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True / False
1. 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.
a. True
b. False
2. The unconditional most favored nation policy provides that a lower tariff rate negotiated with one nation
automatically grants lower tariff rates to like products imported from all nations that stand in most favored nation
status with the U.S.
a. True
b. False
3. The Omnibus Act provides a fast-track procedure for approving trade agreements whereby the president can
declare the agreement to be law.
a. True
b. False
4. The Trade Act of 1974 and Omnibus Act give the president broad powers to deal with a range of complex
international economic problems and to negotiate the reduction of non-tariff barriers.
a. True
b. False
5. The Trading with the Enemy Act was passed for the purposes of allowing the U.S. to sell arms to friendly nations.
a. True
b. False
6. Trade law has been used in the U.S. to further not only U.S. economic policy but also U.S. foreign policy.
a. True
b. False
7. The main objective of U.S. trade law has been solely to discourage trade with non-free market nations.
a. True
b. False
8. The drafters of the U.S. Constitution placed the power to regulate international trade with the federal government
and the power to tax imports with state governments.
a. True
b. False
9. 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.
a. True
b. False
10. One argument in favor of a strong executive branch in international affairs is that the nation must "speak with one
voice."
a. True
b. False
11. Congress has delegated to the president the authority to carry out the trade policies that it has set by statute.
a. True
b. False
12. The U.S. Constitution gives the president broad powers over foreign commerce and international trade without
consultation with Congress.
a. True
b. False
13. A treaty is an agreement or contract between two or more nations that is recognized and given effect under
international or domestic law.
a. True
b. False
14. The primary instrument for effectuating trade relations is the granting of most favored nation status.
a. True
b. False
15. Under the equal dignity rule, statutes and treaties with inconsistent provisions are resolved under the rule that the last
in time prevails.
a. True
b. False
16. Under the Supremacy Clause of the Constitution, where a law of the federal government directly conflicts with a
state law, the federal law will prevail.
a. True
b. False
17. The Commerce Clause vests the federal government with unlimited control over domestic commerce and limited
power over foreign commerce.
a. True
b. False
18. The negative implication doctrine means that state governments may not enact laws that impose a substantial burden
on foreign commerce.
a. True
b. False
19. A state's authority to tax a business engaged in foreign commerce is granted by the Commerce Clause.
a. True
b. False
20. While the Commerce Clause restricts what states may do as to imports, it places no restrictions on state actions as
to exports.
a. True
b. False
21. State governments may restrict imports in order to deal with public health, safety concerns and sanction for violation
of international law.
a. True
b. False
22. The Department of Treasury has the broadest authority over international trade of all department level agencies.
a. True
b. False
23. The Import-Export Clause gives power to the federal government and state governments to tax exports and imports.
a. True
b. False
24. Under the Trade Promotion Authority, the President has limited powers to negotiate trade agreements with
unfriendly nations.
a. True
b. False
Multiple Choice
25. In Star-Kist Foods, Inc. v. United States, Star-Kist complained that the president's authority under the Reciprocal
Trade Agreement Act of 1934 was unconstitutional. Star-Kist sought to challenge a presidentially lowered tariff on
canned tuna imported from Iceland.
a. Star-Kist won because the congressional delegation of authority was vague and indefinite as to the policies or
objectives sought.
b. Star-Kist won because of the lack of a standard or "intelligible principle" upon which presidential action could
be judged.
c. Star-Kist lost because they lacked "standing" to protest the president's action; only Congress could object by
means of a concurrent resolution.
d. Star-Kist lost because the court determined that the 1934 statute had provided a sufficiently discernible
standard to guide presidential action.
26. The drafters of the U.S. Constitution believed:
I. That economic disintegration could result if states were free to tax imports and exports.
II. That the federal government should share regulation of international commerce with the
states.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
27. The power of Congress "to regulate commerce with foreign nations and among the several states" is found in:
a. Art. III, Sec. 1 of the U.S. Constitution.
b. Art. I, Sec. 8 of the U.S. Constitution.
c. The Declaration of Independence.
d. The Preamble to the U.S. Constitution.
28. The president derives his power and authority to deal with foreign commerce and international trade from all of the
following sources except:
a. Powers delegated to him by Congress.
b. His authority as commander in chief.
c. His "inherent" executive power.
d. His judicial power delegated by the courts.
29. Under the Constitution, a treaty is considered:
a. "Non-binding and discretionary."
b. "Unenforceable."
c. "Law of the Land."
d. None of the Above.
30. In order for an executive agreement of the president concerning foreign affairs to be valid:
I. A court must find that it is based on the president's inherent powers or authority granted by
congress.
II. It must be based upon an express power granted by the U.S. Constitution.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
31. Inherent powers are:
I. Powers that the president derives from the U.S. Constitution.
II. Used by the president to conduct foreign affairs.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
32. The Reciprocal Trade Agreements Act provides the president with a mechanism:
a. For lowering U.S. tariffs and encouraging other countries to lower their rates as well.
b. For setting quotas on products that can be imported into the U.S.
c. For providing financial assistance to U.S. companies exporting to foreign countries.
d. For lowering U.S. tariffs by threatening or imposing an embargo on another nations' products.
33. If the president is negotiating a trade agreement with Germany over reducing tariffs on telephone switching
equipment and he wants to make sure there will be no problems with its passage, he can:
a. Call the Speaker of the House and President Pro Tem of the Senate to get their assurances of passage.
b. Declare through Presidential Proclamation that it will be law.
c. Seek fast-track approval with Congress prior to the trade agreement being concluded.
d. None of the above.
34. During the 1940s, the U.S. instituted a price support system for American potatoes. Congress had addressed the
problems of agricultural imports in the Agricultural Act of 1948. The U.S. Secretary of State entered into an
executive agreement with Canada that would permit only seed potatoes to be imported into the U.S. This agreement
was not submitted to or approved by congress. A potato importer imported potatoes into the U.S. for A & P grocery
stores for resale. When the court tried this case brought by the U.S. against the importer:
a. The court found for the importer because the executive agreement was entered into without Congressional
approval.
b. The court found for the U.S. because this was an executive agreement provided for by the president.
c. The court used the "first in time rule" and found for U.S. since Congress and the president are equal.
d. None of the above is correct in this situation.
35. Xerox Corp. manufactured parts for copy machines in the U.S. that were shipped to Mexico for assembly. The
copiers were designed to be sold to Latin America and did not operate on U.S. electric current. The copiers after
assembly were kept in U.S. customs warehouses pending sale to Latin America. These goods were free of import
duty by federal law. The city of Houston, Texas, assessed these copiers with a local property tax. Xerox sued to
have this tax declared unconstitutional. The court decided:
I. That Xerox must pay all this tax because state/local governments have taxing powers just
like the U.S.
II. That Xerox must pay only one-half since state/local governments are one-half partners with
the federal government.
III. That this law is preempted by federal law.
a. I only.
b. II only.
c. III only.
d. Both I and III.
36. The Import-Export Clause of the U.S. Constitution:
I. Prohibits the federal government from taxing exports.
II. Prohibits the states from taxing either imports or exports.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
37. A state's authority to tax a business engaged in foreign commerce is determined by:
a. The negative implication doctrine.
b. The multiple taxation doctrine.
c. The Monroe Doctrine.
d. Both A and B.
38. The United States Trade Representative is:
a. A cabinet level post reporting directly to the president that carries on trade negotiations for the U.S.
b. The one that administers the Bureau of Customs and Border Protection.
c. The one that represents the U.S. at all GATT meetings.
d. Both A and C.
e. Both B and C.
39. The International Trade Commission is:
a. The agency that collects customs duties.
b. The agency that prepares reports on matters related to international economics and trade for Congress.
c. The agency that promotes U.S. trade with other countries.
d. None of the above.
40. The U.S. Court of International Trade:
a. Has authority over all tax questions dealing with Revenue Raising.
b. Hears cases dealing only with U.S. Customs issues.
c. Hears cases arising under the trade and tariff laws of the U.S.
d. Has no jurisdiction over the collection of tariffs or duties.
41. The Bureau of Customs and Border Protection is administered by the:
a. Department of Commerce.
b. Department of State.
c. Department of Treasury.
d. Department of Homeland Security.
