The World Intellectual Property Organization defines intellectual property rights as
‘legal rights which result from intellectual activity in the industrial, scientific, literary,
and artistic fields.’
a. True
b. False
Answer:
In a global trade transaction, Dicky ships goods under a clean bill of lading and submits
all the necessary documents under a documentary letter of credit to the buyer Joe to his
bank. While on traveling to Turkiye in the Mediterranean Sea sinks. Is Dicky entitle to
receive payment despite the loss of the cargo?
a. As long as all necessary documents are in order when submitted
b. Dicky absorbs the risk of loss
c. Carrier is liable for the loss
d. None of the above.
Answer:
Dumping does not require that the product be sold in the home country for less than the
cost to produce it.
a. True
b. False
Answer:
To use the concept of impossibility of performance as an excuse for nonperformance of
a contract requires that the performance be objectively impossible.
a. True
b. False
Answer:
The FCPA was passed in the United States in the 1970s largely because:
a. The law was based on a draft law written by the United Nations.
b. U.S. public opinion and world disdain over disclosures of hundreds of unethical
payments to foreign officials by U.S. firms.
c. An attempt by the U.S. Congress to provide a more predictable and easily understood
law for U.S. firms operating abroad.
d. The law was requested by many U.S. corporations in order to allow them to compete
more effectively in foreign markets.
Answer:
In a socialist country, the legal system:
a. Reflects the private ownership of property.
b. Is similar to the English common law system.
c. Exhibits no need for commercial law because such disputes are settled politically.
d. None of the above.
Answer:
Indirect exporting but not direct exporting involves sales through sales agents or to
foreign distributors.
a. True
b. False
Answer:
Canada, Mexico, and the United States phased out, over a ten-year period, all tariffs on
textile and apparel goods that met the North American rules of origin.
a. True
b. False
Answer:
Restrictions a nation places on foreign investment that adversely affect trade in goods
or services are called:
a. Trade restrictions.
b. Trade-related investment measures.
c. Tariffs.
d. Foreign interest restrictions.
Answer:
World Motors assembles automobiles in the United States from engines produced by its
subsidiary corporation in Country X. In order to shift its tax liability, World Motors
instructs the subsidiary in Country X to overvalue its invoice price of the engines. This
is known as:
a. Price discrimination.
b. Foreign source income.
c. Transfer pricing.
d. Taxation pricing.
Answer:
In keeping with the litigious character of the American legal system, U.S. antitrust laws:
I. Are stated in general terms.
II. The details are to be worked out through administrative regulations.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
Answer:
If one is trying to determine the correct geographical location of a court that has
jurisdiction over a case, he is determining:
a. Jurisprudence.
b. Venue.
c. Allocation.
d. ADR.
Answer:
The formation of the European Economic Community created a uniform external tariff
for non-members that complied with the objectives of GATT.
a. True
b. False
Answer:
A carrier is entitled to release a shipment covered by a negotiable bill of lading to a
holder in possession of a clean copy of the bill of lading only if the holder also presents
a written guarantee of ownership.
a. True
b. False
Answer:
Imported goods may be entered into the U.S. by the purchaser, consignee, or customs
broker.
a. True
b. False
Answer:
In the U.S., the remedy of specific performance is limited to those instances where:
a. Money damages would be sufficient, but the injured party does not want them.
b. The goods are unique.
c. The buyer does not want the goods for which he contracted.
d. The seller wants to force the buyer to take the goods.
Answer:
The greatest level of economic integration occurs:
a. In a common market.
b. A customs union.
c. A free trade area.
d. In the WTO.
Answer:
The “circle of poison” refers to:
a. Getting food poisoning when traveling to a country with unsanitary food preparation
conditions.
b. Chemicals that are at first banned in the United States, then allowed to be produced,
and then banned again.
c. The foreign sale of U.S.-made pesticides that have been banned in the United States
and then reimported as a residue on imported foods.
d. None of the above.
Answer:
Which of the following regulatory schemes for technology transfer agreements is most
indicative of a protectionist government policy?
a. Preapproval.
b. Notification/registration.
c. No regulation.
d. None of the above.
Answer:
Scenario
A cash payment of $100 made by an agent of Chicago Chemicals Company, a U.S.
corporation, to a processing clerk in the Chilean Office of Business Licensing in order
to expedite consideration of CCC’s application for authority to conduct business
operations in Chile.
Answer:
Scenario
A claim by a German buyer against an American seller alleging the seller’s failure to
perform an oral agreement relating to a sale of goods valued at U.S. $10,000.
Answer:
Scenario
A cash payment of $100,000 by Michigan Machinery Manufacturers, Inc., a U.S.
corporation, to both of the candidates running for election to the office of president of
Nigeria and delivered simultaneously with the company’s bid for a government
contract.
Answer:
Scenario
An across-the-board reduction by the United States in the corporate tax rate.
Answer:
Scenario
An attempt by an American buyer to introduce evidence of preliminary negotiations in
order to interpret a written contract in a breach of contract case against an Italian seller.
Answer:
Scenario
An attempt by an American buyer to avoid paying a French seller for goods after
ignoring the French seller’s request for additional time to perform the contract, which
goods were delivered six days after the date provided in the contract.
Answer: