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53. The government of Argentina has taken over all the country's banks. No compensation has been paid. Some U.S.
citizens and businesses had accounts in the banks. Absent treaty provisions the takeover:
a. can be set aside by a U.S. federal court because no compensation was paid.
b. can be partially set aside by a U.S. federal court on the accounts of U.S. citizens and businesses.
c. can be reviewed by the U.S. State Department.
d. is immune from review under the act of state doctrine.
54. The European Union:
a. is a trademark registration organization.
b. eliminated tariff protections for its members in 1992.
c. is an international court of justice.
d. none of the above
55. Which of the following is a multilateral treaty?
a. a treaty between the United States and Canada on acid rain
b. a treaty between Mexico and the United States on border drug traffic
c. a treaty between England, Japan, and the United States on trade with China
d. none of the above
56. The Doctrine confirms the independence of sovereign nations anf their courts.
a. International Sovereignty
b. Act-of-Sovereign
c. Act-of-State
d. Act-of-Solidarity
57. U.S. businesses that break laws while operating in foreign countries:
a. cannot be prosecuted in those countries.
b. are immune under the act of state doctrine.
c. are subject to full prosecution, fines, and imprisonment.
d. none of the above
58. Italian manufacturers of leather goods have agreed to charge uniform prices on all sales in the United States in order
to better compete with U.S. manufacturers. Which of the following statements is true?
a. The agreement is a violation of U.S. antitrust laws, and the Italian manufacturers can be prosecuted.
b. The manufacturers are protected under the act of state doctrine.
c. The manufacturers enjoy sovereign immunity.
d. The manufacturers are protected under the forum non conveniens doctrine.
59. Which of the following sets limits on removal of profits from a country?
a. expropriation
b. forum non conveniens
c. repatriation
d. sovereign immunity
60. The CISG:
a. is the contract law of the EU.
b. is part of GATT.
c. was drafted by a commission of the United Nations.
d. has been adopted in virtually every nation.
61. Expropriation is the:
a. taking of private property by a country.
b. development of tariffs for goods leaving the country.
c. collection of a line of credit by property repossession.
d. none of the above
62. U.S. antitrust laws:
a. do not apply to companies based in other countries that are doing business in the United States.
b. do not apply to U.S. companies doing business in other countries.
c. apply to companies based in other countries that do business in the U.S.
d. none of the above
63. The Export Trading Company Act of 1982:
a. permits combinations of U.S. firms for purposes of international competition.
b. is part of NAFTA.
c. is under judicial challenge by the Justice Department.
d. is a tariff provision in the U.S.
64. Sovereign immunity:
a. applies to U.S. businesses here if they are engaged in international transactions.
b. applies to commercial transactions by private foreign firms.
c. does not apply to clear violations of international law by governments engaged in commercial transactions.
d. means each country is equal in its authority over its own laws and operations.
65. Most favored nation status means:
a. there are no import or export tariffs.
b. the country can engage in software importation with no intellectual property protections in place.
c. the country is a party to the NAFTA treaty.
d. there are no human rights issues in the country.
e. none of the above
66. What is the purpose of the LESCANT factors?
a. To deal with issues beyond the law when doing business in other countries.
b. To control tariff imports and exports.
c. To establish a uniform system of international contract laws.
d. To eliminate grease payments.
e. none of the above
67. Which of the following would be a violation of the Foreign Corrupt Practices Act?
a. A payment to a foreign government official to have a license application accelerated.
b. A payment to a member of the International Olympic Committee in order to obtain his or her vote on an
Olympic site.
c. A payment to an official of a government-owned telecommunications company in order to speed up
installation of phones in a business office.
d. A payment to a customs official in order to allow the unloading of goods from a ship.
e. All of the above are violations of the Foreign Corrupt Practices Act.
68. Which of the following are included as categories to whom payments are prohibited to influence results or outcome
under the Foreign Corrupt Practices Act?
a. government officials
b. judicial figures
c. government administrative hearing officers
d. head of the United Nation's International Labor Organization
e. All of the above are included.
69. What is the effect of trade sanctions?
a. businesses are prohibited from dealing with certain countries
b. businesses are prohibited from selling certain items in countries subject to the sanctions
c. there is no effect; they are strictly voluntary
d. either a or b
e. none of the above
70. Which of the following is not part of the Foreign Corrupt Practices Act?
a. financial statement disclosure requirements
b. requirement of internal monitoring in companies to prevent violations
c. requirement of public disclosure of all bids in foreign countries
d. requirement of monitoring contracts with foreign agents
e. both a and d are not part of the Foreign Corrupt Practices Act
71. The FCPA does not make which of the following acts criminal?
a. giving money to a foreign political candidate
b. giving a gift of clothing to a foreign political official
c. giving money as a means of preventing action from being taken
d. giving a payment for facilitation
72. Forum selection clauses:
a. are prohibited in cruise contracts.
b. are illegal under U.S. law.
c. eliminate liability.
d. none of the above
73. Forum non conveniens:
a. is a principle of U.S. justice.
b. is a principle of jurisdiction.
c. can require a case to be sent out of the U.S.
d. all of the above
74. Rich Hasbro is a vice president for Huffy Diapers. He currently heads the African division of this international
company. He has just been able to secure approval for sale of Huffy Pull-Ons in the Sudan. When the Pull-Ons
arrive at the borders, a customs agent demands $5,000 before he will allow the Pull-Ons into his country. Rich tells
the trucking company, “Pay him. I’ll reimburse.”
a. Rich has not violated the FCPA because this is a facilitation payment.
b. Rich has not violated the FCPA because a third party made the payment.
c. Rich has violated the FCPA.
d. none of the above
75. An NGO:
a. is not subject to the controls of the FCPA.
b. is not subject to any nation’s laws.
c. is an oil cartel.
d. none of the above
76. Which of the following is covered under the FCPA’s prohibitions?
a. obtaining business
b. retaining business
c. directing business
d. all of the above
77. Which of the following does the U.S. Justice Department refer to as a “red flag” for FCPA violations?
a. large consulting fees
b. hiring consultants to do all foreign business
c. allowing consultants to act independently in foreign countries
d. all of the above
78. Most-favored-nation status is:
a. part of the GATT treaty.
b. part of United States’ trade policy only.
c. is only part of EU governance.
d. none of the above
79. The United State has, since 1989, prohibited U.S.-based companies from selling military equipment to China. This
restriction is an example of:
a. a treaty trade restriction.
b. an individual nation sanction.
c. an illegal boycott.
d. none of the above
80. OPEC is:
a. a treaty among the EU, the Arab nations and the U.S.
b. an international environmental NGO.
c. an oil cartel.
d. disbanded.
81. Adam Smith supported international trade because:
a. countries could focus on what they did well and then trade with other countries for goods and services they
did not do so well.
b. he felt tariffs were the best way to raise money for government purposes.
c. companies could operate without regulation.
d. none of the above
82. The Alternative Fines Act:
a. is an act used by U.S. Customs to increase the penalties for those who try to circumvent tariffs.
b. was declared unconstitutional.
c. is a form of expatriation.
d. is used by the Justice Department in FCPA violations.
83. Andre Dubai is the CEO of Lacota, a firm headquartered in Portugal. Lacota has acquired 10 companies in the
United States. One of the companies is publicly traded on NASDAQ. Lacota does not have the reporting
mechanisms, ethics codes, or board structure for its NASDAQ company that are required under U.S. laws for
publicly traded companies. Dubai says that he and Lacota have sovereign immunity from U.S. laws.
a. Dubai is correct; the business is, for all purposes, located in Portugal.
b. Lacota cannot be forced to comply with U.S. securities laws because U.S. courts have no jurisdiction over it.
c. Dubai, Lacota, and their NASDAQ company must comply with U.S. laws.
d. both a and b
84. Sunoco Oil Company had long-term oil supply contracts with KW, an oil company in Kuwait. The contracts were
negotiated in 1989. The contracts ran smoothly until 1990, when armed forces from Iraq took possession of the oil-
producing facilities of Kuwait. The eventual result was the Persian Gulf War which began in early 1991. Sunoco's oil
was not delivered for over one year. Sunoco wishes to know its damage rights against KW for the year-long
interruption in its oil supply.
85. Go-Video has developed a DVD recorder that is dual deck and is capable of playing one DVD while recording on
the other DVD. Several Japanese manufacturers have taken action to block the entry of the machine onto the
market by prohibiting dealers from handling the product (if they do, their dealership for the Japanese DVD recorders
and TVs is terminated). Go-Video has brought suit against the Japanese manufacturers for violation of the antitrust
laws. Are the Japanese manufacturers subject to U.S. antitrust laws?
86. Otis Elevator became a joint venturer with the government of South Vietnam, with a 70/30 profit split. The
Vietnamese government then imposed a rule that allowed it to take 90% of all profits earned in Vietnam. Does Otis
have any rights to return to the 70/30 split?
87. PepsiCo entered into an agreement with the Indian government to provide training in farming techniques and return
40 percent of its profits from Indian operations to the government in order to obtain the right to do business in India.
Describe all of the laws and principles of international law involved in this agreement.
88. Suppose Rich is required to pay a $500 levy for every $10,000 of Pull-Ons brought into the Sudan. “If I could just get
those numbers down on the shipping documents, I could save a bundle on these levys.” Rich works with a customs
officer and two sets of shipping documents. The customs officer files papers showing half of the goods actually
brought into his country. Instead of paying $500 as a levy, Rich pays $250 and pays $50 for each $10,000 to the
agent for the help with the documents. Has Rich violated the FCPA?
89. Why are pirates so difficult to prosecute?
90. Which of the following terms applies to this action by the Somali government?
a. Sovereign immunity
b. Expropriation
c. Repatriation
d. Protectionism
91. Swenson’s wishes to challenge the actions of the Somali government in court. Which of the following best describes
Swenson’s right to do so?
a. Swenson can file suit in federal district court in the United States and seek to have the confiscation issue
addressed by a judge.
b. Swenson can file suit in federal district court in Somalia and seek to have the confiscation issue addressed by
a judge.
c. Swenson is without remedy in this situation.
d. Under the Geneva Convention, the property must be returned to Swenson.
92. Actor Gerard Depardieu moved to Belgium in order to avoid having to pay French taxes of nearly 75% on his
income, thereby denouncing his French citizenship. Mr. Depardieu wishes to avoid which of the following by
denouncing his citizenship and living in Belgium?
a. Repatriation
b. Extradition
c. Expropriation
d. Sovereign immunity
93. Jack Zettler, a resident of Germany, works as an agent for Samson Enterprises, a U.S. company. Jack’s job is to
help negotiate steel rail contracts for Samson with the German government. Jack often takes German Department
of Transportation officials out for beer or coffee to discuss Samson and its products. Which of the following
statements is correct?
a. Jack has violated the FCPA by offering government officials something of value.
b. Jack may have violated German law, but Samson is not subject to the FCPA provisions when doing business
in Germany.
c. Neither Jack nor Samson has violated the FCPA.
d. Only U.S. employees working in other countries can violate the FCPA.
