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The impact of piracy on the revenue loss as estimated by the Motion Picture
Association of America is approximately $1.5 billion per year.
a. True
b. False
Answer:
California Agricultural Aircraft Services, Inc. (CAAS) is a California corporation
headquartered in Sacramento.
CAAS leases aircraft to crop dusting businesses through California. CAAS entered into
a contract with Shà nghai Aircraft Company (SAC), a state-owned enterprise organized
pursuant to the laws of the People's Republic of China. The contract provided for the
manufacture by SAC and purchase by CAAS of ten crop dusting aircraft at a price of
U.S. $2.1 million, a savings of approximately $200,000 compared to crop dusting
aircraft available from other manufacturers. One of the aircraft delivered to CAAS was
subsequently leased to Central Valley Crop Dusting, Inc. (CVCD), a California
corporation. One month later, this aircraft crashed during a CVCD spraying operation
resulting in a complete loss of the aircraft and serious injuries to the pilot. The pilot
stated that the engine lost power and then caught on fire while he was attempting an
emergency landing. Subsequent investigations by federal and state authorities
determined the sole cause of the crash to be catastrophic engine failure. CVCD and its
pilot subsequently initiated litigation in the San Joaquin County Superior Court against
CAAS, claiming breach of numerous provisions within the lease agreement, strict
product liability and negligence. CAAS immediately notified SAC regarding the
litigation and requested indemnification, but SAC did not respond to this request.
CAAS is now contemplating joining SAC as a co-defendant to CVCD's lawsuit.
What defense could SAC assert to the exercise of personal jurisdiction by the San
Joaquin County Superior Court? What does this defense provide? Would this defense be
successful in this case? Why or why not?
Answer:
Scenario
A $100,000 wire transfer made by Automobile Repair Parts, Inc., a California
corporation, to the director of contracting of Yoshiba International, a Japanese
corporation, for the purpose of obtaining a supply contract from Yoshiba.
Answer:
Appeals of a binational panel decision may be taken to:
a. The World Trade Organization.
b. The court of law in the country in which the dispute took place.
c. The Extraordinary Challenge Committee.
d. The NAFTA Fair Trade Commission.
e. None of the above.
Answer:
If the president is negotiating a trade agreement with Germany over reducing tariffs on
telephone switching equipment and he wants to make sure there will be no problems
with its passage, he can:
a. Call the Speaker of the House and President Pro Tem of the Senate to get their
assurances of passage.
b. Declare through Presidential Proclamation that it will be law.
c. Seek fast-track approval with Congress prior to the trade agreement being concluded.
d. None of the above.
Answer:
The government agency responsible for determining the dutiable status of goods is:
a. U.S. Commerce Service.
b. U.S. Duties & Tax Service.
c. U.S. Port of Entry Service.
d. None of the above.
Answer:
Foreign laws that require the disclosure of the ingredients of formulas of trade secrets to
determine the safety of the product before entry is granted is a legitimate government
regulation under its police powers i.e. health and safety.
a. True
b. False
Answer:
Regarding sectoral issues and NAFTA:
a. Mexico has long had an open automobile market, which has encouraged trade.
b. NAFTA contains specific rules of origin for determining when a textile product has
originated in North America.
c. No other trade sector is as complex or highly regulated as agricultural trade.
d. NAFTA has no rules regarding government procurement.
Answer:
One tax issue that presents no problem for a U.S. investor is the question of crediting
taxes it has paid to a foreign country against taxes it would have to pay the U.S. on its
federal return.
a. True
b. False
Answer:
If a party does not fulfill their obligations as set forth in a sales contract, it is known as:
a. Non-payment.
b. Termination.
c. Non-performance.
d. All of the above.
Answer:
Under a bilateral agreement concluded in 1994 between the U.S. and the EU:
a. U.S.-made liquor can be branded as 'scotch whisky," or "cognac."
b. EU made liquor can be branded as "bourbon" or "Tennessee whiskey."
c. Both A and B.
d. Neither A nor B.
Answer:
In the Civil Rights Act of 1991, Congress extended Title VII to all U.S. firms operating
outside the United States.
a. True
b. False
Answer:
Trade discrimination can occur even when imported and domestic products are treated
the same.
a. True
b. False
Answer:
The distinction between independent and dependent agents is important because tax and
labor law considerations are determined by the designated relationships.
a. True
b. False
Answer:
Illegal payments routed through a independent foreign sales agent to foreign officials
may result in criminal prosecution of the corporation employing the agent.
a. True
b. False
Answer:
There are two types of import protection regulations in the U.S.:
I. Laws that provide relief to protect developing U.S. domestic companies.
II. Laws that allow non-market economy nations a financial break.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
Answer:
The cornerstone of U.S. environmental regulation of exports is the concept of:
a. Receiving the prior informed consent of the foreign countries to which the exports
are going.
b. U.S. firms may not export any hazardous materials that they could not sell in the
United States.
c. Advance permission to export from the Environmental Protection Agency.
d. Receiving advance permission from the United Nations before exporting hazardous
or toxic materials.
Answer:
When a person registers a domain name with the intent to profit from the goodwill of a
trademark belonging to another, it is called:
a. domain assumption.
b. cybersquatting.
c. domain preemption.
d. bad faith registration.
Answer:
The Trade Act of 1974 and Omnibus Act give the president broad powers to deal with a
range of complex international economic problems and to negotiate the reduction of
non-tariff barriers.
a. True
b. False
Answer:
