True / False
1. Civil litigation is the primary means of settling contract disputes in the U.S. than in virtually any other country.
a. True
b. False
2. Many societies view litigation as evidence of personal achievement by the parties.
a. True
b. False
3. Jurisdiction has two (2) components where the court must have personal and subject matter jurisdiction.
a. True
b. False
4. Venue means the appropriate set of laws applicable to a case.
a. True
b. False
5. In an international dispute, where there is no choice of law and forum the forum with greatest interest under conflicts
of law, will have the jurisdiction to hear the dispute.
a. True
b. False
6. The Bhopal disaster taught American corporations that they could insulate themselves from legal liability by having
foreign control of the plant.
a. True
b. False
7. A U.S. court might refuse to enforce a Libyan court judgment were there is a lack of “due process” under the Fifth
Amendment.
a. True
b. False
8. A foreign company’s first line of defense in litigation in the U.S. is often that they are not subject to the jurisdiction of
the courts.
a. True
b. False
9. A basis for the non-enforcement of a foreign judgment is the defective service of process or lack of personal
jurisdiction.
a. True
b. False
10. Venue describes the appropriate geographical location of a court with jurisdiction.
a. True
b. False
11. Once parties have initiated litigation in the United States, they cannot agree to have the dispute arbitrated.
a. True
b. False
12. The results of a mediation are not binding on either party.
a. True
b. False
13. The Due Process clause of the U.S. Constitution requires that before a company can be brought before a court in
the U.S. it must have had minimum contacts with the forum.
a. True
b. False
14. According to the Asahi Metal case merely placing your product into “the stream of commerce”where it is a
component in a product is not sufficient to establish jurisdiction over a foreign company.
a. True
b. False
15. Choice of forum clauses fix in advance where the case will be heard by contract.
a. True
b. False
16. Choice of law clauses in contracts stipulate in advance what court the parties will use in case of a dispute and
thereby avoid conflicts of law issues.
a. True
b. False
17. In general, at common law and in civil law jurisdictions, the choice of law clauses is rarely upheld.
a. True
b. False
18. Most countries have broad discovery rules, just like the U.S., allowing the collection of evidence.
a. True
b. False
19. The Full Faith and Credit Clause of the U.S. Constitution applies to foreign court judgments.
a. True
b. False
20. Under the Full Faith and Credit Clause of the U.S. Constitution, a decision by a New York court will be enforced by
a Georgia court.
a. True
b. False
21. Settlement of a dispute by binding arbitration never makes the decision binding.
a. True
b. False
22. One advantage of arbitration is that awards are recognized by the signers of the U.N. Convention on Recognition
and Enforcement of Foreign Arbitral Awards (or, the New York Convention).
a. True
b. False
23. In an arbitration agreement, the parties may choose to restrict the arbitrator’s powers or let the arbitrator decide
what is equitable and good.
a. True
b. False
24. With mediation as a form of dispute resolution, the parties have a very limited degree of control over the process.
a. True
b. False
25. With mediation as a form of dispute resolution, the parties may at any point initiate litigation or agree to submit the
dispute to arbitration.
a. True
b. False
26. Two of the disadvantages of arbitration are the increase in time to hear a dispute and the expense of the hearing.
a. True
b. False
27. A global economy cannot function unless business people know that contracts are enforceable and the appropriate
remedy can be achieved.
a. True
b. False
28. In the Asahi Metal Industry case, the Solano Superior Court refused jurisdiction over Asahi for lack of personal
jurisdiction.
a. True
b. False
29. One advantage of arbitration is that the entire case and evidence is not open to the public.
a. True
b. False
30. Zapata, a Texas Corporation, entered into a contract with Unterweser, a German corporation, to tow Zapata’s
drilling rig from Louisiana to Italy. A storm arose and Zapata told Unterweser to tow the rig into Tampa, Florida.
Zapata immediately filed a lawsuit in Florida against Unterweser for damages to the rig. The original contract called
for “Any dispute must be heard before the London Court of Justice.” The U.S. Supreme Court held that:
a. Florida has jurisdiction since that is where the oil rig is now located.
b. The case should be heard in Texas or Germany because that is where the parties are located.
c. The forum-selection clause is contrary to public policy and will not be enforced; either Florida, Texas, or
Germany would be the correct place to hear it.
d. The parties must adhere to the forum-selection clause and have the case heard in London.
31. DownPillow, Inc., a U.S. company, and Eiderhoff, a German Company, negotiate a contract with forum and choice
of law clauses for the U.S. A dispute arises, the case is heard in the U.S., and a judgment is given to DownPillow.
DownPillow wants to enforce this judgment in Germany.
a. Germany will not allow this judgment to be enforced in Germany because it does not recognize U.S.
judgments.
b. Germany will allow one-half of the judgment to be enforced in Germany.
c. Germany will allow the entire judgment to be enforced if Eiderhoff received notice, it does not violate German
law, and the U.S. reciprocates with German judgments.
d. None of the above.
32. In a California lawsuit between a U.S. resident and a manufacturer based in Taiwan, what might limit the jurisdiction
of the California court?
a. The Due Process Clause of the Fourteenth Amendment.
b. Sovereign immunity.
c. The Hague Convention on Taking Evidence Abroad.
d. Comity.
e. All of the above.
33. If mediation is chosen as a form of dispute resolution, it will be:
a. A mandatory process.
b. Binding on all the parties.
c. A voluntary process.
d. Not available in international disputes.