In an action to collect a customs penalty, the U.S. Treasury Department is the plaintiff
and need only prove that the importer was negligent in providing misinformation.
a. True
b. False
If a U.S. exporter is concerned about political and economic stability in the buyer’s
country, the exporter should request which of the following payment terms:
a. Cash against documents.
b. Irrevocable letter of credit.
c. Confirmed letter of credit.
d. Open account terms.
Which of the following is not part of the structure of the United Nations?
a. General Assembly.
b. Security Council.
c. Secretary General.
d. House of Representatives.
The Import-Export Clause of the U.S. Constitution:
I. Prohibits the federal government from taxing exports.
II. Prohibits the states from taxing either imports or exports.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
The President of the United States can by executive order provide import relief in the
form of temporary tariff increases or quotas without having to consult any other
organization.
a. True
b. False
In the case of nationalization, “adequate” compensation is defined as fair market value
minus accumulation of depreciation.
a. True
b. False
Only payments in excess of $5,000 paid directly to foreign government officials are
subject to criminal prosecution under the FCPA.
a. True
b. False
The Fair Trade Commission:
a. Attempts to settle disputes that arise over NAFTA.
b. Is a law-making body that was formed by NAFTA.
c. Was created by NAFTA to help promote fair trade.
d. Will be phased out over the next ten years.
Only extra-ordinary risks of an ocean voyage are covered in the perils clause.
a. True
b. False
Under the provisions of EC Council Directive 86/653, an agent accrues sales
commissions on deals that occur within his territory only when she or he has
substantially participated in the events leading up to the customer’s purchase.
a. True
b. False
The Europeans tend to be reluctant to apply their competition law to activity outside the
EU.
a. True
b. False
Countries A, B, and C belong to GATT. Countries X and Y do not. A has a 7% tariff on
televisions from B. C, X, and Y also export televisions. Under unconditional
most-favored-nation trade of GATT:
a. Countries C, X, and Y are entitled to a 7% tariff on televisions.
b. Countries X and Y are entitled to a 7% tariff on televisions.
c. Country C must petition A under GATT to get a 7% tariff on televisions.
d. Country C gets an automatic 7% tariff rate on televisions.
In a tariff concession, one country promises not to levy a tariff on a given product at a
level higher than agreed upon.
a. True
b. False
WTO DSU reports carry precedential value for future panels by providing definitive
interpretations of GATT provisions.
a. True
b. False
If a U.S. company chooses to establish a wholly-owned subsidiary abroad, it faces less
potential vicarious liability because it is separated from the branch.
a. True
b. False
In recent years, Japan has brought its stance on mergers more into line with
international practices by revising its Antimonopoly Act to require:
a. horizontal mergers.
b. confidential prior consultation.
c. prior notification.
d. all of the above
Due to cultural beliefs about the nature of work and entitlements, severance pay in the
U.S. is typically , and severance pay in Europe is typically .
a. low; high
b. low; low
c. high; low
d. high; high