Often, investors must create legal structures for their investment that will maximize the
foreign venture’s U.S. dollar resources. These might include:
a. Borrowing start-up money in local currency.
b. Buying supplies and services locally, using local currency.
c. Building unitary index adjustment factors into contractual payment terms.
d. All of the above.
The principle that a nation can project its laws beyond its territorial borders is known
as:
a. extraterritoriality.
b. territoriality.
c. nationality.
d. protective jurisdiction.
Under CISG, all of the following are requirements to excuse nonperformance of a
contract except:
a. An impediment is beyond a party’s control.
b. An impediment was not reasonably foreseeable at the time contract was concluded.
c. Notice of the impediment was given to the other party.
d. The impediment is of such a monetary value as to shock the conscience.
Which of the following statements is not true?
a. U.S. export control law requires the issuance of an export license to cover the
movement of controlled U.S.- origin products from India to Taiwan.
b. The Department of Commerce will not recommend the decontrol of a product on
grounds that a non-U.S. item of comparable quality is available rendering the control
ineffective.
c. The Bureau of Industry and Security has 90 days to review and rule on the
application of an export license.
d. Civil penalties may be imposed on a strict liability basis for violations of export
control law without having to prove criminal intent.
Truth-in-advertising is now a generally accepted business practice and laws prohibiting
false advertising exist in many nations.
a. True
b. False
A forum selection clause is:
a. Contrary to public policy because it ousts the court of jurisdiction.
b. Is upheld as long as it is reasonable, negotiated in an arm’s length transaction, and
absent a compelling reason not to honor it.
c. Will not be upheld in Japan or the United States.
d. Is upheld as long as it was voluntary.
Which of the following does not characterize a difference between U.S. and EU
antidumping laws?
a. The duration of an antidumping duty has no time limit under U.S. law, but EU law
imposes a five-year maximum duration.
b. Under U.S. law, the duty equals the dumping margin, whereas under EU law, it may
vary based on the injury.
c. Under U.S. law, a duty is imposed retrospectively, while under EU law, it may be
imposed prospectively.
d. All of the above.
e. None of the above.
The purpose of the United Nations Commission on International Trade Law is to
promote international trade through the harmonization of trade law among nations.
a. True
b. False
One of the main objectives of the FCPA is to prohibit foreign company representatives
in the United States from bribing U.S. government, state, and county officials to obtain
procurement contracts.
a. True
b. False
International licensing agreements pertain to forms of intellectual property such as:
a. Books, songs, inventions.
b. Trademarks, copyrights, patents.
c. Real estate, personal property.
d. Contracts.
Moral conduct is the preeminent concern in Islamic law.
a. True
b. False
The Convention on Bills of Exchange as well as U.S. and English domestic laws
require the language “bill of exchange” to appear clearly and prominently on the face of
the instrument.
a. True
b. False
There are several reasons that a court will not enforce an arbitration agreement. All of
the following are reasons for not enforcing except:
a. No notice was given.
b. Arbitration was obtained in the incorrect venue.
c. The judgment violates public policy.
d. The arbitration did not follow the agreement.
In many cases, nations that share bodies of water have cooperated significantly on
environmental issues by:
a. banning fishing in communal waters.
b. prohibiting the dumping of all hazardous wastes into communal waters.
c. signing regional marine treaties that restrict hazardous behaviors.
d. All of the above
A is binding and directly applicable in all member states; and a sets forth the result to be
achieved but leaves to the individual states the responsibility to employ the appropriate
steps:
a. Regulation; directive.
b. Rule; resolution.
c. Resolution; rule.
d. Directive; regulation.
The U.S. view is that before a facility is shut down management must obtain the
approval of its employee union.
a. True
b. False
A clawback provision allows a foreign company to sue in their own country to recover
against local American assets all or part of an antitrust judgment rendered in the U.S.
a. True
b. False
The allocation of power between the EU and the member states is governed by all of
the following except:
a. Exclusive competence.
b. Shared competence.
c. Limited competence.
d. Supporting competence.
The U.S. law dealing with import relief is:
a. Art. 8, Sec. 1, U.S. Constitution.
b. Sec. 333, U.S. Import Relief Act.
c. Sec. 201, Trade Act of 1974.
d. GATT, Art. XIX.
The American antitrust law policy toward patent licenses:
a. Tends to be more forgiving of a patent holder’s restrictions on its licenses.
b. Views the patent monopoly as a danger to competition.
c. Lends itself to abuse by the patent holder.
d. None of the above.
The majority of the gross domestic product in the U.S. is produced by:
a. Service industries.
b. Manufacturing industries.
c. Trade in services.
d. Technology industries.