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A nation that launches objects into space is absolutely liable for personal injury and property damage caused by its objects on Earth or in flight.

A) True
B) False

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A foreign state is not immune from the jurisdiction of a U.S. court when it has engaged in commercial activity within the United States.

A) True
B) False

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Sovereign nations agree to be governed by international law to facilitate trade, commerce, and civilized discourse.

A) True
B) False

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Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Total World Sports, a U.S. wholesaler of Suisse's products. U.S. courts will apply U.S. antitrust laws if


A) the agreement was made in Switzerland.
B) the agreement was made in the United States.
C) the price fixing has a substantial effect on U.S. commerce.
D) the Swiss government agrees to be sued in the United States.

E) A) and D)
F) A) and C)

Correct Answer

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C

An export tax imposed by Congress would be unconstitutional.

A) True
B) False

Correct Answer

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The United States taxes each barrel of imported oil at a flat rate. This is


A) an antidumping duty.
B) a dumping duty.
C) a quota.
D) a tariff.

E) C) and D)
F) A) and B)

Correct Answer

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When a foreign country represents a substantial market for a U.S. manufacturer, the firm may enter into an agreement for the distribution of its products in that market by a foreign distributor.

A) True
B) False

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True

A U.S. employer operating in a foreign country must abide by U.S. discrimination laws even if doing so violates the laws of that foreign country.

A) True
B) False

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When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up ownership, authority, and control over all phases of the operation in the foreign country.

A) True
B) False

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False

The federal Alien Tort Claims Act allows foreign citizens, but not U.S. citizens, to file civil actions in U.S. courts for torts that were committed abroad.

A) True
B) False

Correct Answer

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A U.S. court can assert jurisdiction over a foreign government in a case involving the control of natural resources within that government's territory.

A) True
B) False

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Market Maker, Inc., a U.S. firm, can license a foreign manufacturing company to use its


A) patented intellectual property.
B) trade secrets.
C) trademarked brand.
D) any of the choices.

E) All of the above
F) C) and D)

Correct Answer

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Under the principle of comity, a domestic court will not examine the validity of any act committed by a foreign government within the court's jurisdiction.

A) True
B) False

Correct Answer

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Trade barriers are


A) restrictions on imports.
B) restrictions on exports.
C) the lack of incentives and subsidies to stimulate imports.
D) the lack of incentives and subsidies to stimulate exports.

E) A) and D)
F) B) and C)

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Coffee Company, a U.S. firm, owns property in the Dominican Republic. When the Dominican government seizes the property, the company asks a U.S. court to order the property's return. The court rules that the Dominican Republic is exempt from the court's jurisdiction. This is an application of


A) a coercive action.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

E) A) and C)
F) B) and C)

Correct Answer

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In a case alleging that a foreign government wrongfully confiscated a domestic firm's property, the foreign government must prove the taking was an expropriation.

A) True
B) False

Correct Answer

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In an action by a domestic business to attach a foreign nation's property, the plaintiff must prove that the defendant is not entitled to sovereign immunity.

A) True
B) False

Correct Answer

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Lunchies Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use the Lunchies trademark in restaurants in France. This is


A) a distribution agreement.
B) indirect exporting.
C) direct exporting.
D) licensing.

E) All of the above
F) None of the above

Correct Answer

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To prevent the sale of imported goods at less than fair value, an extra tariff-known as an antidumping duty-may be assessed on the imports.

A) True
B) False

Correct Answer

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In international business, franchising involves


A) a license.
B) a distribution agreement.
C) a subsidiary.
D) direct exporting.

E) A) and C)
F) None of the above

Correct Answer

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