International Business Law
Exam Bank
Course Introduction
International Business Law explores the legal frameworks and principles governing commercial transactions that cross national borders. The course examines key topics such as international contracts, dispute resolution mechanisms, trade regulations, and the roles of organizations like the World Trade Organization (WTO) and United Nations Commission on International Trade Law (UNCITRAL). Students will analyze case studies and treaties to understand issues such as intellectual property rights, international sales, foreign investment, and the implications of differences in legal systems. Emphasizing practical and ethical considerations, the course prepares students to navigate the complexities of legal compliance in the global business environment.
Recommended Textbook
International Business Law and Its Environment 8th Edition by Richard Schaffer
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21 Chapters
1385 Verified Questions
1385 Flashcards
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Page 2
Chapter 1: Introduction to International Business
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63 Verified Questions
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Sample Questions
Q1) If a party does not fulfill their obligations as set forth in a sales contract,it is known as:
A) Non-payment.
B) Termination.
C) Non-performance.
D) All of the above.
Answer: C
Q2) Foreign investment refers to the ownership and active control of ongoing business concerns.
A)True
B)False
Answer: True
Q3) In Dayan v.McDonald's Corporation,the court ruled that:
A) McDonald's quality standards were inadequate under French law.
B) The McDonald's franchise contract was illegal under French law.
C) McDonald's had fulfilled its responsibility to the franchisee in France under U.S. law.
D) The French do not like hamburgers.
Answer: C
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Chapter 2: International Law and the Worlds Legal Systems
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71 Verified Questions
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Sample Questions
Q1) All socialist countries have the same legal system.
A)True
B)False
Answer: False
Q2) The United States has,in part,accepted the jurisdiction of the International Court of Justice.The U.S.acceptance does not apply to:
A) Disputes the parties have entrusted to other tribunals.
B) Disputes that the United States decided are essentially domestic.
C) Disputes arising under a multilateral treaty unless all parties affected are before the court or the U.S. specially agrees to jurisdiction.
D) A and B only.
E) All of the above.
Answer: E
Q3) The Vienna Convention codified significant international statutory law.
A)True
B)False
Answer: False
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4
Chapter 3: Resolving International Commercial Disputes
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Sample Questions
Q1) If mediation is chosen as a form of dispute resolution,it will be:
A) A mandatory process.
B) Binding on all the parties.
C) A voluntary process.
D) Not available in international disputes.
Answer: C
Q2) In Japan,the authority and control over gathering the evidentiary facts are vested only in the lawyers.
A)True
B)False
Answer: False
Q3) If a party is dissatisfied with a decision reached at arbitration,it may appeal this decision to a court of law.
A)True
B)False
Answer: False
Q4) A U.S.court might refuse to enforce a Libyan court judgment.
A)True
B)False
Answer: True
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Chapter 4: Sales Contracts and Excuses for Nonperformance
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Sample Questions
Q1) Contract laws in socialist countries tend to be:
I. Detailed, mechanical, and cumbersome.
II. Enforced by private companies operating on behalf of the state. Which of the following is correct?
A) Both I and II.
B) Neither I nor II.
C) I only.
D) II only.
Q2) In the U.S.,the remedy of specific performance is limited to those instances where: A) Money damages would be sufficient, but the injured party does not want them.
B) The goods are unique.
C) The buyer does not want the goods for which he contracted.
D) The seller wants to force the buyer to take the goods.
Q3) Scenario
An attempt by an American buyer to avoid payment for goods received from a French seller based upon a letter providing that the goods were "deficient in quality."
Q4) As an offeror,would you favor the offer/acceptance/revocation rules of the CISG or U.S.law?
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Chapter 5: The Documentary Sale and Terms of Trade
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Sample Questions
Q1) According to Incoterms,the trade term that represents the maximum responsibility of the seller is:
A) Carriage and Insurance Paid To.
B) Delivered Duty Paid.
C) Ex Works.
D) Delivered at Frontier.
E) None of the above.
Q2) The type of bill of lading not recommended for the shipment of perishable goods is:
A) A received-for-shipment bill of lading.
B) An on-board bill of lading.
C) A negotiable bill of lading.
D) A straight bill of lading.
Q3) Consider when a shipping term as opposed to contradictory contract language will be most persuasive in identifying the type of contract.Vice versa?
Q4) Most buyers in an international sale are now willing to pay cash in advance in order to reduce credit risk.
A)True
B)False
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Chapter 6: The Carriage of Goods and the Liability of Air and Sea Carriers
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Sample Questions
Q1) Revise an insurance policy for carriage to make it more beneficial to the insured.
Q2) Would the marine carrier be liable in each of the following scenarios applying COGSA?
The failure of the ship to unload its cargo on time at the destination port due to a longshoreman's strike.
The failure of the ship to unload its cargo on time at the destination port due to a route change necessitated by engine failure occurring after the ship left the port of shipment.
A lawsuit by a seller and a buyer against a carrier for damage to goods filed 18 months after their delivery.
The failure of the ship to unload its cargo on time at the destination port due to its overloading at the port of shipment.
The failure of the ship to unload its cargo on time due to the threat of a terrorist attack at the port of destination.
A notice of damaged goods given by a buyer to the carrier 10 days after the buyer's receipt.
Q3) Rewrite an insurance policy for carriage into a plain language policy.
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Chapter 7: Bank Collections, Trade Finance, and Letters of Credit
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Sample Questions
Q1) Suppose that an issuing bank pays on documents that are conforming to the requirements of the letter of credit,but the seller has shipped worthless goods to the buyer.Which of the following statements,if any,are true?
A) As long as the documents strictly comply with the letter of credit requirements, the bank will not have to reimburse the buyer.
B) If there is fraud in the transaction, the bank will have to reimburse the buyer and seek its remedies against the seller.
C) The strict compliance principle insulates the bank from liability, since it assures the bank that the underlying contract between the buyer and seller is entirely independent from the letter of credit contract.
D) A and C.
Q2) If the buyer's or seller's bank stamps its name,date,and signature on the face of a draft,it becomes a:
A) Trade Acceptance.
B) Banker's Acceptance.
C) Letter of Credit.
D) None of the above.
Q3) Compare and contrast O'Meara with Sztejn.
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Chapter 8: National Lawmaking Powers and the Regulation
of Ustrade
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69 Verified Questions
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Sample Questions
Q1) Throughout history,U.S.presidents have utilized executive agreements to conduct foreign affairs even though these agreements are not specifically provided for in the Constitution.
A)True
B)False
Q2) The main objective of U.S.trade law has been solely to discourage trade with unfriendly nations.
A)True
B)False
Q3) A state's authority to tax a business engaged in foreign commerce is determined by:
A) The negative implication doctrine.
B) The multiple taxation doctrine.
C) The Monroe Doctrine.
D) Both A and B.
Q4) Examples of self-executing treaties include the Warsaw Convention,the Hague Convention,and the Convention on Contracts for the International Sale of Goods.
A)True
B)False
Page 10
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Chapter 9: Gatt Law and the World Trade Organization:
Basic Principles
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Sample Questions
Q1) Explain the similarities and differences between "like products" and "directly competitive products."
Q2) According to GATT,quotas are considered acceptable devises for regulating trade only where:
A) A nation is imposing a temporary safeguard to protect its balance of payments.
B) They are enacted into law by a nation's legislative body.
C) Nations are engaged in a trade war.
D) A nation has first petitioned the United Nations for permission to do so.
Q3) Although the 1947 GATT was never ratified by the U.S.Congress,it was considered legally binding in the United States under international law.
A)True
B)False
Q4) The principle of nondiscrimination is central to the GATT and is evident in the following areas:
A) Normal trade relations.
B) National treatment.
C) Elimination of quotas and quantitative restrictions.
D) All of the above.
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Chapter 10: Laws Governing Access to Foreign Markets
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Sample Questions
Q1) The Flammable Fabrics Act is an example of a technical regulation.
A)True
B)False
Q2) Aeroflop,a U.S.firm,wants to sell several million dollars worth of airplanes to a government-owned airline in a European country famous for cheese.In order to get the contract,Aeroflop agrees to pay a 5% kickback to another U.S.company if that company agrees to buy all of its cheese from a seller in that European country.
A) Aeroflop's sale to the government-owned airlines is allowed under the Agreement on Government Procurement.
B) Aeroflop's sale is prohibited because the Agreement on Government Procurement prohibits offsets.
C) Aeroflop's sale is allowable because the European nation is treating Aeroflop no less favorably than its nationals.
