International Sales Law:
I. Is not uniform because of vast political, cultural, and historical differences.
II. Is embodied in the Convention on the International Sale of Goods.
Which of the following is correct?
a. Both I and II.
b. Neither I nor II.
c. I only.
d. II only.
Answer:
Each member of the Commission serves a four year term and selected from the College
of Commissioners.
a. True
b. False
Answer:
The essential problem in soft-currency countries is that despite the sufficient amount of
hard currency available, the excessive bureaucratic and regulatory framework makes
gaining access to that currency very difficult.
a. True
b. False
Answer:
One of the primary objectives of GATT is the elimination of all quotas and quantitative
restraints.
a. True
b. False
Answer:
In China, before an employer can reduce its workforce by at least 20 employees or 10
percent, the employer must satisfy which of the following conditions?
a. The employer is restructuring due to bankruptcy.
b. The employer is experiencing difficulties in production and operations.
c. A material (significant) change in the objective economic circumstances has
occurred, making performance and fulfillment of the employee contract impossible.
d. Any of the above.
Answer:
In the event that a discrepancy is found in the documents presented under a letter of
credit, the bank may request a waiver or:
a. Resubmit the draft.
b. Void the transaction.
c. Refuse delivery.
d. Refuse to pay against documents.
Answer:
Which of the following statements regarding technical barriers to trade is false?
a. Despite decades of work by the European Union, thousands of new national
standards have arisen.
b. Japan and the United States have had a long history of disputes over Japanese
technical barriers to trade.
c. Most standard setting in the European Union takes place through the European
Committee for Standardization.
d. Japanese technical regulations and standards are readily available to importers and
exporters.
e. All of the above are true.
Answer:
Individual penalties for violating the FCPA include:
a. Imprisonment of up to five years and a fine of up to $100,000.
b. Imprisonment of up to fifteen years and a fine of up to $10,000.
c. Fines, imprisonment, and discharge from the corporation.
d. Fines, imprisonment, and revocation of the right to travel in the foreign country.
e. None of the above.
Answer:
Which of the following is one of the President’s inherent powers?
a. The power to conduct foreign affairs
b. The power to appoint and receive foreign ambassadors
c. The power to act as commander-in-chief of the armed forces
d. All of the above
Answer:
When it seems likely that a licensee may develop improvements in the licensed
technology, a licensor may wish to include a in the license agreement.
a. Grant back provision.
b. Field use provision.
c. Technology transfer.
d. Promise of confidentiality.
Answer:
The purpose of trade preferences is to provide assistance for countries whose
economies are developing.
a. True
b. False
Answer:
A carrier can be held liable for breach of contract for damages for the misdelivery of
goods
a. True
b. False
Answer:
Which of the following statements about dependent agents is true?
a. The office in which the dependent agent is unimportant and is not subject to the host
country’s tax laws.
b. A dependent agent is considered an employee for purposes of the host country’s labor
laws.
c. A principal is not liable to third parties for a dependent agent’s misdeeds.
d. All of the above.
Answer:
Which of the following are not allowed to enter goods into the customs territory of the
United States?
a.The purchaser of the goods.
b.A customs broker authorized to act on behalf of the importer.
c.Nonresident individuals and foreign corporations.
d.All of the above may enter goods.
Answer:
The International Trade Commission is:
a. The agency that collects customs duties.
b. The agency that prepares reports on matters related to international economics and
trade for Congress.
c. The agency that promotes U.S. trade with other countries.
d. None of the above.
Answer:
Foreign Trade Zones make it possible for U.S. manufacturers to export goods without
having to pay any duties.
a. True
b. False
Answer:
Some of the inadequacies of the traditional international pollution-control system
include:
a. Voluntary consent by nations to international litigation or arbitration of
environmental disputes is rare.
b. Litigation in the polluting company’s home country can be circumvented by having
all actions and decisions occur through a subsidiary in the less environmentally
conscientious country.
c. A and B.
d. Neither A nor B.
Answer:
The Japanese technical barriers are imposed to protect its citizens and based on
performance standards.
a. True
b. False
Answer:
A country designated as a beneficiary developing country is granted trade preferences
for goods entering the U.S. market provided they meet all of the following conditions
except:
a.It is located in Asia.
b.It cooperates with the U.S. in the enforcement of narcotics laws.
c.It has not unlawfully expropriated the property of U.S. citizens.
d.It is not controlled by a communist government.
Answer:
Which of the following statements about the 1994 General Agreement on Trade in
Services is false?
a. It is patterned after the concepts that GATT applies to trade in goods.
b. Expands provisions governing trade in services provided for in the original GATT
agreement.
c. Prohibits a requirement that local inventors must own a percentage of a foreign
services company.
d. Allows each country to list exceptions to the General Agreement for certain service
industries.
Answer:
B is known in the trade as a trader and merchant of soybeans. A entrusts a load of
soybeans to B for storage in B’s warehouse. Secretly, B delivers the goods to an ocean
carrier in return for a bill of lading. B then sells the document covering a shipment of
soybeans to C, who has purchased soybeans from B in the past. C pays for the
document through its bank. B absconds with the money. In this case:
a. B is guilty of a crime under the Uniform Commercial Code.
b. C is probably not a good faith purchaser.
c. C takes paramount title.
d. B and the carrier are liable for a conspiracy to commit fraud.
Answer:
The substance of many countries’ antitrust law is very similar in focusing on two types
of activity. The two types of activities are:
a. Prohibitions against price cutting and resale price agreements.
b. Prohibitions against agreements attempting to restrict competition and the abuse of a
dominant market position.
c. Prohibitions against economizing to achieve greater market share and lack of
marginal return.
d. Both A and B.
Answer: