If a question arises over a trade usage, the CISG provides that:
a. No reference to trade usage is allowed by a court.
b. A court can look at those trade usages that the parties knew or ought to have known
and are regularly used in the industry.
c. A court can look at those trade usages to which the parties agree to be bound.
d. Both B and C.
Pursuant to EC Council Directive 86/653, an economic conditions alarm is sounded by
the principal for the benefit of his or her agent:
a. To give six-months prior notice of an increase in the agent’s sales quota.
b. When the inflation rate of the host country threatens to precipitate a price increase.
c. When currency exchange rates rise to a level that makes business unprofitable.
d. When sales forecasts indicate that the agent’s volume of business will be significantly
lower than normally expected.
Which of the following statements is untrue regarding intellectual property rights as
covered under NAFTA:
a. NAFTA’s provisions protect the intellectual property rights of North American firms.
b. NAFTA requires that each country enforce its intellectual property rights to prevent
smuggling of counterfeit items.
c. Specific provisions prohibit the use of geographic regions (e.g. Kentucky bourbon)
unless the products are actually derived from that area.
d. Copyrights will be protected equally in all three countries.
e. All of the above statements are true.
Which of the following is prohibited in more countries?
a. False advertising.
b. Advertising to children.
c. Sexually explicit advertising.
d. Advertising in a foreign language.
The Council of the European Union has jurisdiction over franchise agreements
operating in its member countries.
a. True
b. False
Paul has a contract to sell i-watches to a Jo Ann in Vietnam, and enter into a contract to
purchase the i-watches from Gregory in Silicon Valley. The Vietnam Government
banned i-watches imported into the country. Consequently, Paul cancels the contract
with Gregory. Is “frustration of purpose”, and recognized in the United States?
a. Breach of contract
b. Recognized in the United States
c. Generally not recognized in the United States
d. Anticipatory repudiation
Pilferage of goods in transit has been greatly reduced by the advent of break-bulk
freight.
a. True
b. False
In determining whether increased imports are a substantial cause of serious injury, the
ITC does not consider:
a. Unemployment or underemployment in the industry.
b. Growing inventories.
c. Overall economic trends.
d. An actual increase in imports or in market share held by imports.
e. All of the above are considerations.
As decided in the case presented in the text, Biddel Brothers v. E. Clemens Horst Co.,
under a C.I.F. sales contract:
a. The buyer has no right to inspect the goods before payment but is obligated to pay
upon the presentation of the proper documents.
b. The buyer has the right to inspect the goods prior to paying for them upon the
presentation of the proper documents.
c. The buyer has no right to inspect the goods and no obligation to pay upon the
presentation of the proper documents.
d. The buyer has the right to inspect the goods and no obligation to pay upon the
presentation of the proper documents.
The goals of the Maastricht Treaty included
a. Promoting social progress and cohesion.
b. Assertion of the EU’s identity on the international scene.
c. Protection of the rights and interests of the Nationals of member states by
introduction of a citizenship of the Union.
d. A and B only.
e. A, B, and C.
Which of the following might be considered a sign of market disruption within
domestic firms due to increased imports of foreign goods?
a. decreased sales volume
b. price suppression
c. lower wages
d. all of the above
Under Section 301, the United States Trade Representative has the discretion to take
retaliatory trade action in all the following cases except:
a. When a country permits forced labor.
b. When a country fails to allow workers the right to organize and bargain collectively.
c. When a country has denied the U.S. its rights under any of the GATT agreements.
d. When a country fails to provide standards for minimum wage.
Under the Foreign Sovereign Immunities Act, the United States courts have jurisdiction
over disputes between U.S. firms and the foreign states that expropriated assets without
market value compensation.
a. True
b. False
A German plaintiff had sold equipment to an American firm on open account. On the
date the amounts were due, the American firm owed the plaintiff 60,000 marks. At that
time, the dollar was worth 2.5 marks. Three years later, the plaintiff took a judgment
against the American firm in the courts of New York. At the time of judgment, the
dollar was worth only 1.5 marks. The New York court may do which of the following:
a. Award judgment to the plaintiff in $24,000 of U.S. currency.
b. Award judgment to the plaintiff in $40,000 of U.S. currency.
c. Award judgment to the plaintiff in 60,000 D.M., German currency.
d. Dismiss the case. U.S. courts cannot hear cases involving foreign currencies.
Which of the following is not a function of the U.S. Bureau of Customs and Border
Protection?
a.Assessing and collecting tariff revenue.
b.Regulating the entry of products under quota.
c.Ensuring importer compliance with the Incoterms.
d.Supervising exports.