Question 1

Tariffs are a means by which imports may be limited.

Accepted Answer

Tariffs are taxes imposed on imported goods, making them more expensive for domestic consumers to buy. Therefore, tariffs can limit the amount of imports by making them less competitive with domestic products.

Question 2

In India,Hindu law is applied to most commercial transactions.

Accepted Answer

Hindu law deals with personal matters such as marriage, divorce, inheritance, etc. Commercial transactions in India are mostly governed by laws such as the Indian Contract Act, the Companies Act, etc.

Question 3

Under Islamic law,"Gharar" is the allocation of certain taxes to deprived and poor people as a welfare contribution.

Accepted Answer

Under Islamic law, Gharar refers to excessive speculation or uncertainty in a transaction, and is prohibited. It does not refer to the allocation of taxes as welfare contributions. Zakat, on the other hand, is the obligatory tax in Islam that is collected and distributed to the poor and needy.

Question 4

Laws requiring that pharmaceutical products exported to the United States be produced in facilities that adhere to the manufacturing practices established by the U.S.Food and Drug Administration are known as extraterritoriality.

Accepted Answer

Extraterritoriality refers to the application of a country's laws beyond its borders, such as requiring foreign facilities to comply with U.S. FDA standards for products exported to the U.S.

Question 5

The antidumping law is the most frequently used U.S.import-relief law.

Accepted Answer

The antidumping law is indeed the most frequently used U.S. import-relief law.

Question 6

U.S.trade laws are enacted by the Congress pursuant to the treaty power of the U.S.Constitution.

Accepted Answer

U.S. trade laws are enacted by Congress pursuant to its power to regulate commerce with foreign nations, which is granted by the Commerce Clause of the U.S. Constitution, not the treaty power.

Question 7

The principle of equity is unique to civil law legal systems.

Accepted Answer

The principle of equity is not unique to civil law legal systems. It also exists in common law legal systems.

Question 8

Civil law systems are based on British law.

Accepted Answer

Civil law systems are based on the legal systems of ancient Rome and Continental Europe, rather than British law.

Question 9

In CASE 24.2 Morrison v.National Australia Bank Ltd.(2010),the U.S.Supreme Court ruled for the plaintiffs in the case against foreign and American defendants for misconduct in connection with securities of a foreign issuer that were purchased on foreign exchanges.

Accepted Answer

The case in question was actually brought before the Australian courts, not the U.S. Supreme Court. The ruling in this case was made by the High Court of Australia in favor of the plaintiffs.

Question 10

The traditional Islamic rules and laws that regulate Muslim life are called Sharia.

Accepted Answer

Sharia is the traditional Islamic rules and laws that regulate Muslim life.

Question 11

A preference given by a country to domestic products in government procurement is a type of nontariff barrier to trade.

Accepted Answer

A preference given to domestic products in government procurement can limit competition from foreign products and create an unfair advantage for domestic producers, thus serving as a type of nontariff barrier to trade.

Question 12

A foreign investor may have to compromise its employment policies to satisfy local requirements.

Accepted Answer

Many countries have laws and regulations that govern employment practices, such as minimum wages, overtime requirements, employee benefits, and protections against discrimination. A foreign investor looking to set up operations in a new market may have to adjust its employment policies to comply with these local requirements. Failure to do so could result in legal penalties or reputational damage.

Question 13

"National treatment" prohibits WTO members from discriminating against imported products in favor of "like products" produced domestically.

Accepted Answer

National treatment is a principle of non-discrimination in international trade which prohibits any discrimination between imported and domestic products. Under this principle, WTO members cannot favor their local products over imported products.

Question 14

Civil law systems are found exclusively in European countries.

Accepted Answer

Civil law systems are not exclusive to European countries. They are also used in many countries in Latin America, Asia, and Africa.

Question 15

The Department of State administers embargoes imposed on U.S.trade with countries such as Iraq,Cuba,and North Korea.

Accepted Answer

The Department of the Treasury, through its Office of Foreign Assets Control (OFAC), administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction.

Question 16

Codification is a process by which existing civil law positions are restated as case precedents.

Accepted Answer

Codification is a process by which existing laws are collected, organized, and written into a single statute or code. It does not involve restating civil law positions as case precedents.

Question 17

Section 301 of the Trade Act of 1974 is the principal U.S.statute addressing unfair foreign practices affecting U.S.exports of goods or services.

Accepted Answer

Section 301 of the Trade Act of 1974 is indeed the principal U.S. statute dealing with unfair foreign practices that affect U.S. exports of goods or services.

Question 18

When disputes arise,most western European countries use the "American rule" whereby each party,win or lose,generally pays its own attorney fees.

Accepted Answer

Most Western European countries follow the "loser pays" principle, where the losing party pays the legal fees of the winning party, unlike the "American rule" used in the United States.

Question 19

A political union represents the agreement of countries regarding constitutional systems.

Accepted Answer

A political union typically refers to a type of state which is composed of or created out of smaller states, regions, or territories, over which it exercises political control, and it often involves a degree of sovereignty sharing or integration in areas such as foreign policy and defense, rather than merely an agreement on constitutional systems.

Question 20

The transfer of technical data to a foreign citizen while that person is present in the United States is generally not considered to be an export.

Accepted Answer

The transfer of technical data to a foreign citizen while that person is present in the United States is considered a "deemed export" and is regulated under U.S. export control laws.

Quiz 24: International Law And Transactions