1) If an offer is oral, the acceptance must be made immediately, unless the
circumstances indicate otherwise.
2) The IMFs unit of account is the SDR.
3) A representative office does not directly conduct business for the parent company.
4) The principal limitation of the assumption of personal jurisdiction by U.S. courts is
the federal constitutional requirement of due process.
5) Courts that apply the governmental interest doctrine will make no choice of law
unless asked to do so by the parties.
6) A compulsory copyright license compels a copyright owner to grant a license, but it
allows the owner to negotiate the terms of the license.
7) The OPIC cannot obtain subrogation rights against the host government from the
insured.
8) Negotiation is the transfer of a bill or note in such a way that the recipient becomes a
holder.
9) The transferee of an order bill of lading acquires both the rights and the liabilities of
his transferor.
10) An insider is a person, such as a corporate officer, director, or majority shareholder,
who has access to material nonpublic information about a company or the securities
market.
11) One of the functions of a central bank is regulating the quantity of money in
circulation.
12) To facilitate foreign trading in shares, brokerage firms use depository receipts.
13) GATS members can list limitations on the number of natural persons that may be
employed in a particular service sector in Schedule of Specific Commitments.
14) Euroclear is an international clearinghouse.
15) Bearer instruments are transferred by negotiation.
16) Parties to multilateral agreements are prevented from entering into bilateral
arrangements.
17) Sole rights prevent everyone except the licensor from competing.
18) Which of the following types of endorsements payment depends on the occurrence
of an event?
A. qualified endorsement
B. conditional endorsement
C. agency endorsement
D. special endorsement
19) The legislative body of the ILO, made up of representatives from government,
labor, and management from each member state is referred to as the ________.
A. General Assembly
B. General Conference
C. Security Council
D. Secretariat
20) The ________ holds that a foreign state is not immune when the cause of action for
a suit is based on conduct unrelated to the states governmental activities.
A. most significant relationship doctrine
B. doctrine of sovereign or state immunity
C. rule of absolute sovereign immunity
D. theory of restrictive sovereign immunity
21) The ________ is a court-adopted rule that allows a reviewing court to consider the
overall impact of a particular agreement on competition within its relevant market.
A. choice of law rule
B. rule of reason
C. rule of origin
D. ultra vires rule
22) Which of the following is the reason why the Webb Pomerene Act is cited as a
criticism of the United States antitrust laws?
A. because it encourages foreign companies to invest in the United States
B. because it exempts U.S. export associations from compliance with the Sherman Act
C. because it provides tax cuts for subsidiaries of foreign-national companies in the
United States
D. because it allows for punitive treble damages to be brought by private plaintiffs
23) A subsidiary differs from a branch in that a subsidiary ________.
A. is just a unit or a part of the parent with no separate legal status
B. is a co-parent company
C. is considered an agent of the parent company governed by an agency contract, but
not owned by the company
D. is a company organized as a separate legal entity that is owned by the parent
24) A(n) ________ is a three-party instrument on which the drawer makes an
unconditional order to a drawee to pay a named payee.
A. allonge
B. bill of exchange
C. letter of credit
D. certificate of deposit
25) In which of the following cases can the holder of an instrument seek recourse from
the parties with secondary liability?
A. if the instrument has been physically damaged
B. if the instrument is not presented on time
C. if the instrument has been dishonored
D. if the instrument is found to be forged
26) Which of the following written endorsements would be an example of an
endorsement prohibiting further endorsement?
A. Pay to Elaine, without recourse, [signed] John
B. For collection only, [signed] John
C. Pay to Elaine only, [signed] John
D. Pay to Elaine, agent for John [signed] John
27) Which of the following is necessitated once the passage of risk has been completed?
A. The buyer must pay the agreed-upon price for the goods involved
B. The seller must pay monetary compensation for nonconforming goods
C. The seller must absorb the cost of loss of goods
D. The buyer no longer remains responsible for loss or risk of the goods
28) The ________ allows a WTO member state to withdraw temporarily from its GATT
obligations when there is a surge in the number of imports coming from other member
states.
A. escape clause
B. general exception
C. security exception
D. indemnification clause
29) Which of the following terms refers to a franchise in which a manufacturer licenses
a dealer to sell its products?
A. gray marketing
B. processing plant franchise
C. chain-style business
D. distributorship
30) In the year 1915, Coca Cola patented the shape of Coca Cola bottles. This is an
example of a(n) ________.
A. design patent
B. utility patent
C. plant patent
D. copyright
31) Which of the following describes the objection of dirty hands against a plaintiff?
A. the plaintiff seeks the support of a state to which it has no direct relation
B. the plaintiff has not exhausted all local remedies before seeking the support of its
parent country
C. the plaintiff takes a negligent delay in asserting a right or a claim
D. the plaintiff takes inappropriate steps in attempting to recoup a loss prior to bringing
a claim
32) Mark owns a chain of hotels. Roby acquires a license that allows him to extend the
chain under the supervision and control of Mark. This type of license is an example of a
________.
A. franchise
B. patent
C. copyright
D. patent pool
33) The ________ establishes an international mechanism that allows inventors to make
a single application for patent protection that is equivalent to making a filing in all
member states.
A. Patent Cooperation Treaty
B. Washington Treaty
C. rule of reason
D. common origin doctrine
34) Which of the following trade terms means that the seller has an obligation to deliver
the goods to a named place for transfer to a carrier?
A. ex works
B. dead freight
C. free
D. demurrage
35) ________ is the states taking or deprivation of the property of foreigners.
A. Expropriation
B. Accommodation
C. Arraignment
D. Easement
36) A firm offer is an offer ________.
A. in which a fixed price is not mentioned for the goods or the services being sold
B. in which the offeree is an individual and the offeror is an organization
C. which is governed by the laws of the WTO
D. that the offeror promises to keep open for a fixed period of time
37) Which of the following is true of checks?
A. It is a two-party instrument
B. It is always payable on demand
C. It requires that the drawer is holding the drawees money
D. It necessitates that the seller has to be both the drawer and the payee
38) Optional clause jurisdiction differs from contentious jurisdiction in that, optional
clause jurisdiction is ________.
A. the requirement that a tribunal must have power over the parties before it may hear a
dispute
B. the power of the ICJ to give opinions about issues of international law at the request
of the United Nations or one of its specialized agencies
C. the power of a court to hear a matter that involves a dispute between two or more
parties
D. a unilateral grant of jurisdiction by a state to the ICJ that allows the Court to resolve
disputes involving that state
39) Which of the following tests is used to determine whether a court has subject-matter
jurisdiction in an American antitrust case?
A. the effects test
B. the minimum contact test
C. the national eligibility test
D. the per se test
40) Private money differs from official money in that private money ________.
A. cannot be used to pay debts
B. is exclusively used by the government
C. cannot be lent to private individuals
D. can also consist of stocks of rare metal
41) A free zone located within or near a port city is called a(n) ________.
A. free trade zone
B. free retail zone
C. special economic zone
D. exclusive economic zone
42) The practice or courtesy existing between states of treating each other with
goodwill and civility is called ________.
A. comity
B. usus
C. jus commune
D. jus cogens
43) In a ________ letter of credit, a credit is obtained by a seller naming the buyer as
the beneficiary.
A. standby
B. red clause
C. revolving
D. transferable
44) How are the general principles of the CISG interpreted when dealing with a
dispute?
45) Briefly explain the how the Treaty Establishing the European Community
influences employment laws in Europe.
46) Describe the two major rules that limit a makers excuse not to pay for forged
instruments.
47) What are the two types of intergovernmental organizations?
48) Explain the role of the World Banks Multilateral Investment Guaranty Agency in
insuring losses from political risks.
49) What are the basic parameters of GATS laid out in the Framework Agreement?
50) Differentiate between a clean bill of lading and a claused bill of lading.
51) What are the different types of cartels?
52) Describe the significance of IMF quotas.