D) The WTO dispute resolution panel must authorize both contracts prior to the sale.
Q3) Craft a statutory addendum deeming what constitutes a valid,non-discriminatory "health regulation." Students might wish to review GATT Article XX(b)'s to "protect human health" language.
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Chapter 11: Regulating Import Competition and Unfair Trade
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Sample Questions
Q1) Dumping has become a fairly persistent problem in international trade and is often practiced by firms wishing to sell their excess production capacity at bargain prices to cover fixed costs.
A)True
B)False
Q2) An upstream subsidy is granted by a government to a company that is based in another country,but has substantial business operations in the home country.
A)True
B)False
Q3) Scenario
Tax credits extended by the government of India to Indian companies in order to assist in the reduction of greenhouse gases emitted during the manufacturing process.
Q4) The U.S.law dealing with import relief is:
A) Art. 8, Sec. 1, U.S. Constitution.
B) Sec. 333, U.S. Import Relief Act.
C) Sec. 201, Trade Act of 1974.
D) GATT, Art. XIX.
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Chapter 12: Imports, Customs, and Tariff Law
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Sample Questions
Q1) Country-of-origin information impacts all of the following except:
A) The applicability of a countervailing duty.
B) The applicability of a quota.
C) The tariff classification of the article.
D) The rate of duty on an import.
Q2) Assume Article X is manufactured in Country Y.It is shipped to Country Z where it is substantially transformed before being imported into the United States for resale.For the purposes of imposing import duties under U.S.law,Article X will be considered a product of Country Z.
A)True
B)False
Q3) Where an imported item could be classified under several different provisions of the Harmonized Code,it will generally fall under that provision which describes the item most specifically.
A)True
B)False
Q4) Compare and contrast the different methods for assigning value.Consider who might favor which methods and why.
Q5) Compare and contrast GSP status with normal trade relations status.
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Chapter 13: The Regulation of Exports
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Sample Questions
Q1) Export controls have been extended by the president through the issuance of executive orders pursuant to the IEEPA.
A)True
B)False
Q2) The current law that controls the export of goods from a U.S.manufacturer to a foreign buyer also controls the re-export of those goods beyond the boundaries of the country of the original foreign buyer.
A)True
B)False
Q3) Controls have been abolished on all commodities going to Russia.
A)True
B)False
Q4) Multilateral controls are typically subject to self-regulation (via each home country). Outline an (alternative)internationalized process to address situations where one partner to such an agreement believes that another partner to the agreement is not enforcing the agreement or is doing so unevenly.
Q5) Compare and contrast unilateral export controls with multilateral controls.
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Chapter 14: North American Free Trade Law
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Sample Questions
Q1) What are the arguments for and against granting reciprocity of professional licenses where domestic rules regarding the initial grant of those licenses differ (for example,the rules for becoming a doctor or lawyer and being admitted to the practice are different in each country)?
Q2) Write a memo advocating for the inclusion or exclusion of certain products or areas from NAFTA (or CBERA)treatment.
Q3) In Samsonite Corporation v.United States,it was found that the luggage handles were only assembled in Mexico and therefore not subject to duties.
A)True
B)False
Q4) 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.
Q5) Weigh the relative merits for granting the Caribbean countries NAFTA membership.
Q6) Create a regulation regarding reciprocity of professional licenses.
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Chapter 15: The European Union and Other Regional Trade Areas
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Sample Questions
Q1) The goals of the Maastricht Treaty included
A) Promoting social progress and cohesion.
B) Assertion of the EU's identity on the international scene.
C) Protection of the rights and interests of the Nationals of member states by introduction of a citizenship of the Union.
D) A and B only.
E) A, B, and C.
Q2) Compare and contrast the various dispute resolution mechanisms available to an EU member.
Q3) After the passage of the Single European Act,the EU went from qualified voting to the requirement of unanimous consent.
A)True
B)False
Q4) Compare and contrast the EU with NAFTA.
Q5) The Commission of the European Communities v.Italian Republic involved the importation of vegetable fats labeled as "chocolate substitutes."
A)True
B)False
Q6) In what ways does MERCOSUR resemble the EU? The U.S.?
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Chapter 16: International Marketing Law: Sales
Representatives, Advertising, and Ethical
Issues
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Sample Questions
Q1) The antibribery provisions of the FCPA specifically and clearly define the conditions that must be violated in order to prosecute an individual or corporation for bribery of foreign officials.
