Business Abroad, Inc.

1. Business Abroad, Inc., a U.S. firm, obtains a judgment in a U.S. court against Quang Tri, Ltd., a Vietnamese business. Whether the court’s judgment will be enforced by a court in Vietnam depends on the Vietnamese court’s application of

a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the principle of comity.
d. the World Trade Organization .

2. Canada giving effect to the laws and court decisions of the United States is an application of

a. the act of state doctrine.
b. the Foreign Corrupt Practices Act.
c. the principle of comity.
d. the Sherman Act.

3. A Japanese court awards a Japanese corporation damages against a U.S. firm. A U.S. court will defer and give effect to this award, as long as it is consistent with the laws and public policy of the United States, under

a. the act of state doctrine.
b. the Convention on Contracts for the International Sale of Goods.
c. the doctrine of sovereign immunity.
d. the principle o

4. International Properties, Inc. (IPI), a U.S. firm, owns property in Hong Kong. When Hong Kong reverts to the sovereignty of China, the government takes IPI’s property without paying for it. A U.S. court will probably not examine the validity of this act committed by China within its own territory, under

a. the act of state doctrine.
b. the Convention on Contracts for the International Sale of Goods.
c. the doctrine of sovereign immunity.
d. the principle of comity.

5. Sudan confiscates the assets of Resources Mining Corporation, a U.S. business. Recovery by Resources Mining from Sudan in a U.S. court may be prevented by

a. the act of state doctrine.
b. the Convention on Contracts for the International Sale of Goods.
c. the doctrine of sovereign immunity.
d. the principle of comity.

6. Egypt hires a British advertising agency to promote tourism from Europe but fails to pay for the agency’s services. If the agency attempts to sue Egypt in a U.S. court, Egypt will likely be exempt from the court’s jurisdiction under

a. the act of state doctrine.
b. the Convention on Contracts for the International Sale of Goods.
c. the doctrine of sovereign immunity.
d. the principle of comity.

7. Algeria seizes the property of Clear Water Drilling Corporation, a privately owned business, for a proper public purpose and pays the owners just compensation. This is

a. a confiscation.
b. a dumping.
c. an expropriation.
d. none of the above.

8. International Investments, Inc., a U.S. firm, files a suit against Mexico in a U.S. court. Mexico claims foreign sovereign immunity. Under the Foreign Sovereign Immunities Act, this claim is determined by

a. the U.S. court in which the suit is brought.
b. the U.S. Department of Commerce.
c. the U.S. Department of State.
d. none of the above.

9. North Korea confiscates the property of foreign investors. Kenya expropriates foreign investors’ property. Generally observed legal principles of international law are violated by

a. North Korea’s confiscation only.
b. Kenya’s expropriation only.
c. North Korea’s confiscation and Kenya’s expropriation.
d. none of the above.

10. Bert, a German citizen, gives Franz, also a German, a written offer to contract for Franz’s services. German law, like the law in many nations, requires that, once made, an offer must

a. be accepted immediately or it expires.
b. be preceded by a “gift” to a government official.
c. remain open for acceptance for some minimum period of time.
d. none of the above.

11. Dieter and Eva, who are citizens of Germany, a civil law country, enter into a contract for the sale of a computer. For a contract to be legally binding, the law in Germany, as in most civil law countries, does not require

a. an acceptance.
b. an offer.
c. consideration.
d. all of the above.

12. Miguel enters into a contract to buy tomatoes in Mexico from Rancho Comida and a contract to sell them in the United States to Wholesale Commodities, Inc. For contracts for sales of goods, strict requirements in respect to definiteness of contract terms have been liberalized in

a. Mexico.
b. the United States.
c. both a and b.
d. none of the above.

13. Over the phone, Larry enters into contracts with Mustafa in Saudi Arabia and Nora in the United States. To be enforceable, certain types of contracts must be in writing in

a. Saudi Arabia.
b. the United States.
c. both a and b.
d. none of the above.

14. Louis works for Electronique Francais, S.A., in France. French law prohibits employers from firing workers unless

a. the employer can show mediators that the cause of the dismissal is serious.
b. the employer has taken a personal dislike to the workers.
c. the workers can show mediators that the cause of the dismissal is not serious.
d. none of the above.

15. Bob works for Consumer Electronics Corporation, a U.S. firm. In the United States and other countries, an employer’s ability to discharge employees at will is

a. becoming less restricted.
b. becoming more restricted.
c. left entirely to negotiations between the employer and employees.
d. upheld as long as it supports some rational goal of the state.

16. Serving in Congress for his first term, Alan proposes a new tax on exports and imports. The tax that would be unconstitutional is the proposed tax on

a. exports only.
b. imports only.
c. exports and imports.
d. none of the above.

17. International Enterprises Company imports products made in South America. Restrictions on these imports may include

a. quotas only.
b. tariffs only.
c. quotas or tariffs.
d. none of the above.

18. Great Britain sets a limit on the amount of beef that can be imported from the United States. This is

a. a dumping duty.
b. an antidumping duty.
c. a quota.
d. a tariff.

19. 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.

20. Nang, Ltd., makes its products outside the United States and imports them into the United States for sale at less than fair value. Overseas Sales, Inc., imports goods into, and exports goods from, the United States, in violation of import and export quotas. Pure Goods, Inc., makes its products in the United States, where it sells them at less than cost. Antidumping duties may be assessed on

a. Nang’s products.
b. Overseas’s imports.
c. Overseas’s exports.
d. Pure Goods’s products.

21. Fred sells parts for American-made cars to a German dealer, Deutsche Auto, under a contract that states German law applies to any dispute. When a dispute arises, Fred files a suit in a U.S. court against Deutsche Auto, which seeks to admit the testimony of a German law professor. Fred objects. The court is most likely rule that the testimony is

a. admissible, because a U.S. court, in determining foreign law, may consider any relevant testimony.
b. admissible, because the witness is a professor.
c. inadmissible, because Fred objects.
d. inadmissible, because it is not the testimony of a party to the case.

22. Haruo is a judge in Japan, which has a civil law system. Peter is a judge in New Zealand, which has a common law system. In both of these countries, as in most nations, the primary function of judges is to

a. advocate their clients’ interests.
b. encourage foreign business investment.
c. issue rulings contrary to the views of the head of state.
d. resolve litigation.

23. Australia has a common law system. Unlike most civil law nations, common law countries

a. allow for the recovery of damages for every culpable act.
b. authorize in statutory codes what acts permit recovery in tort.
c. have developed court-made law regarding what acts permit recovery in tort.
d. none of the above.

24. Max is injured when he slips on a French fry and falls to the floor in a Quicky’s fast-food restaurant. In a tort case, the calculation of actual (compensatory) damages does not depend on whether the tort was negligent or intentional, in

a. France.
b. the United States.
c. both a and b.
d. none of the above.

25. Parisien Electronique, a French firm, and Fine Imports, Inc., a U.S. firm, are parties to a contract that does not specify a choice of law. France and the United States are signatories to the United Nations Convention on Contracts for the International Sale of Goods (CISG). The law governing this contract is that of

a. any third country.
b. the buyer’s place of business.
c. the CISG.
d. the seller’s place of business.