1. The law governing the acquisition of territory and the settlement of disputes among nations is public international law.
a.
True
b.
False
2. Private international law sets out the basic rules of human rights and laws defining the treatment of refugees, prisoners
of war, and international criminals.
a.
True
b.
False
False
Easy
3. The United Nations Security Council, comprised of all its member nations, is the UN’s lawmaking body.
a.
True
b.
False
False
Easy
4. The World Bank’s mission is to end poverty by encouraging development. It does so by loaning money to poor
countries on favorable terms.
a.
True
b.
False
True
Easy
5. One of the reasons the International Court of Justice (ICJ) is so vital to the resolution of international business disputes
is that all parties are bound by the ICJ’s decisions. Because of this, the Court has vast enforcement power.
a.
True
b.
False
False
Moderate
6. The European Union is one of the world’s most powerful regional associations with 42 member nations as of 2014.
a.
True
b.
False
False
True
Easy
7. The fundamental principle of international law is the notion that each government has the absolute authority to rule its
people and its territory.
a.
True
b.
False
True
Easy
8. If a foreign government hires an American consulting firm to help the country’s textile industry improve production
operations, the contract is commercial, and if the foreign government refuses to pay, the consulting firm may sue the
government in American courts.
a.
True
b.
False
True
Moderate
9. Islamic law, the legal system influenced by the religion of Islam, is referred to as shari’a.
a.
True
b.
False
True
Easy
10. It is not a violation of United States law for a domestic company to import goods created by forced or indentured child
labor if this type of “labor” is commonly allowed in that foreign country.
a.
True
b.
False
False
Moderate
11. NAFTA is a trade agreement between the United States, Canada and Mexico.
a.
True
b.
False
True
Easy
Easy
12. A contract involving the sale of goods from a Texas seller to a French wholesaler must always use the United Nations
Convention on Contracts for the International Sale of Goods (CISG).
a.
True
b.
False
13. International rules that have become binding through a pattern of consistent, longstanding behavior are referred to as
customary international law.
a.
True
b.
False
True
Easy
Bloom’s: Knowledge
14. The Foreign Corrupt Practices Act prohibits bribery abroad.
a.
True
b.
False
True
Easy
Bloom’s: Knowledge
15. When a dispute arises between different countries, the preferred method of resolution is to litigate the case through the
foreign court system because it is less expensive and more private to do so.
a.
True
b.
False
False
Easy
Bloom’s: Knowledge
16. Law governing relations among governments and international organizations is referred to as _______, while law that
applies to private parties in international commercial and legal transactions is referred to as _______.
a.
b.
c.
d.
Easy
Bloom’s: Knowledge
False
Moderate
Bloom’s: Comprehension
17. How did it come about that China, France, Russia, the United Kingdom and the United States are the five permanent
members of the United Nations Security Council?
a.
They were the primary victors in World War II.
b.
They are the nations with the largest populations.
c.
They are the economic leaders of the world.
d.
They are the nations with the largest military forces.
18. Which of the following organizations was responsible for putting forth the UN Convention for the International Sale
of Goods (CISG) and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York
Convention)?
a.
the World Bank
b.
the UN Commission on International Trade Law
c.
the International Monetary Fund
d.
the World Intellectual Property Organization
Bloom’s: Knowledge
19. The International Court of Justice (ICJ) has not been an important force in resolving international business disputes. In
fact, in its seven-decade history, the ICJ has heard fewer than 200 cases. Which of the following statements regarding the
ICJ is NOT true?
a.
Only states can be a party to litigation before the ICJ.
b.
The ICJ only has jurisdiction over states that have agreed to be bound by its decisions.
c.
The ICJ has no enforcement power.
d.
The U.S. has agreed to abide by ICJ jurisdiction in all cases.
Bloom’s: Comprehension
20. Incoterms rules are
a.
a series of three-letter codes used in international contracts for the sales of goods.
b.
trade agreements promoting common policies among member states.
c.
a series of laws designed to make international contracts more uniform and predictable.
d.
rules outlining when the power of one nation can impose its laws in other countries.
Bloom’s: Knowledge
21. Which of the following is not a lawmaking body but is so influential that many of its voluntary rules, such as the
Incoterms, are accepted as the global standard in international business?
Bloom’s: Knowledge
a.
International Chamber of Commerce
b.
International Court of Justice
c.
The United Nation’s General Assembly
d.
The World Trade Organization
22. The European Union has adopted a currency known as the
a.
Yuri.
b.
Common Union.
c.
Yen.
d.
Euro.
Easy
Bloom’s: Knowledge
23. The principle that each government has the absolute authority to rule its people and its territory is known as
a.
legitimacy.
b.
immunity.
c.
jurisprudence.
d.
sovereignty.
Easy
Bloom’s: Knowledge
24. An American manufacturer has been asked to provide construction equipment to a foreign government. The contract is
for a sizable amount, so the manufacturer wants to protect itself should the foreign government refuse to pay for the
equipment once it has been delivered. What should the American manufacturer insist upon having if it wants to protect its
right to sue the government in the event it does not pay for the goods?
a.
a release of sovereignty
b.
a statement of extraterritoriality
c.
a waiver of immunity
d.
a submission of arbitration to the ICA
Moderate
Bloom’s: Application
25. Sovereign immunity holds that the courts of one nation lack the jurisdiction to hear suits against foreign governments
unless the foreign nation has waived immunity, has violated international law, or
a.
has engaged in a bilateral treaty.
b.
has been granted “most favored nation” status.
c.
is engaging in commercial activity.
Easy
Bloom’s: Knowledge
d.
has agreed to arbitration.
26. The Australian government has opened a for-profit tourist information center in New York City. If a dispute arises
over the lease of the storefront, may the landlord sue the Australian government in the United States courts?
a.
Yes, because the Australian government was engaged in a commercial activity.
b.
No, because the Foreign Sovereign Immunities Act forbids U.S. courts from hearing any case (without
exception) that involves a foreign government.
c.
No, because the only way the Australian government can be sued is if it signed a written waiver of immunity.
d.
Yes, because the Australian government violated international law.
Challenging
Bloom’s: Application
27. The doctrine of stare decisis is fundamental to
a.
civil law.
b.
common law.
c.
Islamic law.
d.
customary international law.
Easy
Bloom’s: Knowledge
28. Which of the following statements best describes common law?
a.
Common law is law that is the same or similar in all states.
b.
Common law is derived from statutes and codes made by legislatures.
c.
Common law is based on Justinian and Napoleonic codes.
d.
Common law requires judges to base their decisions on prior cases.
Moderate
Bloom’s: Comprehension
29. Shari’a is another name for ______ law.
a.
Islamic
b.
civil
c.
common
d.
Jewish
Easy
Easy
Bloom’s: Comprehension
30. Which principle of Islamic law prohibits any contract gain that is not clearly outlined at the time of contract,
especially when it involves risk and deception?
a.
gharar
b.
ijtihad
c.
shari’a
d.
jus cogens
ANSWER:
POINTS:
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Knowledge
31. A treaty is said to be _____ when those who have drafted it agree that it is in final form.
a.
bound
b.
entered into force
c.
ratified
d.
adopted
ANSWER:
POINTS:
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Knowledge
32. What is a major argument by the United States against the GATT Treaty?
a.
The United States competes against countries with unlimited pools of exploited labor.
b.
The treaty limits free trade based on its “most favored nation” requirement.
c.
The United States cannot apply the same taxes on imported goods that it applies to its domestic goods.
d.
The treaty does not provide any means for settling trade disputes between its member states.
ANSWER:
POINTS:
DIFFICULTY:
Moderate
KEYWORDS:
Bloom’s: Comprehension
33. The primary goal of the North American Free Trade Agreement (NAFTA) was to
a.
allow Canada, the United States, and Mexico to compete as a common economic entity against other countries
in the world.
b.
allow for the free and unrestricted movement of people from one country to another to improve the labor
market of all three counties.
c.
eliminate almost all trade barriers between the three nations.
d.
establish a common set of tariffs and trade restrictions for external countries.
ANSWER:
POINTS:
DIFFICULTY:
Moderate
KEYWORDS:
Bloom’s: Comprehension
34. Historically, many countries had dissimilar and confusing intellectual property rules covering copyrights, trademarks,
and patents. Which of the following served to clarify and harmonize the trade related aspects of intellectual property?
KEYWORDS:
Bloom’s: Knowledge
a.
GATT
b.
NAFTA
c.
CISG
d.
TRIPs
35. The United States and Argentina have signed the Convention on Contracts for the International Sale of Goods (CISG).
Oxtron, Inc., a U.S. company, and Leer, an Argentinean company, have entered into a contract under which Oxtron is to
ship medical devices to Leer. The contract does not include a choice of law provision. The contract will be governed by
a.
the CISG.
b.
the ICC.
c.
the domestic contract law of Argentina.
d.
the domestic contract law of the United States.
ANSWER:
POINTS:
DIFFICULTY:
Moderate
KEYWORDS:
Bloom’s: Application
36. _______ is the term used to describe certain fundamental principles of international law that cannot be altered by
custom or practice.
a.
Extraterritoriality
b.
Sovereign immunity
c.
Gharar
d.
Jus cogens
ANSWER:
POINTS:
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Knowledge
37. Extraterritoriality can be defined as
a.
the power of one nation to create trade restrictions that involve other countries.
b.
the power to regulate tariffs in foreign nations as provided for by GATT.
c.
the power of one nation to impose its laws in other countries.
d.
the power of a company to extend its subsidiaries overseas without abiding by trade laws.
ANSWER:
POINTS:
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Knowledge
38. The Uniform Money Judgments Recognition Act provides that U.S. courts will recognize foreign judgments provided
certain conditions are met. Which of the following is NOT one of those conditions?
a.
The defendant was given notice and an opportunity to appear.
b.
The award was based on a full and fair trial by an impartial tribunal with proper jurisdiction.
c.
The judgment was not fraudulent or against public policy.
ANSWER:
POINTS:
DIFFICULTY:
Easy
KEYWORDS:
Bloom’s: Knowledge
d.
The case was heard in an American court.
39. A binding process of resolving legal disputes by submitting them to a neutral third party is called
a.
mediation.
b.
arbitration.
c.
investigation.
d.
enforcement.
Easy
Bloom’s: Knowledge
40. Notren, Inc., a U.S. company, and SWT, a Singapore company, entered into a contract under which SWT is to ship
party supplies to Notren. One of the terms of the contract states, “Any disputes that arise under this contract will be
resolved in the courts of Singapore.” This contract term is a
a.
letter of credit.
b.
choice of language clause.
c.
choice of forum clause.
d.
draft clause.
Moderate
Bloom’s: Application
41. Explain the difference between public international law and private international law.
Moderate
Bloom’s: Comprehension
42. Explain the origin and purpose of the World Trade Organization.
Moderate
Bloom’s: Comprehension
43. Explain what the General Agreement on Tariffs and Trade (GATT) is and give pro and con arguments concerning this
agreement.
44. Various agencies that have great impact on world business operate under the United Nations. Name these
organizations and describe the purpose of each.
45. The Foreign Sovereign Immunities Act (FSIA) provides that American courts generally cannot hear suits against
foreign governments. Describe the three possible exceptions to this rule.
46. The Australian government has opened a for-profit tourist information center in New York City. If a dispute arises
over the lease of the storefront, may the landlord sue the Australian government in the United States courts?
a.
Yes, because the Australian government was engaged in a commercial activity.
b.
No, because the Foreign Sovereign Immunities Act forbids U.S. courts from hearing any case (without
exception) that involves a foreign government.
c.
No, becasue the only way the Australian government can be sued is if it signed a written waiver of immunity.
d.
Yes, because the Australian government violated international law.
Bloom’s: Application
Bloom’s: Comprehension