Sales representatives that perform specific acts at the specific direction

152. Sales representatives that perform specific acts at the specific direction of the company they represent are considered: a. Agents of the company. b. Principals of the company. c. Independent contractors of the company. d. None of the above.153. Pursuant to EC Council Directive 86/653, an economic conditions alarm is sounded by the principal for the benefit of his or her agent: a. To give six-months prior notice of an increase in the agent’s sales quota. b. When the inflation rate of the host country threatens to precipitate a price increase. c. When currency exchange rates rise to a level that makes business unprofitable. d. When sales forecasts indicate that the agent’s volume of business will be significantly lower than normally expected.154. An independent agent is often characterized by which one of the following: a. Principal is involved in working out details of the agent’s work organization. b. The agent is always subject to a change of instructions. c. The agent works with many clients. d. All of the above.155. In Germany, exaggeration in advertising is: a. Not highly regulated. b. Highly regulated. c. The law is uncertain and in a state of change. d. Best illustrated by the Carbolic Smoke Ball case.156. The FCPA (Foreign Corrupt Practices Act) prohibits U.S. firms from paying bribes to: a. Purchasing agents of foreign firms with whom the U.S. firms do business. b. Foreign government officials. c. Both of the above. d. None of the above.157. If an agent sells a line of American-made children’s toys to a European toy store chain and it is later discovered that the toys are dangerous to children, the agent is not held accountable because this is an example of: a. Product liability. b. Just cause. c. A commission. d. None of the above.158. Under the FCPA, U.S. courts have jurisdiction over a person who commits an FCPA violation: a. Only if the person is a U.S. citizen. b. If the person commits the act while in the territory of the United States, whether or not he or she is a U.S. citizen. c. Regardless of where the act is committed or the citizenship of the person. d. None of the above.159. An American manufacturer is setting up a manufacturing plant in China. A Chinese telecommunications worker has asked the American firm’s agent to pay him a fee of $500 for setting up Internet service in the new plant. Under the FCPA, if the American agent pays the fee, it will be considered: a. Perfectly legal; the Chinese telecommunications firm deserves to be paid for its services. b. Questionable; the American agent should confirm that this is the appropriate amount and person to pay for the service. c. Totally illegal; it is obviously a bribe. d. None of the above.160. A. Bourjois & Co. v. Katzel involved the question of whether Katzel: a. Was liable to Bourjois for breach of contract. b. Was liable to the French subsidiary of Bourjois for trademark infringement and counterfeiting. c. Was entitled to punitive damages for willful trademark infringement. d. Was liable to Bourjois for trademark infringement.161. A single multinational application process is available for protecting intellectual property in: a. The U.S., Canada, and Mexico. b. Eastern European countries. c. Countries that are signatories of the Asian Patent Protection Treaty. d. The European Union.162. Many technology owners have avoided introducing technology or technological products into Brazil because: a. The market has been too weak to support these high-tech products. b. Technology transfer agreements have been interpreted under Brazilian law so that the original owner losses many rights in the technology. c. Brazilian taxes on the introduction of technology into the country have been prohibitively high. d. Spies and foreign agents have been stealing the technology and selling it to communist countries.163. The Paris Convention: a. Is the seminal patent protection treaty. b. Requires national treatment for foreign trademark and patent applications from signatory countries. c. Provides a trademark holder in any signatory country a twelve-month period of priority within which to make similar application in other signatory countries. d. “a”, “b”, and “c”.164. Copyright protection for works of authorship available through the Internet is expressly provided by: a. The Berne Convention. b. THE WIPO Copyright Act. c. The TRIPS Agreement. d. None of the above.165. Which one of the following regulatory schemes for technology transfer agreements is most indicative of a protectionist government policy? a. Preapproval. b. Notification/registration. c. No regulation. d. None of the above.166. The importation of foreign-made trademarked merchandise into the U.S. for sale in competition with U.S. trademark owner’s own merchandise made in the U.S. is: a. Illegal, regardless of the impact. b. Illegal if the foreign-made product is so different from the domestic product that it calls into question the quality of the domestic product. c. Legal under any circumstances because it fosters competition. d. Illegal if the impact is to give the marketers of the foreign product a free ride on the U.S. licensor’s marketing efforts.167. The type of arrangement in which the licensor permits the licensee to sell certain goods under the licensor’s trademark or logo is called a: a. Trademark lease agreement. b. A shared benefit agreement. c. A franchise agreement. d. None of the above.168. Intellectual property rights in some countries are not protected because: a. Some countries actually encourage their citizens to violate the property rights of foreigners because it is economically advantageous to do so. b. Some countries that have intellectual property laws fail to enforce them. c. Some countries enforce their intellectual property laws in a discriminatory manner. d. All of the above.169. The greatest protection offered to a holder of intellectual property rights comes from: a. The Paris Convention. b. The Patent Cooperation Treaty. c. The Uniform Copyright Convention. d. Local laws.170. When it seems likely that a licensee may develop improvements in the licensed technology, a licensor may wish to include a ____ in the license agreement. a. Grant back provision. b. Field of use provision. c. Technology transfer provision. d. Promise of confidentiality.171. TRIPS requires every member of the WTO to: a. Abide by the Paris and Berne Conventions. b. Apply national treatment to foreign owners of intellectual property rights. c. Provide patent protection for processes. d. All of the above.172. Which one of the following is true about fair, reasonable, and nondiscriminatory (FRAND) licensing terms? a. FRAND licensing applies only in limited circumstances. b. FRAND licensing has curbed litigation in a meaningful way. c. FRAND licensing is not practiced in the U.S. d. None of the above is true.173. Cybersquatting: a. Stopped when the Uniform Domain Name Dispute Resolution Policy (UDRP) was adopted. b. Is legal in Japan. c. Under the UDRP is illegal if done in bad faith. d. is the registration of a domain name belonging to another with the intent to profit.174. Investors must often create legal structures for their investment that will maximize theforeign venture’s U.S. dollar resources. These might include: a. Borrowing start-up money in local currency. b. Buying supplies and services locally, using local currency. c. Building unitary index adjustment factors into the contractual payment terms. d. All of the above.175. An investment in which the investor limits its involvement to only providing equity capital in an enterprise managed by another in hope of a profitable return is called a(an): a. Active investment. b. Leveraged investment. c. Passive investment. d. Inactive investment.176. World Motors assembles automobiles in the United States from engines produced by its subsidiary corporation in Country X. In order to shift its tax liability, World Motors instructs the subsidiary in Country X to overvalue its invoice price of the engines. This is known as: a. Price discrimination. b. Foreign source income. c. Transfer pricing. d. Taxation pricing.177. In order to qualify for the favorable tax treatment of a Foreign Sales Corporation, a U.S. firm must meet all of the following tests, except: a. At least one director must be a nonresident of the U.S. b. Its income must be derived from qualified export activity such as the sale of goods abroad. c. The Foreign Sales Corporation must participate in soliciting, negotiating, or contracting with a foreign buyer. d. None of the income may be repatriated to the United States.178. The vehicle of choice, most often, for a U.S. investor who wishes to exercise a measure of control over its foreign investment is a(an): a. Interlocking directorate. b. Investment trust. c. Joint venture. d. None of the above.179. The precise shape of the structure to be pursued by a U.S. active investor—branch, subsidiary, etc.—in a foreign country depends largely on the tax treatment of the host country and U.S. laws. In many cases: a. No taxes will be owed. b. Remittances from branches are taxed at a higher rate than dividends from a subsidiary. c. Both of the above. d. None of the above.180. If a foreign investor is prohibited by the host country’s laws from owning a majority of a joint venture, another way to gain operational control is: a. Secretly have other foreign nationals invest money in trust for the investor. b. Use American management techniques with cumulative voting for the board of directors. c. Surround the joint venture with contractual obligations to the foreign investor. d. “a” and “c”.181. A U.S. enterprise that wishes to establish an entity abroad under its control may create a subsidiary or branch: I. Once either of these is established, the company may waive Rights of Protection under the U.S. bilateral investment protection agreements. II. If the company chooses a subsidiary, the company will not be directly liable for the subsidiary’s wrongdoings. a. I only. b. II only. c. Both I and II. d. Neither I nor II.182. Under the Foreign Sovereign Immunities Act, federal courts in the U.S. cannot hear which one of the following cases: a. The foreign government breached a contract with a U.S. firm for the sale of goods. b. A dispute over the amount of compensation paid by a foreign government to a U.S. investor when the investor’s real estate was taken by the foreign government to build a national airport. c. The foreign government is being sued for money damages sought as a result of personal injury or death caused by the foreign government or its agents in the United States. d. All of the above cannot be heard by federal courts in the U.S.183.Under the modern-traditional theory of the taking of property, a sovereign may take private property only where: a. The property is taken for a public purpose. b. The taking is nondiscriminatory. c. The taking is accompanied by a prompt, adequate, and effective compensation. d. All of the above.184. In Reyes-Gaona v. North Carolina Growers, the court grappled with the issue of: a. Whether a U.S. antitrust law applied to a U.S. company in Mexico. b. Whether Mexican antitrust law applied to Mexican work in North Carolina. c. Whether the U.S. ADA law applied in Mexico. d. None of the above.185. As to the general direction of labor abroad: I. Few countries require employee consultation or participation in management Decisions. II. Many countries place restraints on employee dismissal that are unfamiliar to U.S. investors. a. I only. b. II only. c. Both I and II. d. Neither I nor II.186. In many European countries, workers have been granted a right of consultation about or notice before reducing the work force. The country that generally grants its workers the most rights of participation is: a. Great Britain. b. France. c. Germany. d. Italy.187. Unlike in the U.S., in many foreign nations, particularly European countries, when an investor acquires a firm: I. The investor is compelled to adhere to existing employment arrangements. II. The investor must raise workers’ salaries at a set percentage determined by the host country. a. I only. b. II only. c. Both I and II. d. Neither I not II.188. In the Kochi Hoso case, a Japanese radio broadcaster sued his employer for dismissal. As required by Japanese law, the employer maintained written rules specifying conditions for which the employee could be discharged. The employee was late for a broadcast on two occasions and was discharged pursuant to the written rules. The court ruled that: a. The employee could be discharged because the rules were in writing according to Japanese law. b. The employee could be discharged because of the seriousness of the offense. c. The employee must be reinstated to his job because the law was unconstitutional. d. The employee must be reinstated to his job because the discharge was significantly unreasonable under the circumstances and in violation of the socially accepted view.189. In the Civil Rights Act of 1991, Congress extended Title VII to: I. U.S. firms operating outside the U.S. under the control of a U.S. entity. II. U.S. firms operating outside the U.S. except where compliance with Title VII would violate the local law of the country where the firm is located. III. Foreign firms operating abroad that employ U.S. citizens. a. I only. b. I and II only. c. I and III only. d. II and III only.190. Which one of the following classifications are treated most similarly under the laws of Europe, the U.S., and Japan? a. Religion. b. Nationality. c. National origin. d. Gender.191. Ms. Anderson is a 53-year-old American citizen working in New York for QMB, Inc., a wholly owned subsidiary of GMBH, a German corporation. She applies for the position of Vice President of GMBH, a position based in Germany. She is denied the promotion on the basis of her age. How will a U.S. federal court treat Ms. Anderson’s failure-to-promote claim under the ADEA? a. The court must proceed with the case since Ms. Anderson is a U.S. citizen working for QMB, Inc., a U.S. corporation. b. The court will dismiss the claim on the grounds that the ADEA does not cover employment decisions regarding employment outside the U.S. made by a foreign-run company. c. The court will dismiss the claim on the grounds that age is a bona fide occupational qualification for the promotion position. d. The court will dismiss the claim on the grounds of forum non conveniens.192. Under NAFTA’s Environmental Side Agreements: a. Mexican environmental laws must gradually approach U.S. and Canadian standards for clean air, clean water, and hazardous waste. b. U.S. industries can request a tariff on the import of products from Mexico that are produced under environmentally unsustainable methods. c. NAFTA benefits may be suspended where any member nation has shown a pattern of failure to effectively enforce its environmental law. d. Both “a” and “c”.193. Which one of the following statements is true about current international environmental conventions? a. The U.S. has agreed to and set timetables for limiting carbon dioxide emissions under the Climate Change Convention. b. Third World countries have greater flexibility in complying with the Montreal Protocol on Substances that Deplete the Ozone Layer. c. Both of the above. d. None of the above.194. Multinational agencies have advanced the environmental effort by applying uniform environmental standards to projects they finance. For example: a. The World Health Organization has guidelines for pollution controls. b. The World Bank has a volume of Environmental Guidelines for industrial projects. c. The Tokyo Stock Exchange allows no investors who do not adhere to its environmental guidelines. d. None of the above.195. The cornerstone of U.S. environmental regulation of the export of hazardous materials is the concept of: a. Prior informed consent. . b. The Kyoto Protocol. c. The Basel Convention. d. All of the above.196. The “Circle of Poison” refers to: a. Getting food poisoning when traveling to a country with unsanitary food preparation conditions. b. Chemicals that are at first banned in the U.S, then allowed to be produced, then banned again. c. The foreign sale of U.S.-made pesticides that have been banned in U.S. and then reimported as a residue on imported foods. d. None of the above.197. Some of the inadequacies of the traditional international pollution-control system include: a. Voluntary consent by nations to international litigation or arbitration of environmental disputes is rare. b. Litigation in the polluting company’s home country can be circumvented by having all actions and decisions occur through a subsidiary in the less environmentally conscientious country. c. Both of the above. d. None of the above.198. Which major industrialized nation has not ratified the Kyoto Protocol, even though nearly 200 countries have ratified it? a. United States. b. Germany. c. United Kingdom. d. Japan.199. In keeping with the litigious character of the American legal system, U.S. antitrust laws: I. Are stated in general terms. II. The details are to be worked out through administrative regulations. a. I only. b. II only. c. Both I and II. c. Neither I nor II.200. The substance of many countries’ antitrust laws is very similar in focusing on two types of activities. The two types of activities are: a. Prohibitions against price cutting and resale price agreements. b. Prohibitions against agreements attempting to restrict competition and the abuse of a dominant market position. c. Prohibitions against economizing to achieve greater market share and lack of marginal return. d. Both “a” and “b”.201. When evaluating the effect of a merger, the European Union seeks to determine: a. The impact of the merger by totaling the number of competitors left. b. Amount of capital invested in the combined companies in relation to the remaining competitors. c. The compatibility of the merger with the common market, which is presumed if market share will not exceed 25 percent. d. None of the above.202. Under U.S. antitrust law: I. Most actions are brought by private individuals and companies. II. Successful private litigants can collect treble damages. a. I only. b. II only. c. I and II. d. Neither I nor II.203. Under U.S. antitrust law, the rule of reason applies to situations where: a. A person must decide to bring a lawsuit or not. b. Through analysis, an action is not found to be anticompetitive. c. The amount of damages awarded is reasonable. d. A merger is anticipated and valid if reasonable.204. Under the EU merger regulations, preapproval is not needed under which one of the following conditions? a. Where a non-EU firm is involved in the merger. b. Where the firms are involved in agricultural trade. c. Where the merger falls under a de minimis exception or has the benefit of a block exception. d. All of the above.205. Under U.S. antitrust law, certain mergers and joint venture agreements must be brought before whom before they are concluded? a. Congress. b. The President. c. The Federal Trade Commission. d. The Department of Justice.206. EU competition law applies only to agreements and transactions that: a. Involve an EU-based company. b. Have an effect on intra-EU trade. c. Have a direct impact on foreign commerce. d. None of the above.207. The 1982 act passed by Congress in order to clarify the standard to be applied in determining extraterritorial effect of American antitrust law provides that: a. American antitrust law extends to all countries that do not have enforceable antitrust laws of their own. b. American antitrust law does not apply outside the U.S. c. American antitrust law applies only to conduct that has a direct, substantial, foreseeable effect on U.S. commerce. d. American antitrust law applies only to firms whose economic power is so substantial that they could directly and significantly dominate foreign markets.208. “Blocking Legislation” in international antitrust action refers to: a. Laws that block certain goods from entering a country. b. Provisions that prevent the discovery of documents by foreign countries and bar enforcement. c. Setting aside certain blocks of businesses exempt from antitrust laws. d. None of the above.209. The American antitrust law policy toward patent licenses: a. Tends to be more forgiving of the impact a patent holder’s rights have on competition. b. Views the patent monopoly as a danger to competition. c. Lends itself to abuse by the patent holder. d. None of the above.210. In the U.S., which type of merger is considered to pose the biggest threat to competition because it is the most likely to create or enhance dominance in the market? a. Horizontal. b. Vertical. c. Multi-industry. d. All of the above.