When evaluating the effect of a merger, the European Union seeks to determine:
a. The impact of the merger by totaling the total number of competitors left.
b. Amount of capital invested in the combined companies in relation to the remaining
competitors.
c. The compatibility of the merger with the common market, which is presumed if
market share will not exceed 25 percent.
d. None of the above.
The shipment of goods or rendering of services to a foreign buyer located in a foreign
country is:
a. Importing.
b. Exporting.
c. Foreign exchange.
d. A and B.
The great advantage of the International Convention for the Protection of Industrial
Property is that by filing a trademark with this international body, the trademark owner
achieves virtually worldwide trademark protection.
a. True
b. False
OPIC insurance is primarily intended to protect U.S. investments in Japan, Canada and
Western Europe.
a. True
b. False
Modern traditional theories of the taking of private property are followed by:
a. Most developed industrialized countries.
b. Most developing countries.
c. Most communist countries.
d. All of the above.
A back-to-back letter of credit is actually two letters of credit used as a financing
device.
a. True
b. False
Foreign competition law is similar in substance are modeled after American antitrust
law and similar in the sanctions for violating the law.
a. True
b. False
Which of the following Acts created a review process under which mergers, joint
venture agreements, and similar transactions must be brought before the Department of
Justice for review before they are concluded?
a. The Clayton Act
b. The Smoot-Hawley Act
c. The Hart-Scott-Rodino Act
d. The Kyoto Protocol
Kunming Amusement Company (KAC) is a toy manufacturer located in Yunnan
province in southern China. KAC routinely dumps industrial waste from its
manufacturing operations in the nearby Mekong River. The Chinese government is
aware of this practice but has failed to take any action to prevent to occurrence or
inform neighboring states. Two months ago, there was an industrial accident at KAC’s
manufacturing facility, which resulted in the significant discharge of numerous toxins
(including lead-based paint) into the Mekong River. KAC informed the Chinese
government of this accident, but the Chinese government failed to inform downstream
states of the accident. As a result, people in Laos, Thailand, Cambodia and Vietnam
unknowingly utilized tainted water for numerous domestic purposes, including drinking
bathing, irrigation and watering of livestock. The accident was only discovered after
numerous downstream users became ill and there were massive fish kills, which
resulted in subsequent testing of the water and discovery of the contamination.
If the United States responded to these events by increasing surveillance of KAC’s toys
for lead content, would such a ban be consistent with its obligations pursuant to GATT?
Why or why not? If the United States responded to these events by banning importation
of all Chinese toys manufactured in an environmentally unsound manner, would such a
ban be consistent with its obligations pursuant to GATT? Why or why not?
The term nationalization usually applies to the expropriation of an entire industry or
natural resource of a nation.
a. True
b. False
U.S. Wheat Sales, Inc. has a contract with Zambia to supply 1,000,000 bushels of
wheat. Before shipment, the U.S. government put an embargo on the sale of wheat to
Zambia. U.S. Wheat cannot ship. In a legal action:
a. U.S. Wheat would be liable for breach of contract and have to pay damages.
b. U.S. Wheat will have to get wheat from other sources and specifically perform.
c. U.S. Wheat will be excused from performance because of the doctrine of
impossibility of performance.
d. None of the above is correct.
If a seller’s employees go on strike, is this a commercial impossibility a valid legal
excuse for not performing under a sales contract.
a. True
b. False
A free trade area is:
a. Two countries that have a common external tariff.
b. A geographic area between two countries where there are no tariffs.
c. A group of two or more countries in which import duties and other trade barriers are
reduced or eliminated.
d. A geographic area between two countries where tariffs are reduced, but not
necessarily eliminated.
Which of the following is not one of the Parliament’s powers?
a. Serve as consultative body (to council) on legislative proposals.
b. To censure the commission.
c. Elect representatives to the commission.
d. All are assembly powers.
The Trading with the Enemy Act was passed for the purposes of allowing the U.S. to
sell arms to friendly nations.
a. True
b. False
It is a firmly held principle of international contract law that a seller is always obliged
to supply goods in conformity with the provisions of public law applicable in the
country of importation.
a. True
b. False
In some circumstances, the presentation of research by a U.S. scientist at a convention
in a foreign nation may require an export license.
a. True
b. False