Business law final exam

| August 31, 2016

Question
Question 1

The Paris Convention:

a.

Is the seminal patent protection treaty.

b.

Requires national treatment for foreign trademark and patent applications from signatory countries.

c.

Provides a trademark holder in any signatory country a twelve-month period of priority within which to make similar applications in signatory countries.

d.

A, B, and C.

Question 2

In the Civil Rights Act of 1991, Congress extended Title VII to:

I.

U.S. firms operating outside the United States under the control of a U.S. entity.

II.

U.S. firms operating outside the United States except where compliance with Title VII would violate the local law of the country where the firm is located.

III.

Foreign firms operating abroad that employ U.S. citizens.

a.

I only.

b.

I and II.

c.

I and III.

d.

II and III.

Question 3

World Motors assembles automobiles in the United States from engines produced by its subsidiary corporation in Country X. In order to shift its tax liability, World Motors instructs the subsidiary in Country X to overvalue its invoice price of the engines. This is known as:

a.

Foreign source income.

b.

Taxation pricing.

c.

Transfer pricing.

d.

Price discrimination.

Question 4

Under the Foreign Sovereign Immunities Act, a federal court would not have jurisdiction over a foreign nation unless:

a.

The foreign nation’s acts were diplomatic in nature.

b.

Authority has been granted for the court to hear the case by the president of the United States.

c.

The foreign government’s actions constitute a commercial activity.

d.

The foreign government committed an act of state.

Question 5

Under the Foreign Sovereign Immunities Act, federal courts in the U.S. cannot hear which of the following cases:

a.

The foreign government breached a contract with the U.S. firm for the sale of goods.

b.

A dispute over the amount of compensation paid by a foreign government to a U.S. investor when the investor’s real estate was taken to build a national airport.

c.

The foreign government is being sued for money damages sought as a result of personal injury or death caused by the foreign government or its agents in the United States.

d.

All of the above are exceptions.

Question 6

In the U.S., an employer may engage in employee discrimination if it is “reasonably necessary to the normal operation of the particular business or enterprise,” a defense known as the:

a.

bona fide occupational qualification defense.

b.

occupational qualification defense.

c.

occupational exception defense.

d.

bona fide exception defense.

Question 7

Common restrictions imposed on the use of technology include geographic limitations on the licensee’s manufacturing and/or marketing activities. These types of restrictions are also known as:

a.

Field of use limitations.

b.

Operating limitations.

c.

Non-technical limitations.

d.

Implied effort of cooperation limitations.

Question 8

Many technology owners have avoided introducing technology or technological products into Brazil because:

a.

Spies and foreign agents have been stealing the technology and selling it to the communist countries.

b.

The market has been too weak to support these high-tech products.

c.

Brazilian taxes on the introduction of technology into the country have been prohibitively high.

d.

Technology transfer agreements have been interpreted under Brazilian law so that the original owner loses many rights in the technology.

Question 9

TRIPS requires every member of the World Trade Organization to:

a.

Abide by the Paris Convention.

b.

Abide by the Berne Convention.

c.

Apply national treatment to foreign owners of intellectual property rights.

d.

Provide patent protection for processes.

e.

All of the above.

Question 10

The Chinese government practices a form of institutional discrimination through the Hukou, which is a mechanism for determining social entitlements based on:

a.

gender.

b.

age.

c.

occupation.

d.

place of residence.

Question 11

The European Commission has given exemptions in all of the following areas except:

a.

Motor vehicle distribution agreements.

b.

Merger agreements.

c.

Patent license agreements.

d.

Exclusive purchasing agreements.

Question 12

Which of the following Acts created a review process under which mergers, joint venture agreements, and similar transactions must be brought before the Department of Justice for review before they are concluded?

a.

The Smoot-Hawley Act

b.

The Kyoto Protocol

c.

The Clayton Act

d.

The Hart-Scott-Rodino Act

Question 13

If an agent sells a line of American-made children’s toys to a European toy store chain and it is later discovered that the toys are dangerous to children, the agent is not held accountable because this is an example of:

a.

product liability.

b.

just cause.

c.

a commission.

d.

None of the above.

Question 14

Which of the following is prohibited in more countries?

a.

Sexually explicit advertising.

b.

Advertising in a foreign language.

c.

False advertising.

d.

Advertising to children.

Question 15

Which of the following is one of the challenges faced by African nations that make it difficult for them to develop and coordinate policies that maintain and improve the environment?

a.

water scarcity and desertification

b.

land and coastal degradation

c.

political unrest

d.

all of the above

Question 16

In Germany, workers:

a.

Can be dismissed at the will of the employer.

b.

Participate in corporate decisions.

c.

Are often represented on boards of directors.

d.

A and B

e.

B and C

Question 17

Which of the following is NOT one of the primary distinctions between U.S. and foreign labor laws?

a.

Many non-U.S. countries place legal constraints on employee dismissal that are unfamiliar to the U.S. investor.

b.

When a U.S. investor acquires a foreign business, by operation of law, it may also be acquiring the foreign industry’s labor arrangements.

c.

Many non-U.S. nations’ laws require employee consultation or participation in management decisions that Americans view as being the owner’s prerogative.

d.

Many American laws require employee consultation or participation in management decisions that non-U.S. businesspeople view as being the owner’s prerogative.

Question 18

Under Chinese law, a merger or acquisition qualifies for review if:

a.

a transfer of control must occur.

b.

it will result in the acquisition of control over another undertaking.

c.

it results in the ability to exercise decisive influence over another undertaking.

d.

all of the above

Question 19

The FCPA was passed in the United States in the 1970s largely because:

a.

The law was requested by many U.S. corporations in order to allow them to compete more effectively in foreign markets.

b.

U.S. public opinion and world disdain over disclosures of hundreds of unethical payments to foreign officials by U.S. firms.

c.

The law was based on a draft law written by the United Nations.

d.

An attempt by the U.S. Congress to provide a more predictable and easily understood law for U.S. firms operating abroad.

Question 20

Which country has been considered a pioneer in the use of biofuels, particularly ethanol?

a.

Russia

b.

The United States

c.

Brazil

d.

Mexico

Question 21

Transfer agreements in Japan and some newly developed countries such as Korea require:

a.

Notification to the government.

b.

Assurance that the agreement has not be entered into corruptly.

c.

Approval by the government.

d.

Negotiation between the foreign licensor and the government.

Question 22

With regard to global working conditions of child labor and prison labor, which of the following statements is true?

a.

A few companies, such as Levi-Strauss & Co., have adopted global sourcing guidelines to use only suppliers who do not make use of child or prison labor.

b.

Efforts to develop WTO trade rules that tie labor standards to international trade have borne fruit in the new GATT understandings between industrialized and developing nations.

c.

Section 301 of the U.S Trade Act of 1974 has been amended to impose tariffs on goods that are produced by child labor or prison labor.

d.

Since NAFTA, Mexico has made great strides in making sure that children below the age of 14 are kept in school and not used in manufacturing operations.

Question 23

The greatest protection offered to the holder of intellectual property rights comes from:

a.

The Uniform Copyright Convention.

b.

The Paris Convention.

c.

The Patent Cooperation Treaty.

d.

Local laws.

Question 24

Copyright protection for works of authorship available through the Internet is expressly provided by:

a.

The Berne Convention.

b.

The WIPO Copyright Treaty.

c.

The TRIPS Agreement.

d.

None of the above.

Question 25

The three regulatory schemes for a technology transfer agreement range from least prohibitive to most prohibitive in which of the following choices:

a.

Notification/registration, no regulation, preapproval.

b.

Preapproval, notification/registration, no regulation.

c.

No regulation, notification/registration, preapproval.

d.

No regulation, preapproval, notification/registration.

Question 26

The majority of the gross domestic product in the U.S. is produced by:

a.

Technology industries.

b.

Manufacturing industries.

c.

Trade in services.

d.

Service industries.

Question 27

Judicial review of a protest of entry is heard in which of the following courts:

a.

Federal Trade Court.

b.

Court of International Trade.

c.

Circuit Court of Customs Appeals.

d.

All of the above depending on the level of review.

Question 28

Goods may be refused entry into the U.S. by the Bureau of Customs and Border Protection due to:

a.

Quarantine to protect the public health.

b.

Embargoed country of origin.

c.

Lack of a commercial invoice.

d.

All of the above.

Question 29

A treaty between two countries is said to be _______, and a treaty between three or more countries is said to be _________.

a.

bitreaty; tritreaty

b.

biratified; multiratified

c.

bilateral; multilateral

d.

bitreaty; multitreaty

Question 30

Harmonized tariff schedules break down product classifications into:

a.

6 digits.

b.

8 digits.

c.

10 digits.

d.

12 digits.

Question 31

The illegal placement of goods or commodities in the hands of an individual for whom an export license would be denied is known as:

a.

Conversion.

b.

Delusion.

c.

Derision.

d.

None of the above.

Question 32

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.

ADR.

c.

Allocation.

d.

Venue.

Question 33

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.

Question 34

The shipment of goods or rendering of services to a foreign buyer located in a foreign country is:

a.

Importing.

b.

Exporting.

c.

Foreign exchange.

d.

A and B.

Question 35

The phrase to describe when a foreign government’s import regulations are not made readily available to the public or are hidden or disguised in bureaucratic rules or practices is:

a.

Bureaucratic procrastination.

b.

Unfair trade practices.

c.

Limited access.

d.

Not transparent

Question 36

In the Crosby v. National Foreign Trade Council case, the US Supreme Court ruled that the Massachusetts law that bans state agencies from doing business with Myanmar was valid under the

a.

Import-Export Clause

b.

None of the above

c.

Supremacy Clause

d.

Commerce Clause

Question 37

Regarding environmental issues and NAFTA:

a.

NAFTA calls for the three countries to work together to develop common environmental standards.

b.

NAFTA sets strict environmental and ecological standards for all three countries.

c.

NAFTA countries can continue to ban pesticides without informing each other.

d.

NAFTA created the NAFTA Commission for Environmental Cooperation, which acts in a purely advisory role in regard to environmental issues.

Question 38

When determining whether personal jurisdiction offends “traditional notions of fair play and substantial justice,” the court evaluates several factors, including:

a.

Burden on the defendant.

b.

The plaintiff’s interest in having a convenient forum.

c.

The forum’s legitimate interests in the dispute.

d.

Two of the above.

e.

All of the above.

Question 39

Country-of-origin information impacts all of the following except:

a.

The rate of duty on an import.

b.

The applicability of a quota.

c.

The applicability of a countervailing duty.

d.

The tariff classification of the article.

Question 40

The U.S. law granting trade preferences to imports from the island nations of the Caribbean and Central America is called:

a.

The Lome Convention.

b.

The Latin American Free Trade Act.

c.

The Caribbean GSP Act.

d.

The Caribbean Basin Economic Recovery Act.

Question 41

Which of the following is NOT an example of a commonly used trade barrier?

a.

a national industrial standard that drives up the cost of imported televisions

b.

a tariff on imported oil

c.

a convention on imported children’s toys

d.

a tax on imported clothing

Question 42

The appropriate EU court with original jurisdiction to hear complaints about violation of the European Convention on Human Rights and the Anti-Torture Convention.

a.

European Court of Human Rights

b.

International Criminal Court

c.

International Court of Justice

d.

European Court of Justice

Question 43

The government agency responsible for determining the dutiable status of goods is:

a.

U.S. Commerce Service.

b.

U.S. Duties & Tax Service.

c.

U.S. Port of Entry Service.

d.

None of the above.

Question 44

Under Section 301, the United States Trade Representative has the discretion to take retaliatory trade action in all the following cases except:

a.

When a country fails to provide standards for minimum wage.

b.

When a country permits forced labor.

c.

When a country fails to allow workers the right to organize and bargain collectively.

d.

When a country has denied the U.S. its rights under any of the GATT agreements.

Question 45

When the president decides to impose export controls for national security or foreign policy reasons, the following businesses may be adversely affected:

a.

Farmers whose crops are in short supply.

b.

Businesses who cooperate with Arab nations in boycotting Israel.

c.

Subsidiaries of U.S. companies having contracts with nations targeted by U.S. foreign policy.

d.

B and C only.

e.

A, B, and C.

Question 46

Which of the following does not generally characterize foreign distributors?

a.

They assume the risks of warehousing the goods.

b.

They are usually located in the country from which the goods are exported.

c.

The often trail end users of the product.

d.

They are independent firms.

Question 47

Which of the following statements regarding technical barriers to trade is false?

a.

Despite decades of work by the European Union, thousands of new national standards have arisen.

b.

Japan and the United States have had a long history of disputes over Japanese technical barriers to trade.

c.

Most standard setting in the European Union takes place through the European Committee for Standardization.

d.

Japanese technical regulations and standards are readily available to importers and exporters.

e.

All of the above are true.

Question 48

The UN’s Guiding Principles for Business on Human Rights Article 23 states all of the followingexcept:

a.

Businesses should treat the risk of causing or contributing to gross human rights abuses as a legal compliance issues wherever they operate.

b.

Businesses should seek ways to honor the principles of internationally recognized human rights when faced with conflicting requirements.

c.

Businesses should seek to comply with the laws of their home country before considering internationally recognized human rights.

d.

Businesses should comply with all applicable laws and respect internationally recognized human rights, wherever they operate.

Question 50

Thailand’s import restrictions on cigarettes:

a.

Were justified in the interest of public health.

b.

Were justified under GATT article XI as protection of domestic agriculture.

c.

Were not justified under GATT article XI as protection of domestic agriculture.

d.

Were not justified because they violated the principle of free trade.

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