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California State University, Fullerton - MGMT 339 FINAL EXAM REVIEW 2020 with complete solution.1. The Commission of the European Communities v. Italian Republic involved the importation of vegetable fats labeled as "chocolate substitutes." Pg 408

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California State University, Fullerton - MGMT 339 FINAL EXAM REVIEW 2020 with complete solution.1. The Commission of the European Communities v. Italian Republic involved the importation of vegetable ... fats labeled as "chocolate substitutes." Pg 408 FINAL EXAM REVIEW 2020 1. The Commission of the European Communities v. Italian Republic involved the importation of vegetable fats labeled as "chocolate substitutes." Pg 408 a. True b. False 2. The Court of Justice is the final arbiter of EU law and consists of 15 justices, each appointed by the assembly for a term of six years. Pg 405 2nd paragraph a. True b. False 3. Similar to the United States Supreme Court, decisions of the European Court of Justice are issued with the dissenting opinions of the minority ruling judges which are not open to the general public. Pg 406 5th paragraph a. True b. False 4. Similar to courtroom practices in the U.S., the legal proceedings in the European Court of Justice allow for the calling of witnesses, the production of documents, the hiring of experts, cross-examination, and open to the broadcasting media for transmission to the public. Pg 406 2nd paragraph a. True b. False 5. Because no dissenting opinions are issued, no ruling is made by the Court of Justice until all judges are in agreement. Pg 406 4th paragraph a. True b. False 6. The signing of the European Economic Community Act officially formed the European Community. a. True b. False 7. The principles of the Treaty of Rome were based on the creation of a customs union that would remove internal tariffs for members. Pg 399 Exhibit 15.1 a. True b. False 8. The formation of the European Economic Community created a uniform external tariff for non-members that complied with the objectives of GATT. Pg 399 Exhibit 15.1 Article 3 B. a. True b. False 9. Members of the European Parliament, which represent the interest of their respective states are elected by residents of each state and are appointed for five-year terms. Pg 404-405 a. True b. False 10. Each member of the Commission serves a four year term and selected from the College of Commissioners. Pg 404 (The European Commission) a. True b. False 11. The European Court of Justice consists of 15 justices appointed by the Council of the European Union and has original jurisdiction over private disputes. Pg 405 (The Court of Justice of the European Union) a. True b. False (The General Court is the one that has jurisdiction over lawsuits brought by private parties and member states. Also the European Court of Justice has a judge appointed by each of the member states.) 12. The European General Court was established to reduce the workload of the Court of Justice and it has jurisdiction over appeals on the Commission's decisions on mergers and acquisitions. a. True b. False 13. The Commission of the European Communities has the power to draft both regulations and directives and has popular support by European citizens. a. True b. False 14. The Commission of the European Union is headed by the College of Commissioners and consists of twenty members. Pg 404 (The European Commission) a. True b. False 15. The EU functions to eliminate barriers to trade by making mergers and acquisitions more difficult. a. True b. False 16. One of the goals of the Single European Act (SEA) was to achieve political integration by 2000. Pg 399 a. True b. False 17. By 2010, the United Kingdom and Denmark had finally accepted the use of a single European currency. straightforward a. True b. False 18. The trend for regional economic integration is apparent worldwide. straightforward a. True b. False 19. National courts are obligated to follow EU law and decisions. Pg 407 (Harmonization) a. True b. False 20. The European Court of Justice and the International Court of Justice have concurrent jurisdiction over EU member international trade disputes with non-EU members. Pg 406 (Distinctions among Institutions 2nd parapgraph) a. True b. False 21. After the passage of the Single European Act, the EU went from qualified voting to the requirement of unanimous consent. Pg 399 last paragraph a. True b. False 22. The Maastricht Treaty abolished the Communities and established the European Union as a successor to the European Community. Pg 400 first paragraph a. True b. False 23. The Council of Europe is an EU institution. Pg 406 (Distinctions among Institutions) a. True b. False 24. The European Union is committed to a common foreign policy and individual state sovereignty over economic issues. straightforward a. True b. False 25. The Council of Ministers and the European Council are the same body. Pg 404 2nd paragraph a. True b. False 26. The Treaty of Lisbon provides a mechanism for EU states to leave the EU. Pg 400 right column 2nd paragraph FULL Text of Article 50 a. True b. False 27. The Four Freedoms include free movement of goods, services, capital and people. Pg 409 a. True b. False 28. The Four Freedoms preempt any action by the member states in the areas of goods, services, capital and people. a. True b. False 29. The Court of First Instance is the equivalent to the U.S. International Trade Court and has original jurisdiction over trade disputes between EU members and non-members. straightforward a. True b. False Multiple Choice 30. The EU Commission coordinates the following areas: (straightforward) a. Fisheries. b. Monetary affairs. c. Social policy. d. All of these are correct. 31. In the European Court of Justice: pg 406 4th paragraph a. Decisions are issued without dissenting opinions. b. Justices are appointed for life. c. Civil law traditions, more than common law traditions, are followed. d. Decisions are issued without dissenting opinions and civil law traditions, more than common law traditions, are followed. 32. All of the following are EU institutions except: pg 406 (Distinctions among Institutions) a. The Council of Ministers. b. The European Council. c. The European Commission. d. The Council of Europe. 33. The Treaty of Lisbon included all of the following except: a. Renaming the EEC to the EU. b. The right for states to withdraw from the EU. c. A citizen's initiative process. d. Elevation of the European Council to a primary institution within the EU. 34. How many representatives is each member country allowed to appoint to the European Union's Council of Ministers? Pg 404 (The Council of Ministers of the European Union) a. Three b. Two c. One d. None, the members of the presiding council make the appointments 35. The representatives who serve on the European Commission are appointed by: pg 404 (The European Council) a. the representative's own government. b. the Assembly. c. the Court of Justice. d. the Council. 36. A _____ is binding and directly applicable in all member states; and a _____ sets forth the result to be achieved but leaves to the individual states the responsibility to employ the appropriate steps. Pg 407 1st and 2nd bullet points a. Regulation; directive b. Rule; resolution c. Resolution; rule d. Directive; regulation 37. The agreement that officially formed the European Community was: Pg 398 (right column) 2nd paragraph a. The European Economic Community Act. b. The Treaty of Rome. c. GATT. d. Organization for Economic Cooperation & Development. 38. The EU's structure consists of: pg 404,405 a. Council of Ministers. b. Court of Justice. c. Parliament. d. All of these are correct. 39. The Four Freedoms include: pg 409 a. capital. b. people. c. goods. d. all of these are correct. 40. Which of the following is not one of the Parliament's powers? Pg 404-405 a. Serve as consultative body (to council) on legislative proposals b. To censure the commission c. Elect representatives to the commission d. All are assembly powers 41. Members of the EU include the following countries except: pg 405 (list) a. France. b. Luxembourg. c. Italy. d. Switzerland. e. All of these are members. 42. Free movement of people in the EU: pg 415 (The Free Movement of People) a. Allows EU residents to travel, live, study and work in other EU member states. b. Is not subject to any limitations whatsoever. c. Still requires border controls between most member states. d. Allows for immigration to the EU that was previously deemed illegal. 43. In the Blanco and Fabretti case, the ECJ reviewed Italy’s dual taxation laws on casino earnings and determined it restricted improperly the EU principle of: pg 413 a. Freedom of capital. b. Freedom to provide services. c. Freedom of movement of goods d. Freedom of movement of people. 44. The General Court was established to reduce the workload of the European Court of Justice. Its jurisdiction is limited to: straightforward a. appeals of the Commission's decisions on mergers and acquisitions. b. hearing cases between EU institutions and their employers. c. appeals related to penalties imposed for Non-European Community companies' price-fixing. d. all of these are correct. 45. The act that made it easier for the Council to act by requiring only a qualified majority for many types of directives was: pg 399 (qualified majority voting) a. Autonomous Council Act. b. Free Trade Act. c. Binding Directives Act. d. Single European Act. 46. Which of the following was established by signing the Treaty of Paris by the original six members of the European Community? Pg 398 a. GATT b. European Atomic Energy Commission c. European Coal & Steel Community d. The Single European Act 47. In order to participate in the Monetary Union, Maastricht requires European Union members to achieve all of the following except: doesn’t say in the book a. a budget deficit of no greater than 3% of the GDP. b. an inflation rate within 1.5% of the three best nations. c. exchange rate stability. d. Maastricht requires all three. 48. The appropriate EU court with original jurisdiction to hear complaints about violation of the European Convention on Human Rights and the Anti-Torture Convention is the: it’s in the name a. International Court of Justice. b. European Court of Justice. c. International Criminal Court. d. European Court of Human Rights. 49. Prolonged negotiations for membership in the EU constitute an effective veto of membership, as in the case of which country? a. Latvia b. Turkey c. Croatia d. Pakistan 50. Which institution is in charge of monetary policy relating to the euro? Pg 400 1st paragraph a. The European Central Bank b. The Eurozone Bank c. The World Trade Organization d. The International Court of Justice 51. Since 2008, the Eurozone has experienced a financial crisis. Two of the weakest economies that were adversely affected in the entire Eurozone are: pg 420 3rd paragraph a. Germany and Greece. b. Greece and Turkey. c. Greece and Spain. d. Germany and Spain. 52. In response to the recent financial crisis, the Eurozone states launched a permanent funding program for the rescue of states undergoing financial crisis called the: pg 420 a. Eurozone Crisis Act. b. European Fiscal Compact. c. European Stability Mechanism. d. none of these are correct. Essay 61. The German government recently adopted a law defining "beer" as any alcoholic beverage brewed in compliance with customary German brewing practices dating back to the year 1516. These practices mandate specific procedures for every step in the brewing process. Only natural ingredients are to be used in the brewing process. The use of additives is specifically prohibited. As a result, imported alcoholic beverages labeled and sold as "beer" in other states were prohibited from being sold as "beer" in Germany. Instead, such products could only be sold as "malt beverages." The stated purposes of this law were to protect the public from products that contain additives and prevent confusion by German consumers who associate the term "beer" with traditional German brewing standards. The German law was challenged in court by Venezia Brewing Limited (VBL), an Italian company that wished to sell its malt beverage containing additives as "beer" in Germany. VBL claimed that the German law was inconsistent with a European Union regulation that established standards for but did not ban the use of additives in malt beverages. Does the German law violate European Union law, including the regulation? Why or why not? Would your answer be different if the European Union law was in the form of a directive that had not yet been implemented by Germany? Why or why not? Does VBL have standing to challenge the German law? Why or why not? ANSWER: The German law violates the EU regulation. The supremacy doctrine provides that, in areas where a transfer of power and economic integration has occurred, EU law is superior to inconsistent national law. Regulations, such the law at issue in this case, are broad general and abstract statements of law adopted by the EU binding in their entirety on the member states. Regulations immediately become part of national law and are superior to inconsistent national laws. However, it would not make a difference if the EU law took the form of a directive. Directives are laws binding as to result to be achieved but leaving the means to the member states. The failure to adopt implementing legislation cannot be used as an excuse for violating a directive. VBL has standing to challenge the German law as a result of the direct effects doctrine. The direct effects doctrine permits individuals to raise rights arising from EU legislation before national courts. True / False 1. The Electra-Amambay case involved a local Paraguayan firm that was terminated for "just cause" from representing a Brazilian company. Straightforward a. True b. False 2. The FCPA is a multilateral agreement among member nations of the WTO to combat the practice of global bribery. Pg 435 a. True b. False 3. The antibribery provisions of the FCPA specifically and clearly define the conditions that must be violated in order to prosecute an individual or corporation for bribery of foreign officials. Pg 437 a. True b. False 4. In order to be liable for illegal payments made to foreign officials, the payment must be made directly to the official from the firm receiving the favors granted. Pg 437 2nd paragraph a. True b. False (offering isn’t allowed) 5. Illegal payments routed through a independent foreign sales agent to foreign officials may result in criminal prosecution of the corporation employing the agent. Straight forward a. True b. False 6. Payments made to foreign officials by an individual for the purpose of expediting or securing the performance of a routine or clerical governmental action are subject to fines up to $100,000 and/or an imprisonment term of up to five years. Pg 437 3rd paragraph a. True b. False 7. The United States is the only nation of the world that regulates advertising to children, such as tobacco advertisements pg 434 a. True b. False 8. Many countries require pre-clearance of children's television advertising. straightforward a. True b. False 9. The former communist countries of Eastern Europe have no advertising restrictions on tobacco and alcohol targeting teenagers. straightforward a. True b. False 10. Most American lawyers can give competent advice on foreign marketing regulations and advertising laws. straightforward a. True b. False 11. One of the main objectives of the FCPA is to prohibit foreign company representatives in the United States from bribing U.S. government, state, and county officials to obtain procurement contracts. Pg 437 a. True b. False 12. As a result of the global financial collapse there has been a great deal of international cooperation and success in harmonizing the local foreign investment laws of most nations. a. True b. False 13. A company that forms an agency relationship with its sales representatives can be sued for damages incurred through the acts of the agent against a third party. Pg 429 Left column last paragraph a. True b. False 14. Under the provisions of EC Council Directive 86/653, an agent accrues sales commissions on deals that occur within his territory only when she or he has substantially participated in the events leading up to the customer's purchase. Pg 429 Commission override a. True b. False 15. A principal who hires an independent agent within a host country is viewed as having opened an office and is then subject to the host country's tax laws. Pg 429 (Tax and Labor Regulation and Principal) 2nd paragraph a. True b. False 16. One of the key criticisms of the accounting provisions of the FCPA is its failure to define a standard for materiality. Pg 441 2nd chapter a. True b. False 17. A dependent agent relationship allows for greater quality control but reduces the level of profit that accrues to the principal. straightforward a. True b. False 18. Truth-in-advertising is now a generally accepted business practice and laws prohibiting false advertising exist in many nations. Pg 430 (truth in advertising) 2nd paragraph a. True b. False 19. Although bribery of government officials is considered a corrupt practice in the U.S., many countries traditionally considered it to be a standard operating procedure. Officials in those countries expected to be paid for granting certain favors and therefore can be exempted from the Foreign Corrupt Practices Act. Pg 437 a. True b. False 20. The FCPA requires that individuals and corporations meet disclosure requirements for all monies sent abroad as payment for fees owed to their sales agent. straightforward a. True b. False 21. Only payments in excess of $5,000 paid directly to foreign government officials are subject to criminal prosecution under the FCPA. Pg 437 (amount not stated) a. True b. False 22. Documentation submitted to the Department of Justice for review under the FCPA is considered confidential and sensitive to national security. Pg 441 2nd paragraph a. True b. False 23. Some cultures are less tolerant of vagueness and exaggeration in advertising than others. Pg 431 2nd paragraph a. True b. False 24. Advertising abroad must comply with the legal guidelines established in the home country. Pg 430 not stated but acknowledged a. True b. False 25. In a prosecution for violating the FCPA, the defendant's conduct will be excused if he or she can prove that the payment was paid as a result of extortion by the foreign official. Straightforward pg 438 2nd paragrpah a. True b. False 26. In order to avoid a charge of violating the FCPA, commissions and other payments to a foreign sales agent should conform to customary rates normally paid to agents of that kind in the foreign nation. straightforward a. True b. False 27. Nepotism can be a violation of the Foreign Corrupt Practices Act. Straightforward a. True b. False (Nepotism- The practice among those with power or influenceof favoring relatives or friends, especially by giving them jobs.) Multiple Choice 28. Under the FCPA, a payment can be illegal if it is made: was in a previous quiz a. Corruptly, knowingly, and to expedite the performance of a routine governmental action. b. Corruptly, negligently, and to expedite the performance of a routine governmental action. c. Criminally, intentionally, and in order to obtain or retain business. d. Corruptly, knowingly, and for assistance in obtaining business. e. Any payment that is illegal under local law is illegal under the FCPA. 29. Corporate penalties for violating the FCPA include: pg 437 (up to $25 million) a. Fines of no more than $100,000. b. Fines up to $2,000,000. c. Revocation of the firm's license to do business in a foreign country. d. Punitive damages. 30. Individual penalties for violating the FCPA include: pg 437 a. Imprisonment of up to five years and a fine of up to $100,000. b. Imprisonment of up to fifteen years and a fine of up to $10,000. c. Fines, imprisonment, and discharge from the corporation. d. Fines, imprisonment, and revocation of the right to travel in the foreign country. 31. Sales representatives that perform specific acts at the specific direction of the company they represent are considered: pg 426 first paragraph a. agents of the company. b. principals of the company. c. independent contractors of the company. d. none of these are correct. 32. Under EC Directive 86/653, an evergreen contract occurs when the agency relationship has: pg 427 a. lasted for three or more years. b. been continued beyond the original fixed term with no formal renewal. c. been terminated by giving a three-month written notice. d. all of these are correct. 33. Pursuant to EC Council Directive 86/653, an economic conditions alarm is sounded by the principal for the benefit of his or her agent: pg 428 (Economic conditions development) 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. 34. Which of the following statements explain the characteristics of an independent agent? Pg 426 a. Principal is involved in working out details of the agent's work organization. b. The agent is always subject to a change in instructions. c. The agent works for many clients. d. The agent is paid on an hourly or salaried basis. 35. Advertising of sexually explicit messages would be most severely regulated in which of the following countries? Pg 430 a. Denmark b. Sweden c. The United States d. Saudi Arabia 36. Which of the following is prohibited in more countries? Pg 430 a. False advertising b. Advertising to children c. Sexually explicit advertising d. Advertising in a foreign language 37. In Germany, the attitudes toward exaggeration in advertising are: pg 431 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. 38. The FCPA was passed in the United States in the 1970s largely because: a. the law was based on a draft law written by the United Nations. Pg 436 b. U.S. public opinion and world disdain over disclosures of hundreds of unethical payments to foreign officials by U.S. firms. c. an attempt by the U.S. Congress to provide a more predictable and easily understood law for U.S. firms operating abroad. d. the law was requested by many U.S. corporations in order to allow them to compete more effectively in foreign markets. 39. The FCPA prohibits U.S. firms from paying bribes to: pg 437 2nd paragraph a. foreign competitors. b. purchasing agents of foreign firms with whom U.S. firms do business. c. foreign government officials. d. the clerk in a telephone office in Paris who is trying to place an overseas call for you. 40. The government agency responsible for prosecuting violators of the FCPA is: pg 442 2nd paragraph a. Department of International Judicial Review. b. SEC. c. Department of Justice. d. SEC and Department of Justice. 41. Under the EU's directive on agency relationships, whenever a principal makes a sale in a territory or a market sector reserved for the agent, the principal must pay the agent a commission, whether or not the agent actually participated in the sale, no matter what the agency agreement provides. This is known as a(n): pg 429 a. economic condition alarm. b. economic commission. c. commission override. d. permanent commission. 42. Which of the following statements about dependent agents is true? Pg 429 a. The office in which the dependent agent is unimportant and is not subject to the host country's tax laws. b. A dependent agent is considered an employee for purposes of the host country's labor laws. c. A principal is not liable to third parties for a dependent agent's misdeeds. d. All of these are correct. 43. If an agent sells a line of American-made children's toys to a European toy store chain. Later, it is discovered that the toys are dangerous for children but the agent is not held accountable. This is an example of: pg 429 last paragraph left column a. product liability. b. just cause. c. a commission. d. none of these are correct. 44. In U.S. v. Joel Esquenazi, Carlos Rodriguez, the court’s opinion reflected the difficulty in trying to define ____as used in the FCPA. Pg 438 a. bribe b. foreign government official c. Instrumentality d. gratuity 45. In advertising, a vague or exaggerated claim such as "20% less fat" is called: a. caveat emptor. b. false witness. c. Puffing. d. none of these are correct. 46. Some countries have enacted "language laws" in advertising in order to: a. preserve the purity of the country's primary language. b. require advertisers to be clear and honest about their products. c. protect children from inappropriate language. d. all of these are correct. 47. In advertising, products such as tobacco and alcohol that are deemed to be corrosive to society are called: pg 434 a. "temptation" products. b. illegal products. c. "sin" products. d. none of these are correct. 48. Under the FCPA, the "routine governmental action exception" is also known as the: pg 437 a. "accepted payments" exception. b. "grease payments" exception. c. "necessary payments" exception. d. none of these are correct. 49. Under the FPCA, U.S. courts have jurisdiction over a person who commits an FCPA violation: pg 442 “while in territory of the United States” 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 these are correct. 50. 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: straightforward 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 these are correct. Are the actions undertaken by the companies or individuals in the following scenarios legal or illegal pursuant to U.S. law? Please explain each of your answers. 62. Scenario A wire transfer of $200,000 to the Minister of Contracting of Gambia made by Bordeaux Builders, Inc., a French corporation, and originating from its corporate headquarters in New York in order to secure a construction contract. Pg 442 “while in territory of the United States” ANSWER: Illegal. The Foreign Corrupt Practices Act prohibits payments to foreign government officials by companies headquartered in the United States for the purpose of obtaining or retaining business. 63. Scenario A birthday card and bottle of California wine sent annually by Woody Pulp, the chief executive officer of Pacific Paper Products, Inc., a U.S. corporation, to his long-standing friend who is the Director of Government Procurement for the Japanese government. ANSWER: Legal. The chief executive officer's birthday gift lacks corrupt intent (knowledge that the act was done for an illicit purpose) and was not made with the intent to obtain or retain business. 64. Scenario A cash payment of $100 made by an agent of Chicago Chemicals Company, a U.S. corporation, to a processing clerk in the Chilean Office of Business Licensing in order to expedite consideration of CCC's application for authority to conduct business operations in Chile. ANSWER: Legal. The payment is grease money to a government official for the purpose of hastening the performance of a non-discretionary function. 65. Scenario A cash payment of $250,000 was made by Durdy Coal, Inc., a U.S. corporation, to DCI's agent with the instruction "put this to good use on DCI's behalf." In turn cash is paid to the State Importation Officer of the People's Republic of China in order to secure a Chinese import license. Pg 426 ANSWER: Illegal. The Foreign Corrupt Practices Act prohibits U.S. companies from engaging in acts in furtherance of bribery and from authorizing bribes. 66. Scenario A $100,000 wire transfer made by Automobile Repair Parts, Inc., a California corporation, to the director of contracting of Yoshiba International, a Japanese corporation, for the purpose of obtaining a supply contract from Yoshiba. pg 437 ANSWER: Legal. The Foreign Corrupt Practices Act only applies to bribes paid to foreign government officials. True / False 1. In the licensing agreement the licensor would set the geographic and field-of-use limitations on licensees. Pg 453 a. True b. False 2. Licensees of IPRs are generally eager to operate under specific marketing quotas requested by the licensor. straightforward a. True b. False 3. Licensors of IPRs are generally wary of offering licensees exclusive rights in a certain geographic area. Ppg 453 a. True b. False 4. Under TRIPS, until a pharmaceutical patent is actually granted, a country has no obligation to protect potential prospective rights (during the pendency of the patent application). Pg 463 a. True b. False 5. Most international licensing agreements mandate the licensee to maintain the confidentiality of the licensor's technology. Pg 454 a. True b. False 6. Governments in developing countries usually encourage the use of licensed intellectual property by diligently enforcing laws designed to protect it from theft or other means of exploitation. Straightforward a. True b. False 7. Transfer of technology laws are U.S. statutes that require U.S. companies to share their technology and research with firms in Africa. Straight forward a. True b. False 8. IPR transfers from U.S. companies to joint ventures in developing countries often allow U.S. companies to avoid the legal risks and entanglements of direct investment. Pg 452 a. True b. False 9. IPRs include patents, trademarks, and copyright, but not trade secrets. a. True b. False 10. Foreign laws that require the government approval of a licensing agreement are a form of protectionist policy. Straightforward pg 469 3rd paragraph a. True b. False 11. Many technology transfer agreements prevent the licensee from selling goods to persons that will bring the product back to the licensor's country for sale in direct competition with the licensor. Pg 471 (the gray market) a. True b. False 12. U.S. courts have been reluctant to restrict gray market competition in situations where the product's quality being introduced to the home market is indistinguishable from its native counterpart. Pg 472 1st paragraph a. True b. False 13. Restrictions written into the franchise agreement must be strictly adhered to regardless of the effects it may have on the competitive potential of the franchisee in the host country. Pg 473 a. True b. False 14. The Council of the European Union has jurisdiction over franchise agreements operating in its member countries. straightforward a. True b. False 15. The greatest protection for a firm's copyrights and patents comes from the International Convention for the Protection of Industrial Property. That’s straightforward pg 460 a. True b. False Berne convention for copyrights 16. The great advantage of the International Convention for the Protection of Industrial Property is that by filing a trademark with this international body, the trademark owner achieves virtually worldwide trademark protection. Pg 458 1st paragraph a. True b. False 17. The European Union has both a common multinational patent application process as well as the individual country processes. Pg 458 2nd paragraph a. True b. False The Community Trademark Agreement 18. A field of use limitation in a licensing agreement restricts the licensee's ability to market in certain geographical areas. Pg 453 right column 1st paragraph a. True b. False Field of use limitations restrict the application s for which the licensee may employ the IPR 19. When the intellectual property being licensed is technology protected primarily by a patent, a key license provision will be a clause setting forth the licensee's obligation to keep the licensed technology confidential. Pg 454 (Confidentiality and Improvements 1st paragraph a. True b. False Such provisions are critical when the IPR being licensed is a technology that is protected primarily by trade secret procedures rather than patent laws 20. A licensee will seek a grant back of ownership in improvements to the licensor. Pg 454 (Confidentiality and Improvements) 2nd paragraph a. True b. False 21. Most nations grant patent priority to the individual who can prove (s)he was the first to invent. Pg 455 2nd paragraph (Right to priority) a. True b. False 22. Both the Berne Convention and the Paris Convention require signatory countries to enact certain minimum substantive laws. Pg 460-461 a. True b. False Berne does, Paris doesn’t 23. Computer programs are protected as copyrightable literary works under the Berne Convention. Pg 461 2nd paragraph a. True b. False 24. Since 1996, the European Union's Trademark Regulation has allowed a single trademark registration enforceable in all members of the European Union. Pg 458 2nd paragraph a. True b. False 25. The EU departs from general American intellectual property law and bans the trademark registration of geographical indications. Pg 458 right column a. True b. False 26. Under U.S. copyright law, an author's exclusive rights end upon his/her demise. Pg 461 right column 3rd paragraph a. True b. False 70 years after the authors death 27. The impact of piracy on the revenue loss to American companies to counterfeit goods is estimated to be is $250 billion annually. straightforward a. True b. False 28. The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) requires developing countries that are members of the WTO to adopt intellectual property laws similar to the United States. Pg 463 1st and 2nd paragraph a. True b. False 29. Foreign laws that require the disclosure of the ingredients of formulas of trade secrets to determine the safety of the product before entry is granted is a legitimate government regulation under its police powers i.e. health and safety. straightforward a. True b. False 30. The Paris Convention gives a trademark holder in any signatory country a "right of priority." Pg 455 a. True b. False Patent holder 31. Importation of merchandise produced and sold abroad and then imported back into the United States for sale in competition with the U.S. trademark owner is referred to counterfeit goods. Pg 471 2nd paragraph a. True b. False Gray market goods 32. The European Court of Justice in the Sebago Inc. v. GB Unic, SA, (1999) E.T.M.R. 681 ruled that re-imports from a EU member country to another is in violation of the Trademark Directive. straightforward a. True b. False Multiple Choice 33. A. Bourjois & Co. v. Katzel involved the question of whether Katzel: pg 472 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. Copyright infringement 34. A single multinational application process is available for protecting intellectual property in: pg 458 2nd paragraph pg 455 2nd paragraph a. in the U.S., Canada, and Mexico. b. in the Eastern European countries. c. in countries that are member of the Asian Patent Protection Treaty. d. in the European Union. 35. The Copyright Term Extension Act of 1998 was intended to protect key industries in the U.S., including the: pg 461 3rd paragraph a. computer industry. b. film industry. c. construction industry. d. appliance industry. 36. Under a bilateral agreement concluded in 1994 between the U.S. and the EU: straightforward a. U.S.-made liquor can be branded as "scotch whisky," or "cognac." b. EU made liquor can be branded as "bourbon" or "Tennessee whiskey." c. both of these are correct. d. neither of these is correct. 37. Copyright protection for works of authorship available through the Internet is expressly provided by: pg 461 2nd paragraph a. The Berne Convention. b. The WIPO Copyright Treaty. c. The TRIPS Agreement. d. none of these are correct. 38. Which of the following regulatory schemes for technology transfer agreements is most indicative of a protectionist government policy? Pg 469 3rd paragraph a. Preapproval b. Notification/registration c. No regulation d. None of these are correct 39. Which of the following represent the three regulatory schemes for a technology transfer agreement range from least prohibitive to most prohibitive? Pg 469 2nd paragraph a. Notification/registration, no regulation, preapproval b. Preapproval, notification/registration, no regulation c. No regulation, notification/registration, preapproval d. No regulation, preapproval, notification/registration 40. A U.S.-located college textbook manufacturer produces its copyrighted/trademarked biology textbook for sale in the U.S. It licenses an English-language version of the textbook to a manufacturer in India for sale. The Indian company produces the textbook and ships it to the U.S. for sale at a much lower price than the price offered by the U.S. company. This is referred to as: pg 471 2nd paragraph a. copycat competition. b. Gray marketing. c. reverse trade advantage. d. black marketing. 41. The type of arrangement in which the licensor permits the licensee to sell certain goods under the licensor's trademark or logo is called: pg 473 (Franchising: Licensing Outside the) 1st sentence a. trademark lease agreement. b. shared benefit agreements. c. Franchise agreement. d. none of these are correct. 42. The concept of language politics in systems franchise agreements refers to: a. the legal system's primary language must be recognized. Pg 474 bullet point 6. b. A country that requires a certain language to be used to conduct business in a certain region. c. efforts to incorporate the home country's language into standard business practice of the host country are extensive. d. none of these are correct. 43. Common restrictions imposed on the use of technology include geographic limitations on the licensee's manufacturing and/or marketing activities. These types of restrictions are also known as: pg 453 right column 1st paragraph a. Field of use limitations. b. non-technical limitations. c. operating limitations. d. implied effort of cooperation limitations. 44. Which of the following is not of the three types of regulatory schemes for transfer agreements? Pg 469 ( The Mechanics of IPR Transfer Regulations) a. Preapproval b. Notification/registration c. No regulation d. All are types of regulatory schemes 45. Intellectual property rights in some countries are not protected because: pg 468-469 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 fashion. d. All of these are correct. 46. Transfer agreements in Japan and some newly developed countries such as Korea require: pg 470 (Notification-Registration Schemes) a. approval by the government. b. negotiation between the foreign licensor and the government. c. Notification to the government. d. assurance that the agreement has not be entered into corruptly. 47. 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. Pg 454 3rd paragraph a. Grant back provision b. field use provision c. technology transfer d. promise of confidentiality 48. The TRIPS Agreement: pg 463 1st paragraph a. became effective July 1, 1995. b. promises to create a more effective international system for protection of IPRs. c. requires every member of the WTO to abide by the Paris Convention and the Uniform Copyright Convention. d. All of these are correct. 49. TRIPS requires every member of the World Trade Organization to: pg 463 2nd paragraph a. abide by the Paris Convention. b. abide by the Berne Convention. c. apply national treatment to foreign owners of intellectual property rights. d. provide patent protection for processes. e. All of these are correct. 50. What defense can an accused party use when accused of IP infringement? straightforward a. Non-infringement b. Invalidity c. Unenforceability d. All of these are correct 51. Which of the following is true about fair, reasonable, and nondiscriminatory (FRAND) licensing terms? Pg 452 1st paragraph 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 these are correct. 52. Company A wants to use some technology that Company B has developed, so Company A pays Company B a license fee, called a(n): pg 452 (Royalty) a. permission fee. b. Royalty. c. IPR. d. rights payment. 53. Lindsey and Martin Smith of Ontario, Canada, have paid McDonald's a fee for limited permission to use its trademarks, copyrights, and know-how in running a fast-food restaurant in Ontario for the next five years. The Smiths have purchased a(n): pg 452 (License) a. License. b. royalty. c. IPR. d. none of these are correct. 54. When a person registers a domain name with the intent to profit from the goodwill of a trademark belonging to another, it is called: pg 459 2nd paragraph a. domain assumption. b. Cybersquatting. c. domain preemption. d. bad faith registration. Exhibit 17-1 Accuraphoto USA (AUSA) owns the "Accuraphoto" trademark in the United States. AUSA produces the "SureShot" camera, which is known to consumers as a moderately priced quality product. AUSA entered into a contract with Honshu Photographic, Inc. (HPI), a Japanese corporation. Pursuant to the terms of the contract, HPI was permitted to manufacture and market "SureShot" cameras utilizing the "Accuraphoto" trademark in return for payment of royalties based upon a percentage of HPI's sales. After producing "SureShot" cameras for a short time at its Japanese facility, HPI moved production to its facility in the Philippines in order to reduce labor costs. The cameras produced at the Philippine facility utilized the "Accuraphoto" trademark but were marketed under the name "SharpShot." Additionally, these cameras contained improved electronic features incorporated into the product by HPI engineers. Despite the inclusion of these improvements, "SharpShot" cameras proved to be of inferior quality. Furthermore, "SharpShot" cameras have begun to show up on the shelves of U.S. discount retailers such as K-Mart and Wal-Mart. Additionally, several "SharpShot" cameras have been sent by American consumers to AUSA's American facilities for repair. Finally, HPI has refused to share access with AUSA to the electronic improvements incorporated into the "SharpShot" on the basis that they are confidential proprietary information. 63. Refer to Exhibit 17-1. What terms could AUSA have included in its contract with HPI that could have avoided this legal morass? ANSWER: AUSA should have included the following terms in its contract with HPI: a geographic limitation upon the licensee's manufacturing and marketing operations; a customer limitation on licensee's marketing operations; a confidentiality term restricting access to need to know employees; and a grant back provision granting title to the improvements back to the licensor without payment of compensation. 64. Refer to Exhibit 17-1. What remedies may AUSA seek against HPI as a result of its conduct? What do these remedies provide? ANSWER: AUSA could seek relief pursuant to Section 337 of the Tariff Act of 1930. Section 337 provides that the holder of a valid U.S. intellectual property right can prevent importation of merchandise even if it is lawfully produced and sold abroad. AUSA could seek an exclusion order. An exclusion order prevents goods from entering the United States and may be specific as to certain manufacturers or general and thus applying to all unlicensed goods of the same type. AUSA could also seek a cease and desist order. A cease and desist order prohibits distribution of infringing items already in the United States or which Customs fails to exclude at time of importation. True / False 1. The European Union treaties do not address discrimination on the grounds of nationality. a. True b. False 2. As compared to the United States, there has been greater litigation in Europe concerning religious discrimination than in the United States. a. True b. False 3. EU laws prohibiting gender discrimination are much more progressive than those in the United States. a. True b. False 4. In Germany, companies that employ more than 2,000 workers must have supervisory boards with 25% representation from labor and 75% representation from shareholders. a. True b. False 5. Workers in the United States acquire a property interest in their jobs such that severance pay is an entitlement to compensate for property taken upon dismissal from the position. a. True b. False 6. With the Civil Rights Act of 1991, Congress extended Title VII to U.S. based firms operating outside the United States under the "control of U.S. entity", and not in conflict with the host countries labor and employment laws. a. True b. False 7. An American citizen working abroad for a wholly owned subsidiary of a British company will be protected by the ADEA if the subsidiary is a U.S. corporation. a. True b. False 8. Many foreign nations attract investment because of less demanding labor and environmental laws. a. True b. False 9. The ILO reports that as of 2017, the number of children working worldwide as dropped dramatically to 168,000,000.0. a. True b. False 10. Germany labor laws grants its workers equal to management rights to participate in the management of the business. a. True b. False 11. Under German Works Constitution Act, an employer has the right to close a plant or business facility if based on economic necessity at any time and without consultation with workers. a. True b. False 12. In Germany, the supervisory board of directors is responsible for representing government and shareholder interests. a. True b. False 13. A number of foreign countries, especially those with a two-tiered board structure, require substantial employee representation on the board of directors. a. True b. False 14. Europeans tend to feel that over a period of time, employees acquire a property interest in their jobs. a. True b. False 15. In the United States, employers under the "at will" employment relationship can terminate employees without cause. a. True b. False 16. In Japan, union leadership is a stepping-stone to management. a. True b. False 17. In many countries, employers are required by law to consult with worker's groups prior to any large-scale dismissals. a. True b. False 18. In the Civil Rights Act of 1991, Congress extended Title VII to all U.S. firms operating outside the United States. a. True b. False 19. Some of the newly formed countries of the former Soviet Union have laws that mandate discrimination against certain people. a. True b. False 20. In the U.S. business decisions are within the domain of management without consultation with employees or the union. a. True b. False Multiple Choice 21. In Duncan v. American Intern, the court held that the extension of Title VII employment laws outside the U.S. depended on the amount of “control” the U.S. parent had over foreign entity operations based on various criteria, including: a. The interrelation of operations. b. Their common management and ownership or financial control. c. The centralized control of labor relations. d. All of these are correct. 22. 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. 23. 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. 24. A number of countries in Europe require a two-tiered board of directors. The two-tiered boards are: a. A supervisory board and a management board. b. a minority board and a majority board. c. an elected board and an appointed board. d. a labor board and an administrative board. 25. Unlike the case 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 nor II. 26. 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 was reinstated to his job because the law was unconstitutional. d. the employee was reinstated to his job because the discharge was significantly unreasonable under the circumstances and in violation of the socially accepted view. 27. In the Civil Rights Act of 1991, Congress extended Title VII to: I. U.S. firms operating outside the United States under the control of a U.S. entity. II. U.S. firms operating outside the United States 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. c. I and III. d. II and III. 28. The European Union treaties prohibit discrimination on the basis of: a. religion. b. ethnic background. c. Nationality. d. all of these are correct. 29. Which of the following classifications are treated most similarly under the laws of Europe, the United States, and Japan? a. Religion b. Nationality c. National origin d. Sex 30. Ms. Anderson is a 53-year-old American citizen working in New York for QMB, Inc., a wholly owned subsidiary of QMB, GMBH, a German corporation. She applies for the position of Vice President of QMB, GMBH⎯a position based in Munich⎯and 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 United States made by a foreign-run company. c. The court will dismiss the claim on the grounds that age is a bona fide occupational qualification to the promotion position. d. The court will dismiss the claim on the grounds of forum non conveniens. 31. With regard to global working conditions of child labor and prison labor, which of the following statements is true? a. Efforts to develop WTO trade rules that tie labor standards to international trade have borne fruit in the new GATT understandings between industrialized and developing nations. b. Section 301 of the U.S Trade Act of 1974 has been amended to impose tariffs on goods that are produced by child labor or prison labor. c. A few companies, such as Levi-Strauss & Co., have adopted global sourcing guidelines to use only suppliers who do not make use of child or prison labor. d. Since NAFTA, Mexico has made great strides in making sure that children below the age of 14 are kept in school and not used in manufacturing operations. 32. In Germany, workers: a. can be dismissed at the will of the employer. b. participate in corporate decisions. c. are often represented on boards of directors. d. can be dismissed at the will of the employer and participate in corporate decisions. e. Participate in corporate decisions and are often represented on boards of directors. 33. In which of the following cases is a U.S. company liable for unlawful discrimination against U.S citizen/employees in accordance with the EEOC, under Title VII as amended in 1991? a. The foreign subsidiary is 100% owned by a U.S. parent company. b. The foreign subsidiary is at least 50% owned by the U.S. parent company. c. The foreign subsidiary is 25% owned by a U.S. company. d. All of these are all situations where a U.S. company may be liable under Title VII. 34. Which of the following is NOT one of the primary distinctions between U.S. and foreign labor laws? a. Many non-U.S. nations' laws require employee consultation or participation in management decisions that Americans view as being the owner's prerogative. b. Many non-U.S. countries place legal constraints on employee dismissal that are unfamiliar to the U.S. investor. c. When a U.S. investor acquires a foreign business, by operation of law, it may also be acquiring the foreign industry's labor arrangements. d. Many American laws require employee consultation or participation in management decisions that non-U.S. businesspeople view as being the owner's prerogative. 35. Due to Japanese culture, the income differentiation between management and labor is ___________ Western cultures. a. far greater than b. about equal to c. Not nearly as great as in d. non-existent as compared to 36. Traditionally, Chinese unions have differed from Western-style unions because: a. union officials are often members of management as well. b. their purpose is to avoid labor unrest, not to advocate for the interests of the workers. c. members do not have the right to strike. d. All of these are correct. 37. Due to cultural beliefs about the nature of work and entitlements, severance pay in the U.S. is typically ________, and severance pay in Europe is typically ______. a. Low; high b. low; low c. high; low d. high; high 38. Which of the following conditions need to be satisfied by an employer in China before reducing his or her workforce by at least 20 employees or by 10 percent? a. The employer is restructuring due to bankruptcy. b. The employer is experiencing difficulties in production and operations. c. A material (significant) change in the objective economic circumstances has occurred, making performance and fulfillment of the employee contract impossible. d. Any of these. 39. The country that almost certainly has the most comprehensive set of employment discrimination laws is: a. Germany. b. China. c. Iran. d. The United States. 40. In the U.S., an employer may engage in employee discrimination if it is "reasonably necessary to the normal operation of the particular business or enterprise," a defense known as the: a. bona fide occupational qualification defense. b. occupational qualification defense. c. occupational exception defense. d. bona fide exception defense. 41. The Chinese government practices a form of institutional discrimination through the Hukou, which is a mechanism for determining social entitlements based on: a. age. b. occupation. c. gender. d. Place of residence. 42. Universally around the globe, women employees earn less than their male counterparts. Although the difference in pay rates varies dramatically from one country to the next, women typically earn _____ less than men according to the International Trade Union Confederation. a. close to 5% b. close to 10% c. Close to 20% d. close to 30% 43. Unlike U.S. employers, Chinese employers are allowed to set _____ requirements for female job applicants. a. age b. attractiveness c. marital status d. All of these 44. An unsafe labor condition that is common in many emerging nations is: a. blocked or locked exits. b. the use of antiquated and poorly maintained equipment. c. excessively long hours. d. All of these are correct. 45. Which of the following statements is true about prison labor? a. Prison labor is used in virtually all countries around the globe. b. Prison labor is practiced only in China. c. Prison labor has been abolished in all countries. d. Prison labor is used only in emerging economies. 53. You are international human resources consultant retained by Pacific Paper Products, a U.S. corporation headquartered in Seattle. PPP recently downsized its operations located in Germany, which resulted in significant layoffs. The basis of this decision was the inability of the German plants to generate sufficient revenues. Although marginally profitable, PPP concluded that it would be fiscally prudent to downsize the facilities. PPP provided ten days written notice to their employees at these facilities prior to their termination. In response, the employees have submitted claims for wrongful discharge. You have been retained to advise PPP's board of directors on the validity of these claims. Did PPP's closure of the plant violate German law? Are the former employees' claims for wrongful discharge valid? Why or why not? ANSWER: The workers' claims are valid. Under the German Works Constitution Act, PPP must fully inform the works council for its German plant within "due time" of any changes that might result in "substantial disadvantages for employees" and consult with it on such proposals. In the course of this consultation, PPP must solicit the works council's approval of the method for terminating workers. If PPP and the works council could not reach an agreement, then they must appear before an arbitration committee. In addition, PPP failed to notify the Federal Employment Institute of the layoffs as required by German law. True / False 1. A criticism of the revision to the Renewable Fuels Standards in 2014 was that it favored Midwestern-grown corn as a biomass source over more efficient alternatives available in foreign countries, such as sugar cane in Brazil. a. True b. False 2. The GATT allows member nations to impose tariffs on imported products that are not "sustainably" produced (that is, that are produced in ways that cause harm to the environment). a. True b. False 3. Under principles of customary international law, no state has the right to use or to permit the use of its territory in a manner causing serious consequences or injury if the injury can be demonstrated by clear and convincing evidence. a. True b. False 4. Many developing nations in order to attract foreign investment have decided not to enforce their labor and environmental laws. a. True b. False 5. The central problem in environmental law lies in determining which man has created activities that alter the environment to an unacceptable extent. a. True b. False 6. Conservationists have sought international environmental legal relief through dispute resolution, import bans, and multilateral treaties. a. True b. False 7. One dispute resolution mechanism used frequently in international disputes over the environment is binding adjudication. a. True b. False 8. Environmental issues are generally limited to cross-border pollution such a between the United States and Mexico. a. True b. False 9. One example of a global solution to a global environmental problem is a multilateral agreement concerning depletion of the ozone layer and the production of chlorofluorocarbons. a. True b. False 10. American law fails to regulate pesticides that are exported to other countries. a. True b. False 11. Before a U.S. firm can export hazardous waste to a foreign country, they must have written consent from that government delivered to the U.S. Environmental Protection Agency. a. True b. False 12. Due to the influence of chemical industry lobbyists, the United States Congress has no regulations over the export of chemicals to developing nations. a. True b. False 13. Most of the developing countries of Africa and Latin America are free from the environmental pollution of the heavily industrialized nations. a. True b. False 14. Developing countries are enforcing their respective environmental laws in order to reduce their industrial and transportation emissions. a. True b. False 15. Nations have made considerable progress in putting into effect regional agreements for the prevention of marine pollution. a. True b. False 16. Countries of the South Pacific have been very successful in enforcing strict environmental safeguards and have entered into regional environmental cooperation to combat creeping pollution. a. True b. False 17. The United Nations has done very little to address the issues of environmental matters due to the individual member nations' desire to advance their economic growth at the expense of pollution. a. True b. False 18. The Basel Convention on Transboundary Movements of Hazardous Wastes has been adopted by over 150 nations. a. True b. False 19. The Basel Convention prohibits shipments of hazardous wastes by a signatory country to a country that has not signed the convention. a. True b. False 20. The most important aspect of the Basel Convention has been that the signatory nations succeeded in defining what constitutes hazardous waste and therefore gain the acceptance of member nations in enacting strict environmental laws. a. True b. False 21. Because of the lack of international agreement to protect the ozone layer from damage by chemical emissions into the atmosphere, firms operating in developing countries will be able to continue to emit ozone damaging chemicals in the future. a. True b. False 22. Under the Montreal Protocol, trade in chlorofluorocarbons is strictly controlled. a. True b. False 23. Developing nations tend to oppose extensive international environmental regulation because it impairs their ability to profit from less-sophisticated production techniques. a. True b. False 24. There is no U.S. law forbidding the export of pesticides banned in the U.S. to foreign countries. a. True b. False 25. The U.S. prohibits the export of pesticides not approved by the U.S. EPA. a. True b. False 26. The "circle of poison" refers to the importation of crops produced in developing nations using pesticides banned in the U.S. a. True b. False 27. The environmental regulations in developed economies are rationalized to protect the global environment and encourage developing economies to enact similar environmental laws. a. True b. False 28. The export restrictions of hazardous materials under the Resources Conservation and Recovery Act are less onerous compared to the Federal Insecticide, Fungicide, and Rodenticide Act. a. True b. False 29. The World Trade Organization has been successful in imposing the environmental policies of developed nations upon all the developing economies members to enact such policies and compliance. a. True b. False 30. The Kyoto Protocol has been a resounding success for member nations that are signatories in reaching the quantitative goals. a. True b. False Multiple Choice 31. 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 state party has shown a pattern of failure to effectively enforce its environmental law. d. All of these are correct. 32. In the Shrimp Importation Case, the WTO Appellate Body determined that: a. the U.S. program certifying the use of TEDs or devices of comparable effectiveness was an unjustified discrimination against Malaysian shrimp products. b. The U.S. program certifying the use of TEDs or devices of comparable effectiveness was not an unjustified discrimination against Malaysian shrimp products. c. the U.S. program was invalid because it treated Malaysian shrimp differently than shrimp from other countries. d. the U.S. program was valid as it related to conservation of an exhaustible natural resource. 33. Developing nations generally favor: a. creation of a permanent trade and environment committee in the WTO. b. an ad valorem tax on all imports to promote environment-friendly development in poorer nations. c. transfer of environmentally appropriate technology for little or no charge. d. creation of a permanent trade and environment committee in the WTO and an ad valorem tax on all imports to promote environment-friendly development in poorer nations. e. An ad valorem tax on all imports to promote environment-friendly development in poorer nations and transfer of environmentally appropriate technology for little or no charge. 34. Which of the following statements are true about current international environmental conventions? a. The United States has signed the Biodiversity Convention. b. The United States has agreed to and set timetables for limiting carbon dioxide emissions in the Climate Change Convention. c. Third World countries have greater flexibility in complying with the Montreal Protocol on Substances that Deplete the Ozone Layer. d. All of these are correct. 35. In the area of solving international environmental issues, the North American approach has been to use: a. arbitration. b. the World Court. c. Bilateral treaties. d. mediation. 36. Within the European Union, an environmental action program came about because of: a. The Uruguay Rounds. b. The United Nations. c. The Bill of Rights. d. The Single European Act. 37. 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 these are correct. 38. The cornerstone of U.S. environmental regulation of exports is the concept of: a. receiving the prior informed consent of the foreign countries to which the exports are going. b. U.S. firms may not export any hazardous materials that they could not sell in the United States. c. advance permission to export from the Environmental Protection Agency. d. Receiving advance permission from the United Nations before exporting hazardous or toxic materials. 39. Before a U.S. firm can export chemical substances subject to the U.S. Toxic Substances Control Act: a. the firm must notify the EPA of the export. b. the firm must maintain adequate records. c. the EPA must notify the foreign country of destination. d. All of these are correct. 40. 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 United States, then allowed to be produced, and then banned again. c. The foreign sale of U.S.-made pesticides that have been banned in the United States and then reimported as a residue on imported foods. d. none of these are correct. 41. Dynatec, Inc. (a U.S. corporation based in New York) engages in oil drilling in Colombia. Indigenous Indian tribes finds that certain rivers and streams have become polluted as a result and that hunting and fishing are adversely affected. A U.S. lawyer brings a lawsuit on behalf of the tribe in federal district court in New York. Dynatec wants the action dismissed, or at least not heard by the federal court in New York. The best bet for the case not to be heard in the federal court in New York would be for the Dynatec lawyer to: a. move to dismiss for lack of personal jurisdiction. b. move to dismiss for lack of subject matter jurisdiction. c. move for a stay pending arbitration. d. Move for dismissal based on forum non convenient. 42. 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. Voluntary consent by nations to international litigation or arbitration of environmental disputes is rare and 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.. d. None of these are correct. 43. Which of the following laws regulate the export of hazardous materials? a. GATT. b. TOSCA. c. FIFRA. d. GATT and TOSCA. e. TOSCA and FIFRA. 44. NAFTA's Commission for Environmental Cooperation is committed to improving issues related to greenhouse gas emissions, which are concentrated gasses in the Earth's atmosphere derived from: a. coal mining. b. strip mining. c. Burning fossil fuels. d. extracting oil from shale. 45. Under NAFTA, the Commission for Environmental Cooperation's Strategic Plan for 2010-2015 states its top environmental priority is: a. limiting the expansion of climate change. b. reducing the effects of greenhouse gas emissions. c. Improving the health of children and other vulnerable communities. d. placing tighter restrictions on air and water pollution. 46. The EU has generally taken a more aggressive approach to environmental protection than the U.S. has. One significant example is the EU's requirement to carefully consider and approve the introduction of: a. Genetically modified organisms. b. herbicides and pesticides. c. gasoline-powered vehicles. d. nuclear power plants. 47. In many cases, nations that share bodies of water have cooperated significantly on environmental issues by: a. banning fishing in communal waters. b. prohibiting the dumping of all hazardous wastes into communal waters. c. Signing regional marine treaties that restrict hazardous behaviors. d. all of these are correct. 48. Not all nations embrace environmental protection laws. For example, _________ and _________ lead the emerging world's resistance to global attempts to outlaw technologies believed to cause climate change. a. China and Singapore b. China and India c. India and Pakistan d. Bangladesh and India 49. Which of the following is one of the challenges faced by African nations that make it difficult for them to develop and coordinate policies that maintain and improve the environment? a. Water scarcity and desertification b. Land and coastal degradation c. Political unrest d. All of these are correct 50. To minimize the effects and expansion of climate change, many nations, particularly those in Europe, are pushing hard for a global reduction in the use of: a. genetically modified organisms. b. pesticides. c. solar energy. d. Fossil fuels. 51. Which major industrialized nation has not ratified the Kyoto Protocol, even though nearly 200 countries have now ratified it? a. The United States b. Germany c. The United Kingdom d. Japan 52. In an effort to find alternatives to environmentally harmful energy sources, the U.S. Department of Energy established a Renewable Energy Biomass Program to encourage the development and improvement of technology for: a. solar energy. b. Biofuels. c. wind turbines. d. none of these are correct. 53. Which country has been considered a pioneer in the use of biofuels, particularly ethanol? a. Russia b. The United States c. Brazil d. Mexico 65. Kunming Amusement Company (KAC) is a toy manufacturer located in Yunnan province in southern China. KAC routinely dumps industrial waste from its manufacturing operations in the nearby Mekong River. The Chinese government is aware of this practice but has failed to take any action to prevent to occurrence or inform neighboring states. Two months ago, there was an industrial accident at KAC's manufacturing facility, which resulted in the significant discharge of numerous toxins (including lead-based paint) into the Mekong River. KAC informed the Chinese government of this accident, but the Chinese government failed to inform downstream states of the accident. As a result, people in Laos, Thailand, Cambodia and Vietnam unknowingly utilized tainted water for numerous domestic purposes, including drinking bathing, irrigation and watering of livestock. The accident was only discovered after numerous downstream users became ill and there were massive fish kills, which resulted in subsequent testing of the water and discovery of the contamination. If the United States responded to these events by increasing surveillance of KAC's toys for lead content, would such a ban be consistent with its obligations pursuant to GATT? Why or why not? If the United States responded to these events by banning importation of all Chinese toys manufactured in an environmentally unsound manner, would such a ban be consistent with its obligations pursuant to GATT? Why or why not? ANSWER: The increased scrutiny of KAC's toys for lead does not violate U.S. GATT obligations. Article XX(b) of GATT permits states to adopt measures necessary to safeguard the life and health of people, animals and plants within their jurisdiction. However, the ban on importation of all Chinese toys manufactured in an environmentally unsound manner would violate U.S. obligations pursuant to the GATT. As a general rule, states cannot exclude goods made in other states in an environmentally unsound manner. In this case, the ban does not protect U.S. citizens from harmful products and is unlikely to prevent the environmental harm from continuing in the future. 1. The Airtours v. Commissioner of European Communities case involved the question of whether a merger between two members of the oligopoly in the short haul segment of the airline industry would create a "collective dominant" business firm. a. True b. False 2. The antitrust laws of the European countries developed much earlier and were the model for the antitrust legislation in the United States. a. True b. False 3. The Tetra Laval BV v. Commission of the European Communities case applied correctly the "leveraging" theory in the rejection of the merger of Tetra Laval and Sidel that would horizontally and vertically dominate the plastic bottle plugs industry. a. True b. False 4. The European Parliament has criticized the European Commission for its flexible approach in the granting of block exemptions from normal competition rules for vertical agreements. a. True b. False 5. European courts addressing a patent issue are generally more favorable to patent holders than U.S. courts. a. True b. False 6. In the Hartford Fire Insurance Co. case, the U.S. Supreme Court determined that it could not assert jurisdiction over European companies in competition matters unless the companies had a direct physical presence in a U.S. state. a. True b. False 7. Antitrust laws have been enacted in all of the WTO members after World War II. a. True b. False 8. Antitrust law in the European Union are implemented by the Commission of the European Communities and are known as competition law. a. True b. False 9. The European Union's sophisticated antitrust law is based on and implemented through Article 1 and Article 2 of the Clayton Act. a. True b. False 10. The form of antitrust laws are enacted based on the particular circumstances of each nation and therefore are not uniform. a. True b. False 11. Prohibitions against agreements that restrict competition in the United States by the Justice Department are reviewed in the context of determining such an arrangement would enhance or inhibit a competitive market place. a. True b. False 12. In smaller countries, there tends to be a relatively lower tolerance for market domination. a. True b. False 13. Foreign competition law is similar in substance are modeled after American antitrust law and similar in the sanctions for violating the law. a. True b. False 14. Due to the fact that foreign competition law violations offer few, if any, damage awards, there is very little private litigation. a. True b. False 15. The analytical framework established by American antitrust law distinguishes between actions that are wrong per se and actions to which the rule of reason applies. a. True b. False 16. The European Union's competition law exemption system functions very much like the American antitrust law rule of reason. a. True b. False 17. The Europeans have structured their system to provide for resolution of competition law issues after the transaction has taken place, typically through litigation. a. True b. False 18. Through what is called a block exemption, the European Commission grants an automatic competition exemption to a variety of different types of transactions and agreements. a. True b. False 19. Under the European Commission's block exemption, the parties whose agreements fall under certain exempted categories only have to seek de minimis approval for their transactions to be considered exempt under competition law. a. True b. False 20. The U.S. has an analogous system to the European Union's system for resolving antitrust law issues prior to the transaction taking place. a. True b. False 21. The Europeans tend to be reluctant to apply their competition law to activity outside the EU. a. True b. False 22. The U.S. antitrust laws apply to the conduct of U.S. firms outside the territorial boundaries of the United States. a. True b. False 23. A clawback provision allows a foreign company to sue in their own country to recover against local American assets all or part of an antitrust judgment rendered in the U.S. a. True b. False 24. The European Court of Justice has shown little reluctance to find competition conspiracies between a European subsidiary and its American parent. a. True b. False 25. Patent licenses are not covered by the Commission of the European Union block exemptions. a. True b. False 26. American policy tends to be more forgiving of a patent holder's restrictions than the European Commission. a. True b. False 27. The Europeans view the monopoly in a patent as a danger to competition that should be minimized as much as possible. a. True b. False 28. The European Commission is even less flexible with respect to know-how transfer agreements than it is to patent licenses. a. True b. False 29. The European Court of Justice has issued a decision giving franchisor-franchisees great flexibility in structuring. a. True b. False 30. During the 1980s, the U.S. Justice Department took the offensive and aggressively enforced American antitrust laws in order to signal to the business community that any transactions that in violation of antitrust laws would be prosecuted. a. True b. False 31. The European Union and foreign nations have begun a spirited effort to beef up their competition laws. a. True b. False 32. Because The Sherman Act is a U.S. statutory law, it cannot be used to regulate or bring an action against a foreign company. a. True b. False 33. Despite the differences in antitrust laws among nations the substances of competition law is similar. a. True b. False 34. Prohibitions against agreements that restrict competition are relevant in international business transactions. a. True b. False 35. In Japan, there are few remedies for private causes of action for damages due to antitrust violations in civil court system. a. True b. False 36. Article 81(3) provides for an "individual exemption" of an otherwise violation of the Article 81, if the results there are positive economics effects overall. a. True b. False 37. The U.S. takes the position that a patent monopoly is essential to protect the patent holder and encourage innovation. a. True b. False 38. The European Union's enforcement agency in antitrust matters, which is analogous to the U.S. Federal Trade Commission and Justice Department, is the: a. Commission of the European Union. b. European Enforcement Agency. c. European Antitrust Task Force. d. none of these are correct. 39. The court that hears appeals from the EU's antitrust enforcement agency and referrals from the courts of the EU member states on competition issues is the: a. European Court of Justice. b. Community Supreme Court. c. European Court of Appeals. d. Antitrust Appellate Court. 40. 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. d. Neither I nor II. 41. The substance of many countries' antitrust law is very similar in focusing on two types of activity. 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. All of these are correct. 42. The European Union regulation that deals with "A concentration which creates or strengthens a dominant position...(impeding) competition...in the common market..." is: a. EU Antitrust Act. b. EU Workers Regulation. c. EU Unfair Trade Regulation. d. EU Merger Regulation. 43. When evaluating the effect of a merger, the European Union seeks to determine: a. the impact of the merger by totaling the total 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 these are correct. 44. The primary reason for the absence of much litigation under foreign competition law is: I. The preapproval process reduces the necessity for litigation. II. Differences in the remedies and types of sanctions for violations. III. Cultural attitudes toward antitrust law differ. a. I only. b. II only. c. III only. d. I and I. e. I, II, and III. 45. Under U.S. antitrust law: I. Most actions are brought by private individuals. II. Successful litigants can collect treble damages. a. I only. b. II only. c. Both I and II. d. Neither I nor II. 46. The U.S. antitrust law distinguishes between actions that are: a. Per se wrong and actions to which the role of reason applies. b. marginally wrong and actions to which the rule of reason applies. c. partially wrong and actions to which the rule of best judgment applies. d. good and bad. 47. 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. 48. The European Union uses an exemption system in its competition law. This means that: a. certain industries are exempted from antitrust law because of their technology. b. An agreement can be entered into if the prospective parties can obtain a "negative clearance" from the European Commission. c. certain countries are exempt from the competition law until they reach further economic development. d. none of these are correct. 49. Under the EU merger regulations, preapproval is not needed under which 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 these are correct. 50. The European Commission has given exemptions in all of the following areas except: a. exclusive purchasing agreements. b. patent license agreements. c. motor vehicle distribution agreements. d. Merger agreements. 51. Under U.S. antitrust law, certain mergers and joint venture agreements must be brought before whom before they are concluded? a. Congress b. President c. Federal Trade Commission d. Department of Justice 52. EU competition law applies only to agreements and transactions that: a. involve an EU-based company. b. Have an effect on intra-EUC trade. c. the EU wishes to have its approval and involvement. d. have a direct impact on foreign commerce. 53. In 1982, the U.S. Congress passed a law to clarify the standard to be applied in determining the extraterritorial effect of American antitrust laws. This was: a. The Foreign Trade Antitrust Improvements Act. b. The Miller-Hastings Antitrust Extraterritorial Act. c. The Antitrust Effect Act. d. The Jones-Burden Competition Act. 54. The 1982 act passed by Congress in order to clarify the standard to be applied in determining the 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. 55. "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 these are correct. 56. The American antitrust law policy toward patent licenses: a. Tends to be more forgiving of a patent holder's restrictions on its licenses. b. views the patent monopoly as a danger to competition. c. lends itself to abuse by the patent holder. d. none of these are correct. 57. Which of the following Acts created a review process under which mergers, joint venture agreements, and similar transactions must be brought before the Department of Justice for review before they are concluded? a. The Clayton Act b. The Smoot-Hawley Act c. The Hart-Scott-Rodino Act d. The Kyoto Protocol 58. Which U.S. Act prohibits mergers and acquisitions when the effect may be substantially to lessen competition or to tend to create a monopoly? a. The Clayton Act b. The Hart-Scott-Rodino Act c. The Smoot-Hawley Act d. The Kyoto Protocol 59. In the U.S., which type of merger is considered to pose the biggest threat to competition because they are the most likely to create or enhance dominance in the market? a. Horizontal b. Vertical c. Multi-industry d. All of these are correct 60. In recent years, Japan has brought its stance on mergers more into line with international practices by revising its Antimonopoly Act to require: a. horizontal mergers. b. confidential prior consultation. c. Prior notification. d. all of these are correct. 61. In China, a qualifying merger or acquisition is referred to as a: a. concentration of businesses. b. Concentration of undertakings. c. controlled undertaking. d. none of these are correct. 62. Under Chinese law, a merger or acquisition qualifies for review if: a. a transfer of control must occur. b. it will result in the acquisition of control over another undertaking. c. it results in the ability to exercise decisive influence over another undertaking. d. All of these are correct. 63. Antitrust law in _________ poses the possibility of criminal liability, but this is not possible in ______. a. The United States; Europe b. the United States; China c. China; the United States d. Europe; Japan [Show More]

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