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[Lambswool tax] The U.S. and Canada are members of the World Trade Organization and GATT. Frustrated by the tough competition from Canadian suppliers, Lambswool suppliers in the U.S. have pressured Congress to pass a law requiring importers to pay a tax per pound of lambswool imported to the U.S. and restricting the number of pounds of lambswool imported from specific countries, including Canada. Wholly Wool, Inc., is a Canadian company that sells lambswool that is nearly identical to lambswool produced and sold in the U.S. -All of the following are issues addressed by NAFTA except which one?


A) Worker's rights issues
B) Free trade in Central America
C) Child labor
D) Equal pay for equal work
E) The right to strike

F) A) and C)
G) A) and B)

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Roberta is president of a pharmaceutical company which is based in the U.S., but has a substantial amount of sales in other countries. Roberta's company manufactures drugs prescribed to those infected with HIV and other illnesses. She is informed by missionary workers that millions of people in Africa have HIV and many have died. She receives a request to provide medication to certain locations in Africa free of charge. In addition, Roberta has been asked by a group in the U.S. to provide medication free of charge to HIV positive individuals within the U.S. and to donate other drugs her company makes for the treatment of other illnesses. Roberta, in good faith and based on a good review of the company's financial position, believes that the company can afford to donate some supplies, but not in the quantities requested by both foreign and U.S. concerns. What do you believe is the ethical thing for Roberta to do under the circumstances?

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Student responses, of course, ...

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[Weeds] Cecelia developed a product guaranteed to immediately kill weeds, but will absolutely not kill any other type of grass or shrub. She has encountered several individuals and businesses in other countries who would like to enter into contracts with her and market her products internationally. She consulted with Willie, who just graduated law school and has yet to pass the bar, and asked him for advice regarding those contracts. Willie proceeded to tell her that she should simply enter into the same type of contract with international businesses and individuals from other countries as she would if those individuals and businesses were located in the United States. He tells her that if there is any problem, then they will simply have to come to the United States to settle the matter, and that any issues would be determined in Cecelia's home county, in her home state, and under her state's law. He also mentions to her that she should consider contacting local foreign officials in the areas in which she would like her product sold and suggest to them that she can contribute heavily to election campaigns if she is allowed, without any trouble, to obtain necessary business licenses and approvals to do business. -If Cecelia does not take Willie at his word and wants additional assurance that her state's law would be applied, what should she do?


A) There is nothing she can do.
B) She should insert a forum selection clause in the contract.
C) She should insert a choice-of-law clause in the contract.
D) She should insert a Hague evidence clause in the contract.
E) She should insert a GATT clause into the contract.

F) A) and B)
G) A) and C)

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International agreements take on two forms in the U.S., what are they?


A) A written agreement between Congress and the judicial branch and a bilateral treaty
B) Executive agreement and congressional mandate
C) Judicial decree and congressional mandate
D) Treaties and executive agreements
E) Decree and congressional mandate

F) None of the above
G) C) and D)

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[Miracle Face] Yoshe developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Yoshe has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Yoshe has an offer, however, from another Mexican citizen, Nora. Nora proposes that she and Yoshe associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Yoshe has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then hire employees in Mexico to sell the product. Another matter Yoshe has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements between the U.S. and Mexico. -Assuming that Yoshe decides to make the deal Sam proposes, Sam would be referred to as a(n) ________ and Yoshe would be referred to as a(n) ________.


A) Franchisor; Franchisee
B) Franchisee; Franchisor
C) Affiliator; Affiliatee
D) Venturor; Venturee
E) Representative Offeror; Representative Offeree

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

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[DroneTek] DroneTek, Inc., a Swedish company, produces drones that are sold in the United States and many countries. DroneTek's D2000 model is a top seller in Illinois, where Reymond lives. While vacationing in Mexico, Reymond purchased a D2000 drone. Unfortunately, during a tour in Mexico City, the blades of the D2000 broke from the unit and caused serious and permanent injury to Reymond. Reymond wants to file suit in Illinois against DroneTek for its defective product. -Does an Illinois court have specific personal jurisdiction over DroneTek?


A) Yes, because the D2000 was shipped to Illinois.
B) Yes, if the value of Reymond's claim is over $50,000.
C) No, because Illinois has general personal jurisdiction over DroneTek.
D) Yes, because the D2000 entered the stream of commerce.
E) No, because DroneTek has not purposefully availed itself of the protections of the Illinois forum.

F) B) and D)
G) A) and E)

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Agents of a foreign state are immune from civil actions against them, but not from situations in which the foreign agent engages in a commercial activity.

A) True
B) False

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Discuss in detail the World Trade Organization, its membership, and its function. Also explain the normal trade relations principle, national treatment, quantitative restrictions, and dumping.

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The Uruguay Round established the World ...

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Define tariffs and how they may be calculated. Additionally, define a nontariff barrier and list and define three types of nontariff barriers.

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Tariffs are taxes levied on imported goo...

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________ is a type of alternative dispute resolution procedure wherein disputes are submitted for resolution to private, nonofficial persons selected in a manner provided by law or the agreement of the parties.


A) Mediation
B) Arbitration
C) Neutral evaluation
D) International evaluation
E) Multi-cultural evaluation

F) A) and E)
G) D) and E)

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A foreign sales representative does the same thing as a distributor when conducting business internationally.

A) True
B) False

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Which of the following has the U.S. Supreme Court held with respect to whether U.S. courts must rely on customary international law?


A) The U.S. Supreme Court has held that U.S. courts may disregard customary international law.
B) The U.S. Supreme Court has held that even if a governing international agreement says otherwise, a U.S. court must rely on customary international law.
C) The U.S. Supreme Court has held that even if a controlling executive act is to the contrary, U.S. courts must rely on customary international law.
D) The U.S. Supreme Court has held that regardless of the existence of any legislative act to the contrary, U.S. courts must rely on customary international law.
E) The U.S. Supreme Court has held that in the absence of a governing international agreement or controlling executive or legislative act or judicial decision, U.S. courts must rely on customary international law.

F) All of the above
G) A) and B)

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[Lambswool tax] The U.S. and Canada are members of the World Trade Organization and GATT. Frustrated by the tough competition from Canadian suppliers, Lambswool suppliers in the U.S. have pressured Congress to pass a law requiring importers to pay a tax per pound of lambswool imported to the U.S. and restricting the number of pounds of lambswool imported from specific countries, including Canada. Wholly Wool, Inc., is a Canadian company that sells lambswool that is nearly identical to lambswool produced and sold in the U.S. -Which of the following is the most common legal system in the world?


A) The EU.
B) The civil law system.
C) The common law system.
D) The United States legal system.
E) The socialist legal system.

F) A) and B)
G) A) and C)

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There are three basic types of regional trade agreements: multilateral free trade agreements, customs unions, and bilateral free trade agreements.

A) True
B) False

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Identify and describe a franchise agreement, a joint venture, and an affiliate business in relation to international business.

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A FRANCHISE AGREEMENT IS A CONTRACT WHER...

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Do both the CISG and the UCC require contracts for the sale of goods be in writing?


A) No. The UCC requires that contracts for the sale of goods in excess of $500 be in writing, however, the CISG does not require a writing.
B) No. The CISG requires that contracts for the sale of goods in excess of $500 be in writing, however, the UCC does not require a writing.
C) Yes, both the UCC and the CISG require that contracts for the sale of goods be in writing.
D) No. The UCC requires that all contracts for the sale of goods be in writing, however, the CISG does not require a writing.
E) No. The CISG requires that all contracts for the sale of goods be in writing, however, the UCC does not require a writing.

F) B) and E)
G) None of the above

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A(n) ________, for purposes of international law, is an entity possessing territory, population, a government, and the legal capacity to engage in diplomatic relations.


A) international city
B) international corporation
C) state
D) foreign subsidiary
E) national subsidiary

F) B) and D)
G) B) and C)

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What types of warranties are recognized by the CISG and the UCC?


A) Express warranties and the implied warranty of merchantability arising from the sale of goods.
B) Actual and express warranties but not the implied warranty of merchantability arising from the sale of goods.
C) Express warranties and the implied warranty of merchantability arising from the sale of goods but not actual warranties.
D) Express warranties only.
E) The implied warranty of merchantability arising from the sale of goods only.

F) A) and B)
G) C) and D)

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Which of the following translates directly to "law of merchants?"


A) Lex Mercatoria
B) Lex Seller
C) Ad Merchandiso
D) Lex Loci
E) Res Judicata

F) B) and D)
G) B) and C)

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[Lambswool tax] The U.S. and Canada are members of the World Trade Organization and GATT. Frustrated by the tough competition from Canadian suppliers, Lambswool suppliers in the U.S. have pressured Congress to pass a law requiring importers to pay a tax per pound of lambswool imported to the U.S. and restricting the number of pounds of lambswool imported from specific countries, including Canada. Wholly Wool, Inc., is a Canadian company that sells lambswool that is nearly identical to lambswool produced and sold in the U.S. -All of the following are examples of a nontariff barrier except ________.


A) A trade embargo
B) A ban on the sale of lambswool
C) A quota or limit on the amount of imported units
D) A fee based on the weight of the imported units
E) A ban on trade with Canada

F) B) and C)
G) C) and E)

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