A)True
B)False
Q2) Pursuant to EC Council Directive 86/653,an economic conditions alarm is sounded by the principal for the benefit of his or her agent:
A) To give six-months prior notice of an increase in the agent's sales quota.
B) When the inflation rate of the host country threatens to precipitate a price increase.
C) When currency exchange rates rise to a level that makes business unprofitable.
D) When sales forecasts indicate that the agent's volume of business will be significantly lower than normally expected.
Q3) A company that forms an agency relationship with its sales representatives can be sued for damages incurred through the acts of the agent against a third party.
A)True
B)False
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Chapter 17: Licensing Agreements and the Protection of Intellectual Property Rights
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Sample Questions
Q1) Intellectual property rights in some countries are not protected because:
A) Some countries actually encourage their citizens to violate the property rights of foreigners because it is economically advantageous to do so.
B) Some countries that have intellectual property laws fail to enforce them.
C) Some countries enforce their intellectual property laws in a discriminatory fashion.
D) All of the above.
Q2) A licensee will seek a grant back of ownership in improvements to the licensor.
A)True
B)False
Q3) A field of use limitation in a licensing agreement restricts the licensee's ability to market in certain geographical areas.
A)True
B)False
Q4) Foreign laws that require the government approval of a licensing agreement are a form of protectionist policy.
A)True
B)False
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Chapter 18: Takings and National Controls on Foreign Direct Investment
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Sample Questions
Q1) In the case of nationalization,"adequate" compensation is defined as fair market value.
A)True
B)False
Q2) Considering the different types of currency risk associated with foreign transactions,which is most salient for a U.S.business?
Q3) Presume that you are considering investing in a foreign business/industry that is about to undergo government privatization.Draft a set of negotiation objectives you wish to address with the government.
Q4) A foreign investor may enter into a joint venture by combining with a national of a host country to create a new entity or by acquiring a portion of an existing local entity.
A)True
B)False
Q5) Virtually every foreign country prohibits entities controlled by foreigners in a number of particularly sensitive sectors.
A)True
B)False
Q6) Compare and contrast the traditional and modern traditional theory of takings.
Page 20
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Chapter 19: Labor and Employment Discrimination Law
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Sample Questions
Q1) Germany grants its workers great rights to participate in the management of the business.
A)True
B)False
Q2) EU laws prohibiting sex discrimination are similar to those in the United States.
A)True
B)False
Q3) In Germany,the supervisory board of directors is responsible for representing shareholder interests.
A)True
B)False
Q4) In many European countries,workers have been granted a right of consultation about or notice before reducing the work force.The country that generally grants its workers the most rights of participation is:
A) Great Britain.
B) France.
C) Germany.
D) Italy.
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Page 21
Chapter 20: Environmental Law
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Sample Questions
Q1) Under the Montreal Protocol,trade in chlorofluorocarbons is strictly controlled.
A)True
B)False
Q2) Assess the benefits and the detriments of environmental standards (with regard to developed and developing nations).
Q3) The Basel Convention on Transboundary Movements of Hazardous Wastes has been adopted by over 150 nations.
A)True
B)False
Q4) Which of the following statements are true about current international environmental conventions?
A) The United States has signed the Biodiversity Convention.
B) The United States has agreed to and set timetables for limiting carbon dioxide emissions in the Climate Change Convention.
C) Third World countries have greater flexibility in complying with the Montreal Protocol on Substances that Deplete the Ozone Layer.
D) A and B.
E) B and C.
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Page 22
Chapter 21: Regulating the Competitive Environment
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Sample Questions
Q1) The European Union uses an exemption system in its competition law.This means that:
A) Certain industries are exempted from antitrust law because of their technology.
B) An agreement can be entered into if the prospective parties can obtain a "negative clearance" from the European Commission.
C) Certain countries are exempt from the competition law until they reach further economic development.
D) None of the above.
Q2) The European Union's sophisticated antitrust law is based on and implemented through Article 1 and Article 2 of the Clayton Act.
A)True
B)False
Q3) Due to the fact that foreign competition law violations offer few,if any,damage awards,there is very little private litigation.
A)True
B)False
Q4) Write an argument that clawback provisions violate international law.
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