Under U.S. law, corporations are taxed on all income, including income from foreign
sources that is repatriated back to the United States.
a. True
b. False
A holder in due course, as defined by the UCC, includes which of the following? A
holder in due course:
a. Must have given a “just price” as consideration for the document or instrument.
b. Must be unrelated to the original document holder.
c. Must have taken the instrument for value and without notice it is overdue or has been
dishonored.
d. A and C only.
e. None of the above.
Under NAFTA, the Commission for Environmental Cooperation’s Strategic Plan for
2010-2015 states its top environmental priority is:
a. limiting the expansion of climate change.
b. reducing the effects of greenhouse gas emissions.
c. improving the health of children and other vulnerable communities.
d. placing tighter restrictions on air and water pollution.
The purpose of country-of-origin marking requirements is to give consumers in the
marketplace the information they need about the products they purchase.
a. True
b. False
The maquiladoras along the U.S. and Mexican border are regulated under NAFTA.
a. True
b. False
The GATT dispute panel found that Thailand’s import restrictions on Tobacco could not
be justified as being necessary for the protection of domestic agriculture. a. True b.
False
A force majeure clause serves as a general excuse for nonperformance of a sales
contract in all situations.
a. True
b. False
Which of the following is NOT one of the reasons that International Business Law has
become more uniform?
a. The forces of free trade, economic integration, and the globalization of business have
accelerated the need for greater uniformity in IBL.
b. Nations have had to cooperate in their legal responses to global issues, common
problems, and technologies.
c. All nations have agreed to practice and enforce the codes and legislation set down by
the World Trade Organization.
d. Private industry and trade organizations have encouraged the growth of uniform IBL.
A number of countries in Europe require a two-tiered board of directors. The two-tiered
boards are:
a. A supervisory board and a management board.
b. A minority board and a majority board.
c. An elected board and an appointed board.
d. A labor board and an administrative board.
Under U.S. antitrust law:
I. Most actions are brought by private individuals.
II. Successful litigants can collect treble damages.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
The “circle of poison” refers to the importation of crops produced in developing nations
using pesticides banned in the U.S.
a. True
b. False
Germany labor laws grants its workers equal to management rights to participate in the
management of the business.
a. True
b. False
In order for an executive agreement of the president concerning foreign affairs to be
valid:
I. A court must find that it is based on the president’s inherent powers or authority
granted by congress.
II. It must be based upon an express power granted by the U.S. Constitution.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
Under the “national treatment” provisions of GATT, imported products may be
regulated and taxed differently than domestic goods after they pass the border and enter
a nation’s stream of commerce.
a. True
b. False
The signing of the Treaty of Paris by the original six members of the European
Community established which of the following:
a. GATT.
b. European Atomic Energy Commission.
c. European Coal & Steel Community.
d. The Single European Act.
The ship Audie Murphy leaves the New York Port with a ship load of GMC pick-up
trucks bound for the Port of Istanbul, Turkiye. A fire breaks out aboard the ship and
destroys the more than thirty GMC pick-up trucks. After an investigation it has been
unable to determine the cause. Who is financially responsible to the owner of the cargo?
a. Captain of the Audie Murphy
b. Buyer
c. The Owner of the ship – Jack Palace
d. None of the above
Artificially manipulated pricing between joint venture corporations is known as transfer
pricing.
a. True
b. False