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Chapter 47_SmithandRoberson14ed_tb

Chapter 47_SmithandRoberson14ed_tb - Chapter...

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Chapter 47—International Business Law TRUE/FALSE 1. The International Monetary Fund was established in 1945 to promote international monetary cooperation and now has approximately 50 member countries. ANS: F PTS: 1 2. In a foreign distributorship arrangement, the foreign distributorship in the importing country purchases the goods from the manufacturer in the exporting country. ANS: T PTS: 1 3. Under U.S. law, the CISG does supersede the UCC whenever the CISG applies. ANS: T PTS: 1 4. Dumping is an automatic violation of the GATT. ANS: F PTS: 1 5. The Constitution authorizes the president to enter into treaties having the legal force of a federal statute without having to go through the legislative process or without having to receive advice or consent of the federal legislative branch of government. ANS: F PTS: 1 6. Like domestic law, international law can be easily enforced, because international courts have compulsory jurisdiction. ANS: F PTS: 1 7. A taking by a foreign country of investments in accordance with national law is an act of state doctrine. ANS: F PTS: 1 8. Under the doctrine of sovereign immunity, domestic courts, in certain circumstances, will exercise jurisdiction over a foreign state or its instrumentalities. ANS: T PTS: 1 9. Businesses who wish to safeguard their technology while doing business in the international sector would not want to consider the use of wholly owned subsidiaries. ANS: F PTS: 1 10. The United States has, in 1993, withdrawn from participation in the General Agreement on Tariffs and Trade (GATT). ANS: F PTS: 1
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11. Confiscation of property by a foreign government for nonpublic purposes without adequate payment violates generally observed principles of international law. ANS: T PTS: 1 12. Expropriation of property by a foreign government for a public purpose with the payment of just compensation, but without the consent of the owner violates generally observed principles of international law. ANS: F PTS: 1 13. A foreign agent is used by multinational enterprises to take title to merchandise and bear the risks connected with international sales. ANS: F PTS: 1 14. International law is derived from the Code of Federal Regulations and international legal tribunals. ANS: F PTS: 1 15. NAFTA established a free trade area for the United States, Mexico, and Central America. ANS: F PTS: 1 16. The choice-of-forum clause in an international business transaction will dictate what country's law the forum will apply should a legal dispute arise. ANS: F PTS: 1 17. International courts have compulsory jurisdiction to resolve international disputes, and they have the authority to resolve an international dispute even if the parties to the dispute do not specifically accept the court's jurisdiction over the matter. ANS: F PTS: 1 18. Although under GATT's most-favored nation provision all signatories must treat each other as favorably as they treat any other country, nations may give preferential treatment to developing nations and may enter into free trade areas.
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