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6-1
Module 06 Intellectual Property Rights and Other Legal Forces
Answer Key
True / False Questions
1.
To what degree a country's legal system is based on the rule of law makes no difference
to international business; it is personal relationships that matter in foreign environments.
2.
The source of international law is frequently the United Nations.
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3.
Customary international law draws on practices that have been followed often for
centuries.
4.
The U.S. avoids extraterritorial application of its laws.
5.
The U.S. enforcement of EEOC law in U.S. companies operating abroad is an example of
extraterritoriality.
6.
A choice-of-law clause specifies which law will apply in the event of a dispute and is a
good idea to include.
7.
No worldwide court has the power to enforce its decrees.
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8.
The UN Convention on the International Sale of Goods (CISG) has established legal rules
and outlined the rights and obligations of the buyer and seller.
9.
Arbitration provides foreign businesses a forum other than the U.S. court system to
address disputes that involve U.S. sellers or buyers.
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10.
Incoterms are established by the UN Commission on International Trade.
11.
Legal uncertainties constrain the growth of international business.
12.
Intellectual property includes patents and trademarks, but not copyrights.
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13.
The European Patent Organization (EPO) makes filing for a patent in all 28 EU member
states more difficult than it was previously.
14.
The World Intellectual Property Organization (WIPO) is a UN agency that administers 24
intellectual property treaties.
15.
Many smaller and developing nations want to reduce patent protection from the current 15
to 20 years down to 5 years or even 30 months.
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16.
There is one main organization that offers intellectual property (IP) protection, the UN.
17.
Global trademark protection follows the Office of Harmonization in the Internal Market
approach.
18.
Global standardization of trade-related law is progressing slowly.
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19.
International Organization for Standardization (ISO) is the only international standardizing
organization.
20.
Under U.S. law, price fixing is illegal per se, while in other countries, damage or harm has
to be done; this is the case in the EU.
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21.
In the antitrust area, the U.S. is concerned with the impact of the business deal on the
consumer, whereas the EU is focused on the competitive structure of the marketplace,
and so pays attention to its rivals.
22.
Japanese cultural values suggest that in Japan, antitrust law against cartels would be
strictly enforced.
23.
The U.S. at times applies antitrust law extraterritorially.
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24.
The EU does not apply its competition policy beyond the EU.
25.
Microsoft is an example of how a company can avoid multiple antitrust laws in multiple
jurisdictions, thanks to equalization agreements.
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26.
Tariffs are categorized as financial and political forces, but they are usually not seen as
legal forces.
27.
The U.S. avoids trade barriers on imports in support of free trade principles.
28.
Product liability is an area of torts in which the U.S. courts can make large awards, unlike
in other countries.
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29.
Contingency fee cases are limited to the U.S.
30.
In the U.S. punitive damage rulings have no measureable effect on medical areas.
Multiple Choice Questions
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31.
Enforcing contracts that cross international borders is
32.
Arbitration is a private solution that is
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33.
Incoterms include
34.
Usually, to assume that foreign law
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35.
A patent gives the inventor
36.
Patent treatment is standardized owing to
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37.
Smaller nations would like patent protection
38.
WIPO is a
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39.
Patent trolls are
40.
Trademarks can be
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41.
Antitrust law is intended to
42.
One difference between the U.S. and EU approach to antitrust law is that
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43.
The U.S. and the EU both
44.
The U.S. antitrust law contains both civil and criminal penalties,
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45.
The concept of strict liability, as found in the U.S. legal system, applies
46.
Punitive damages in product liability cases can be awarded in
