BLAW 497 Final Exam Questions

Jules is a French citizen. He is a prominent company executive and decides to run for any available elected position in the EU administrative structure because he believes the EU is "too powerful" and has too many officials and "Brussels bureaucrats" making decisions affecting French industry. He must qualify under French election law and then run for a position as a: a. Member of the European Congress. b. Member of the European Parliament. c. Member of the European Commission. d. Member of the European Council.

b. Member of the European Parliament.

The European Union (EU) consists of _____ state members. a. 28 b. 15 c. 31 d. 22

a. 28

Items manufactured and sold without permission of the owner of IPRs to that product are referred to as: a. Counterfeit goods. b. Illicit export products. c. Infringement goods. d. Illegal goods.

a. Counterfeit goods.

The Berne Convention provides for: a. A centralized copyright registration process for all EU members. b. Non-discriminatory treatment of foreign copyright applicants in all signatory states. c. A 10-year maximum duration for all copyrights granted by signatory states. d. A centralized process for owners of trademarks to bring infringement lawsuits.

b. Non-discriminatory treatment of foreign copyright applicants in all signatory states.

The Agreement on Trade-Related Aspects of International Property (TRIPS) attempts to: a. Create a centralized patent application process for all nations, whether or not they are signatories to TRIPS. b. Require signatories to enact minimum substantive standards of protection for IPRs. c. Prohibit the grant of copyrights if a nation deems it contains "obscene" content. d. Limit the period of copyright protection in signatory states to 20 years for consistency with the patent protection period.

b. Require signatories to enact minimum substantive standards of protection for IPRs.

Company A in the US enters into a standard manufacturing license allowing Company B in Venezuela to use its IPRs for technology to make washing machines and sell them in Venezuela. There is an up-front license fee of $100,000 and then Company A receives a 10% royalty on all sales (exclusive of sales taxes) generated by Company B. In the first year, those sales total $1,000,000, and the amounts actually collected from sales by Company B is $800,000. Given this information, what is the total amount of money payable by Company B to Company A under this license? a. $200,000 b. $ 280,000 c. $180,000 d. $100,000

c. $180,000

The EU insures minimum prices for agricultural products and imposes tariff barriers on non-member agricultural products through establishment of its: a. European Agricultural Commission (EAC). b. Central Bank for Agricultural Financing (CBAF). c. Common Agricultural Policy (CAP). d. Eurozone.

c. Common Agricultural Policy (CAP).

The parties in an arrangement granting a limited permission for one party to use the other's IP for a limited purpose for a defined period of time are the owner of the IPR and the party obtaining permission to use such IPRs. They are in order: a. Licensee and licensor. b. Seller and buyer. c. Licensor and licensee. d. Lessor and lessee.

c. Licensor and licensee.

There are multiple institutions within the EU with various roles. The "heads of state" of the EU members comprise membership of the "highest ranking" section of the complex EU administrative structure with jurisdiction over a wide range of issues. This administrative group is called: a. Council of Ministers. b. The Council of Ministers. c. The European Council. d. The European Commission.

c. The European Council.

After enactment of the FCPA, various multinational treaties were signed to fight governmental corruption. They include: a. WTO Convention to Eliminate Facilitating Payments. b. WTO Convention on Promoting Integrity in International Business Transactions. c. The UN Convention against Corruption. d. The Andean Pact Convention against Unethical Business Practices.

c. The UN Convention against Corruption.

The Foreign Corrupt Practices Act (FCPA) prohibits: a. The acceptance of bribes or gratuities offered by US companies by foreign government officials. b. Gifts of "anything of value" by foreign government officials to a US citizen intended to get or retain business with their company. c. The offering of bribes or gratuities by US companies or their agents to foreign government officials intended to get or retain business. d. Cash bribes only.

c. The offering of bribes or gratuities by US companies or their agents to foreign government officials intended to get or retain business.

A Portuguese seller enters into a contract to sell "large eggs" to a Spanish grocery buyer. There is some confusion about the definition of "large eggs" as used in the sales contract compared to EU law which affects the duty computation of "large eggs." Which law will be the "dominant" one and provide the controlling interpretation of "large eggs?" a. European Law as defined by its International Court of Justice (ICJ). b. Spanish law as defined by its supreme court. c. Portuguese law as defined by its supreme court. d. European Union law as defined by its Court of Justice.

d. European Union law as defined by its Court of Justice.

A licensor typically attempts to restrict the use of the transferred IP by placing a national marketing/sales restriction on the licensee's sale of the product, typically called a: a. Field of use limitations. b. Utility patent restriction. c. Output restriction. d. Geographical limitation

d. Geographical limitation

The only EU institution whose members are elected by private, individual European citizens is called the: a. The European Commission. b. The European Council. c. The European Directorate. d. The European Parliament.

d. The European Parliament.

If a product is marketed with reference to a geographic region this is called a: a. Geographical indication. b. "Special geographic mark." c. Advertised source indicator. d. Proposed point of manufacturer

a. Geographical indication.

Member states of the EU selecting the Euro as their national currency are referred to as members of the: a. European Monetary Union. b. Eurozone. c. European Monetization Area. d. European Single Currency Zone (ESCZ).

b. Eurozone.

Company A in Greece imports stoves from Brazil and pays the mandated tariff. Company A then exports the stoves to a buyer in France and no tariff is paid for that import, it enters France duty free. Of the "Four Freedoms" specified in the Treaty of Rome, this is an example of the Freed of Movement of: a. Goods. b. Consumer Goods. c. Capital. d. Kitchen Goods.

a. Goods.

The Latin phrase "caveat emptor" is a leading principle of law in determining appropriateness of advertising claims. It means: a. May the parties be well. b. Let the seller beware. c. Let the buyer beware. d. Parties be wary of one another.

c. Let the buyer beware.

A US company doing business in Latin America through an independent agent there may have contractual provisions allowing termination of their contractor agreement for any reason. This may not be valid under various state laws which "override" or suppress the private contract provisions. These laws usually: a. Are intended to protect the interests of the local agent-contractor and local small businesses. b. Are intended to promote foreign company business in the local nation. c. Are intended to protect the interests of the foreign company. d. Are intended to prevent tax evasion by the local agent.

a. Are intended to protect the interests of the local agent-contractor and local small businesses.

A Spanish buyer imports computers from China and pays the appropriate tariff. It then sells the computers to a Portuguese buyer and the goods enter Portugal without tariff. The Portuguese owner then exports the computers to a distributor in Italy and again the computers cross a national a border with no tariff. In this respect, the EU is similar to a: a. Customs union. b. Free trade zone (FTZ). c. Development area. d. Free trade area (FTA).

a. Customs union.

Most nation place restrictions on advertising "sin products" such as: a. Tobacco and liquor. b. "Zionist goods" and liquor. c. "Light beer" and prescription drugs. d. Infant formula and prescription drugs.

a. Tobacco and liquor.

Owners of intellectual property rights (IPRs) may grant in writing a limited permission for another party to use their IP (e.g. copyrights, patents, know-how) for a limited purpose for a defined period of time under a: a. Sales contract. b. Rental agreement. c. License agreement. d. Purchase order.

c. License agreement.

The Foreign Corrupt Practices Act (FCPA) a. is a US statute which prohibits: a. The receipt of "bribes" or "anything" of value by foreign government officials. b. Any offer of a bribe or "anything of value" to a foreign government official exceeding $10,000 USD. c. Using an independent foreign sales agent by American companies. d. The offering of a "bribe" or "anything of value" to a foreign government official.

d. The offering of a "bribe" or "anything of value" to a foreign government official.

Often courts have to decide if advertiser's claims are deceptive or merely: a. Deceptive on a "de minimis basis" so not worth prohibiting. b. Overly positive. c. Specially protected "adverting speech." d. Vague exaggerations called "puffing."

d. Vague exaggerations called "puffing."

The true beginning of the concept that led years later to the current European Union (EU) was in 1957 with the signing of the: a. Treaty of Lisbon. b. Treaty for a European Economic Community. c. Treaty of Rome. d. Treaty of Paris.

c. Treaty of Rome.

The Patent Cooperation Treaty (PCT) establishes a centralized utility patent application process by: a. Standardizing the patent prosecution process in all 152 signatory states. b. Allowing the World Intellectual Property Organization (WIPO) to grant patents. c. Giving the applicant a priority claim on that invention in all signatory states if the patent application is prosecuted within 30 months. d. Assisting patent applicant in locating funding for their patented products.

c. Giving the applicant a priority claim on that invention in all signatory states if the patent application is prosecuted within 30 months.

Scottish separatists living in Glasgow in 2017 create the "Republic of Scotland" and declare themselves a separate state. They assert a right to become a member state of the EU and are greatly concerned at the "Brexit" vote in the UK and what happens after the UK leaves the EU. They believe EU membership is critical. Can the Republic of Scotland become an EU member automatically by virtue of having been a part of UK before? a. No, the Maastricht Treaty deems only recognized "states" can apply for and be granted membership. Until such universal recognition occurs, at best the Republic of Scotland is a candidate for future membership. Their situation is similar to Kosovo (see Table 15.2). b. No, there is a population requirement for state membership and Republic of Scotland does not meet this. c. Yes, but just as any other member-to-be it must have stable institutions, a respect for human rights, and a functioning econ

a. No, the Maastricht Treaty deems only recognized "states" can apply for and be granted membership. Until such universal recognition occurs, at best the Republic of Scotland is a candidate for future membership. Their situation is similar to Kosovo (see Table 15.2).

The Court of Justice of the European Union: a. Decides cases involving European member states in place of the UN International Court of Justice which otherwise would hear those cases. b. Applies applicable criminal law when case before it is criminal in nature. c. Functions as the final decision-maker on questions/interpretations of EU law. d. Hears primarily cases involving alleged violation of European human rights law.

c. Functions as the final decision-maker on questions/interpretations of EU law.

John goes to a local car dealer in Atlanta and wishes to buy a good, used car. The salesman tells him "This car is fantastic. It is especially good for attracting interest from local females, who like successful guys like you." He also shows him the odometer indicating the car has only 14,000 miles on it. John buys the car. His mechanic later tell him the car had the odometer turned back and actually had 84,000 miles on it, John also sees no difference in interest from local girls. Can he sue the car dealer for one or both of the fraudulent/deceptive advertising and misrepresentation made by its salesman? a. Yes, he can sue for fraud in misleading him about female interest. b. Yes, he can sue for both the 'female interest" claim and the misrepresentation of mileage. c. He can sue only for the misrepresentation of miles claim. d. He can sue for neither claim.

c. He can sue only for the misrepresentation of miles claim.

Bob uses the Patent Cooperation Treaty (PCT) process to file his application on June 15, 2106 with the WIPO and designates select countries to which he intends to prosecute his application. This gives him a priority claim for that patent but he must begin the processing process in the designated countries no later than approximately ___________. a. June 15, 2019. b. December 15, 2018. c. June 15, 2017. d. December 15, 2019.

b. December 15, 2018.

The FCPA allows a US company to offer a foreign government official financial value to perform routine, administrative acts not involving the official's exercise of discretion. These offers are called: a. Consideration payments and must be less than $5,000 in value. b. Facilitating payments. c. Facilitating payments requiring advance written approval by the US Department of Justice. d. Administrative payments.

b. Facilitating payments.

The Canadian province of Quebec has statutes in place intended to promote French culture and protect French heritage there called: a. Canadian dual-language laws. b. French language laws. c. The Quebec-Canada Language Treaty. d. Linguistic preservation statutes.

b. French language laws.

Company A in the U.S. wishes to enter into its first ever foreign manufacturing license arrangement with Company B in Brazil. You are asked to negotiate this arrangement in behalf of Company A. One of your main concerns is that Company B will not report sales and receipts accurately and will understate revenues which determine royalties owed. The result will be smaller payment to your client. What is a way to address this specific issue in the contract? a. Negotiate the largest royalty fee percent possible. b. Include a clause in the license determining giving Company A the right to audit the licensee's records to verify sales and royalty computation. c. Include a clause that mandates monthly reporting by Company B of sales amounts to Company A. d. Insist that the currency of payment is US Dollars.

b. Include a clause in the license determining giving Company A the right to audit the licensee's records to verify sales and royalty computation.

