International Trade Law
Exam Solutions
Course Introduction
International Trade Law explores the legal principles, rules, and institutions governing the exchange of goods, services, and capital across international borders. The course examines the framework established by the World Trade Organization (WTO) and addresses key topics such as tariffs, non-tariff barriers, dispute resolution mechanisms, and regional trade agreements. Students analyze the impact of trade law on economic development, sovereignty, and international relations, while also considering contemporary challenges including trade wars, digital trade, and sustainable development. This foundational course provides insight into the rights and obligations of states and businesses participating in global trade.
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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Chapter 1: Introduction to International Business
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) The U.S.'s largest trading partner is Canada.
A)True
B)False
Answer: True
Q2) Because they tend to be more insidious,nontariff barriers are generally a greater barrier to trade than are tariff barriers.
A)True
B)False
Answer: True
Q3) International franchising allows the franchisee the right to use a(n):
A) Export management company.
B) Export trading company.
C) Copyright.
D) None of the above.
Answer: C
Q4) Indirect exporters commonly employ the services of export trading companies and export management companies.
A)True
B)False
Answer: True
Page 3
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Chapter 2: International Law and the Worlds Legal Systems
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Sample Questions
Q1) All socialist countries have the same legal system.
A)True
B)False Answer: False
Q2) A nation can be brought before the World Court whether or not it wants to be there.
A)True
B)False Answer: False
Q3) The decisions of the World Court are a precedent for all similar actions.
A)True
B)False Answer: False
Q4) The two classifications of national legal systems are civil law countries and common law countries.
A)True
B)False Answer: True
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Chapter 3: Resolving International Commercial Disputes
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Sample Questions
Q1) Under the Full Faith and Credit Clause of the U.S.Constitution,a decision by a New York court will be enforced by a Georgia court.
A)True
B)False
Answer: True
Q2) If one is trying to determine the correct geographical location of a court that has jurisdiction over a case,he is determining:
A) Jurisprudence.
B) Venue.
C) Allocation.
D) ADR.
Answer: B
Q3) Jurisdiction means the "power to hear" a case.
A)True
B)False
Answer: True
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Chapter 4: Sales Contracts and Excuses for
Nonperformance
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86 Verified Questions
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Sample Questions
Q1) Identify at least 10 similarities between the CISG and the UCC and/or U.S.common law.
Q2) A buyer of goods has no obligation under the CISG to examine goods promptly when received and give notice of an error in shipment.
A)True
B)False
Q3) As a seller who fails to deliver goods on time,consider whether U.S.law or the CISG favors your interests.
Q4) Socialist law is less flexible and more mechanical than the common law.
A)True
B)False
Q5) Because the laws are similar in most countries,there are few problems with international sales contracts.
A)True
B)False
Q6) Under common law,a contract is formed when dispatched by the offeree.
A)True
B)False
6
Q7) Compare and contrast the remedies for breach under the CISG and U.S.law.
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Chapter 5: The Documentary Sale and Terms of Trade
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Sample Questions
Q1) In a documentary sales transaction,financial responsibility for lost or damaged goods is always negotiated once the loss or damage occurs and not before.
A)True
B)False
Q2) According to Incoterms,the risk of loss under contract terms "FAS Name of Vessel" passes to the buyer when the goods are delivered alongside the named vessel.
A)True
B)False
Q3) The documentary sale is a modern commercial practice devised by the United Nations Commission on International Trade Law.
A)True
B)False
Q4) Inspection certificates are often used to assure that a shipment will conform to the specifications required by the buyer.
A)True
B)False
Q5) What are the benefits and possible detriments of using an inspection firm?
Q6) Draft a bill of lading.
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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) What was the holding in El Al Israel Airlines v.Tseng?
A) The Warsaw Convention does not apply where the carrier waives its provisions.
B) The defendant accepted an additional rate to ship the package based on its declared additional value.
C) The Warsaw Convention limits the defendant's liability to $9.07 per pound.
D) An international passenger may not bring a cause of action under local law against an airline when there is no bodily injury that satisfies the Warsaw Convention.
