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Which convention calls for contracting parties to criminalize bribery of public officials
and money laundering?
a. UN Convention Against Crime
b. UN Convention of Extraterritoriality
c. UN Convention Against Corruption
d. None of the above
The Commerce Clause vests the federal government with unlimited control over
domestic commerce and limited power over foreign commerce.
a. True
b. False
One dispute resolution mechanism used frequently in international disputes over the
environment is binding adjudication.
a. True
b. False
All Incoterms are intended for use with ocean cargo.
a. True
b. False
Letters of credit are a bank's promise to pay provided that all of the terms and
documents required submitted are correct.
a. True
b. False
NAFTA's national treatment principle states that differing standards for North American
products must be justified.
a. True
b. False
The documentary letter of credit is a modern commercial practice devised by the United
Nations Commission on International Trade Law.
a. True
b. False
Many of today's international business law concepts are derived from the law merchant
and maritime law, which are the accepted customs and practices of Renaissance-era
merchants, traders, bankers, mariners, and ship owners.
a. True
b. False
A state's authority to tax a business engaged in foreign commerce is granted by the
Commerce Clause.
a. True
b. False
Which of the following is NOT one of the primary distinctions between U.S. and
foreign labor laws?
a. Many non-U.S. nations' laws require employee consultation or participation in
management decisions that Americans view as being the owner's prerogative.
b. Many non-U.S. countries place legal constraints on employee dismissal that are
unfamiliar to the U.S. investor.
c. When a U.S. investor acquires a foreign business, by operation of law, it may also be
acquiring the foreign industry's labor arrangements.
d. Many American laws require employee consultation or participation in management
decisions that non-U.S. businesspeople view as being the owner's prerogative.
NAFTA:
a. Lowers tariffs.
b. Liberalizes trade in goods.
c. Addresses many regional issues that are of concern to the three countries.
d. Liberalizes trade in services.
e. All of the above.
IPR transfers from U.S. companies to joint ventures in developing countries often allow
U.S. companies to avoid the legal risks and entanglements of direct investment.
a. True
b. False
Carriers are liable for damages equal to the value of the goods regardless of how their
value is stated on the bill of lading.
a. True
b. False
A host country that progressively limit the exercise of ownership rights by a foreign
firm is progressive nationalization.
a. True
b. False
Most buyers in an international sale are now willing to pay cash in advance in order to
reduce credit risk.
a. True
b. False
The U.S. antitrust law distinguishes between actions that are:
a. Per se wrong and actions to which the role of reason applies.
b. Marginally wrong and actions to which the rule of reason applies.
c. Partially wrong and actions to which the rule of best judgment applies.
d. Good and bad.
Under the Supremacy Clause of the Constitution, where a law of the federal
government directly conflicts with a state law, the federal law will prevail.
a. True
b. False
The obligations under the letter of credit between the seller and buyer and independent
of the sales contract between the seller and the buyer.
a. True
b. False
A provisional measure is a tariff imposed by a country in order to ensure that dumping
does not take place.
a. True
b. False
Maurice O'Meara Co. v. National Park Bank of New York involved a letter of credit for
a shipment of newsprint. The bank was concerned that the shipment was not as
represented in the documents. In finding in favor of the seller's assignee, the court:
a. Emphasized the independence principle in letter of credit transactions.
b. Focused on the bank's legal right to refuse documents that do not strictly comply with
the terms of the letter of credit.
c. Upheld the bank's right to have an inspection to test the tensile strength of the
newsprint.
d. A and C only.
Settlement of a dispute by binding arbitration never makes the decision binding.
a. True
b. False
In Samsonite v. United States, the court found that:
a. Samsonite luggage was causing serious injury to the Canadian luggage market.
b. Processing of the metal strips was a fabrication, and therefore not qualified for
duty-free treatment.
c. The processing of the metal strips was a mere assembly and therefore qualified for
duty-free treatment.
d. Samsonite luggage did not cause serious injury to the Mexican luggage industry.
The 1982 act passed by Congress in order to clarify the standard to be applied in
determining the extraterritorial effect of American antitrust law provides that:
a. American antitrust law extends to all countries that do not have enforceable antitrust
laws of their own.
b. American antitrust law does not apply outside the U.S.
c. American antitrust law applies only to conduct that has a direct, substantial,
foreseeable effect on U.S. commerce.
d. American antitrust law applies only to firms whose economic power is so substantial
that they could directly and significantly dominate foreign markets.
In order to maintain operational control over a joint venture, the foreign partner may
enter into which of the following:
a. Marketing agreements.
b. Supply agreements.
c. Contracts with management.
d. Maintain veto power in the joint venture agreement.
e. All of the above.
