1) A business that grants licenses to a foreign national or foreign business entity is not a
multinational enterprise.
2) Multilateral Trade Agreements of the WTO Agreement are binding on all members
of the WTO.
3) The OPIC limits its exposure in any one country to no more than 10 percent of its
total risk.
4) The United Nations Environment Program was created upon the recommendation of
the Stockholm Declaration.
5) A certificated security can be transferred by negotiation.
6) A customs union consists of a group of states that have reduced or eliminated tariffs
among themselves but that maintain their own individual tariffs in dealing with other
states.
7) The Overseas Private Investment Corporation (OPIC) is an independent government
agency.
8) According to U.S. law, information is material when something is of significance to a
reasonable person.
9) A certification mark is a mark or symbol used to identify a person who provides
services.
10) A rejection becomes effective as soon as it is dispatched by an offeree.
11) The nonconditional protection principle states that common minimum standards for
granting copyrights must be observed by all member states.
12) Recognition comes about by a unilateral declaration, and it can be either explicit
(express) or implicit (tacit).
13) The right of an author to prohibit others from tampering with a copyrighted work is
called the right of performance.
14) The transfer of a straight bill gives the transferee greater rights than those of his
transferor.
15) The UNFCCC recognizes industrialized countries as the main source of air
pollution.
16) A multiple licensing agreement is a contract for the licensing of industrial property
rights to two or more licensees.
17) KFC and Pizza Hut are examples of distributorship.
18) A ________ is a charge or claim against a vessel or its cargo.
A. certiorari
B. demurrage
C. dead freight
D. maritime lien
19) Which of the following is true of a subsidiary?
A. A subsidiary is used to operate a parent companys holding company
B. A subsidiary does not actually conduct business; rather, it functions as a foreign
contact point
C. A subsidiary insulates the parent company from unlimited liability
D. A subsidiary is a part of the parent company and is not separately incorporated
20) The ________ is a supplemental agreement to the UN Framework Convention on
Climate Control drafted in 1997 that requires developed member countries of the
convention to reduce greenhouse gas emissions by 5.2 percent below 1990 levels.
A. Kyoto Protocol
B. Stockholm Declaration
C. Calvo Clause
D. Alpine Convention
21) A group of states that have reduced or eliminated trade barriers among themselves
and have established a common external tariff is called ________.
A. the United Nations System
B. a free trade area
C. an economic consultative association
D. a customs union
22) Which of the following is a principal argument against the enforcement of Article
VIII, Section 2(b), of the IMFs Articles of Agreement?
A. that it depends unduly on the gold exchange rate system of monetary exchange
B. that it places a lot of importance on the gold reserves that a country owns
C. that it downplays the importance of interdependence of member nations
D. that it is at odds with a longstanding choice of law rule
23) An IMF member is entitled to two credit tranches, each equivalent to 50 percent of
its quota.
24) Islamic law is the principal source of law in Saudi Arabia.
25) With regard to the form requirements for bills of exchange, the ULB differs from
the common law in that the ULB requires the instrument to be ________.
A. in writing
B. payable to order
C. payable to bearer
D. dated
26) The Treaty Establishing the European Community and the ________ of 2010 are
the principal sources of law in the EU, pertaining to business between and among its
member states.
A. Multilateral Agreement on Investment
B. Lisbon Treaty
C. Trade and Investment Framework Agreement
D. Free Trade Agreement
27) A ________ is an instrument issued by a warehouseman or carrier to a shipper that
serves as a receipt for goods shipped, as evidence of the contract of carriage, and as a
document of title for the goods.
A. bill of lading
B. deed
C. letter of credit
D. certificate of deposit
28) A treaty concerned with rights over territory, such as boundaries and servitudes is
called the ________.
A. executive agreement
B. constitutional treaty
C. self-executing treaty
D. dispositive treaty
29) Which of the following is true of the remedy of avoidance used by an injured party
of a contract?
A. It can be used without notification to the injuring party
B. It revokes all the provisions governing the rights and duties of the parties
C. It cancels out any provisions in the contract concerning the settlement of disputes,
once used
D. It can be used in case a fundamental breach of the contract has been observed
30) Which of the following is true of state responsibility toward acts of terrorism?
A. A state is liable for all terrorist acts that happen within its territories
B. A state is only liable for international acts of terrorism perpetrated by its nationals
C. A states responsibility is often limited to helping other states bring terrorists to trial
D. A state is liable only for those terrorist acts that are perpetrated by foreign nationals
within its territory
31) Which of the following is true of the Committee of Experts on the Application of
Conventions and Recommendations?
A. It consists of individuals who are not biased toward any groups or governments
B. Its members are appointed by the General Conference of the ILO
C. Its members are drawn from government representatives of each member state
D. It reviews the recommendations made by the Conference Committee on the
Application of Conventions and Recommendations at the General Conference
32) Practical expertise acquired from study, training, and experience is called
________.
A. originality
B. expression
C. distinctiveness
D. know-how
33) The ________ is the production of an instrument to a party liable to pay on it for
that partys acceptance or payment.
A. accommodation of the instrument
B. presentment of the instrument
C. issuance of the instrument
D. endorsement of the instrument
34) A(n) ________ is an emergency action that a WTO member state may take in order
to protect its domestic industry from serious injury due to a sudden increase in the
quantity of an imported product.
A. servitude
B. safeguard
C. delict
D. usus
35) A(n) ________ is a person who has physical possession of a bill or note that was
drawn, issued, or endorsed to him or her, or to his or her order, or to the bearer, or in
blank
A. accommodation endorser
B. holder
C. assignor
D. acceptor
36) A drawee of a bill who, by signing the bill on its face, agrees to pay the bill when it
is due is referred to as a(n) ________.
A. accommodation party
B. acceptor
C. holder in due course
D. holder
37) The Uniform Law on Bills of Exchange and Promissory Notes (ULB) differs from
the Uniform Commercial Code in that the ULB ________.
A. does not allow for variable interest rates
B. allows payments to be made in installments
C. allows nonmonetary modes of payments
D. does not allow external references for payment amount
38) In a draft transaction, if the drawee is a bank, then the draft is referred to as a
________.
A. promissory note
B. check
C. trade acceptance
D. certificate of deposit
39) When a bank acts as an agent of another bank, especially in carrying a deposit
balance for the latter, then that bank will be referred to as a ________.
A. commercial bank
B. central bank
C. reserve bank
D. correspondent bank
40) A(n) ________ is a subsidy that is permissible and nonchallengeable, such as
government funding to underwrite research activities, to aid disadvantaged regions, or
to help existing facilities adapt to new environmental requirements.
A. actionable subsidy
B. prohibited subsidy
C. nonactionable subsidy
D. consumption subsidy
41) A ________ is a ship that carries goods for all persons who choose to employ it so
long as there is room.
A. common carrier
B. free carrier
C. freight forwarder
D. tramp vessel
42) Which of the following is most likely to be true of a branch office in the United
States?
A. It is liable for the debts of the parent company
B. It is considered a separate legal entity of the parent company
C. It does not have to be registered with any state agency
D. It is not liable for its own debts
43) Which of the following is true of the International Fund for Agricultural
Development (IFAD)?
A. It is considered to be the developmental arm of the IMF
B. It is primarily concerned with funding projects concerning global environmental
problems
C. Its membership is limited to the members of the Global Environmental Facility
D. Its membership is open to any member of the UN
44) Which of the following types of transactions would be included in the purview of
the CISG?
A. sale of land at a foreclosure
B. sale by an auction
C. sale of patent rights
D. sale of negotiable instrument
45) ________ are areas in international airports and harbors where travelers can buy
goods free of local sales and excise taxes.
A. Free retail zones
B. Export processing zones
C. Bonded warehouses
D. Foreign priority sectors
46) The transfer of all or some of the rights under a contract is called a(n) ________.
A. assignment
B. allonge
C. endorsement
D. restrictive endorsement
47) A(n) ________ is a written, dated, and signed three-party instrument containing an
unconditional order by a drawer that directs a drawee to pay a definite sum of money to
a payee on demand or at a specified future date.
A. codicil
B. promissory note
C. deed
D. bill of exchange
48) Under the FCPAs antibribery provisions, it is not a crime to pay an official to
process a visa.
49) Which of the following is a dispute settlement organ of the WTO that is charged
with administering and carrying out the Dispute Settlement Understanding?
A. International Court of Justice
B. International Criminal Court
C. International Center for the Settlement of Investment Disputes
D. Appellate Body
50) The ________ consists of the criteria that allow a court to assume criminal
jurisdiction over an offense that was committed within the forum state.
A. territoriality nexus
B. nationality nexus
C. protective nexus
D. universality nexus
51) How is the place for delivery decided for contracts?
52) Explain self-judging reservations.
53) Explain factors that lead to creeping expropriation of investment in less developed
countries.
54) Describe the significance of the international labor standards established by the
ILO.
55) Compare between product liability in domestic law and the CISG.
56) Explain a future contract.
57) Explain the Romano-Germanic Civil Law System.
58) Explain the role of the Bank for International Settlements as the central banks
bank?
59) Why are auction sales and sales otherwise by authority of law excluded from the
CISG?