1) The IMFs Articles of Agreement requires a member to buy its own currency from
other members who have acquired it as the result of current transactions.
2) A partial loss is known in the marine insurance industry as a particular average.
3) An agents authority is limited to what the parent company delegates to him or her.
4) The air waybills and consignment notes used in air carriage are documents of title.
5) According to the foreseeability test, a breaching party is liable only for those
damages that he foresaw or ought to have foreseen.
6) The Framework Agreement for GATS does not define what a service sector is.
7) An error of a national court which does not produce a manifest injustice is not
considered a denial of justice.
8) The OPIC does not insure against minor diminishment in the value of an investment.
9) The Australia Group is an informal multilateral group of states concerned with
curbing the proliferation of chemical and biological weapons.
10) Transnational corporations are nonprofit organizations.
11) The clearance and settlement procedure is uniform throughout the world.
12) The FCPAs antibribery provisions are only applicable to businesses and not
individuals.
13) In personam jurisdiction is the power of a court to decide matters relating to a
natural or juridical person physically present within the forum state.
14) Even after a free trade area or customs union is established, GATT rules apply to
the constituent states, and not to the area or union as a whole.
15) The World Bank is the worlds oldest international organization involved in
monetary cooperation.
16) The GATS does not allow exceptions to the MFN treatment rule.
17) Agreements between competitors that have the effect of diminishing competition
are called vertical competition agreements.
18) A(n) ________ is a facility at a port of entry where shippers can store goods until
they clear customs.
A. export processing zone
B. data warehouse
C. bonded warehouse
D. free retail zone
19) A(n) ________ is a business firm operating branches, subsidiaries, or joint ventures
in two or more states.
A. multinational enterprise
B. economic consultative association
C. for-profit NGO
D. intergovernmental organization
20) The ________ is a rule that contracts should be interpreted according to the
understanding that a reasonable person would have had at the time the agreement was
made.
A. objective intent approach
B. parol evidence rule
C. plain meaning rule
D. stabilization clause
21) Which of the following is true under the CISG if the offeree dispatches a rejection
and an acceptance to the offeror?
A. both the acceptance and the rejection would be considered void
B. whichever reaches the offeror first would take precedence over the other
C. rejection would take precedence over an acceptance
D. an acceptance would take precedence over a rejection
22) Which of the following statements is true regarding the acceptance of an offer?
A. If the offer is oral, the acceptance must be communicated to the offeror within 2
months of receiving the offer
B. An offeree must express assent in the form of writing
C. Silence or inactivity, in and of itself, constitute acceptance
D. Acceptance must be received by the offeror within the time period specified in the
offer
23) In a draft transaction, if the drawee is a buyer of the drawer, then the draft is
referred to as a ________.
A. promissory note
B. certificate of deposit
C. trade acceptance
D. check
24) A ________ is an incorporeal statutory right that gives the author of an artistic
work, for a limited period, the exclusive privilege of making copies of the work and
publishing and selling the copies.
A. moral right
B. patent
C. copyright
D. neighboring right
25) Which of the following is one of the two conditions that had to be satisfied for the
Kyoto Protocol to come into force?
A. It had to be ratified by all the nonAnnex I countries
B. It had to be ratified by 55 percent of all member countries
C. It had to be ratified by Annex I parties accounting for 30 percent of that groups
carbon dioxide emissions in 1990
D. It had to be ratified by 40 percent of all the nonAnnex I countries
26) With regard to the form requirements for bills of exchange, the ULB is similar to
the common law in that both require the instrument to ________.
A. state the place where the instrument was drawn
B. state the place where payable
C. contain the term Bill of Exchange
D. be in writing
27) Which of the following is the main function of the ILO Conference Committee on
the Application of Conventions and Recommendations?
A. to create summaries of the information contained in the member states reports
B. to make a list of member states that have defaulted on their obligations to the ILO
C. to analyze submissions of cases involving unratified treaties
D. to evaluate the extent to which the parties have complied with their obligations
28) A(n) ________ is a seagoing common carrier operating over established routes with
a stated rate schedule.
A. conference line
B. independent line
C. common carrier
D. free carrier
29) The ________ states that a municipal court will decline to hear a dispute when it
can be better or more conveniently heard in a foreign court.
A. forum non conveniens
B. anti-suit injunction
C. vested rights doctrine
D. choice of law clause
30) ________ is the right of an author to place a copy of a copyrighted work into
circulation for the first time.
A. Right of reproduction
B. Right of distribution
C. Property right
D. Neighboring right
31) Products obtained by extraction or harvest that require minimal processing before
being used are called ________.
