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:
all of these are correct.
Foreign investment laws might include:
all of these are correct.
If mediation is chosen as a form of dispute resolution, it will be:
a voluntary process.
One popular form of dispute settlement is arbitration. This is defined as:
submission for determination of the disputed matter to a private unofficial person selected by agreement.
Many factors must be considered in choosing binding arbitration. All of the following should be considered except:
Complexity
In a socialist country, the legal system:
exhibits no need for commercial law because such disputes are settled politically.
In the U.S., jurisdiction is:
I.
Defined by the U.S. Constitution
II.
Defined by various statutes
Both I and II.
Which convention calls for contracting parties to criminalize bribery of public officials and money laundering?
UN Convention Against Corruption
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?
United Kingdom, Canada, and Australia
The Paquette Habana case concerned:
a question discerning applicable international law.
Which of the following is NOT one of the reasons that International Business Law has become more uniform?
All nations have agreed to practice and enforce the codes and legislation set down by the World Trade
Organization.
ADR refers to:
Alternative (or Alternate) Dispute Resolution.
The OECD Guidelines for Multinational Enterprises encourages responsible conduct in which of the following areas?
Both bribery and environment
Doing business internationally requires an understanding of all of the following except:
availability of legal counsel in each country
A treaty between two countries is said to be _____, and a treaty between three or more countries is said to be _____.
bilateral; multilateral
Bills of lading are meant to be:
a means of transferring goods to buyers.
All of the following are remedies available under CISG except:
Reformation
Which of the following documents are always required in a documentary collection for the sale of goods?
The draft, invoice, and bill of lading
When goods are to be transported by more than one mode of transportation, the transportation is:
multimodal.
If a merchant receives goods unsolicited with a note, “If I don’t hear from you, I assume you will keep them and pay for
them”, failure to respond to the sender is an acceptance
no acceptance
Contract negotiations in Japan are characterized by all of the following except:
the presence of lawyers during the negotiations to insure that their clients‘ legal interests are protected.
Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods, CIF port of Amsterdam. The
seller refused to ship. The buyer brings an action for damages. In the United States, a court would probably rule that:
the damages should be measured by the difference between the contract price and the market price of the goods at
the port of shipment.
In Basse and Selve v. Bank of Autralasia, the seller submitted a phony sample of ore to an inspection company to obtain a
Certificate of Analysis showing high- grade ore. On the basis of the certificate, the seller paid for the documents and took
delivery of the ore. The ore turned out to be worthless. The court ruled that:
the bank had acted properly in paying the seller even though the ore did not conform to the contract because the
certificate was regular on its face.
Because importers and exporters assume different risks, the most preferred way to conduct business and minimize these
risks is:
documentary sale.
The documentary collection is the process by which:
banks collect payment from the buyer.
The government of Venezuela is purchasing a large quantity of American beans to be loaded on its own ship at the port of
New Orleans. The buyer will arrange to have its vessel loaded and will obtain its own export licenses. The seller may be
asked to quote its prices:
FAS Venezuelan vessel.
In the event that a buyer receives a shipment of seriously defective goods, under the CISG:
all of these are correct.
The trade terms “FOB” and “CIF” are defined by which of the following:
Incoterms
If a U.S. buyer wants to avoid a sales contract with an Italian seller, the CISG states that the U.S. buyer:
can avoid the contract only if there has been a fundamental breach by the Italian seller.
In the U.S., the remedy of specific performance is limited to those instances where:
the goods are unique.
All of the following may be raised as reasons for nonperformance of sales contract except:
Both the U.S. and France have ratified the Convention on Contracts for the International Sale of Goods (CISG). A buyer
in France and a seller in the U.S. enter into a contract for the sale of widgets. If a dispute arises:
the CISG will apply since all the requirements have been met.
International Sales Law:
I.
II.
Which of the following is correct?
Both I and II.
A, New York firm, sends a purchase order to B in Sweden. A standard clause on the purchase order states that “All
disputes are to be heard in the courts of New York.” B confirms using its standard form, which states that “all disputes are
to be resolved in arbitration before the ICC, Sweden.” Under the CISG:
No contract exists because B’s terms were a counteroffer that was not accepted by A.
The primary body of law in the U.S. dealing with domestic sales contracts is:
Uniform Commercial Code (UCC)
A letter of credit is a contract between:
the buyers and their own bank.
Under the Reciprocal Trade Agreements Act, the President has the power to lower an existing tariff on an imported
product from Country A. On the basis of reciprocity, Country A need not lower the tariff on that same product imported
from the U.S. but must lower tariffs on some product imported from the U.S.
True
The U.S. Court of International Trade:
hears cases arising under the trade and tariff laws of the U.S.
The power of Congress “to regulate commerce with foreign nations and among the several states” is found in:
Art. I, Sec. 8 of the U.S. Constitution.
A draft due at a future date or after a specified period of time that has been signed by the buyer is called:
trade acceptance.
The type of credit that allows the use of one credit instead of many to be used with the maximum amount available during
a certain period of time is called:
a revolving credit.
A state’s authority to tax a business engaged in foreign commerce is granted by the Commerce Clause.
True
The rule that usually prevails for interpreting documents that are submitted to a bank for payment under a letter of credit is
commonly called the:
strict compliance rule.
Under a documentary collection, the banks are acting as the agent of the buyer for collection purposes.
False
A holder in due course, as defined by the UCC, includes which of the following? A holder in due course:
must have taken the instrument for value and without notice it is overdue or has been dishonored.
There is very little debate over how the U.S. Constitution divides power over foreign affairs and foreign trade between the
Congress and the president.
False
Assume that DownPillow sells pillows to a Japanese buyer and forwards documents and a draft for acceptance. Assume
also that DownPillow discounts the trade acceptance to a U.S. bank, which then discounts the instrument in the credit
markets. If the pillows turn out to be moldy and worthless, which of the following statement(s) is (are) true?
The Japanese buyer must still honor and pay the acceptance upon presentation.
“Bill of exchange” and “international draft” are two names for the same type of negotiable instrument.
True
Under the equal dignity rule, statutes and treaties with inconsistent provisions are resolved under the rule that the last in
time prevails.
True
Treaties are negotiated by:
the executive branch and the Senate.
The issuing bank is required to pay on documents in case of _____, but not in the event of:
fraud; breach of warranty.
As a seller to a foreign market, assess whether you would prefer to use a documentary sale than a sale on open account
terms.
I would prefer to use a documentary sale for foreign markets. Documentary sale is more secure and the
buyer has certain obligations to fulfill. Open account terms are too risky when dealing with foreign
buyers because payment is not required right away.
Which of the following is one of the President’s inherent powers?
All of these are correct
Which law imposed the highest tariffs in U.S. history, causing worldwide retaliation?
Smoot-Hawley Tariff Act of 1930
Tariffication is the process in which quotes, licensing schemes, and other nontariff barriers to trade are “converted” to
tariffs.