In J. Gerber & Co. v. SS Sabine Howaldt, a lawsuit brought by the owner of cargo (steel
products) against an ocean carrier for damage to the cargo caused by sea water and
moisture, the court ruled that:
a. The turbulent seas and high winds were not sufficiently severe to constitute a “peril
of the sea” under COGSA.
b. The carrier was liable because the vessel was not seaworthy when it left port.
c. The carrier was liable because it had not used usual good seamanship in handling the
vessel.
d. The carrier was not liable because it proved that the damage was caused by a peril of
the sea.
e. None of the above.
Answer:
The ship Darby O departed the Port of Yokohama, Japan to deliver Toyota parts to
Miami, Florida through the Panama Canal. Due civil strife within Panama, the Canal is
closed due to armed conflict. The carrier is entitled to claim increased expenses as a
result to traveling the long route down South America under the “perils of the sea”?
a. True
b. False
Answer:
The power of Congress “to regulate commerce with foreign nations and among the
several states” is found in:
a. Art. III, Sec. 1 of the U.S. Constitution.
b. Art. I, Sec. 8 of the U.S. Constitution.
c. The Declaration of Independence.
d. The Preamble to the U.S. Constitution.
Answer:
Which of the following does not accurately characterize export management
companies?
a. They act as advisors or consultants.
b. They engage in foreign market research.
c. They exhibit goods at foreign trade shows.
d. They use their extensive sales contracts to market the products of other companies.
Answer:
The bank that is responsible for inspecting the documents to be sure they are in order,
remitting payment to the seller, and negotiating the documents to the buyer is called:
a. Issuing bank.
b. Negotiating bank.
c. Advising bank.
d. Lading bank.
Answer:
Where the transaction value of merchandise cannot be determined, the U.S. Bureau of
Customs and Border Protection will look to the dutiable value of identical merchandise
imported under similar circumstances.
a. True
b. False
Answer:
The Agreement on Government Procurement reverses the general GATT rules that
allow government agencies to favor domestic products.
a. True
b. False
Answer:
Corporate penalties for violating the FCPA include:
a. Fines of no more than $100,000.
b. Fines up to $2,000,000.
c. Revocation of the firm’s license to do business in a foreign country.
d. Punitive damages.
e. Two of the above.
Answer:
The risk of loss in a contract passes to the buyer when the goods are tendered to the
buyer at that place; and the risk of loss in a(n) contract passes to the buyer when the
goods are delivered to the carrier at the port or place of origin.
a. Shipment; destination.
b. Point of import; point of export.
c. Destination; origination.
d. Destination; shipment.
Answer:
When the intellectual property being licensed is technology protected primarily by a
patent, a key license provision will be a clause setting forth the licensee’s obligation to
keep the licensed technology confidential.
a. True
b. False
Answer:
International commercial terms are used in all international contracts for the sale of
goods.
a. True
b. False
Answer:
The CISG is inflexible as to making sure that goods are delivered on a specified date.
a. True
b. False
Answer:
Export controls have been extended by the president through the issuance of executive
orders pursuant to the USA Patriot Act.
a. True
b. False
Answer:
When one party clearly sees that the other contracting party will either not perform a
substantial part of the contract, this is a
a. Breach of contract
b. Anticipatory Breach
c. Impossibility of performance
d. Force Majeure
Answer:
Before a U.S. firm can export hazardous waste to a foreign country, they must have
written consent from that government delivered to the U.S. Environmental Protection
Agency.
a. True
b. False
Answer:
A state’s authority to tax a business engaged in foreign commerce is determined by:
a. The negative implication doctrine.
b. The multiple taxation doctrine.
c. The Monroe Doctrine.
d. Both A and B.
Answer:
Many foreign nations attract investment because of less demanding labor and
environmental laws.
a. True
b. False
Answer:
Prohibitions against agreements that restrict competition in the United States by the
Justice Department are reviewed in the context of determining such an arrangement
would enhance or inhibit a competitive market place.
a. True
b. False
Answer:
A 99% refund of duties and taxes paid on merchandise that is imported, subjected to
manufacture or production, and then exported within five years is called a:
a.Manufacturing drawback.
b.Substitution drawback.
c.Same condition drawback.
d.Re-export drawback.
Answer:
International sales contracts concerning consumer goods sold for personal use come
under CISG.
a. True
b. False
Answer:
Which is not a type of adjustment to regulations often addressed in privatizations?
a. Exemptions from taxation.
b. Exemptions from regulations affecting tariffs, rates of return and technical standards.
c. Right of first refusal rights in future privatization efforts.
d. Remittance rights on capital and other exemptions from regulations relating to
repatriation of profits and exchange rates.
Answer:
NAFTA members have raised tariffs on non-North American products in order to
stimulate trade between the U.S., Canada, and Mexico.
a. True
b. False
Answer:
Universally around the globe, women employees earn less than their male counterparts.
Although the difference in pay rates varies dramatically from one country to the next,
according to the International Trade Union Confederation, on an international scale
women typically earn less than men.
a. close to 5%
b. close to 10%
c. close to 20%
d. close to 30%
Answer: