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Which of the following statements is untrue regarding NAFTA and nontariff barriers?
a. Most nontariff barriers were to be eliminated within five years under NAFTA.
b. NAFTA prohibits new export taxes on goods under any circumstances.
c. Special rules allow each country to impose import restrictions to protect human,
animal or plant life, or the environment.
d. Customer user fees were to be eliminated by 1999.
Answer:
The former communist countries of Eastern Europe have no advertising restrictions on
tobacco and alcohol targeting teenagers.
a. True
b. False
Answer:
Ms. Anderson is a 53-year-old American citizen working in New York for QMB, Inc., a
wholly owned subsidiary of QMB, GMBH, a German corporation. She applies for the
position of Vice President of QMB, GMBHIa position based in MunichIand is denied
the promotion on the basis of her age. How will a U.S. federal court treat Ms.
Anderson's failure-to-promote claim under the ADEA?
a. The court must proceed with the case since Ms. Anderson is a U.S. citizen working
for QMB, Inc., a U.S. corporation.
b. The court will dismiss the claim on the grounds that the ADEA does not cover
employment decisions regarding employment outside the United States made by a
foreign-run company.
c. The court will dismiss the claim on the grounds that age is a bona fide occupational
qualification to the promotion position.
d. The court will dismiss the claim on the grounds of forum non conveniens.
Answer:
The Paris Convention gives a trademark holder in any signatory country a "right of
priority."
a. True
b. False
Answer:
International business law draws from both public and private law as related to business
transactions.
a. True
b. False
Answer:
Under the UCP, banks are responsible for the consequences of delay or loss in transit of
any messages, credits, or documents, or for errors of any telecommunication.
a. True
b. False
Answer:
The Four Freedoms include free movement of goods, services, capital and people.
a. True
b. False
Answer:
A buyer of goods has no obligation under the CISG to examine goods promptly when
received and give notice of an error in shipment.
a. True
b. False
Answer:
Documentation submitted to the Department of Justice for review under the FCPA is
considered confidential and sensitive to national security.
a. True
b. False
Answer:
According to the Warsaw Convention, an air carrier is presumptively liable for all
damage to air cargo unless it can prove:
a. The damage did not occur as a result of its negligence.
b. The loss was caused by the negligence of the shipper.
c. Either A or B.
d. None of the above, since the convention only governs baggage claims.
Answer:
The form of antitrust laws are enacted based on the particular circumstances of each
nation and therefore are not uniform.
a. True
b. False
Answer:
Quotas are not permitted under GATT or under U.S. law as a method of protecting
domestic industries, unless a trade compensation is provided as a form of
compensation.
a. True
b. False
Answer:
Which of the following statements are true about current international environmental
conventions?
a. The United States has signed the Biodiversity Convention.
b. The United States has agreed to and set timetables for limiting carbon dioxide
emissions in the Climate Change Convention.
c. Third World countries have greater flexibility in complying with the Montreal
Protocol on Substances that Deplete the Ozone Layer.
d. A and B.
e. B and C.
Answer:
The type of letter of credit issued to guarantee that a party will fulfill its obligations
under a service, construction, or sales contract is called:
a. An Irrevocable Letter of Credit.
b. Standby Letter of Credit.
c. Letter of Warranty Credit.
d. Confirmed Letter of Credit.
Answer:
The precise shape of the structure to be pursued by a U.S. active investor - branch,
subsidiary, etc. - in a foreign country depends largely on the tax treatment of the host
country and U.S. laws. In many cases:
a. No taxes will be owed.
b. Remittances from branches are taxed at a higher rate than dividends from a
subsidiary.
c. Profits are taxed at a lower rate due to depreciation schedules of certain countries.
d. None of the above.
Answer:
The Blowout Company is a German corporation and manufacturer of the California
Custom tire, a tire that is compatible with Harley Davidson motorcycles manufactured
in the United States. Tofu Granola, a resident of Santa Cruz, California, purchased a
pair of California Custom tires for his Harley. Granola purchased the tires from
Goodstone Tires, Inc., a California corporation, at its store in Half Moon Bay,
California. The Blowout Company and Goodstone provided assistance to their
customers through maintenance of a toll-free hotline. Granola subsequently suffered
severe injuries in an accident caused by the separation of the tread on the front tire of
his Harley. If Granola files a lawsuit against Blowout in California state court, does
such court have personal jurisdiction over Blowout? Why or why not?
Answer:
There is no U.S. law forbidding the export of pesticides banned in the U.S. to foreign
countries.
a. True
b. False
Answer:
