BLT&E-7e: Practice Quiz
Chapter 43:
International Law
1. The term comity means:
a. That lawyers recognize the legal decrees of other states.
b. The deference one nation shows for the laws and judicial decrees of another nation.
c. A judicial doctrine stating that expropriations are always illegal under U.S. law.
d. The confiscation of foreign-owned property.
ANS:
a. Incorrect. This is not what comity means.
b. Correct. This is a customary rule of international law that refers to the deference countries give to the laws and judicial decrees of other countries.
c. Incorrect. There is no such judicial doctrine.
d. Incorrect. This is not what comity means.
2. The act of state doctrine is frequently employed in what kinds of cases?
a. Exporting cases.
b. Expropriation cases.
c. Importing cases.
d. Cases involving franchise agreements.
ANS:
a. Incorrect. The doctrine is frequently employed in cases involving nationalization or expropriation.
b. Correct. The doctrine is frequently employed when one nation seizes the property of citizens of another nation.
c. Incorrect. The doctrine is not frequently employed in importing cases.
d. Incorrect. The doctrine is not frequently employed in these cases.
3. Exporting may take one of two forms:
a. Internal and external.
b. Direct and indirect.
c. Conditional and unconditional.
d. Subsidized and unsubsidized.
ANS:
a. Incorrect. Exporting is, by its nature, external only (outside the national borders).
b. Correct. Exporting may be either direct or indirect.
c. Incorrect. Exporting is not classified as conditional or unconditional.
d. Incorrect. This is not the way exporting is classified.
4. If you want to specify that a contract will be interpreted in English in case of a future disagreement, you should include ______in your contract.
a. A choice-of-scholar clause.
b. A choice-of-forum clause.
c. A choice-of-language clause.
d. A force majeure clause.
ANS:
a. Incorrect. Although you might need a scholar to interpret a contract, this is not what the clause you need is called.
b. Incorrect. A choice-of-forum clause indicates what court, jurisdiction, or tribunal will decide any disputes, not what language will be used to interpret the contract.
c. Correct. A choice-of-language clause specifies which language will be used to interpret a contract in the event of a future disagreement.
d. Incorrect. A force majeure clause stipulates what unforeseen events (“acts of God”) would excuse the parties performance of a contract, not what language will be used to interpret it.
5. You enter into a contract with Misha, a distributor from St. Petersburg,
Russia. In your contract you specify that any disputes arising under the
contract should be litigated in New York state courts. This would be called:
a. A force majeure clause.
b. A forum-selection clause.
c. A choice-of-law clause.
d. A destination clause.
ANS:
a. Incorrect. This is not a force majeure clause. A force majeure clause stipulates which unforeseen events (“acts of God”) would excuse the parties performance of a contract.
b. Correct. This clause specifies which courts will be used in the event of a dispute, so it is a forum-selection clause.
c. Incorrect. A choice-of-law clause designates the applicable law, and does not designate which court will resolve any disputes.
d. Incorrect. There is no such thing as a destination clause.
6. Now suppose that you include a clause in your contract with Misha that
states that in case of an act of God or some other unforeseen event, both
you and Misha are excused from performing under the contract. This is
known as:
a. A choice-of-law clause.
b. A force majeure clause.
c. An arbitral clause.
d. A forum-selection clause.
ANS:
a. Incorrect. A choice-of-law clause specifies which nation’s law will be applied to a contract in the event of a future disagreement over the contract’s terms. This is not a choice of law clause.
b. Correct. This provision stipulates that in case of some unforeseen event performance under the contract will be excused. This is a force majeure clause.
c. Incorrect. This is not an arbitral clause.
d. Incorrect. This is not a forum-selection clause, which specifies the court that will hear any dispute between the parties.
7. The foreign exchange rate is:
a. The price of gold set each day by the New York Stock Exchange.
b. The price of a unit of one country's currency in terms of another country's currency.
c. A written instrument that promises to pay a draft or demand for payment.
d. The merchandise trade deficit of a country.
ANS:
a. Incorrect. The NYSE does not set the price of gold, the market does, and this is not the foreign exchange rate.
b. Correct. This is a description of the foreign exchange rate, which is a worldwide system in which foreign currencies are bought and sold.
c. Incorrect. The foreign exchange rate is not a written instrument.
d. Incorrect. The foreign exchange rate is not the merchandise trade deficit, though this deficit will be affected by the exchange rate.
8. Which provision of the U.S. Constitution provides that "No Tax or Duty
shall be laid on Articles exported from any State?"
a. The Fourth Amendment.
b. Article 1, Section 8.
c. Article 1, Section 9.
d. The supremacy clause.
ANS:
a. Incorrect. The Fourth Amendment is concerned with unreasonable searches and seizures.
b. Incorrect. Article 1, Section 8, lists the powers of Congress.
c. Correct. This provision of the Constitution prohibits the government from taxing exports.
d. Incorrect. The supremacy clause is concerned with a different issue.
9. Suppose that the U.S. government charges $1.50 to import each and every DVD player made in Taiwan. This tax is:
a. A probate tax.
b. A tariff.
c. A quota.
d. An export incentive.
ANS:
a. Incorrect. This is not a probate tax.
b. Correct. This is tax on imports. Taxes on imports are called tariffs.
c. Incorrect. A quota is a limit on the amount of foreign goods that can be imported enter a country.
d. Incorrect. This is not an export incentive.
10. The international organization charged with the responsibility for eliminating trade barriers, including tariffs, is:
a. UNESCO.
b. UNICEF.
c. The WTO.
d. The WWF.
ANS:
a. Incorrect. UNESCO is an economic, social, and cultural organization of the United Nations.
b. Incorrect. UNICEF is a children's organization of the United Nations.
c. Correct. The WTO, or World Trade Organization, is the international organization responsible for eliminating trade barriers.
d. Incorrect. The World Wildlife Fund does not eliminate trade barriers.