American law fails to regulate pesticides that are exported to other countries.
a. True
b. False
The GATT Agreement on Safeguards permits a member state to increase tariffs on an
imported product in order to allow a domestic manufacturer to successfully introduce a
competitive product in the domestic market.
a. True
b. False
In the U.S. business decisions are within the domain of management without
consultation with employees or the union.
a. True
b. False
A full refund of duties paid is made when imported goods that do not conform to
specifications are returned to U.S. customs within 90 days and returned to the seller
under U.S. customs supervision.
a. True
b. False
The type of arrangement in which the licensor permits the licensee to sell certain goods
under the licensor’s trademark or logo is called:
a. Trademark lease agreement.
b. Shared benefit agreements.
c. Franchise agreement.
d. None of the above.
Within the European Union, an environmental action program came about because of:
a. The Uruguay Rounds.
b. The United Nations.
c. The Bill of Rights.
d. The Single European Act.
As to the general direction of labor abroad:
I. few countries require employee consultation or participation in management
decisions.
II. Many countries place restraints on employee dismissal that are unfamiliar to U.S.
investors.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
Tariffs serve all of the following purposes except:
a. Collection of revenue.
b. Enhancement of flow of commerce.
c. Regulation of import competition.
d. Protection of the national defense.
The establishment of a branch overseas will have tax consequences as ordinary business
income under U.S. tax law.
a. True
b. False
The U.S. takes the position that a patent monopoly is essential to protect the patent
holder and encourage innovation.
a. True
b. False
The U.S. Export-Import Bank is the largest U.S. export financing agency that can
provide:
a. Financing through the World Bank.
b. Financing for imports by U.S. firms.
c. Guarantees on loans made by commercial banks.
d. All of the above.
NAFTA requires that each country enforce its Intellectual Property Rights laws, both
internally and at the border.
a. True
b. False
Under the modern traditional theory of the taking of property, a sovereign may take
private property only where:
a. The property is taken for a public purpose.
b. The taking is nondiscriminatory.
c. The taking is accompanied by a prompt, adequate, and effective compensation.
d. All of the above.
Clauses in a bill of lading that attempt to exonerate the carrier from liability are void
under which of the following:
a. The Hague Rules.
b. The Carriage of Goods by Sea Act.
c. Both A and B.
d. None of the above.
The concept of language politics in systems franchise agreements refers to:
a. The legal system’s primary language must be recognized.
b. A country that requires a certain language to be used to conduct business in a certain
region.
c. Efforts to incorporate the home country’s language into standard business practice of
the host country are extensive.
d. None of the above.
A and B have entered into a sales contract. If it becomes apparent to A that B might not
perform a substantial part of his bargain as promised, A may:
a. Avoid the contract.
b. Suspend performance.
c. Request that B specifically perform.
d. Seek restitution.
Terms of the sales contract must be reflected in the letter of credit, if not the buyer must
clear all discrepancies upon examination of the letter of credit.
a. True
b. False
The United States has, in part, accepted the jurisdiction of the International Court of
Justice. The U.S. acceptance does not apply to:
a. Disputes the parties have entrusted to other tribunals.
b. Disputes that the United States decided are essentially domestic.
c. Disputes arising under a multilateral treaty unless all parties affected are before the
court or the U.S. specially agrees to jurisdiction.
d. A and B only.
e. All of the above.
The realities of international marketplace and the recognition of the importance
reducing uncertainty have persuaded many courts:
I. To accept choice of law and forum clauses in international contracts
II. To require mandatory arbitration clauses in international contracts
a. Both I and II.
b. Neither I nor II.
c. I only.
d. II only.
Under TRIPS, until a pharmaceutical patent is actually granted, a country has no
obligation to protect potential prospective rights (during the pendency of the patent
application).
a. True
b. False
In the event of cargo damage, an action under COGSA must be brought within:
a. A reasonable period of time.
b. Within one year.
c. Within two years.
d. Within the time specified in the UCC.
In a documentary sales transaction, financial responsibility for lost or damaged goods is
always negotiated once the loss or damage occurs and not before.
a. True
b. False
Which of the following laws regulate the export of hazardous materials?
a. GATT.
b. TOSCA.
c. FIFRA.
d. A and B.
e. B and C.