The primary instrument for effectuating trade relations is the granting of most favored
nation status.
a. True
b. False
A policy that is “free of particular average” is one that will not cover any partial and
average losses.
a. True
b. False
In the U.S., the use of bills of lading is governed by:
a. Federal Bills of Lading Act.
b. The Convention on Contracts for the International Sale of Goods.
c. Incoterms.
d. None of the above.
A provision in a bill of lading that extends the protection of the Hague Rules to
stevedores is known as a Himalaya Clause.
a. True
b. False
Most documentary discrepancies that occur in a letter of credit transaction are:
a. A result of fraud and misrepresentation.
b. A result of the desire to profit from the transaction.
c. A result of incomplete or inconsistent information.
d. Banking errors.
The U.S. law that protects against “fairly traded” imported products is:
a. Countervailing duty.
b. Antidumping statute.
c. Escape clause.
d. Import relief.
The following sales are excluded from the CISG:
a. The sale of industrial equipment.
b. The sale of consumer goods.
c. The sale of ships and aircraft.
d. All of the above.
Which of the following is NOT one of the objectives of the International Labour
Organization?
a. To help promote the rights of workers
b. To eliminate child labor
c. To provide health care for all workers
d. To create decent and beneficial employment opportunities
Which of the following is not a characteristic of multinational corporations:
a. The United States is usually their home nation.
b. They derive capital resources worldwide.
c. They operate facilities of production in more than one country.
d. They move production, technology, and capital to those countries with the most
hospitable environment.
Foreign investment laws might include:
a. Protection against state intervention and the ability to repatriate profits.
b. Repatriation of profits and the ability to have 100% foreign ownership.
c. Governmental approval of technology transfer agreements.
d. All of the above.
A product standard is a technical requirement imposed by the Department of
Commerce’s technical bureau as to the product’s characteristics before permitted into
the country.
a. True
b. False
Within the structure of the World Trade Organization, the three important groups under
the Ministerial Conference are:
a. the General Council, the Secretariat, and the Trade Policy Review Body.
b. the Committee on Budget, the General Council, and Trade Policy Review Body.
c. the Dispute Settlement Body, the General Council, and the International Court of
Justice.
d. the Dispute Settlement Body, the General Council, and the Trade Policy Review
Body.
Copyright protection for works of authorship available through the Internet is expressly
provided by:
a. The Berne Convention.
b. The WIPO Copyright Treaty.
c. The TRIPS Agreement.
d. None of the above.
A straight bill of lading assures that the goods have actually been loaded on board the
ship for shipment.
a. True
b. False
Ocean carriers are exempted from liability for which of the following:
a. Insufficiency of packing.
b. Errors in the navigation or management of the ship.
c. Acts of God.
d. All of the above.
A sovereign nation has the power to nationalize a foreign private enterprise without
compensation.
a. True
b. False
Dumping is the unfair trade practice of selling products in one country for less than the
price charged for comparable goods in the producer’s home market.
a. True
b. False
Venue means the appropriate set of laws applicable to a case.
a. True
b. False
In order to convene a WTO panel, the complaining country must prove it has a “legal
interest” in the case.
a. True
b. False
Scenario
Reduced rate loans offered by U.S. banks to U.S. businesses willing to relocate their
operations to economically depressed inner cities.
Scenario
A claim of formation of a contract based upon a purported acceptance of an offer
mailed by a Chinese offeree but
never received by the American offeror.
Guador, a small country in South America, is a member of the WTO. American fruit
producers recently succeeded in persuading several members of Congress to introduce a
bill to remedy Guador’s alleged unfair trade practices in the citrus fruit industry. The bill
provides for a unilateral threefold increase in the tariff solely applicable to citrus fruits
originating in Guador. Furthermore, the bill imposes periodic testing procedures upon
Guadorian citrus fruits from which American producers are exempt. Finally, the bill
caps imports of Guadorian citrus fruits into the United States at $20 million in value
annually. If enacted, would the bill violate American obligations pursuant to the GATT?
Why or why not?
Scenario
Loan guarantees by the French government to French filmmakers who utilize French
equipment in the making of their movies.
Scenario
A wire transfer of $200,000 to the Minister of Contracting of Gambia made by
Bordeaux Builders, Inc., a French corporation, and originating from its corporate
headquarters in New York in order to secure a construction contract.
The German government recently adopted a law defining “beer” as any alcoholic
beverage brewed in compliance with customary German brewing practices dating back
to the year 1516. These practices mandate specific procedures for every step in the
brewing process. Only natural ingredients are to be used in the brewing process. The
use of additives is specifically prohibited. As a result, imported alcoholic beverages
labeled and sold as “beer” in other states were prohibited from being sold as “beer” in
Germany. Instead, such products could only be sold as “malt beverages.” The stated
purposes of this law were to protect the public from products that contain additives and
prevent confusion by German consumers who associate the term “beer” with traditional
German brewing standards. The German law was challenged in court by Venezia
Brewing Limited (VBL), an Italian company that wished to sell its malt beverage
containing additives as “beer” in Germany. VBL claimed that the German law was
inconsistent with a European Union regulation that established standards for but did not
ban the use of additives in malt beverages. Does the German law violate European
Union law, including the regulation? Why or why not? Would your answer be different
if the European Union law was in the form of a directive that had not yet been
implemented by Germany? Why or why not? Does VBL have standing to challenge the
German law? Why or why not?
Scenario
An attempt by an American consumer to sue a Chinese manufacturer for product
defects which resulted in his personal injury.