Nations that express their willingness to join a treaty are called:
a. ratifiers.
b. signatories.
c. contracting parties.
d. abrogators.
Answer:
If the seller wishes to make his goods available to the buyer at his place of business
with the buyer arranging all transportation and bearing all risks from the time the goods
leave the seller’s door, the seller should quote his prices:
a. Ex carriage.
b. CIF seller’s factory.
c. Ex factory.
d. FAS seller’s dock.
e. None of the above.
Answer:
Two U.S. groups that have tended to oppose NAFTA are labor unions and the Free
Enterprise Institute.
a. True
b. False
Answer:
An independent agent is often characterized by which of the following:
a. Principal is involved in working out details of the agent’s work organization.
b. The agent is always subject to a change in instructions.
c. The agent works for many clients.
d. The agent is paid on an hourly or salaried basis.
e. All of the above.
Answer:
To be eligible for adjustment assistance due to import competition, the Secretary of
Labor must certify all of the following except:
a. Significant number of workers lost jobs.
b. Sales/production of the firm has decreased.
c. Increases in imports of articles like or directly competitive with those made by
petitioner contributed importantly to the loss of jobs.
d. The workers/jobs lost because of the increase in imports cannot be relocated to other
industries.
Answer:
Tariff-rate quotas are fixed-rate tariffs on agricultural goods.
a. True
b. False
Answer:
A sale made “CIF foreign port” implies that the terms of the sale are:
a. Credit in foreign currency.
b. Cash against documents.
c. Credit against documents.
d. Settlement pending approval of goods.
Answer:
Negotiations style in Japan can be characterized as
a. Aggressive
b. Win-Win
c. Passive
d. Harmony, personal dignity, consensus
Answer:
North American and Western European countries generally accept the modern
traditional theory of the taking of private property as provided under the “due process”
clause of the U.S. Constitution.
a. True
b. False
Answer:
If the issuing bank accepts documents that contain a discrepancy, the bank cannot seek
reimbursement from the account party, its customer.
a. True
b. False
Answer:
Which of the following statements is untrue regarding emergency safeguard actions
under NAFTA?
a. Special safeguards for textiles may be applied where increased imports cause ‘serious
damage” to the domestic industry.
b. Safeguards are available for ten years for certain agricultural products.
c. The country using them must offer the exporting country trade compensation.
d. Safeguards can take the form of both tariffs and quotas.
e. All of the above.
Answer:
Due to the influence of chemical industry lobbyists, the United States Congress has no
regulations over the export of chemicals to developing nations.
a. True
b. False
Answer:
If a U.S. company and an Austrian company end up in a dispute about a contract they
entered into that contains an arbitration clause, a case brought before a U.S. court
would:
a. Be heard by the U.S. court since arbitration clauses are not popular with such courts.
b. Be heard by the U.S. court if the U.S. company can show it will be harmed by
arbitration.
c. Not be heard by the U.S. court because U.S. courts accept arbitration as a form of
dispute resolution.
d. None of the above.
Answer:
The European Union and foreign nations have begun a spirited effort to beef up their
competition laws.
a. True
b. False
Answer:
In the Kochi Hoso case, a Japanese radio broadcaster sued his employer for dismissal.
As required by Japanese law, the employer maintained written rules specifying
conditions for which the employee could be discharged. The employee was late for a
broadcast on two occasions and was discharged pursuant to the written rules. The court
ruled that:
a. The employee could be discharged because the rules were in writing according to
Japanese law.
b. The employee could be discharged because of the seriousness of the offense.
c. The employee was reinstated to his job because the law was unconstitutional.
d. The employee was reinstated to his job because the discharge was significantly
unreasonable under the circumstances and in violation of the socially accepted view.
Answer:
According to Incoterms, the risk of loss under contract terms “FAS Name of Vessel”
passes to the buyer when the goods are delivered alongside the named vessel.
a. True
b. False
Answer:
If a U.S. company wants to limit its implied warranties in connection with a sale of
goods to a French company, the CISG provides that:
a. No limitation of implied warranties is allowed.
b. The limitation must be conspicuous and specific.
c. The limitation must be agreed to by the French company.
d. The limitation is valid no matter what the form.
Answer:
Under TRIPS, a nation may decide to exclude pharmaceutical patents if it determines
they are immoral.
a. True
b. False
Answer:
Antitrust law in the European Union are implemented by the Commission of the
European Communities and are known as competition law.
a. True
b. False
Answer:
In the Bhopal, India, disaster, the Union Carbide subsidiary involved was owned 50.9%
by the parent company with headquarters in Connecticut while the other 49.1% was
controlled by Indians. The case on behalf of the victims was started in the U.S. The
judge dismissed the case saying it should be tried in India because of:
a. Venue.
b. Rex Nonquam Moritur.
c. Lack of jurisprudence.
d. Forum Non Conveniens.
Answer: