Some countries have enacted “language laws” in advertising in order to:
a. preserve the purity of the country’s primary language.
b. require advertisers to be clear and honest about their products.
c. protect children from inappropriate language.
d. All of the above.
The World Trade Organization has been successful in imposing the environmental
policies of developed nations upon all the developing economies members to enact such
policies and compliance.
a. True
b. False
The Airtours v. Commissioner of European Communities case involved the question of
whether a merger between two members of the oligopoly in the short haul segment of
the airline industry would create a “collective dominant” business firm.
a. True
b. False
The GATT dispute panel found the continuing use of quotas on beef in Korea was
justified.
a. True
b. False
Exhibit 17-1
Accuraphoto USA (AUSA) owns the “Accuraphoto” trademark in the United States.
AUSA produces the “SureShot” camera, which is known to consumers as a moderately
priced quality product. AUSA entered into a contract with Honshu Photographic, Inc.
(HPI), a Japanese corporation. Pursuant to the terms of the contract, HPI was permitted
to manufacture and market “SureShot” cameras utilizing the “Accuraphoto” trademark
in return for payment of royalties based upon a percentage of HPI’s sales. After
producing “SureShot” cameras for a short time at its Japanese facility, HPI moved
production to its facility in the Philippines in order to reduce labor costs. The cameras
produced at the Philippine facility utilized the “Accuraphoto” trademark but were
marketed under the name “SharpShot.” Additionally, these cameras contained improved
electronic features incorporated into the product by HPI engineers. Despite the
inclusion of these improvements, “SharpShot” cameras proved to be of inferior quality.
Furthermore, “SharpShot” cameras have begun to show up on the shelves of U.S.
discount retailers such as K-Mart and Wal-Mart. Additionally, several “SharpShot”
cameras have been sent by American consumers to AUSA’s American facilities for
repair. Finally, HPI has refused to share access with AUSA to the electronic
improvements incorporated into the “SharpShot” on the basis that they are confidential
proprietary information.
Refer to Exhibit 17-1. What terms could AUSA have included in its contract with HPI
that could have avoided this legal morass?
The issuing bank will honor the draft as long as the documents appear to be in good
order on their face and correspond to the terms of the letter of credit, regardless of the
conditions of the goods received.
a. True
b. False
Most countries have broad discovery rules, just like the U.S., allowing the collection of
evidence.
a. True
b. False
Negotiable bill of lading is proof of title allow for the transfer of the title to the goods
without requiring the owner to take possession of the goods.
a. True
b. False
The expired 1988 export control law was reenacted by Congress in 1994.
a. True
b. False
As a result of the global financial collapse there has been a great deal of international
cooperation and success in harmonizing the local foreign investment laws of most
nations.
a. True
b. False
The GATT Agreement on Technical Barriers to Trade governs the use of technical
regulations, product standards, testing, and certifications among WTO member
countries.
a. True
b. False
If a country is not a member of GATT, under U.S. law a countervailing duty can be
imposed without regard to whether a U.S. firm is injured or not.
a. True
b. False
Members of the European Parliament, which represent the interest of their respective
states are elected by residents of each state and are appointed for five-year terms.
a. True
b. False
The GATT Agreement on Technical Barriers to Trade sets minimum international
standards for product performance, design, safety, or efficiency.
a. True
b. False
In an effort to satisfy an important customer in Portugal, the seller is willing to pay all
ocean freight charges and bear all risks of the journey to the port of Lisbon. The buyer,
however, has agreed to pay all unloading charges. The exporter should quote his prices:
a. DES Lisbon.
b. FAS Lisbon.
c. CIF Lisbon.
d. DEQ Lisbon.
e. None of the above.
Which of the following statements most accurately describes the traditional economic
climate in developing countries:
a. They are largely communist countries.
b. They have well-developed free market mechanisms.
c. They have mixed economies with strong central planning features.
d. The economies of developing countries make them practically unsuitable for Western
companies to do business there.
An independent firm that purchases goods for resale directly from the exporter, assumes
credit risks in the local market, and provides product service and support is known as:
a. A foreign sales representative.
b. A sales agent.
c. A foreign distributor.
d. A freight forwarder.
e. A customs broker.
The type of bill of lading not recommended for the shipment of perishable goods is:
a. A received-for-shipment bill of lading.
b. An on-board bill of lading.
c. A negotiable bill of lading.
d. A straight bill of lading.