Q2) A provision in a bill of lading that extends the protection of the Hague Rules to stevedores is known as a Himalaya Clause.
A)True
B)False
Q3) The U.S.law that governs the liability of an ocean carrier for transporting goods from one U.S.port to a foreign port is the:
A) The Hague Rules.
B) The Uniform Commercial Code.
C) The Harter Act.
D) The Carriage of Goods by Sea Act.
Q4) Compare and contrast the liability of air carriers and sea carriers.
Page 8
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Chapter 7: Bank Collections, Trade Finance, and Letters of Credit
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Sample Questions
Q1) Compare and contrast the documentary letter of credit with the standby letter of credit.
Q2) In the event that a discrepancy is found in the documents presented under a letter of credit,the bank may request a waiver or:
A) Resubmit the draft.
B) Void the transaction.
C) Refuse delivery.
D) Refuse to pay against documents.
Q3) Weigh the benefits and detriments of counterpurchase,barter,and buy-back agreements.
Q4) The rule that usually prevails for interpreting documents that are submitted to a bank for payment under a letter of credit is commonly called the:
A) Good faith rule.
B) Reasonable compliance rule.
C) Strict compliance rule.
D) Holder in due course rule.
Q5) Expiration dates are an optional term of a letter of credit.
A)True
B)False
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Chapter 8: National Lawmaking Powers and the Regulation
of Ustrade
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Sample Questions
Q1) What are the similarities and differences between a bi-lateral treaty with a foreign nation and an executive agreement with such a nation?
Q2) There is uniform support for the use of trade policy as a tool for the implementation of foreign policy.
A)True
B)False
Q3) Whether a treaty is self-executing or not depends on how a U.S.court interprets the language of the treaty and the history surrounding its negotiation and approval.
A)True
B)False
Q4) Inherent powers are:
I. Powers that the president derives from the U.S. Constitution.
II. Used by the president to conduct foreign affairs.
A) I only.
B) II only.
C) Both I and II.
D) Neither I nor II.
Q5) Weigh the relative value and risks of fast-rack regulation.
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Chapter 9: Gatt Law and the World Trade Organization:
Basic Principles
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Sample Questions
Q1) In the decision involving tariffs on Latin American bananas,the panel:
A) Recommended the tariffs be brought in line with the EEC's obligations under GATT.
B) Said the Latin American countries were authorized to impose sanctions on the EEC.
C) Found the EEC's tariffs to be within GATT guidelines.
D) Dismissed the case after the EEC agreed to adopt tariffs that were more in line with its GATT obligations.
Q2) Tariffs serve all of the following purposes except:
A) Collection of revenue.
B) Enhancement of flow of commerce.
C) Regulation of import competition.
D) Protection of the national defense.
Q3) Assess the relative value of a reported U.S.appellate (or trial)decision and a WTO panel report in a trade dispute.
Q4) A tariff is:
A) An import duty.
B) A tax levied on goods being brought into a country.
C) A ban on trade with a foreign nation.
D) Both A and B.
Page 11
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Chapter 10: Laws Governing Access to Foreign Markets
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Sample Questions
Q1) Under the GATT 1994 Agreement on Agriculture:
A) Export opportunities for agricultural products are expected to increase.
B) Government subsidies are expected to be reduced.
C) Nontariff barriers will gradually be converted to tariffs.
D) Japan and Korea agreed to open their markets to farm products.
E) All of the above.
Q2) 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.
Q3) Compare and contrast the IPR-related/access dispute resolution procedures of GATT with those of WTO.
Q4) The symbol of an approved product in Japan is the government-authorized Japan Industrial Standards Mark.
A)True
B)False
Q5) ISO 9000 is a series of rules governing the importation of technology products from a WTO-member nation.
A)True
B)False
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Chapter 11: Regulating Import Competition and Unfair Trade
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) Under the law of the European Union,a country may only bring an antidumping action against a non-EU member country.
A)True
B)False
Q2) Governments frequently impose regulatory methods to control imports into their markets.
