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1. The U.S. system of law is based primarily on code law.
a. True
b. False
2. NATO is the result of a multilateral treaty.
a. True
b. False
3. Sovereign immunity protects individual nation's operations from outside interference.
a. True
b. False
4. Under the doctrine of sovereign immunity, commercial transactions cannot be regulated.
a. True
b. False
5. Expropriation is prohibited in countries that are members of the United Nations.
a. True
b. False
6. Nationalization is a process of eminent domain.
a. True
b. False
7. U.S. courts have no jurisdiction over foreign businesses with operations in the United States.
a. True
b. False
8. U.S. securities laws would not apply to countries selling securities in the United States under the doctrine of
sovereign immunity.
a. True
b. False
9. The act of state doctrine precludes outside interference in expropriation.
a. True
b. False
10. The overseas Private Investment Corporation is an insurer against expropriation.
a. True
b. False
11. Repatriation is the limitation on removal of profits earned in a country from that country.
a. True
b. False
12. The doctrine of forum non conveniens is used to dismiss cases brought in courts in the wrong nation.
a. True
b. False
13. The U.S. antitrust laws apply only to U.S. firms.
a. True
b. False
14. The Export Trading Company Act allows for international joint ventures that would otherwise be anticompetitive.
a. True
b. False
15. Some of the most active pirates are from Cuba.
a. True
b. False
16. Under the doctrine of sovereign immunity, a country cannot be forced to answer civil or criminal charges in a U.S.
court.
a. True
b. False
17. A foreign country engaging in commercial transactions in the United States is not protected by the doctrine of
sovereign immunity for those transactions.
a. True
b. False
18. Foreign businesses engaging in commercial activity in the United States are not subject to U.S. antitrust laws.
a. True
b. False
19. Tariffs can be revenue-raising and protectionist for domestic goods.
a. True
b. False
20. GATT is a 150-member free trade agreement.
a. True
b. False
21. The Kyoto Treaty has now been ratified by all signatory countries.
a. True
b. False
22. The Justice Department does not offer any assistance to companies with questions about Foreign Corrupt Practices
Act requirements.
a. True
b. False
23. The Act of State Doctrine applies to antitrust issues for member countries of the United Nations.
a. True
b. False
24. MFN stands for most favored nation status under GATT.
a. True
b. False
25. Sovereign immunity provides that our court system cannot be used to right injustices in other countries.
a. True
b. False
26. Expropriation or nationalization is protected under the act of state doctrine.
a. True
b. False
27. The Hickenlooper Amendment is the Foreign Corrupt Practices Act.
a. True
b. False
28. The Export Trading Company Act provides antitrust exemptions for international joint ventures.
a. True
b. False
29. The U.S. courts can be used by citizens of foreign countries to recover for injuries occurring in their countries at the
hands of U.S. companies.
a. True
b. False
30. The Foreign Corrupt Practices Act applies to all companies doing business abroad.
a. True
b. False
31. The only types of transactions covered under the Foreign Corrupt Practices Act are those that involve contracts with
foreign governments.
a. True
b. False
32. The Foreign Corrupt Practices Act is not applicable in NAFTA or GATT contracts.
a. True
b. False
33. NGO officials are included as government officials for purposes of the Foreign Corrupt Practices Act .
a. True
b. False
34. The LESCANT factors are a means of understanding various issues in cultures prior to beginning contract
negotiations.
a. True
b. False
35. The Export Trading Company Act of 1982 provides an exception to U.S. antitrust laws in international markets.
a. True
b. False
36. The OECD is resistant to the U.S. position against bribery.
a. True
b. False
37. Nearly 30 nations have accepted OECD principles.
a. True
b. False
38. The WTO is the body charged with OECD enforcement.
a. True
b. False
39. NAFTA applies only to goods that originate in the U.S., Mexico, and Canada.
a. True
b. False
40. The effect of the FCPA has been to decrease U.S. companies’ competitiveness.
a. True
b. False
41. EU and countries’ antitrust laws do not apply to U.S. companies doing business in the EU.
a. True
b. False
42. There was some resistance to granting China MFN status.
a. True
b. False
43. GATT is an example of a bilateral trade agreement.
a. True
b. False
44. NAFTA is an example of a bilateral trade agreement.
a. True
b. False
45. The U.S. sanctions against trade with Iran are an example of a unilateral trade sanction.
a. True
b. False
46. Which of the following is not a source of international law?
a. custom
b. private law
c. treaties
d. All of the above are sources of international law.
47. Which of the following countries base their legal systems on code law?
a. Great Britain
b. Italy
c. France
d. Spain
48. The act of state doctrine:
a. is not recognized by the United States.
b. prohibits one government from interfering in the acts of state of another government.
c. is prohibited by members of the United Nations.
d. all of the above
49. A U.S. luxury liner was attacked by an Iraqi ship in the Persian Gulf. Many passengers were injured and the ship
was damaged. The owner of the ship brought suit in federal district court against the government of Iraq. The suit
will:
a. be heard because the attack was a violation of international law.
b. be heard because the attack harmed U.S. citizens.
c. not be heard under the doctrine of sovereign immunity.
d. be heard but only in the International Court of Justice.
50. Which of the following is not a LESCANT factor?
a. language
b. law
c. social organization
d. contexting
51. The contact lens company, Here's Clear Eye, sold thousands of pairs of contact lenses in Kenya. The lenses were
defective and resulted in severe eye infections, and in 156 cases, blindness. The purchasers of the lenses who bring
suit in Kenya will be entitled to recover their purchase price, attorney fees and medical bills. Kenya does not permit
recovery for pain and suffering nor for permanent injury. Several of the purchasers who are blind have brought suit
in South Carolina, the home of Here's Clear Eye. South Carolina permits recovery for permanent injury as well as
punitive damages. The average recovery in Kenya for the purchasers is $600. A lawyer for the purchasers from
Columbia, South Carolina estimates the average verdict will be $600,000. Which of the following statements is true?
a. The Kenya purchasers may use the South Carolina courts because their remedies in Kenya are inadequate.
b. The South Carolina cases will be dismissed on the grounds of forum non conveniens.
c. The Kenya purchasers can recover only punitive damages in South Carolina.
d. The Kenya purchasers can recover only for permanent injuries in South Carolina.
52. Nike and Reebok, the number-one and number-two athletic shoe companies in the United States, could combine to
do business:
a. but they would violate U.S. antitrust laws.
b. outside the U.S. under the Export Trading Company Act.
c. but would risk charges of monopolization.
d. none of the above
