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A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort allegedly committed overseas.

A) True
B) False

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Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by


A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the Foreign Corrupt Practices Act.
D) the principle of comity.

E) C) and D)
F) None of the above

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Generally, a foreign government cannot sue under U.S. anti?trust laws in U.S. courts.

A) True
B) False

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To obtain a contract with the Chinese government, Bammo Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate


A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the Foreign Corrupt Practices Act.
D) the principle of comity.

E) All of the above
F) A) and B)

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The primary goal of the North American Free Trade Agreement is to eliminate tariffs among the United States, Canada, and Mexico.

A) True
B) False

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Savory Cooking Sauces, Inc., a U.S. business firm, makes and sells distinc?tively flavored cooking sauces. Although the recipes are secret, the ingre?di?ents could be revealed and the sauces could be reconstructed with dili?gent efforts. What can Savory do to prevent its products from being "decoded" and pirated abroad?

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One possibility is that Savory Cooking S...

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UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela seizes the property, UniOil asks a U.S. court to order the property's return. The court rules that Venezuela is exempt from the court's jurisdiction. This is


A) a travesty of justice.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

E) A) and B)
F) A) and D)

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Dumping is the sale of imported goods at "less than fair value."

A) True
B) False

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The U.S. corporation Fun Toys, Inc. sets up a firm in China. The parent company remains in the United States and retains complete ownership of the China branch as well as complete authority and control over all phases of the operation. This is


A) a franchise.
B) a wholly owned subsidiary.
C) a joint venture.
D) direct exporting.

E) C) and D)
F) All of the above

Correct Answer

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Two Japanese firms-Mikato, Ltd., and Shuzushi, Ltd.-enter into a joint venture in an attempt to in?crease their market share of the U.S. auto market. If the joint venture is not a per se violation of U.S. antitrust laws, a U.S. court could ex?ercise jurisdiction over the firms


A) if the joint venture has a substantial effect on U.S. commerce.
B) if the joint venture has any effect on U.S. commerce.
C) if the joint venture was entered into in the United States.
D) under no circumstances.

E) A) and C)
F) A) and B)

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Soleful Shoes, Inc. owns property in Somalia. The Somalian government seizes the property. In order for the seizure to be considered an expropriation and not a confiscation, the Somalian government must


A) pay just compensation to Soleful Shoes.
B) give Soleful Shoes at least thirty days notice of the seizure.
C) give Soleful Shoes at least ninety days notice of the seizure.
D) notify the U.S. government before the seizure.

E) A) and D)
F) A) and C)

Correct Answer

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Expropriation occurs when a government seizes private property for a proper pur?pose and awards just compensation.

A) True
B) False

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Restrictions on imports may include prohibitions.

A) True
B) False

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Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would constitute, in the United States, violations of U.S. anti?trust laws. These laws apply


A) extraterritorially.
B) only to signatories of the North American Free Trade Agreement.
C) only to members of the World Trade Organization.
D) only within U.S. borders.

E) B) and C)
F) A) and B)

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Any conspiracy that has a substantial effect on U.S. commerce is within the reach of the U.S. antitrust laws.

A) True
B) False

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Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is


A) confiscation.
B) defalcation.
C) dumping.
D) expropriation.

E) B) and C)
F) B) and D)

Correct Answer

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In some cases, foreign states are not immune from the jurisdiction of U.S. courts. These circumstances are governed by the


A) Uniform Commercial Code.
B) Foreign Sovereign Immunities Act.
C) European Union.
D) North American Free Trade Agreement.

E) A) and D)
F) B) and D)

Correct Answer

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In direct exporting, a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment of goods.

A) True
B) False

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Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Irish court's decree. This is


A) a travesty of justice.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

E) A) and B)
F) A) and C)

Correct Answer

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The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members.

A) True
B) False

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