A. core products
B. secondary resources
C. augmented products
D. primary commodities
32) In the context of the securities market, a(n) ________ is a person who acts for his or
her personal account on information knowing that the information is not available to the
public.
A. bona fide purchaser
B. tippee
C. whistle-blower
D. boundary spanner
33) A(n) ________ does not actually conduct business; rather, it functions as a foreign
contact point where interested parties can obtain information about a particular firm.
A. representative office
B. branch
C. subsidiary
D. franchise
34) ________ is an objection that can be raised by a defendant when there is a negligent
delay in asserting a right or a claim by a plaintiff.
A. Expropriation
B. Lack of a genuine link
C. Failure to exhaust remedies
D. Laches
35) Common law differs from the Uniform Law on Bills of Exchange and Promissory
Notes (ULB) in that the common law ________.
A. does not allow external references for payment amount
B. does not allow for variable interest rates
C. allows nonmonetary modes of payments
D. allows payments to be made in installments
36) ________ is the requirement that a tribunal must have power over the parties before
it may hear a dispute.
A. Advisory jurisdiction
B. Personal jurisdiction
C. In personam jurisdiction
D. In rem jurisdiction
37) Which of the following categories can claim priority while applying for a
permanent visa as established by the U.S. Immigration and Nationality Act?
A. aliens who have dual citizenships
B. aliens who dont have family members of American citizens
C. aliens with special skills
D. aliens who have entered the United States using the Visa Waiver Program
38) For companies, the ability of a state to sponsor a complaint primarily depends on
the particular companys ________.
A. nationality
B. social responsibility record
C. financial status
D. type of business
39) ________ is the customs value of imported goods that is based on the price actually
paid or payable for goods at the time they were sold for export.
A. Transaction value
B. Deductive value
C. Computed value
D. Derived value
40) A(n) ________ is an instrument issued by an ocean 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. air waybill
C. letter of credit
D. bill of exchange
41) Which of the following describes sharp practices of business?
A. business dealings meant to obtain a benefit for a person or firm regardless of the
means used
B. business exchanges where the manufacturer and consumer are the same
C. business plans that also take social responsibility into account
D. business practices that are ethical and moral
42) ________ is an objection that may be made to an international tribunals exercise of
jurisdiction when a plaintiff is not qualified to appear before the court.
A. Lack of nationality
B. Lack of standing
C. Lack of genuine link
D. Failure to exhaust remedies
43) A bearer paper can be converted to an order paper ________.
A. by the use of a bill of lading
B. by an endorsement to pay to the bearer
C. by an endorsement in blank
D. by the use of a special endorsement
44) Agreements between sellers and buyers are called ________.
A. vertical competition agreements
B. multiple licensing agreements
C. cross-licensing agreements
D. horizontal competition agreements
45) Which of the following terms refers to the assurance of a host government that
foreign investors will be treated the same way as local investors?
A. nondiscrimination guarantee
B. repatriation guarantee
C. stabilization clause
D. appraisal right
46) The ________ holds that municipal courts must decline to hear suits against foreign
sovereigns.
A. governmental interest doctrine
B. doctrine of sovereign or state immunity
C. rule of absolute sovereign immunity
D. theory of restrictive sovereign immunity
47) An endorsement in which the endorser does not guarantee that an instrument will be
accepted and paid by the drawer or maker is referred to as a ________.
A. conditional endorsement
B. restrictive endorsement
C. qualified endorsement
D. special endorsement
48) A(n) ________ is a special-purpose free zone associated with, but physically apart
from, a free trade zone, in which limited-purpose trading activities are carried on.
A. exclusive economic zone
B. closed sector
C. free trade area
D. subzone
49) The ________ is a provision in a contract designating a particular court or tribunal
to resolve any dispute that may arise concerning the contract.
A. forum selection clause
B. choice of law clause
C. supremacy clause
D. due process clause
50) Which of the following documents provided by a seller represents freight?
A. bill of lading
B. letter of credit
C. invoice
D. insurance policy
51) All notions of state responsibility are set within the framework of an international
legal system where ________ is the most basic principle.
A. democracy
B. suzerainty
C. sovereignty
D. anonymity
52) Describe the significance of foreign investment policies.
53) Explain the role of the advising bank in a letter of credit transaction.
54) What is a depository receipt?
55) Explain the trade term free on board.
56) What is an escape clause?
57) Briefly explain how the CISG is organized.
58) What are the three tests that are used by the jurisdictional rule of reason in
determining jurisdiction in anti-trust cases?