A)True
B)False
Q3) The requirements for import relief under U.S.law include all of the following except:
A) Increased imports.
B) Imports are substantial cause of serious injury or threaten injury.
C) Domestic industry produces a product that is like or directly competitive with the import.
D) Circumstances causing this situation were unforeseen.
Q4) Global quotas are quantitative import restrictions on a particular product regardless of its country of origin.
A)True
B)False
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Chapter 12: Imports, Customs, and Tariff Law
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Sample Questions
Q1) A 99% refund of duties and taxes paid on merchandise that is imported,subjected to manufacture or production,and then exported within five years is called a:
A) Manufacturing drawback.
B) Substitution drawback.
C) Same condition drawback.
D) Re-export drawback.
Q2) Which of the following are not allowed to enter goods into the customs territory of the United States?
A) The purchaser of the goods.
B) A customs broker authorized to act on behalf of the importer.
C) Nonresident individuals and foreign corporations.
D) All of the above may enter goods.
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 GSP status with normal trade relations status.
Q5) Contrast the traditional "name,character,and use" test with that used presently.
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Chapter 13: The Regulation of Exports
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32 Flashcards
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Sample Questions
Q1) The Export Control Act of 1949 was passed:
A) To aid Europe's economic recovery after WWII.
B) To control the exporting of goods with military applications to communist countries.
C) To prevent the escalation of the Cold War.
D) To provide U.S. manufacturers with fairer trading opportunities outside the U.S.
Q2) Diversion refers to the illegal placement of goods in the hands of an individual for whom an export license would not be granted because of the type of product,the product's end use,or the country involved.
A)True
B)False
Q3) Formulas,blueprints,and technical data are subject to controls when exported.
A)True
B)False
Q4) One current export control issue pertains to the level of control imposed on encryption software.
A)True
B)False
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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70 Flashcards
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Sample Questions
Q1) Which of the following statements is untrue regarding emergency safeguard actions under NAFTA?
A) Special safeguards for textiles may be applied where increased imports cause "serious damage" to the domestic industry.
B) Safeguards are available for ten years for certain agricultural products.
C) The country using them must offer the exporting country trade compensation.
D) Safeguards can take the form of both tariffs and quotas.
E) All of the above.
Q2) Goods that may not contain any non-North American parts or materials in order to obtain NAFTA tariff rates include:
A) Minerals mined in North America.
B) Vegetables grown in North America.
C) Live animals born and raised in North America.
D) Scrap derived from production in North America.
E) All of the above.
Q3) Since NAFTA was signed,Mexico has reduced its average applied tariffs on U.S.imports by slightly more than 1%.
A)True
B)False
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Page 16
Chapter 15: The European Union and Other Regional Trade Areas
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Sample Questions
Q1) The German government recently adopted a law defining "beer" as any alcoholic beverage brewed in compliance with customary German brewing practices dating back to the year 1516.These practices mandate specific procedures for every step in the brewing process.Only natural ingredients are to be used in the brewing process.The use of additives is specifically prohibited.As a result,imported alcoholic beverages labeled and sold as "beer" in other states were prohibited from being sold as "beer" in Germany.Instead,such products could only be sold as "malt beverages." The stated purposes of this law were to protect the public from products that contain additives and prevent confusion by German consumers who associate the term "beer" with traditional German brewing standards.The German law was challenged in court by Venezia Brewing Limited (VBL),an Italian company that wished to sell its malt beverage containing additives as "beer" in Germany.VBL claimed that the German law was inconsistent with a European Union regulation that established standards for but did not ban the use of additives in malt beverages.Does the German law violate European Union law,including the regulation? Why or why not? Would your answer be different if the European Union law was in the form of a directive that had not yet been implemented by Germany? Why or why not? Does VBL have standing to challenge the German law? Why or why not?
Q2) Compare and contrast the various dispute resolution mechanisms available to an EU member.
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Chapter 16: International Marketing Law: Sales
Representatives, Advertising, and Ethical
Issues
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Sample Questions
Q1) Draft a contract with a foreign representative.Include a provision regarding termination and payment for services under such circumstances.
Q2) The distinction between independent and dependent agents is important because tax and labor law considerations are determined by the designated relationships.
A)True
B)False
Q3) Imagine how a developing economy would wish to address truth in/deceptive advertising.Draft a position paper.
Q4) In what ways are advertising regulations pertaining to "sin" products in the U.S.more or less liberal than those in Europe (and/ or other regions)?
Q5) Many countries require pre-clearance of children's television advertising.
A)True
B)False
Q6) Scenario
A wire transfer of $200,000 to the Minister of Contracting of Gambia made by Bordeaux Builders,Inc.,a French corporation,and originating from its corporate headquarters in New York in order to secure a construction contract.
Page 18
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Chapter 17: Licensing Agreements and the Protection of Intellectual Property Rights
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Sample Questions
Q1) Since 1996,the European Union's Trademark Regulation has allowed a single trademark registration enforceable in all members of the European Union.
A)True
B)False
Q2) Both the Berne Convention and the Paris Convention require signatory countries to enact certain minimum substantive laws.
A)True
B)False
Q3) The type of arrangement in which the licensor permits the licensee to sell certain goods under the licensor's trademark or logo is called:
A) Trademark lease agreement.
B) Shared benefit agreements.
C) Franchise agreement.
D) None of the above.
Q4) Compare and contrast attitudes toward technology transfers in the developed countries,developing countries,and countries strongly influenced by Marxist ideology.
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Page 19
Chapter 18: Takings and National Controls on Foreign Direct Investment
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Sample Questions
Q1) 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.
Q2) An investment in which the investor limits its involvement to providing equity capital in an enterprise managed by another in hope of a profitable return is called a(n):
A) Active investment.
B) Leveraged investment.
C) Passive investment.
D) Inactive investment.
Q3) All foreign nations permit foreign majority ownership of some type.
A)True B)False
Q4) OPIC insurance does not provide coverage against the loss of assets by U.S.firms in the case of the nationalization of farms or factories held in a foreign country. A)True
B)False
Q5) Weigh the relative benefits of political risk insurance from government agencies and private insurers.
20
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Chapter 19: Labor and Employment Discrimination Law
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Sample Questions
Q1) As compared to the United States,there has been greater litigation in Europe concerning discrimination than in the United States.
A)True
B)False
Q2) 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.
Q3) Which of the following classifications are treated most similarly under the laws of Europe,the United States,and Japan?
A) Religion.
B) Nationality.
C) National origin.
D) Sex.
Q4) Draft a covenant identifying international standards regarding discrimination in employment.
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Chapter 20: Environmental Law
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Sample Questions
Q1) The United Nations has done very little to address the issues of environmental matters.
A)True
B)False
Q2) American law fails to regulate pesticides that are exported to other countries.
A)True
B)False
Q3) Nations have made considerable progress in putting into effect regional agreements for the prevention of marine pollution.
A)True
B)False
Q4) Many foreign nations attract investment because of their less demanding labor and environmental laws.
A)True
B)False
Q5) The U.S.prohibits the export of pesticides not approved by the U.S.EPA.
A)True
B)False
Q6) Reflecting on the "Circle of Poison," draft a bill regarding pesticide exports.
Page 22
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Chapter 21: Regulating the Competitive Environment
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Sample Questions
Q1) EU competition law applies only to agreements and transactions that:
A) Involve an EU-based company.
B) Have an effect on intra-EUC trade.
C) The EU wishes to have its approval and involvement.
D) Have a direct impact on foreign commerce.
Q2) The European Commission is even less flexible with respect to know-how transfer agreements than it is to patent licenses.
A)True
B)False
Q3) Compare and contrast the approaches of the EU and the U.S.with regard to IPR issues (patents,know-how transfer agreements).
Q4) Discuss the advantages and disadvantages -- from the perspective of competition law -- in having a wholly foreign subsidiary in Europe.
Q5) The U.S.has an analogous system to the European Union's system for resolving antitrust law issues prior to the transaction taking place.
A)True
B)False
Q6) Write an argument that clawback provisions violate international law.
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