51) What method accounts for the majority of resolutions in international commercial transaction
disputes?
A) criminal suits
B) conciliation
C) arbitration
D) litigation
E) coercion
52) ________ is a nonbinding agreement between parties to resolve disputes by asking a third
party to mediate differences.
A) Litigation
B) Prosecution
C) Arbitration
D) Conciliation
E) Coercion
53) Mariette’s U.S.-based company is having a dispute with a Chinese partner. What method
would be especially effective in resolving this dispute?
A) arbitration
B) conciliation
C) coercion
D) litigation
E) a criminal suit
54) Teel’s Tacos, a food company in the United States, is trying to resolve a dispute with a local
company in Belize that has been operating under the same name in its country. All attempts
made by the U.S. company to settle the issue in a friendly manner have failed, so the owners of
the U.S.-based Teel’s Tacos have decided to settle the dispute with the local company by
appointing a mediator. They also want the sessions to be private because of the fear of creating a
poor public image. Which of the following dispute resolution methods is best suited for this
situation?
A) conciliation
B) prosecution
C) arbitration
D) coercion
E) litigation
55) Ralph Richards’s company has been attempting to solve a problem with a contract default by
the Dutch government. He has tried conciliation but the two parties did not find any common
ground on which they could begin a fruitful negotiation for settlement. What is likely to be the
course of action that both the parties will try next?
A) mediation
B) informal settlement
C) arbitration
D) litigation
E) coercion
56) In a typical ________ procedure, parties select a disinterested and informed party or parties
to serve as a referee to determine the merits of the case and make a judgment that both parties
agree to honor under the law.
A) arbitration
B) informal settlement
C) conciliation
D) litigation
E) coercion
57) When formal arbitration organizations receive requests for arbitration, they initially attempt
to resolve the issue through
A) coercion.
B) prosecution.
C) direct legal intervention.
D) litigation.
E) conciliation.
58) A consumer products manufacturing company is trying to solve a dispute with one of its raw
material suppliers over a breach of contract. After the failure of the initial attempts to solve the
dispute in a friendly informal manner, the companies have approached an international
commission to appoint an informed party to act as a referee and make a judgment that both
parties will honor. What dispute resolution method is being used by these companies?
A) litigation
B) arbitration
C) mediation
D) coercion
E) judicial intervention
59) What generally occurs during arbitration?
A) Lawsuits are initiated between the conflicting parties.
B) The preliminary step of conciliation is often bypassed.
C) Arbitral centers demonstrate varying rules and procedures.
D) The plaintiff and the defendant each select a person to present their case.
E) Sessions are private and confidential.
60) What is usually placed in the arbitration clause and is becoming standard in many
international contracts?
A) the preferred court or legal body of arbitration
B) the place of arbitration and the language used in the arbitration process
C) the contract stating that the results of the arbitration process are not binding on both parties
D) the judgment of the legal action initiated in the litigation stage
E) the copy of the lawsuit filed by the plaintiff
61) Arbitration clauses require agreement wherein the concerned parties agree
A) on who is right and who is wrong.
B) on the validity of the litigation issues.
C) to abide by the awards resulting from the arbitration.
D) to not hire a legal counsel to represent them.
E) to not name the arbitrators.
62) When all the other methods have failed, what is the final step in an international commercial
dispute?
A) conciliation
B) encouraging one’s government to force the other party to comply
C) restarting the arbitration process
D) litigation
E) coercion
63) Ideally, what should be the first step in the settlement of a dispute?
A) using the strategy of conciliation
B) engaging in arbitration
C) coercing the other party
D) placating the injured party
E) initiating a litigation
64) What poses a major challenge to international marketers while dealing with counterfeiting?
A) the ease with which consumers can tell the difference between real and counterfeit products
B) the theft of products by pirates during shipping
C) government regulations legitimizing counterfeiting
D) the collusion between contract manufacturers and illegitimate sellers
E) the widespread availability of duplication software
65) What is the most attractive target for pirates because of high development cost and low
reproducibility costs?
A) apparel
B) software
C) auto parts
D) books
E) agricultural produce
66) What commonly counterfeited product has the potential for doing the greatest harm to the
consuming public?
A) toys
B) CDs
C) pharmaceuticals
D) software
E) clothing
67) In which country is the ownership of IP rights established by prior use?
A) Japan
B) Brazil
C) Saudi Arabia
D) Jordan
E) United States
68) In the United States, ownership of intellectual property rights is established by “prior use
versus registration,” which implies that to claim the ownership of a trademark, an individual
must
A) be recognized by the United Nations trademark protection agency.
B) pay for the right to own a trademark.
C) establish first use of a trademark.
D) prove the ownership of a trademark in a court of law.
E) register a trademark only in his home country.
69) What international convention was established to recognize and protect intellectual property
rights?
A) Paris Convention
B) Munich Agreement
C) Tokyo Convention
D) Eurasian Convention
E) Kyoto Protocol
70) Which of the following conventions is responsible for the promotion of the protection of
intellectual property rights among all the member countries of the UN?
A) The Basel Convention
B) The Madrid Arrangement
C) The Tokyo Agreement
D) The Eurasian Convention
E) The World Intellectual Property Organization
71) The ________ is a multicountry agreement that has established a regional patent system that
allows any nationality to file a single international application for a European patent.
A) Madrid Arrangement
B) Paris Convention
C) TRIPs Agreement
D) Basel Convention
E) European Patent Convention
72) What is the most comprehensive multilateral agreement on intellectual property to date and
covers a full range of rights that are embodied in current international agreements?
A) World Intellectual Property Organization Charter
B) Trade-Related Aspects of Intellectual Property Rights Agreement
C) Inter-American Convention Agreement
D) The Madrid Arrangement
E) Paris Agreement for the Protection of Industrial Property
73) What is an approach mentioned in the text to prevent Chinese consumers from creatively
copying foreign intellectual property?
A) boycotting all trade activities with China
B) placing embargoes on trade with China
C) charging what the market will bear
D) disengaging local representation in sales
E) pursuing dispute resolution at the World Court
74) The Internet has no political or natural boundaries; as a result,
A) existing laws are generally sufficient to cover contractual issues and piracy.
B) existing cyberlaws incorporate the uniqueness of the Internet successfully.
C) companies cannot rely on individual-country laws but must go to international courts.
D) the individual-country laws, which may or may not include private protection, are used in the
absence of uniform and internationally accepted cyberlaws.
E) the regulatory environment is stable and consistent between countries.
75) ________ buy and register descriptive nouns, geographic names, names of ethnic groups and
pharmaceutical substances, and other similar descriptors and hold them until they can be sold at
an inflated price.
A) Patent trolls
B) Server farms
C) Domain name registries
D) Cybersquatters
E) Universal resource locators
76) According to Canadian law, what is the standard expected by courts in Canada to determine
whether a representation is false or misleading?
A) de novo standard
B) credulous person standard
C) clearly erroneous standard
D) informed consumer standard
E) discretionary standard