In order to avoid a charge of violating the FCPA, commissions and other payments to a
foreign sales agent should conform to customary rates normally paid to agents of that
kind in the foreign nation.
a. True
b. False
A customs union is:
a. A group of customs laws intended to reduce tariffs and stimulate trade.
b. A free trade area with a common external tariff.
c. A free trade area with no tariffs between the member nations.
d. A union of nations that promotes lower tariffs for international trade.
e. None of the above.
Before a U.S. firm can export chemical substances subject to the U.S. Toxic Substances
Control Act:
a. The firm must notify the EPA of the export.
b. The firm must maintain adequate records.
c. The EPA must notify the foreign country of destination.
d. All of the above.
The United States belongs to the Organization for Economic Cooperation and
Development.
a. True
b. False
The Four Freedoms preempt any action by the member states in the areas of goods,
services, capital and people.
a. True
b. False
Under U.S. copyright law, an author’s exclusive rights end upon his/her demise.
a. True
b. False
Workers in the United States acquire a property interest in their jobs such that severance
pay is an entitlement to compensate for property taken upon dismissal from the
position.
a. True
b. False
The 1947 GATT provided a regulations for the registration of patents and copyrights
and stiff penalties for the misuse of intellectual property.
a. True
b. False
Ocean carriers are liable if cargo is damaged as a result of the ship being taken over by
pirates, if the seizure or damage was foreseeable and the carrier failed to take necessary
preventive measures.
a. True
b. False
In Star-Kist Foods, Inc. v. United States, Star-Kist complained that the president’s
authority under the Reciprocal Trade Agreement Act of 1934 was unconstitutional.
Star-Kist sought to challenge a presidentially lowered tariff on canned tuna imported
from Iceland.
a. Star-Kist won because the congressional delegation of authority was vague and
indefinite as to the policies or objectives sought.
b. Star-Kist won because of the lack of a standard or “intelligible principle” upon which
presidential action could be judged.
c. Star-Kist lost because they lacked ‘standing” to protest the president’s action; only
Congress could object by means of a concurrent resolution.
d. Star-Kist lost because the court determined that the 1934 statute had provided a
sufficiently discernible standard to guide presidential action.
All of the following may be raised as reasons for nonperformance of sales contract
except:
a. Impossibility.
b. Frustration of Purpose.
c. Commercial Impracticability.
d. Subjective Constraints.
The Basel Convention prohibits shipments of hazardous wastes by a signatory country
to a country that has not signed the convention.
a. True
b. False
Which is not a current issue regarding export controls?
a. Can effective multilateral controls be established?
b. Who is the enemy?
c. In the absence of multilateral controls, can unilateral controls be effective?
d. Can the State Department both promote trade and commerce and control exports?
The type of credit that allows the use of one credit instead of many to be used with the
maximum amount available during a certain period of time is called:
a. A revolving credit.
b. An irrevocable credit.
c. A standby credit.
d. A transferable credit.
The disadvantages of arbitration include:
I. Limited Discovery
II. Limited Rights to Appeal
a. I only.
b. II only.
c. Neither I nor II.
d. Both I and II.
ISO 9000 is a series of rules governing the importation of technology products from a
WTO-member nation.
a. True
b. False
In Germany, the attitudes toward exaggeration in advertising are:
a. Not highly regulated,
b. Highly regulated,
c. The law is uncertain and in a state of change,
d. Best illustrated by the Carbolic Smoke Ball case.
An example of an active investment is the licensing of technology to a foreign firm.
a. True
b. False
The issuing bank is required to pay on documents in case of , but not in the event of:
a. Fraud; breach of warranty.
b. Delivery of the goods; non-delivery of the goods.
c. Breach of warranty; fraud.
d. Issuing banks are not the paying banks.
Foreign laws that require the government approval of a licensing agreement are a form
of protectionist policy.
a. True
b. False
Conservationists have sought international environmental legal relief through dispute
resolution, import bans, and multilateral treaties.
a. True
b. False
Rich Maes contracts to deliver bison meats to David in Spain on a destination
international commercial term.
However, while five (5) days out in the Atlantic Ocean, the ship carrying the bison
meats sinks due to extreme storm. Under the destination designation the risk of loss is
with
a. Seller
b. Buyer
c. Carrier
d. Ship manufacturer
Goods can be stored at any location on the vessel and the decision is left to the
discretion of the captain.
a. True
b. False