purpose of a quota? to raise revenue for the government to limit the amount or source of imports to ban a certain product from entry into a country to restrict the number of companies in any one industry

to limit the amount or source of imports

Why are competition laws strictly enforced in the United States and the European Union? (Check all that apply.) to prevent market sharing to prevent business monopolies to prevent strict liability to prevent trade obstacles to prevent price fixing

to prevent market sharing to prevent business monopolies to prevent price fixing

A legal case that is based on _____ law usually results in a settlement based on money.

tort

The injuries inflicted on another person, either intentionally or negligently, are called _____.

torts

A _____ is the name used by merchants and manufacturers to designate and differentiate their products, and it is protected by WIPO and TRIPS. Multiple choice question. trademark copyright patent trade name

trade name

Intellectual property is protected by ______. (Check all that apply.) trade names copyrights trade agreements patents logos trademarks

trade names copyrights patents trademarks

A big disadvantage of Blank______ is that it may be legally discovered by another person and patented. patent trade secret copyright trademark

trade secret

Which form of intellectual property is any information not generally known to the public and that a business wishes to hold confidential? copyright trademark classified data trade secret

trade secret

The most common form of intellectual property protection pursued by international businesses is for ______. copyrights patents trademarks trade secrets

trade secrets

A shape, color, design, phrase, abbreviation, or sound that defines a company or its products and is reserved for the company's sole use is known as a ______. copyright trade name trademark trade secret

trademark

The Nike swoosh and the Starbucks mermaid are examples of a ______. trade name copyright trade secret trademark

trademark

An issue in patent protection is the increase in the number of patent ______, which are lawyers and investors who buy patents mistakenly granted to failed companies and then try to cash in on them. trolls hackers sharks discoverers

trolls

In the United States, patents are divided into which three types? plant design artistic form utility

utility plant design