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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. -Wholly Wool's president claims the United States is in violation of GATT because of the improper restriction on the amount of lambswool that can be imported. Is he correct?


A) Yes, because GATT prohibits all restrictions on importation of domestic animal products.
B) Yes, because the quantitative restriction was made for national economic reasons.
C) No, because GATT allows quantitative restrictions that have a rational basis.
D) No, because the goods are also produced in the United States.
E) No, because the U.S. is entitled to tax like goods.

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

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Albert has a great idea for a new vacuum cleaner and receives a patent for his design. Albert finds a Canadian company to sell his vacuum cleaners in Canada, but Albert wants to ensure his patented idea is protected. What type of contract should Albert negotiate with the Canadian company?


A) Forum selection agreement.
B) Joint venture.
C) Franchise agreement.
D) Distributorship agreement.
E) Licensing agreement.

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

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GATT stands for the Grand Attempts of Tariffs and Trades.

A) True
B) False

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What U.S. law prohibits 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 Bribery Act
B) The Foreign Political Act
C) The Foreign Corrupt Practices Act
D) The International Agreement on Tariff and Bribery Act
E) The International Trade Act

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

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Treaties in the United States may be self-executing or non-self-executing.

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 C)

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In a sales contract between two companies, one in Florida and one in Kentucky, which of the following is true about which set of laws would apply:


A) The UCC, because both parties to the sales transaction are residents of the United States.
B) The CISG, because both parties to the sales transaction are residents of the United States.
C) The UCC, but only if the parties opted out of the CISG.
D) Both the CISG and the UCC would apply.
E) Neither the CISG nor the UCC would apply.

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

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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. -If Yoshe ships Miracle Face to Mexico for sale, she would be involved in the ________ of goods.


A) import
B) franchising
C) licensing
D) export
E) affiliating

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

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Which of the systems are derived from Roman law?


A) Civil law systems
B) Case law legal systems
C) Common law systems
D) Populist legal systems
E) Islamic legal systems

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

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A

[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. -In order for any judgment in Illinois to be enforceable against DroneTek, what must the court have?


A) Subject-matter jurisdiction and specific personal jurisdiction.
B) Subject-matter jurisdiction or personal jurisdiction.
C) Subject-matter jurisdiction and either general or specific personal jurisdiction.
D) Subject-matter jurisdiction, general personal jurisdiction, and specific personal jurisdiction.
E) Subject-matter jurisdiction and general personal jurisdiction.

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

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The European Union is an example of a customs union.

A) True
B) False

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Article 38 of the Statute of the International Court of Justice identifies four sources that may be used to find international law. Please list those four sources.

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Article 38 of the Statute of the Interna...

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________ is a comprehensive multilateral trading system designed to achieve distortion-free international trade through the minimization of tariffs and removal of artificial barriers.


A) The International Agreement on Nontariffs and Trade
B) The World Trade Organization Agreement
C) The General Agreement on Tariffs and Trade
D) The North and South American Free Trade Agreement
E) The European Free Trade Agreement

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

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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. -Which of the following should Yoshe consider concerning trade agreements between the U.S. and Mexico?


A) The North American Free Trade Agreement
B) The Central American Free Trade Agreement
C) The Tri-Country Free Trade Agreement
D) The Multi-Country Free Trade Agreement
E) The Accessibility Trade Agreement

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

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According to the General Agreement on Tariffs and Trade, a subsidy is a government financial contribution that allots a benefit to a specific industry or enterprise.

A) True
B) False

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The terms international law and comparative law mean the same thing.

A) True
B) False

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The parties to an international contract have the right to select the forum in which disputes are to be resolved.

A) True
B) False

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Diliana, your friend from Uganda, is visiting you here in the United States and the talk quickly turns to international trade. She is confused about how international cooperation works in an open marketplace and wonders who provides for trade negotiations and the settlement of international trade disputes. Which organization would you tell her is responsible?


A) World Trade Organization
B) The U.S. Supreme Court
C) International Trade Commission
D) International Supreme Commission
E) The U.S. International Organization

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

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The country Axton exports their auto parts to the country of Bularny. The price that Axton charges is a significantly lesser price than the same auto part is sold for in Bularny. This practice severely threatens the auto parts industry in Bularny. This practice is known as?


A) Smart business practices
B) Dumping
C) Duplexing
D) Maximization
E) Racketeering

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

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B

Under which scenario does a company have the most presence in a foreign state?


A) Representative office.
B) Joint venture.
C) Representative venture.
D) Distributorship.
E) Licensing agreement.

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

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B

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