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The European Union is an example of a customs union.

A) True
B) False

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As identified by Article 38 of the Statute of the International Court of Justice, what are four sources that may be used to find international law?

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Article 38 of the Statute of the Interna...

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Which of the following is true regarding minimum-wage laws?


A) The People's Republic of China has a national minimum-wage law.
B) Canada has a national minimum-wage law.
C) Italy has a national minimum-wage law.
D) Germany has a national minimum-wage law.
E) Australia has a national minimum-wage law.

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

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A reference to laws governing the conduct of states and international organizations and their relationships with one another is ______.


A) Comparative law
B) International law
C) Joint law
D) Foreign subsidiary law
E) Affiliate law

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

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Which of the following is one of the three basic types of subsidies?


A) Indirect subsidy
B) Actionable subsidy
C) International subsidy
D) Group subsidy
E) Quantitative subsidy

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

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How does ratification of international agreements occur in the U.S.?


A) Through the advice and consent of two-thirds of the Senate after the president submits the agreement for consideration.
B) Through the advice and consent of two-thirds of the House of Representatives after the president submits the agreement for consideration.
C) Through the advice and consent of two-thirds of the Senate and two-thirds of the House of Representatives after the president submits the agreement for consideration.
D) Through consent of the president.
E) Through the consent of the president and the approval of at least half the individual state legislatures.

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

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"Miracle Face." Tara 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. Tara 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. Tara has an offer, however, from another Mexican citizen, Maria. Maria proposes that she and Tara associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Tara 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 Tara 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 in effect between the U.S. and Mexico. -If Tara simply opens her own business in Mexico in conformity with Mexican laws and hires employees in Mexico to sell the product, she would have opened a[n] ______.


A) Franchise
B) Distributorship
C) Joint venture
D) Licensing subsidiary
E) Affiliate

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

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A franchise agreement is the same thing as a joint venture.

A) True
B) False

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"Weeds." Susie developed a product guaranteed to immediately kill weeds, but absolutely no 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 went to Willie, who just graduated law school and has yet to pass the bar, and asks 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 Susie'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 hassles to obtain necessary business licenses and approvals to do business. -Assuming Susie 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 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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An agent who distributes, represents, or sells goods on behalf of a foreign seller is referred to as a[n] ______.


A) Export representative
B) Import representative
C) Foreign sales representative
D) Foreign exportation proponent
E) International sales and importation expert

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

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_____ prohibits U.S. companies from offering or paying bribes to foreign government officials, political parties, and candidates for office for the purpose of obtaining or retaining business.


A) The Foreign Corrupt Practices Act
B) The Foreign Bribery Act
C) The Foreign Political Act
D) The International Fairness Objective Act
E) The International Trade Act

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

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Which of the following is true regarding nontariff barriers?


A) Quotas are nontariff barriers, but embargoes are not.
B) Embargoes are nontariff barriers, but quotas are not.
C) Indirect barriers are nontariff barriers, but quotas and embargoes are not.
D) Quotas and embargoes are nontariff barriers, but indirect barriers are not.
E) Quotas, embargoes, and indirect barriers are all nontariff barriers.

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

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"Employment law." Clare, who has a successful pet grooming business, is planning to expand her operations from the U.S. into Canada and perhaps Mexico. A friend of hers, Bill, told her that she should carefully investigate the laws in those countries before she proceeded. Clare responded, however, that she was not concerned because by international treaty, and under NAFTA, so long as she is a U.S. citizen, she only has to obey the U.S. laws. Laws of other countries would not apply to her business operations. Clare also replied that any other country would have the same strict employment-at-will standard as exists in the U.S. She tells him the strict employment-at-will standard has not changed over the years, and that the nature of the relationship between employer and employee remains untouched. -Which of the following is true regarding Clare's statement that so long as she obeys the laws of the U.S., she does not need to be concerned about laws of other countries?


A) She is accurate.
B) She is accurate, but only in regard to laws pertaining to employment.
C) She is inaccurate.
D) She is accurate, but only in regard to laws involved with the Uniform Commercial Code.
E) She is accurate, but only if countries are signatories to NAFTA.

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

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"Weeds." Susie developed a product guaranteed to immediately kill weeds, but absolutely no 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 went to Willie, who just graduated law school and has yet to pass the bar, and asks 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 Susie'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 hassles to obtain necessary business licenses and approvals to do business. -Which of the following is true regarding Willie's advice that she contacts foreign officials regarding election campaign contributions?


A) Willie was incorrect, and following his advice would put Susie in danger of violating the Foreign Corrupt Practices Act.
B) Willie was incorrect, and following his advice would put Susie in danger of violating foreign laws in the countries in which she makes such offers; but she would not be in danger of violating any U.S. laws.
C) Willie was incorrect, and following his advice would put Susie in danger of violating the Uniform Anti-Bribery Statute.
D) Willie was incorrect, and following his advice would put Susie in danger of violating the federal Unfair Competition Act.
E) Willie was correct, and following his advice is a good idea for Susie.

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

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Which of the following is true regarding international organizations?


A) The United Nations is an international organization, but the International Monetary Fund is not.
B) The International Monetary Fund is an international organization, but neither the United Nations nor the International Bank for Reconstruction and Development (World Bank) are international organizations.
C) The International Bank for Reconstruction and Development (World Bank) and the International Money Fund are international organizations, but the United Nations is not an international organization.
D) The United Nations and the International Monetary Fund are international organizations, but the International Bank for Reconstruction and Development (World Bank) is not.
E) The United Nations, the International Monetary Fund, and the International Bank for Reconstruction and Development (World Bank) are all international organizations.

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

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A foreign company that maintains a passive website advertising the company's services is subject to personal jurisdiction in any state in the U.S. because the website may result in sales in the U.S.

A) True
B) False

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Which of the following is an international agreement governing the arbitration of private international disputes that has been ratified by the U.S.?


A) The Hague Convention
B) The International Arbitration Convention
C) The French Convention
D) The New York Convention
E) The NAFTA Convention

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

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Richard is president of a pharmaceutical company which is based in the U.S. but has a substantial amount of sales in other countries. Richard's company manufactures drugs prescribed to those infected with HIV and other illnesses. He is informed by some missionary workers that millions of people in Africa have HIV and that many have died. He is asked to provide medication to certain locations in Africa free of charge. On the other hand, Richard has also been asked by a group in the U.S. to provide medication free of charge to HIV positive individuals in this country and to donate other drugs his company makes for the treatment of other illnesses. Richard, 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 Richard to do under the circumstances?

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Student responses, of course, ...

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Which type of legal system exists in North Korea?


A) Civil legal system
B) Common law legal system
C) Socialist legal system
D) Islamic legal system
E) Asian legal system

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

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

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Tariffs are taxes levied on imported goo...

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