Honduras has special laws which protect local, independent agents representing foreign companies. These are patterned after Paraguay's laws. A local agent (Guillermo) who works for Company A in the US is terminated. He claims his contract termination violated his contract which allowed termination only for "just cause" without a statutory payment. Which of the below items would the US company correctly claim you consider to be "just cause" sufficient to allow his "just cause" termination at least cost? a. Honduras itself will set forth in the law what the "good cause" phrase means. b. Guillermo failed to meet his assigned "sales target" given him by Company A. c. Guillermo consistently failed to submit timely paperwork to his Company A contact. d. Guillermo was found guilty of bribing government officials in behalf of a local Honduran company.

a. Honduras itself will set forth in the law what the "good cause" phrase means.

Texas Drilling Company (TDC) in Dallas wins a contract to provide offshore drilling services to an agency of the Indian government. It must have an onshore office in Mumbai and a full technical crew ready to begin drilling in 6 weeks. As president of TDC, you know the Indian government moves slowly and you consider paying "grease money" to appropriate Indian government officials. The items you are considering are: 1) payments to the harbor cargo inspectors to allow quicker unloading of drilling rig equipment on vessels; 2) special payments fees to state-owned utility companies to hook up power at TDC's local office; 3) all-expenses paid trip to London for officials awarding the contract to TDC; 4) tuition payments to designated local schools of children of Indian government officials; 5) cash payment to immigration officials for fast processing of TDC employee visa requests. Which of the above are likely "allowed" fa

b. 1, 2, 5

The Maastricht Treaty in 1991 advanced the concept of advanced economic integration with the EU and also for the first time the principle of: a. Reduced tariff barriers for EU members. b. EU "citizenship" to promote the movement of labor across borders. c. Consolidated national security arrangement e.g. multinational armies. d. Use of tariffication to eliminate non-tariff barriers to trade.

b. EU "citizenship" to promote the movement of labor across borders.

The European Patent Convention: a. Acts as a "competitor" to the PCT in all of its signatory states. b. Assists applicants in obtaining funding for their patent prosecution efforts if they meet certain financial criteria. c. Creates a consolidated multinational patent application process for all European Union countries. d. Provides for enforcement of provisions in the PCT.

c. Creates a consolidated multinational patent application process for all European Union countries.

Under WTO principles as stated in TRIPS, all WTO members must provide for minimum copyright and patent protection periods. This mean that if I am a patent holder in a WTO signatory nation I will typically have the exclusive right to manufacture and/or license my patent rights for _______ and I will have a copyright protection period at least ______. a. 50 years .... 20 years. b. 50 years .... 50 years. c. 20 years .... 20 years. d. 20 years ..... 50 years.

d. 20 years ..... 50 years.

The primary EU institution promoting monetary policy and the stability of prices and payment systems is the: a. European Central Bank located in Athens, Greece. b. European Federal Bank located in London, England. c. European Bank located in Brussels, Belgium. d. European Central Bank located in Frankfurt, Germany.

d. European Central Bank located in Frankfurt, Germany.

John writes a novel he is convinced will be a bestseller worldwide. He wishes to protect it to the maximum extent possible but cannot afford the time or money to file for copyright protection in almost 200 states that exist. What is his best strategy? a. File an application in a form provided for by WIPO in its Switzerland office. b. File to register his copyright with the Berne Convention Copyright Office. c. Affix © and the year the year of authorship to all copies of the work and they are automatically protected in all Berne Convention signatory states when created. d. File a copyright registration application in as many states as he can afford.

c. Affix © and the year the year of authorship to all copies of the work and they are automatically protected in all Berne Convention signatory states when created.

Vanessa is the Chief Financial Officer for a US company. It is a large multinational company whose annual revenues exceed $5.0B and its shares are trade on the New York Stock Exchange. The FCPA accounting and record-keeping provisions clearly apply to the company. A first ever Securities and Exchange audit in the US home office reveals that several payments to unidentified individuals in foreign entities in different countries were lumped together as "Other Miscellaneous Expenses" and stated as $20,000 on one line item with no further explanation. The SEC states this is likely a FCPA violation. What is Vanessa's best response? a. The matter will be investigated and we will get back with you. (But, Company ignores the problem and does nothing.) b. The SEC has no authority to do anything like an audit involving FCPA compliance. c. The amount in question is insignificant and does not meet any "materiality" threshold. d.

d. The matter will be investigated further and will get back with SEC by a stated deadline.

A US licensor authorizes the manufacture of its goods by a foreign company with the intent it will limit its sales of that product to a geographic area e.g. country of licensee. If that company exports that item back to the US for sale (usually) at a lower cost, these items are referred to as: a. Illegal exports. b. Gray market goods. c. Dumped goods. d. Unlicensed goods.

b. Gray market goods.

Susan in Chicago owns the domain name "www.susandresses.com" used for her dressmaking shop. She discovers a year later that a rival recently obtained the domain name www.susansdresses.com and this makes Susan angry. She calls the business located 20 miles away and its owner offers to sell her their domain name for $10,000. Susan comes to you for advice. You advise her that this appears to be a blatant case of: a. Trademark infringement. b. Copyright infringement. c. Cybersquatting. d. The gray market.

c. Cybersquatting.

Company A operates in Brazil through its designated foreign sales agent Fred who works under a standard written contract covered by the FCPA. Fred makes 8.00% commission plus "reasonable expenses" under this arrangement for funds received from sales he generates. What are some "red flags" which Company A should be careful to consider if it is concerned Fred is acting illegally? a. Fred states a preference for payment in Brazilian currency. b. Fred asks that his commission be increased to 10.00% if the contract is renewed. c. Fred asks for periodic "extraordinary" expense reimbursement. d. Fred asks that he be allowed to sell Company A products in another country as well as Brazil.

c. Fred asks for periodic "extraordinary" expense reimbursement.

Sana is a Syrian refugee who has lived in Germany for 5 years. He acquired German nationality under German law. His 22-year old daughter Dema (still a Syrian national) arrives in Germany and lives with him briefly. Dema receives a job offer as an au pair in London and wishes to travel there. Under EU principles, can her entry into the UK be restricted or limited in any way? a. No, the UK is not allowed under EU law to restrict entry into the UK for any reason for any national. b. Yes, she can be deemed a "dangerous refugee" by UK authorities because of her prior residence in a Syrian war zone. c. No, she is a close family member of an EU member state national. d. Yes, she is not a national of an EU member state.

c. No, she is a close family member of an EU member state national.

Arbitration tribunals hearing international contract dispute cases such as Marlwood and World Duty Free have imposed a drastic remedy on a party by: a. Refusing to consider merits of any case where bribes given to obtain contract exceeded $10,000,000. b. Dismissing any case where corruption is involved. c. Refusing to enforce contracts induced by bribery. d. Imposing punitive damages awards of 500% or more above regular damages if the contract obtained by corruption.

c. Refusing to enforce contracts induced by bribery.

States wishing to become EU members must meet certain criteria and then attempt by negotiations to enter into an accession treaty with defined membership powers. One nation has been an applicant in membership negotiations since 1987, and that state is: a. Albania. b. Vatican State. c. Turkey. d. Cyprus.

c. Turkey.

In addition to its anti-bribery provisions, the FCPA also contains: a. A provision requiring the foreign governments to prosecute the government official for receiving a bribe outside the United States. b. Automatic placement of a US company violating the FCAA on to a blacklist prohibiting it from exporting or importing any goods from the official's nation. c. Special tariff-based penalties on a US company if FCPA is violated during an international trade. d. Accounting and record-keeping requirement mandating accuracy.

d. Accounting and record-keeping requirement mandating accuracy.

A large American retailer decides to enter the Mexican market for the first time. It opens up over 1,000 stores in that country in less than 3 years. It is accused by American journalists of FCPA violations by extending bribes to many local Mexican government officials to obtain the quick purchase of local business operating licenses and building occupancy permits. The company denies all such accusations. Which is it best defense to such accusations? a. Mexico has prosecuted no local officials accused of accepting bribes for violating Mexican anti-bribery laws. b. It did pay a very small amount a few times but it was de minimis and not an FCPA violation. c. Local Mexican culture of la mordida had to be followed. Bribes are a part of Mexican culture and not actionable under FCPA. d. All of the acts in question involving any payments were for "facilitating payments" intended only to expedite the store-opening process.

d. All of the acts in question involving any payments were for "facilitating payments" intended only to expedite the store-opening process.