The Four Freedoms include:
a. Capital.
b. People.
c. Goods.
d. All of the above.
Answer:
The European Parliament has criticized the European Commission for its flexible
approach in the granting of block exemptions from normal competition rules for
vertical agreements.
a. True
b. False
Answer:
The Uniform Commercial Code has provisions applicable to international business
allowing substituted performance.
a. True
b. False
Answer:
Investors receiving compensation for the nationalization of property in a foreign
country generally obtain payment in United States dollars, thus avoiding any currency
risk.
a. True
b. False
Answer:
In 1982, the U.S. Congress passed a law to clarify the standard to be applied in
determining the extraterritorial effect of American antitrust laws. This was:
a. The Foreign Trade Antitrust Improvements Act.
b. The Miller-Hastings Antitrust Extraterritorial Act.
c. The Antitrust Effect Act.
d. The Jones-Burden Competition Act.
Answer:
One advantage of arbitration is that the entire case and evidence is not open to the
public.
a. True
b. False
Answer:
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 remedies may AUSA seek against HPI as a result of its
conduct? What do these remedies provide?
Answer:
A seller who quotes on open account terms in a foreign currency bears the currency risk
during the open credit period.
a. True
b. False
Answer:
In practice, most force majeure clauses do not excuse a party’s performance entirely but
only suspend it for a while.
a. True
b. False
Answer:
While the Commerce Clause restricts what states may do as to imports, it places no
restrictions on state actions as to exports.
a. True
b. False
Answer:
The three types of losses generally covered by marine insurance policies include all but
which of the following:
a. Total losses of all or part of a shipment.
b. Weighted average losses.
c. General average losses.
d. Partial or particular average losses.
Answer:
In the event that a buyer receives a shipment of seriously defective goods, under the
CISG:
a. The buyer may accept the goods and reduce the amount paid to the seller accordingly.
b. The buyer must notify the seller of the defects within a reasonable time.
c. The seller may cure the defect up until the time for performance has expired.
d. The seller may request additional time to perform even though he will be late in so
doing.
e. All of the above.
Answer:
Incontrovertibility risk may hinder a U.S. investor in a foreign country from trading the
foreign currency back into
U.S. dollars.
a. True
b. False
Answer:
What term from Incoterms 2000 would you recommend under each of these scenarios?
A transaction wherein an American seller is to transport the goods by sea from the port
of Oakland, California to Vancouver, Canada and the Canadian buyer’s sole obligations
are to arrange for import clearance and purchase insurance against loss from the
moment the goods cross the ship’s rail.
A transaction wherein a Greek buyer seeks to impose all obligations on the French
seller, including export clearance, the cost of insurance, transportation of the goods by
sea from Marseille, France, and import clearance at Piraeus, Greece, the port of
destination.
A transaction wherein a Dutch seller wishes to limit its obligations to notification of the
American buyer that the goods are available for pickup at the seller’s warehouse in
Antwerp, Netherlands.
A transaction wherein an American seller is to deliver the goods on board a ship in New
York and arrange for export clearance for ultimate shipment to Rio de Janiero with the
Brazilian buyer responsible for contracting with the
carrier, the cost of obtaining insurance and obtaining import clearance.
A transaction wherein a Canadian seller is to transport the goods by sea from Halifax,
arrange for export clearance, unload the goods at their final destination in Oslo, Norway
and make them available on the wharf while the buyer arranges for import clearance in
Norway.
A transaction wherein a Belgian seller is to deliver the goods to the wharf at the port of
Antwerp, provide a receipt evidencing such delivery and facilitate export clearance with
the Swedish buyer responsible for contracting with a carrier for their transport to
Stockholm and bearing all risk of loss from the moment the goods are placed alongside
the ship.
A transaction wherein a Mexican seller is to contract for motor carriage of the goods,
deliver the goods to another motor carrier for transport across the U.S. border, pay
unloading and loading costs, arrange for export clearance and obtain insurance on the
U.S. buyer’s behalf for final delivery to Phoenix, Arizona.
Answer:
National courts are obligated to follow EU law and decisions.
a. True
b. False
Answer:
The European Union treaties do not address discrimination on the grounds of
nationality.
a. True
b. False
Answer:
In the decision involving tariffs on Latin American bananas, the panel:
a. Recommended the tariffs be brought in line with the EEC’s obligations under GATT.
b. Said the Latin American countries were authorized to impose sanctions on the EEC.
c. Found the EEC’s tariffs to be within GATT guidelines.
d. Dismissed the case after the EEC agreed to adopt tariffs that were more in line with
its GATT obligations.
Answer:
NAFTA was built on the Mexico-Canada Free Trade Agreement.
a. True
b. False
Answer:
The CISG requires that an acceptance materially altering the terms of the offer be
approved by the original offering party.
a. True
b. False
Answer:
An embargo only applies to imports from Cuba, Sudan, North Korea, and Egypt.
a. True
b. False
Answer:
An American manufacturer is setting up a manufacturing plant in China. A Chinese
telecommunications worker has asked the American firm’s agent to pay him a fee of
$500 for setting up Internet service in the new plant. Under the FCPA, if the American
agent pays the fee, it will be considered:
a. perfectly legal; the Chinese telecommunications firm deserves to be paid for its
services.
b. questionable; the American agent should confirm that this is the appropriate amount
and person to pay for the service.
c. totally illegal; it is obviously a bribe.
d. None of the above
Answer: