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InternationalMarketing,18e(Cateora)

Chapter7TheInternationalLegalEnvironment:PlayingbytheRules

1)TheformoflawfoundintheUnitedStatesandEnglandisclassifiedascivilorcodelaw.

2)TheformoflawfoundinGermany,France,andJapaniscalledcivilorcodelaw.

3)Codelawisbasedonanall-inclusivesystemofwrittenrulesoflaw.

4)Stepsarebeingtakenincommon-lawcountriestocodifycommerciallaw,eventhoughtheprimarybasisofcommerciallawiscommonlaw.

5)Commonlawprescribesspecificpatternsofsocialandeconomicbehaviorforeveryone.

6)Codelawprohibitsthereceiptandpaymentofinterestonloans.

7)InMarxist–socialistsocieties,lawisstrictlysubordinatetoprevailingeconomicconditions.

8)TheWorldCourtcansettledisputesbetweenacompanyandagovernment.

9)Whendealingwithforeigncountries,amarketershouldrefertothelawsofthehomecountryforguidance.

10)Disputesrelatingtocommercialtransactionsmustbesettledincourtsandcannotbesettledinformally.

11)Statementsmadeduringconciliationmaynotbedisclosedinsubsequentlitigation.

12)Ifconciliationisnotusedtosettleadifferenceinaninternationalbusinessdisputeoranagreementcannotbereached,thenextstepislitigation.

13)Thesolerequirementofanarbitrationclauseisthatthepartiesagreetoabidebytheawardsresultingfromtheprocessofarbitration.

14)Oneofthedeterrentstolitigationwithrespecttodisputesintheinternationalbusinessarenaisthefearofcreatingapoorimageanddamagingpublicrelations.

15)Acertainlevelofpiracymaybebeneficialforsomecompaniesasitprovidesanunplannedproducttrial.

16)Legalownershipinonecountrydoesnotnecessarilymeanownershipinothercountries.

17)TheownershipofintellectualpropertyrightsinUnitedStatesisestablishedbyprioruseratherthanregistration.

18)Inmanycode-lawcountries,ownershipofintellectualpropertyrightsisestablishedbyregistrationratherthanbyprioruse.

19)TheGeneralAgreementonTariffsandTradeisthemostcomprehensivemultilateralagreementonintellectualpropertytodate.

20)IntheUnitedStates,apatentrevertstopublicdomainifitisnotmanufacturedandsoldwithinaspecifiedperiod.

21)ChargingwhatthemarketwillbearisasuggestedstrategyforIP-richfirmstomakemoneyinChina.

22)TheInternetisalibel-freezone.

23)TheshippingcompaniescollecttaxesforproductsthataresoldbyacompanythroughtheInternettocustomersoutsideitshomecountry.

24)TheInformedConsumerStandardisusedintheconsumerprotectioncourtsinCanadaanditplacestheonusofmakingtherightdecisionsonthebuyerwhoisexpectedtohavesubstantialknowledgeoftheindustryanditsproducts.

25)ThelawsregulatingdirectsellinginChinaareunusuallydetailedcomparedtoothersaroundtheworld.

26)Globalconcernfortheenvironmentincludesindustrialpollution,hazardouswastedisposal,andrampantdeforestation,butexcludesissuesthatfocusdirectlyonconsumerproducts.

27)AntitrustlawswerenotenforcedintheUnitedStatesduringmostofthetwentiethcentury.

28)Movingabusinessoutsidethepoliticalboundariesofthehomecountryexemptsthecompanyfromthehome-country'slaws.

29)OnepurposeofantitrustenforcementininternationalcommerceistokeepU.S.companiesfromimposingrestrictionsonexportsbyotherU.S.-basedcompetitors.

30)Widgets,Inc.isbeginningtoexportitsproductstoTaiwan,butitisn'tsureifitneedsalicensetodoso.TheresponsibilityofdeterminingifalicenseisrequiredrestswiththeTaiwanesecompanythatispurchasingtheproducts.

31)__________lawisderivedfromEnglishlawandispracticedintheU.S..

A)Code

B)Common

C)Religious

D)Civil

E)Universal

32)WhichformoflawisprimarilyfoundintheUnitedStates,England,Canada,andothercountriesonceunderEnglishinfluence?

A)codelaw

B)commonlaw

C)religiouslaw

D)civillaw

E)universallaw

33)Codelawisalsoknownas________law.

A)business

B)common

C)religious

D)civil

E)universal

34)Germany'slegalsystemcentersoncodelaw,whichisderivedfrom________law.

A)English

B)Economic

C)Greek

D)Persian

E)Roman

35)Thebasisfor________lawistradition,pastpractices,andlegalprecedentssetbythecourtsthroughinterpretationsofstatutes,legallegislation,andpastrulings.

A)civil

B)common

C)code

D)commercial

E)criminal

36)________lawseeks"interpretationthroughthepastdecisionsofhighercourtswhichinterpretthesamestatutesorapplyestablishedandcustomaryprinciplesoflawtoasimilarsetoffacts."

A)Constitutional

B)Family

C)Criminal

D)Civil

E)Common

37)Codelawisbasedupon

A)theinterpretationthroughthepastdecisionsofhighercourts.

B)theestablishedandcustomaryprinciplesoflawandtheirlegalprecedence.

C)anall-inclusivesystemofwrittenrulesoflaw.

D)theinterpretationoftheKoran.

E)thecodesofEnglishlawthatapplyinallcountriesunderEnglishinfluence.

38)Under_______law,thelegalsystemisgenerallydividedintothreeseparatecodes:commercial,civil,andcriminal.

A)constitutional

B)code

C)family

D)religious

E)traditional

39)Lawsgoverning________offerthemoststrikingdifferencesbetweencommon-lawandcode-lawsystems.

A)internationaltrade

B)socialwelfare

C)homicide

D)intellectualproperty

E)domesticindustry

40)Undercommonlaw,theownershipofintellectualpropertyisestablishedby

A)titledeeds.

B)use.

C)tradition.

D)patent.

E)registration.

41)Incode-lawcountries,theownershipofintellectualpropertyisdeterminedby

A)heredity.

B)natureofuse.

C)durationofusage.

D)registration.

E)indemnification.

42)________isconsideredcompleteasaresultofcatchallprovisionsfoundinmostofthistypeoflawsystems.

A)Commonlaw

B)Codelaw

C)Islamiclaw

D)Marxist–socialisttenets

E)TheEnglishlegaltradition

43)Apartfromintellectualpropertylaws,anillustrationofhowfundamentaldifferencesinthecommonandcodesystemscancausedifficultyisin

A)conductingciviltrials.

B)determininglawsgoverningexportandimport.

C)decidinghereditylaws.

D)determiningcriminallaws.

E)evaluatingtheperformanceofacontract.

44)Whatistrueofcode-lawsystems?

A)Theyrepresentalegalsystemthatisnotall-inclusive.

B)Theyestablishownershipofintellectualpropertybyprioruseratherthanregistration.

C)Theyoriginatefromtradition,pastpractices,andlegalprecedentssetbythecourtsthroughinterpretationsofstatutes,legallegislation,andpastrulings.

D)Theysometimesfailtoconsideragreementstobeenforceableunlessproperlynotarizedorregistered.

E)Theyfailtoconsiderunforeseeablehumanactssuchasriotsasactsofnature.

45)Thebasisfor________istheinterpretationoftheKoran.

A)commonlaw

B)codelaw

C)Islamiclaw

D)Marxist–socialisttenets

E)legaltradition

46)Islamiclawisalsoknownas

A)Ulema.

B)Umrah.

C)Zakat.

D)Shari'ah.

E)Barakah.

47)TheIslamiclawprohibitsthepaymentof

A)taxes.

B)profits.

C)interest.

D)equity.

E)leases.

48)Accordingto________,lawisstrictlysubordinatetoprevailingeconomicconditions,suchfundamentalpropositionsasprivateownership,contracts,dueprocess,andotherlegalmechanisms.

A)commonlaw

B)codelaw

C)Islamiclaw

D)Marxist–socialisttenets

E)legaltradition

49)Becauseofpoliticalchangesinthelatetwentiethcentury,whichcountryhashadtobuildfromscratchanentirecommerciallegalsystem?

A)France

B)Germany

C)Taiwan

D)Russia

E)SaudiArabia

50)Ifthereisadisputebetween________,theWorldCourtcanadjudicate.

A)governments

B)acompanyandagovernment

C)twocompanies

D)acitizenandagovernment

E)tradeassociationsoftwocountries

51)Whatmethodaccountsforthemajorityofresolutionsininternationalcommercialtransactiondisputes?

A)criminalsuits

B)conciliation

C)arbitration

D)litigation

E)coercion

52)________isanonbindingagreementbetweenpartiestoresolvedisputesbyaskingathirdpartytomediatedifferences.

A)Litigation

B)Prosecution

C)Arbitration

D)Conciliation

E)Coercion

53)Mariette'sU.S.-basedcompanyishavingadisputewithaChinesepartner.Whatmethodwouldbeespeciallyeffectiveinresolvingthisdispute?

A)arbitration

B)conciliation

C)coercion

D)litigation

E)acriminalsuit

54)Teel'sTacos,afoodcompanyintheUnitedStates,istryingtoresolveadisputewithalocalcompanyinBelizethathasbeenoperatingunderthesamenameinitscountry.AllattemptsmadebytheU.S.companytosettletheissueinafriendlymannerhavefailed,sotheownersoftheU.S.-basedTeel'sTacoshavedecidedtosettlethedisputewiththelocalcompanybyappointingamediator.Theyalsowantthesessionstobeprivatebecauseofthefearofcreatingapoorpublicimage.Whichofthefollowingdisputeresolutionmethodsisbestsuitedforthissituation?

A)conciliation

B)prosecution

C)arbitration

D)coercion

E)litigation

55)RalphRichards'scompanyhasbeenattemptingtosolveaproblemwithacontractdefaultbytheDutchgovernment.Hehastriedconciliationbutthetwopartiesdidnotfindanycommongroundonwhichtheycouldbeginafruitfulnegotiationforsettlement.Whatislikelytobethecourseofactionthatboththepartieswilltrynext?

A)mediation

B)informalsettlement

C)arbitration

D)litigation

E)coercion

56)Inatypical________procedure,partiesselectadisinterestedandinformedpartyorpartiestoserveasarefereetodeterminethemeritsofthecaseandmakeajudgmentthatbothpartiesagreetohonorunderthelaw.

A)arbitration

B)informalsettlement

C)conciliation

D)litigation

E)coercion

57)Whenformalarbitrationorganizationsreceiverequestsforarbitration,theyinitiallyattempttoresolvetheissuethrough

A)coercion.

B)prosecution.

C)directlegalintervention.

D)litigation.

E)conciliation.

58)Aconsumerproductsmanufacturingcompanyistryingtosolveadisputewithoneofitsrawmaterialsuppliersoverabreachofcontract.Afterthefailureoftheinitialattemptstosolvethedisputeinafriendlyinformalmanner,thecompanieshaveapproachedaninternationalcommissiontoappointaninformedpartytoactasarefereeandmakeajudgmentthatbothpartieswillhonor.Whatdisputeresolutionmethodisbeingusedbythesecompanies?

A)litigation

B)arbitration

C)mediation

D)coercion

E)judicialintervention

59)Whatgenerallyoccursduringarbitration?

A)Lawsuitsareinitiatedbetweentheconflictingparties.

B)Thepreliminarystepofconciliationisoftenbypassed.

C)Arbitralcentersdemonstratevaryingrulesandprocedures.

D)Theplaintiffandthedefendanteachselectapersontopresenttheircase.

E)Sessionsareprivateandconfidential.

60)Whatisusuallyplacedinthearbitrationclauseandisbecomingstandardinmanyinternationalcontracts?

A)thepreferredcourtorlegalbodyofarbitration

B)theplaceofarbitrationandthelanguageusedinthearbitrationprocess

C)thecontractstatingthattheresultsofthearbitrationprocessarenotbindingonbothparties

D)thejudgmentofthelegalactioninitiatedinthelitigationstage

E)thecopyofthelawsuitfiledbytheplaintiff

61)Arbitrationclausesrequireagreementwhereintheconcernedpartiesagree

A)onwhoisrightandwhoiswrong.

B)onthevalidityofthelitigationissues.

C)toabidebytheawardsresultingfromthearbitration.

D)tonothirealegalcounseltorepresentthem.

E)tonotnamethearbitrators.

62)Whenalltheothermethodshavefailed,whatisthefinalstepinaninternationalcommercialdispute?

A)conciliation

B)encouragingone'sgovernmenttoforcetheotherpartytocomply

C)restartingthearbitrationprocess

D)litigation

E)coercion

63)Ideally,whatshouldbethefirststepinthesettlementofadispute?

A)usingthestrategyofconciliation

B)engaginginarbitration

C)coercingtheotherparty

D)placatingtheinjuredparty

E)initiatingalitigation

64)Whatposesamajorchallengetointernationalmarketerswhiledealingwithcounterfeiting?

A)theeasewithwhichconsumerscantellthedifferencebetweenrealandcounterfeitproducts

B)thetheftofproductsbypiratesduringshipping

C)governmentregulationslegitimizingcounterfeiting

D)thecollusionbetweencontractmanufacturersandillegitimatesellers

E)thewidespreadavailabilityofduplicationsoftware

65)Whatisthemostattractivetargetforpiratesbecauseofhighdevelopmentcostandlowreproducibilitycosts?

A)apparel

B)software

C)autoparts

D)books

E)agriculturalproduce

66)Whatcommonlycounterfeitedproducthasthepotentialfordoingthegreatestharmtotheconsumingpublic?

A)toys

B)CDs

C)pharmaceuticals

D)software

E)clothing

67)InwhichcountryistheownershipofIPrightsestablishedbyprioruse?

A)Japan

B)Brazil

C)SaudiArabia

D)Jordan

E)UnitedStates

68)IntheUnitedStates,ownershipofintellectualpropertyrightsisestablishedby"prioruseversusregistration,"whichimpliesthattoclaimtheownershipofatrademark,anindividualmust

A)berecognizedbytheUnitedNationstrademarkprotectionagency.

B)payfortherighttoownatrademark.

C)establishfirstuseofatrademark.

D)provetheownershipofatrademarkinacourtoflaw.

E)registeratrademarkonlyinhishomecountry.

69)Whatinternationalconventionwasestablishedtorecognizeandprotectintellectualpropertyrights?

A)ParisConvention

B)MunichAgreement

C)TokyoConvention

D)EurasianConvention

E)KyotoProtocol

70)WhichofthefollowingconventionsisresponsibleforthepromotionoftheprotectionofintellectualpropertyrightsamongallthemembercountriesoftheUN?

A)TheBaselConvention

B)TheMadridArrangement

C)TheTokyoAgreement

D)TheEurasianConvention

E)TheWorldIntellectualPropertyOrganization

71)The________isamulticountryagreementthathasestablishedaregionalpatentsystemthatallowsanynationalitytofileasingleinternationalapplicationforaEuropeanpatent.

A)MadridArrangement

B)ParisConvention

C)TRIPsAgreement

D)BaselConvention

E)EuropeanPatentConvention

72)Whatisthemostcomprehensivemultilateralagreementonintellectualpropertytodateandcoversafullrangeofrightsthatareembodiedincurrentinternationalagreements?

A)WorldIntellectualPropertyOrganizationCharter

B)Trade-RelatedAspectsofIntellectualPropertyRightsAgreement

C)Inter-AmericanConventionAgreement

D)TheMadridArrangement

E)ParisAgreementfortheProtectionofIndustrialProperty

73)WhatisanapproachmentionedinthetexttopreventChineseconsumersfromcreativelycopyingforeignintellectualproperty?

A)boycottingalltradeactivitieswithChina

B)placingembargoesontradewithChina

C)chargingwhatthemarketwillbear

D)disengaginglocalrepresentationinsales

E)pursuingdisputeresolutionattheWorldCourt

74)TheInternethasnopoliticalornaturalboundaries;asaresult,

A)existinglawsaregenerallysufficienttocovercontractualissuesandpiracy.

B)existingcyberlawsincorporatetheuniquenessoftheInternetsuccessfully.

C)companiescannotrelyonindividual-countrylawsbutmustgotointernationalcourts.

D)theindividual-countrylaws,whichmayormaynotincludeprivateprotection,areusedintheabsenceofuniformandinternationallyacceptedcyberlaws.

E)theregulatoryenvironmentisstableandconsistentbetweencountries.

75)________buyandregisterdescriptivenouns,geographicnames,namesofethnicgroupsandpharmaceuticalsubstances,andothersimilardescriptorsandholdthemuntiltheycanbesoldataninflatedprice.

A)Patenttrolls

B)Serverfarms

C)Domainnameregistries

D)Cybersquatters

E)Universalresourcelocators

76)AccordingtoCanadianlaw,whatisthestandardexpectedbycourtsinCanadatodeterminewhetherarepresentationisfalseormisleading?

A)denovostandard

B)credulouspersonstandard

C)clearlyerroneousstandard

D)informedconsumerstandard

E)discretionarystandard

77)WhichactdevelopedbytheEuropeanUnionerasesmanylegalandtradedifferencesthathaveexistedfordecadesbetweenthemembernations?

A)EuropeanSanctityAct

B)EuropeanIndemnificationAct

C)EuropeanUnificationAct

D)SingleEuropeanMarketAct

E)ForeignCorruptPracticesAct

78)Whichcountryhasenactedthemoststringentgreenmarketinglawstoregulatethemanagementandrecyclingofpackagingwaste?

A)SouthKorea

B)China

C)Germany

D)UnitedStates

E)India

79)ThequestionofjurisdictionofU.S.lawoveractscommittedoutsidetheterritoriallimitsofthecountryhasbeensettledbythecourtsthroughapplicationofalong-establishedprincipleofinternationallawcalledthe:

A)rightofimminentdomain.

B)legaltransferofpower.

C)rightsofforeignpowersandcitizens.

D)objectivetheoryofjurisdiction.

E)McNeilprincipleofinternationallaw.

80)The_________oftheUnitedStatesmakesitillegalforcompaniestopaybribestoforeignofficials,candidates,orpoliticalparties.

A)Taft-HartleyAct

B)InformedConsumerStandard

C)ForeignCorruptPracticesAct

D)BestPracticesAct

E)InternationalCodesofLaw

81)Thefirstobjectiveof________lawsistoprotectAmericanconsumersbyensuringthattheybenefitfromproductsandideasproducedbyforeigncompetitorsaswellasbydomesticcompetitors.

A)incorporation

B)intellectualproperty

C)antitrust

D)indemnification

E)insurance

82)WhichofthefollowingU.S.governmentagenciesoverseesantitrustenforcementininternationalcommerce?

A)DepartmentofState

B)DepartmentofJustice

C)DepartmentofCommerce

D)DepartmentofDefense

E)DepartmentofHomeLandSecurity

83)Undertheantiboycottlaw,U.S.companiesareforbiddentoparticipateinanyunauthorizedforeignboycott.WhichsituationbroughtabouttheantiboycottlawintheU.S.?

A)theboycottofCubabytheU.S.

B)theboycottofSouthAfricabytheworldcommunity

C)theboycottofIsraelbytheArabLeague

D)theboycottofChinabytheUnitedStates

E)theboycottoftheU.S.bytheU.S.S.R.(thewheatembargo)

84)U.S.firms,theirforeignsubsidiaries,orforeignfirmsthatarelicenseesofU.S.technologycannotsellaproducttoacountryinwhichthesaleisconsideredbytheU.S.governmenttoaffectthe

A)competitivebalanceofworldtrade.

B)competitivebalanceoffreecompetitioninsidetheU.S.

C)relationshipoftheU.S.withtheworldcommunity.

D)overallbalanceofpaymentsoftheUnitedStates.

E)nationalsecurityoftheUnitedStates.

85)TherevisedsetofexportregulationspublishedbytheDepartmentofCommercetospeeduptheprocessofgrantingexportlicensesisthe

A)AgreementonInternationalTradeandNegotiations.

B)Export-ImportManual.

C)InternationalTradeRegulations.

D)ExportCharter.

E)ExportAdministrationRegulations.

86)WhatlicenseisrequiredforproductsexportedfromtheUnitedStates?

A)internationalorbilaterallicense

B)generaloravalidatedlicense

C)singlelicense

D)exporterorthird-partylicense

E)shipmentlicenseoragentlicense

87)Theresponsibilityofdeterminingifalicenseisrequiredrestswiththe

A)DepartmentofCommerceoftheexportingnation.

B)regulatorybodyoftheindustry.

C)exporter.

D)U.S.Customs

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