42. The International Trade Administration:
I. Is part of the Department of Commerce.
II. Investigates certain U.S. unfair import cases.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
43. In Dole v. Carter, the court considered Senator Robert Dole's complaint that the president be enjoined from
returning the Hungarian coronation regalia to Hungary. The court:
a. Dismissed the case because it was not "ripe" for adjudication.
b. Enjoined the president from ordering the return of the crown until a formal treaty could be ratified by
Congress.
c. Determined that under existing protocols with Hungary, the crown could not be returned until the year 2000.
d. Considered the executive agreement to be in accord with an earlier treaty between Hungary and the U.S.
e. Considered the president's agreement to return the crown as validly done pursuant to the president's inherent
constitutional authority (as an "executive agreement").
44. In the Crosby v. National Foreign Trade Council case, the US Supreme Court ruled that the Massachusetts law that
bans state agencies from doing business with Myanmar was valid under the
a. Commerce Clause
b. Import-Export Clause
c. Supremacy Clause
d. None of the above
45. Which of the following is one of the President’s inherent powers?
a. The power to conduct foreign affairs
b. The power to appoint and receive foreign ambassadors
c. The power to act as commander-in-chief of the armed forces
d. All of the above
46. Treaties are negotiated by:
a. just the executive branch.
b. just the House and Senate.
c. the executive branch and the Senate.
d. the executive branch, the House, and the Senate.
47. Which law imposed the highest tariffs in U.S. history, causing worldwide retaliation?
a. Hoover Act of 1930
b. Treaties in Force Act of 1912
c. Smoot-Hawley Tariff Act of 1930
d. Reciprocal Trade Agreements Act of 1934
48. Congress grants the president emergency powers for responding to international emergencies, which are defined as:
a. natural disasters within the U.S.
b. wars between the U.S. and other countries.
c. events that threaten American national security.
d. none of the above
49. When a law or regulation of the federal government directly conflicts with those of a U.S. state or local government,
the federal law will generally prevail. This is known as:
a. federal preemption
b. federal preference
c. federalism
d. none of the above
50. Compare and contrast the Treaty Clause and the Commerce Clause (and the powers that flow from each).
51. Compare and contrast the powers of Congress and the president with regard to the regulation of trade (for example,
customs and imports).
52. Weigh the relative value and risks of fast-rack regulation.
53. Describe when the president may and may not act without specific Congressional consent. What are the
ramifications of these differences?
54. Recalling the issue in Japan Line, Ltd. v. County of Los Angeles, write an international agreement on the taxation
of cargo containers.
55. Caspiana is a small state located in Central Asia. Caspiana has been a staunch U.S. ally for many years and is an
important source of many precious metals utilized by the defense industry in the production of advanced weaponry.
U.S. defense contractors and the U.S. government have been Caspiana's primary customers for these precious
metals, many of which are found nowhere else in the world. Additionally, Caspiana's territory has served as a base
for U.S. antiterrorism efforts in Central Asia.
Caspiana shares a border with Arala. Arala is a much larger state ruled by a military dictatorship and possessing a
large military. However, Arala lacks the mineral wealth possessed by Caspiana. In recent years, Arala military
forces have crossed the border, seized stockpiles of precious metals and returned to Arala. Last week, Aralan
forces crossed the border with Caspiana and seized a portion of Caspiana's territory containing numerous precious
metal mines. Arala subsequently declared the seized territory to be part of Arala.
In response to this crisis, the president of the United States immediately negotiated an agreement with the
government of Caspiana providing that U.S. forces would terminate Arala's occupation through military force and
would establish a permanent base in the country. The president signed this agreement without prior consultation with
or the receipt of authorization from the U.S. Congress. The president claimed that such consultation and approval
were not necessary.
What type of agreement has the president negotiated with Caspiana? What do such agreements provide? Utilizing
the opinion in Dole v. Carter, would a judicial challenge to the agreement by a member of Congress be successful?
Why or why not?
What statute could the president utilize to respond to the crisis in Caspiana? When may this statute be utilized? What
actions may the president take utilizing this statute?
