60.
Which of the following statements about the legal systems of countries is
NOT true?
A.
They can affect the attractiveness of a country as an investment site or
market.
B.
They are influenced by the prevailing political system of the country.
C.
They are almost the same for all countries.
D.
They are of immense importance to international business.
The legal system of a country refers to the rules, or laws, that regulate
behavior along with the processes by which the laws are enforced and
through which redress for grievances is obtained. The legal environments of
countries differ in significant ways.
61.
Under the _____, cases are judged with reference to three characteristics:
tradition, precedent, and custom.
A.
theocratic law system
B.
civil law system
C.
contract law system
D.
common law system
Common law is based on tradition, precedent, and custom.
62.
A civil law system tends to be less adversarial than a common law system,
since _____.
A.
the judges’ decisions are based on detailed legal codes
B.
the judges have the freedom to interpret laws based on the situation
C.
the judges’ decisions are based on religious teachings
D.
the judges are guided by interpretations made in prior legal cases
A civil law system tends to be less adversarial than a common law system,
since the judges rely upon detailed legal codes rather than interpreting
tradition, precedent, and custom.
63.
A common law system is different from a civil law system because:
A.
a common law system is based on religious teachings, while a civil law
system is based on cultural traditions.
B.
a common law system is very rigid, while a civil law system tends to be
more flexible.
C.
in a common law system a judge relies on legal codes to make rulings,
while in a civil law system a judge relies on his intuition and moral
reasoning to make judgments.
D.
in a common law system a judge has the power to interpret the law,
while in a civil law system a judge has the power only to apply the law.
Judges in a common law system have the power to interpret the law,
whereas judges in a civil law system have the power only to apply the law.
64.
A _____ system is based on a very detailed set of laws organized into
codes.
A.
traditional law
B.
theocratic law
C.
civil law
D.
common law
A civil law system is based on a detailed set of laws organized into codes.
When law courts interpret civil law, they do so with regard to these codes.
65.
A theocratic law system is one in which the law is based on:
A.
religious teachings.
B.
tradition, precedent, and custom.
C.
a detailed set of laws organized into codes.
D.
cultural and social norms.
A theocratic law system is one in which the law is based on religious
teachings.
66.
_____ is the collective term for the legal rights relating to the use to which a
resource is put and over the use made of any income that may be derived
from that resource.
A.
Trade rights
B.
Property rights
C.
Positive rights
D.
Common rights
Property rights refer to the legal rights over the use to which a resource is
put and over the use made of any income that may be derived from that
resource.
67.
In Russia in the chaotic period following the collapse of communism, an
outdated legal system, coupled with a weak police force and judicial
system, allowed the Russian Mafia to demand “protection money” from
business owners. Any business owner who rebelled had to face violent
retribution. This violation of property rights exemplifies _____.
A.
private action
B.
copyright violation
C.
infrastructural failure
D.
public liability
Private action refers to theft, piracy, blackmail, and the like by private
individuals or groups. Although theft occurs in all countries, a weak legal
system allows for a much higher level of criminal action in some than in
others.
68.
Violation of property rights done through legal mechanisms such as levying
excessive taxation and requiring expensive licenses or permits from
property holders is called ________.
A.
private action
B.
collective action
C.
public action
D.
copyright violation
Public action to violate property rights occurs when public officials, such as
politicians and government bureaucrats, extort income, resources, or the
property itself from property holders.
69.
Which of the following areas of international trade is regulated by the
Foreign Corrupt Practices Act?
A.
Making and performance of commercial contracts in international trade.
B.
Preventing bribery and unethical acts in the conduct of international
business.
C.
Establishing a set of safety standards to which a new product must
adhere.
D.
Controlling the mafia activity that hinders trade in Russia, Japan, and the
U.S.
In the 1970s, the United States passed the Foreign Corrupt Practices Act.
This law makes it illegal to bribe a foreign government official to obtain or
maintain business over which that foreign official has authority.
70.
Which of the following is NOT an example of intellectual property?
A.
A music score
B.
A video game
C.
A software business
D.
A screenplay
Intellectual property refers to property that is the product of intellectual
activity, such as computer software, a screenplay, a music score, or the
chemical formula for a new drug.
71.
A _____ grants the inventor of a new product or process exclusive rights for
a defined period of time to the manufacture, use, or sale of that invention.
A.
copyright
B.
trademark
C.
contract
D.
patent
A patent grants the inventor of a new product or process exclusive rights for
a defined period to the manufacture, use, or sale of that invention.
72.
Design and names by which merchants or manufacturers designate and
differentiate their products are known as _____.
A.
trademarks
B.
copyrights
C.
patents
D.
licenses
Trademarks are designs and names, often officially registered, by which
merchants or manufacturers designate and differentiate their products (e.g.,
Christian Dior clothes).
73.
The Research and Development division of a company has recently
designed a new coffee vending machine that is likely to sell very well in the
market. It is compact, user-friendly, and provides unprecedented efficiency
in terms of cost per cup. Consequently, the company fears that its
competitors would soon mimic the design of their product and to protect its
product, it is now seeking a _____ for the same.
A.
copyright
B.
patent
C.
trademark
D.
certification
A patent grants the inventor of a new product or process exclusive rights for
a defined period to the manufacture, use, or sale of that invention.
74.
Which of the following provides exclusive legal rights to authors,
composers, playwrights, artists, and publishers to publish and disperse their
work as they see fit?
A.
Patents
B.
Copyrights
C.
Trademarks
D.
Licenses
Copyrights are the exclusive legal rights of authors, composers, playwrights,
artists, and publishers to publish and disperse their work as they see fit.
75.
The TRIPS agreement was designed to:
A.
exclude China from all intellectual property agreements.
B.
oversee a much stricter enforcement of intellectual property regulations.
C.
hold a firm and its officers responsible when a product causes injury,
death, or damage.
D.
support traded software and recorded property among developed
markets.
Under the new agreement, known as the Trade Related Aspects of
Intellectual Property Rights (or TRIPS), as of 1995 a council of the World
Trade Organization is overseeing enforcement of much stricter intellectual
property regulations.
76.
Which of the following statements about the Trade Related Aspects of
Intellectual Property Rights (or TRIPS) agreement is NOT true?
A.
It was designed to oversee enforcement of much stricter intellectual
property regulations, beginning in 1995.
B.
It obliged WTO members to grant and enforce patents lasting at least 20
years and copyrights lasting 50 years.
C.
It directed rich countries to comply with its rules of intellectual property
protection within five years.
D.
It provided the very poorest countries 10 years to comply with its rules of
intellectual property protection.
Under the new agreement, known as the Trade Related Aspects of
Intellectual Property Rights (or TRIPS), as of 1995 a council of the World
Trade Organization is overseeing enforcement of much stricter intellectual
property regulations. These regulations oblige WTO members to grant and
enforce patents lasting at least 20 years and copyrights lasting 50 years.
Rich countries had to comply with the rules within a year. Poor countries, in
which such protection generally was much weaker, had five years of grace,
77.
Safety standards to which a product must adhere are set by:
A.
safety certifications.
B.
contract laws.
C.
product safety laws.
D.
product liability laws.
Product safety laws set certain safety standards to which a product must
adhere.
Product liability involves holding a firm and its officers responsible when a
product causes injury, death, or damage.
Essay Questions
78.
Why did Karl Marx criticize capitalism? Describe how he planned to correct
those shortcomings.
Modern socialists trace their intellectual roots to Karl Marx. Marx argued
that the few benefit at the expense of the many in a capitalist society where
individual freedoms are not restricted. While successful capitalists
accumulate considerable wealth, Marx postulated that the wages earned by
the majority of workers in a capitalist society would be forced down to
subsistence levels. He argued that capitalists expropriate for their own use
the value created by workers, while paying workers only subsistence wages
in return. According to Marx, the pay of workers does not reflect the full
value of their labor. To correct this perceived wrong, Marx advocated state
ownership of the basic means of production, distribution, and exchange
(i.e., businesses). His logic was that if the state owned the means of
production, the state could ensure that workers were fully compensated for
their labor. Thus, the idea is to manage state-owned enterprise to benefit
society as a whole, rather than individual capitalists.