According to Incoterms, the trade term that represents the maximum responsibility of
the seller is:
a. Carriage and Insurance Paid To.
b. Delivered Duty Paid.
c. Ex Works.
d. Delivered at Frontier.
e. None of the above.
An importer in Germany requests a price quotation from a cotton broker in Memphis.
The broker wishes to place the cotton in the hands of a multimodal terminal operator in
Memphis for shipment through the port of New Orleans. He will pay the freight charges
through to the German seaport, but he wishes the risk of loss to the cotton to pass to the
German importer as soon as he places the cotton in the hands of the multimodal
terminal operator in Memphis. The broker should quote his prices for the cotton:
a. CIF Germany.
b. FOB New Orleans.
c. CPT New Orleans.
d. Ex Factory.
e. None of the above.
The court that hears appeals from the EU’s antitrust enforcement agency and referrals
from the courts of the EU member states on competition issues is the:
a. European Court of Justice.
b. Community Supreme Court.
c. European Court of Appeals.
d. Antitrust Appellate Court.
What was the holding in El Al Israel Airlines v. Tseng?
a. The Warsaw Convention does not apply where the carrier waives its provisions.
b. The defendant accepted an additional rate to ship the package based on its declared
additional value.
c. The Warsaw Convention limits the defendant’s liability to $9.07 per pound.
d. An international passenger may not bring a cause of action under local law against an
airline when there is no bodily injury that satisfies the Warsaw Convention.
Intellectual property rights do not include:
a. Copyrights.
b. Patents.
c. Generic Pharmaceuticals .
d. Trademarks.
e. All of the above are part of intellectual property rights.
Countries of the South Pacific have been very successful in enforcing strict
environmental safeguards and have entered into regional environmental cooperation to
combat creeping pollution.
a. True
b. False
The primary body of law in the U.S. dealing with domestic sales contracts is:
a. Uniform Commercial Code (UCC)
b. Convention on the International Sales of Goods (CISG)
c. Uniform Domestic Sales (UDS)
d. Convention on Domestic Contracts (CDC).
Choice of forum clauses fix in advance where the case will be heard by contract.
a. True
b. False
The seller in a letter of credit transaction is called the:
a. Account Party.
b. Beneficiary.
c. Importer.
d. Issuer.
The Paquette Habana case concerned:
a. A question of the applicable method for joining the IMF.
b. A question discerning applicable international law.
c. A question concerning the law merchant on mercantile law of Cuba.
d. A question of which court has jurisdiction over an international case.
Commercial impracticability is an excuse for nonperformance of a contract if it adds
more than 20% to the cost of completing performance.
a. True
b. False
A potential negative aspect of the transfer of technology is that the licensee could be
your competitor in the future.
a. True
b. False
A dependent agent relationship allows for greater quality control but reduces the level
of profit that accrues to the principal.
a. True
b. False
In Basse and Selve v. Bank of Autralasia, the seller submitted a phony sample of ore to
an inspection company to obtain a Certificate of Analysis showing high- grade ore. On
the basis of the certificate, the seller paid for the documents and took delivery of the
ore. The ore turned out to be worthless. The court ruled that:
a. The bank had an obligation to inspect the ore before paying for the documents on
behalf of the buyer.
b. The buyer had a cause of action against the chemist for fraud.
c. The bank had acted properly in paying the seller even though the ore did not conform
to the contract because the certificate was regular on its face.
d. The bank had acted properly in paying the seller because the bill of lading was
negotiable.
Antidumping and countervailing duty cases may be appealed to the U.S. Court of
International Trade in all of the following situations except:
a. A decision by the International Trade Association not to conduct an investigation.
b. From a decision by the ITA to conduct an investigation.
c. From a final decision by the International Trade Association (ITA).
d. From a decision by the ITA to suspend an investigation.
Dumping has become a fairly persistent problem in international trade and is often
practiced by firms wishing to sell their excess production capacity at bargain prices to
cover fixed costs.
a. True
b. False
The U.S. antitrust laws apply to the conduct of U.S. firms outside the territorial
boundaries of the United States.
a. True
b. False
Bills of exchange are governed in the U.S. by the , in England by the , and in over 20
other countries by the :
a. Bills of Exchange Act; Convention on Bills of Exchange and Promissory Notes; The
Uniform Commercial Code.
b. Uniform Commercial Code; Convention on Bills of Exchange and Promissory Notes;
Bills of Exchange Act.
c. Convention on Bills of Exchange and Promissory Notes; Bills of Exchange Act;
Uniform Commercial Code.
d. Uniform Commercial Code; Bills of Exchange Act; Convention on Bills of Exchange
and Promissory Notes.