Question 1

The U.S. Constitution provides that all valid treaties, which are agreements among independent nations, have the force of federal statutes.

Accepted Answer

The U.S. Constitution, under the Supremacy Clause in Article VI, states that treaties made under the authority of the United States are part of the "supreme Law of the Land," giving them the same legal standing as federal statutes.

Question 2

A specialized U.N. agency or a U.N. organ may seek an advisory opinion from the International Court of Justice, but an individual or a sovereign state may not.

Accepted Answer

Only U.N. organs and specialized agencies can request advisory opinions from the International Court of Justice, not individuals or sovereign states.

Question 3

There is an International Organization of Securities Commissions made up of approximately 100 national securities agencies and exchanges which regulates about half of the world's securities markets.

Accepted Answer

False

Question 4

The United States and Germany may request an advisory opinion from the ICJ to settle a dispute over a trade issue.

Accepted Answer

Only international organizations, such as the United Nations General Assembly or Security Council, can request advisory opinions from the International Court of Justice (ICJ), not individual countries.

Question 5

The World Bank established the Multilateral Investment Guarantee Agency to encourage increased investment in developing nations.

Accepted Answer

The Multilateral Investment Guarantee Agency (MIGA) was established by the World Bank in 1988 to promote foreign direct investment into developing countries by providing political risk insurance and credit enhancement.

Question 6

Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act apply to U.S. citizens employed abroad by U.S. employers or by foreign companies controlled by U.S. employers.

Accepted Answer

Title VII, ADA, and ADEA have extraterritorial application, meaning they protect U.S. citizens employed abroad by U.S. employers or foreign companies controlled by U.S. employers.

Question 7

NAFTA establishes a free trade area between the United States and Mexico but not with Canada.

Accepted Answer

NAFTA, the North American Free Trade Agreement, established a free trade area between the United States, Mexico, and Canada.

Question 8

Regional trade communities exist in Europe, North America, Central America, Africa, and Asia.

Accepted Answer

Regional trade communities exist in these areas, such as the European Union (EU) in Europe, the North American Free Trade Agreement (NAFTA) in North America, the Central American Integration System (SICA) in Central America, the African Continental Free Trade Area (AfCFTA) in Africa, and the Association of Southeast Asian Nations (ASEAN) in Asia.

Question 9

Like domestic law, international law can be easily enforced, because international courts have compulsory jurisdiction.

Accepted Answer

International law is not easily enforced because international courts often lack compulsory jurisdiction, meaning states must consent to the court's authority.

Question 10

Under U.S. law, the CISG supersedes the UCC whenever either could apply.

Accepted Answer

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a treaty that preempts state law, including the Uniform Commercial Code (UCC), when it applies to international sales contracts.

Question 11

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.

Accepted Answer

Expropriation by a foreign government for a public purpose with just compensation is generally considered lawful under international law, even without the owner's consent, as long as it meets the criteria of public purpose, non-discrimination, and compensation.

Question 12

Businesses which wish to safeguard their technology while doing business in the international sector would not want to consider the use of wholly owned subsidiaries.

Accepted Answer

Wholly owned subsidiaries can help businesses safeguard their technology by maintaining full control over their operations and intellectual property in foreign markets.

Question 13

The WTO administers trade agreements but does not get involved with dispute resolution.

Accepted Answer

The WTO not only administers trade agreements but also provides a forum for resolving disputes between member countries.

Question 14

Lawsuits based on the commercial activities of a foreign state conducted in the U.S. are subject to the jurisdiction of state or federal courts in the U.S.

Accepted Answer

The Foreign Sovereign Immunities Act (FSIA) allows U.S. courts to have jurisdiction over foreign states in cases involving commercial activities carried out in the U.S.

Question 15

The World Bank established the MIGA to eliminate the practice of dumping.

Accepted Answer

The World Bank established the Multilateral Investment Guarantee Agency (MIGA) to promote foreign direct investment by providing political risk insurance and credit enhancement, not to eliminate dumping.

Question 16

The act-of-state doctrine provides that to maintain international relations and trade, a host country must refrain from imposing its laws on a foreign sovereign nation present within its borders.

Accepted Answer

The act-of-state doctrine is a principle in international law that prevents the courts of one country from questioning the validity of public acts committed by a recognized foreign sovereign within its own territory, not about refraining from imposing laws on foreign nations within its borders.

Question 17

Assume the U.S. has granted "most-favored nation" status to Holland. This means that the tariff on Dutch imported tobacco must be at least as low as that charged on tobacco from any other nation.

Accepted Answer

"Most-favored nation" status means that the U.S. must apply the lowest tariff rate it offers to any country to imports from Holland, ensuring non-discriminatory trade practices.

Question 18

Under the act of state doctrine, the United States reserves some areas of jurisdiction over the internal actions of sovereign states.

Accepted Answer

The act of state doctrine generally prevents U.S. courts from examining the validity of public acts committed by a recognized foreign sovereign within its own territory.

Question 19

Sovereign immunity is absolute immunity from the courts of a host country.

Accepted Answer

The answer of Sovereign immunity is absolute immunity from the...

Question 20

An expropriation, or nationalization, occurs when a government seizes foreign-owned property or assets for a public purpose and pays the owner just compensation for what is taken.

Accepted Answer

Expropriation or nationalization involves a government taking foreign-owned property for public use, typically with compensation to the owner.

Quiz 46: International Business Law